Private ruling: CGT - small business concessions
Date of advice: 1 October 2025
Published: 17 November 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is your parent an affiliate of yours as defined in section 328-130 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Having regard to the factors the Commissioner considers relevant your parent is considered to have been your affiliate during the period you owned your interest in the Property. This is on the basis of your close family relationship, the business dependence on the use of the property without consideration, the absence of formal arrangements and the consultations regarding the business decisions affecting the Property. It is reasonable to conclude that your parent acted in concert with you.

Relevant facts and circumstances: You acquired your interest in the Property in the 20YY financial year. Your parent used the property in their sole trader business throughout the entire period of your ownership until it was sold in the 20YY financial year. You never received any share of the net business income. The aggregated turnover of your parent's business in the 20YY financial year is under $2 million. Your parent conducted his business on the Property with your verbal consent. There was never a formal lease in place for the usage of the land. Your parent's ability to conduct the business in a commercially viable way was dependent on you allowing him to use the Property without the payment of rent. Your parent made nominal contributions to the water usage costs and payment of rates for the Property. Your parent was in regular contact with you during the time he conducted his business on the Property. You were advised by your parent of pertinent matters relating to the business. Your parent sought your approval for any business activities involving changed usages, capital works or repairs done to the Property. You occasionally assisted with mustering and drenching the sheep. You received no financial rewards or benefits.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 328-130