Private ruling: CGT - small business concession
Date of advice: 6 November 2023
Published: 18 December 2023
Ruling period: Year Ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the disposal of the farm satisfy the requirements of the 15-year exemption in section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. You satisfy the maximum net asset value test. You have owned the farm for more than 15 years and it was used in your business from 19XX to 20XX. The farm was continuously owned for a 15-year period before the CGT event. You are going to use the sale of your farm to retire. You are over 55 years old and plan to be retired after the settlement of the sale of the farm.

Relevant facts and circumstances: You operated a farming business. The farm was purchased in 19XX. This business commenced in 19XX. In 20XX the business operations were wound down. You decided to sell the farm and this occurred in 20XX. At the time of sale of the farm, you were over 55 years old. The farm was sold so that you could retire. You plan to be retired after the settlement of the sale of the farm. The farm was an active asset. The farm operated as a business continuously for more than 15 years. You meet the maximum net asset value at the time the property sold.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 Subdivision 152-B | Income Tax Assessment Act 1997 section 152-105