Private ruling: Capital gains tax – small business concessions
Date of advice: 10 October 2017
Published: March 2018
Ruling period: 30 June 2019
Date scheme commenced: 1 July 2017

Ruling: Q1: Does the property satisfy the small business active asset test? | A1: Yes Having considered your circumstances and the relevant factors, you satisfy the small business active asset test under subdivision 152-A of the Income Tax Assessment Act 1997 . Further information on the relevant factors and small business concessions can be found on our website ato.gov.au and entering Quick Code QC22165 into the search bar at the top right of the page.

Relevant facts and circumstances: You and your spouse acquired property in Australia in 19XX and 19XX respectively totalling more than 50 hectares. You each had equal shares as tenants in common since the purchase date and conducted a farming business on the land. The property was reconstructed into two new lots still totalling more than 50 hectares. One lot was sold in 20XX and the other lot was retained by you and your spouse as joint owners. Your spouse passed away in 20XX where you acquired their ownership interest. You conducted the farming business as in a partnership up until 20XX and have continued to run the business on the land since your spouse’s date of death as an individual. You have continuously owned the property for more than 15 years, carrying on a business as an individual or as a partner in a partnership. You intend to sell the property within two years.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 104-10, | Income Tax Assessment Act 1997 Section 152-10, | Income Tax Assessment Act 1997 Section 152-35, and | Income Tax Assessment Act 1997 Section 152-40.