Private ruling: Small business concessions - in connection with retirement
Date of advice: 23 November 2021
Published: February 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the sale of the Business, including property and buildings, be in connection with your retirement for the purposes of the small business 15 year exemption in section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. We consider that the sale of your Business will be in connection with your retirement for the purposes of the small business 15 year exemption. Having considered the circumstances we accept that subparagraph 152-105(d)(i) of the Income Tax Assessment Act 1997 will be satisfied given the significant change in the activities and the overall reduction in the number of hours worked.

Relevant facts and circumstances: You have operated a business since 19XX. You spend approximately XX hours a week attending to duties relating to the business. You also work X to XX hours a week in an unrelated sector. You are over 55 years of age. You intend to sell your Business, including the property and all buildings attached to it. Once the business is sold you will also reduce the number of hours you work in the unrelated sector.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-105 | Income Tax Assessment Act 1997 subparagraph 152-105(d)(i)