Private ruling: CGT- 15-year exemption
Date of advice: 5 May 2026
Published: 20 July 2026
Ruling period: Year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Can you disregard the capital gain made on the disposal of the Property under the 15-year exemption in section 152-110 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. You satisfy the basic conditions under Division 152-A of the ITAA 1997. The land was continuously owned by you for over X years. In the 20YY income year you will make a distribution of X% income and capital to individual A. Therefore, person A is considered to have a X% small business participation percentage in the relevant year. You are considered to have a significant individual for X years and one of those significant individuals, individual A was over X years old when the land sold. After the sale, individual A is ceasing work once the sundry administration is complete, so we consider the sale of the land was in connection with individual A's retirement. Therefore, you are entitled to apply the small business X-year exemption under section 152-110 of the ITAA 1997.

Relevant facts and circumstances: You purchased land on D August 20YY for $XXX,XXX. You have continuously owned the land for the entire ownership period. From the date of acquisition the company, used the land to conduct a business until the sale of the land. You received rent from the business for the use of the property. Individual A is the Trustee for the Family Trust. Individual A is the sole director and controlling shareholder of the company. You are a discretionary trust and individual A and individual B are beneficiaries of the family trust. You sold the land on D October 20YY for $X,XXX,XXX plus GST. Individual A was over the age of 55 years old at the time of the CGT event and will cease working once all sundry administration is completed. You, any entities connected to you, your affiliates and entities connected with your affiliate's did not exceed $6 million just before the CGT event. The land was never rented to a third party throughout the entire ownership period. Table 1 : Distributions of the Family Trust Year Distributions of the Family Trust 20YY Individual B X% Individual A X% 20YY Individual B X% Cell left intentionally blank NA 20YY Individual B X% Cell left intentionally blank NA 20YY Individual B X% The company X% 20YY Individual B X% The company X% 20YY Individual B X% The company X% 20YY Individual B X% The company X% 20YY to 20YY Individual B X% Cell left intentionally blank NA 20YY to 20YY Individual A X% Cell left intentionally blank NA

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 section 152-40 | Income Tax Assessment Act 1997 section 152-105 | Income Tax Assessment Act 1997 section 152-110 | Income Tax Assessment Act 1997 section 328-125