Private ruling: CGT - small business concessions - 15 year exemption - in connection with retirement
Date of advice: 6 January 2026
Published: 2 March 2026
Ruling period: The year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are the sales of the two premises CGT events that happened in connection with the significant individual's retirement under subparagraph 152-110(1)(d)(i) of the Income Tax Assessment Act 1997 (ITAA 1997) for the purposes of the 15-year exemption in Subdivision 152-B of the ITAA 1997? | A1: Yes. Although the premises were sold after the significant individual's retirement, the Commissioner considered the following factors relevant to finding that the CGT events did happen in connection with that retirement: The sale of the premises was part of a documented plan for the significant individual's retirement, which would have been completed in a shorter timeframe had there not been certain delays, and those delays were due to factors largely outside the control of the significant individual.

Relevant facts and circumstances: The company owned two premises. The significant individual operated a business through a discretionary trust for over 30 years. The business was operated from the two premises. The business was sold to a member of the significant individual's family. The capital gain on the sale of goodwill of the business was disregarded under Subdivision 152-B satisfying the necessary conditions and being in connection with the significant individual's retirement. The significant individual's original plan outlined and documented was to sell both the business and the two premises to fund their retirement. When the business was sold, the significant individual planned to also sell the two premises to the same buyer, with the premises being rented by the buyer in the interim. The sale of the business occurred by way of vendor finance. There was an assumption that the buyer would be able to payout the vendor finance after operating the business for 12 months. There was an expectation that after this occurred, the sale of the two premises would be executed within the next 2 years. Various events including COVID delayed the payout of the vendor finance and delayed the sale of the premises. Rent continued to be paid on the buildings. After some time, the family member who purchased the business advised that they could not purchase both premises. Premises 1 and Premises 2 were then both sold to separate buyers. The significant individual intends to utilise all available Superannuation caps, to add to their existing superannuation membership amounts from the proceeds of sale of the two premises. The significant individual ceased gainful employment on the sale of the business and otherwise attended to the required maintenance and upkeep of the premises until their sale.

Relevant legislative provisions: Income Tax Assessment Act 1997 subparagraph 152-110(1)(d)(i)