Private ruling: Active asset test
Date of advice: 24 September 2025
Published: 24 November 2025
Ruling period: Year ending 30 June 2025
Date scheme commenced: 1 July 2024

Ruling: Q1: Does the property satisfy the active asset test under section 152-35 of the Income Tax Assessment Act 1997 ? | A1: Yes, the property satisfies the active asset test as you owned the asset for more than 15 years and it was used or held ready for use in the course of carrying on your business for more than 7.5 years in accordance with paragraph 152-35(1)(b) of the ITAA 1997.

Relevant facts and circumstances: You purchased a property more than 20 years ago. Immediately after the purchase of the property you commenced a business on the property which continued until you sold the property. The aggregated annual turnover has never exceeded $2 million. You sold the property during the year ended 30 June 2025 You owned the property for more than 15 years and the property was used in the course of carrying on the business for the whole ownership period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-35