Private ruling: CGT small business concessions
Date of advice: 26 April 2022
Published: July 2022
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will individual A and individual B satisfy the condition outlined in subparagraph 152-10(1)(c)(iii) of the Income Tax Assessment Act 1997 (ITAA 1997) on the disposal of properties? | A1: Yes. The Commissioner is satisfied that individual A and individual B are partners in a partnership, and that the properties are CGT assets of the partnership.

Relevant facts and circumstances: You are partners in a partnership. The partnership has retained the same ABN since it was issued. The partnership operates a primary production business which has commenced. The properties have been assets of the partnership since the date they were acquired. Each partner owns a 50% interest in the properties. The partnership has leased the properties to another entity that is not connected to the partnership, individual A, or individual B for the purposes of subdivision 328-C of the ITAA 1997. The primary production business activity is conducted on other land held by the partnership. In prior income years the partnership has had an aggregated turnover less than $X million. You anticipate that the aggregated turnover for the partnership in future income years will remain less than $X million.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 152 | Income Tax Assessment Act 1997 Subparagraph 152-10(1)(c)(iii) | Income Tax Assessment Act 1997 Subsection 152-10(1AA) | Income Tax Assessment Act 1997 Subdivision 328-C | Income Tax Assessment Act 1997 Paragraph 108-5(1)(a) | Income Tax Assessment Act 1997 Paragraph 108-5(2)(c) | Income Tax Assessment Act 1997 Paragraph 108-5(2)(d)