Private ruling: CGT - 15-year exemption
Date of advice: 21 October 2025
Published: 8 December 2025
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the company be eligible for the 15-year exemption in section 152-110 of the Income Tax Assessment Act 1997 on the disposal of the commercial property? | A1: Yes. The company is eligible for the 15-year exemption because: • the net value of assets of the company, its entities connected with them, and any affiliates connected with them was less than $X, and • the property was owned for more than X years, and • the property was used in the company's business of a truck sale yard for more than X years, and • the company had a significant individual for more than X years, and • the significant individual at the time of the CGT event was over X years old and is retiring as a result of the CGT event.

Relevant facts and circumstances: Person A and their wife, Person B, owned the shares in the company. The company purchased the property in 19XX. The company carried on a business of a truck saleyard using the property for over X years, commencing in 19XX and finishing in 20XX. From years 20XX to 20XX, the property was used to derive commercial rental income. Person B passed away and their shareholding passed to Person A. Person A passed and in accordance with their will, the shares passed to 4 shareholders of 25% each. Person C is a current shareholder and a director of the company. The property was sold on in the 20XX income year for approximately $X. Person C is managing affairs of the company and will retire once the property sold and the company wound up. Person C also is a director of another unrelated corporate trustee but will be ceasing this activity to retire. Person C is over XX. After the sale of the property, the company will be wound up. The net asset value of the company is less than $X. There are no other connected or affiliated entities or individuals.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subdivision 152-A | Income Tax Assessment Act 1997 section 152-110