Private ruling: Small business concessions
Date of advice: 17 September 2018
Published: October 2018
Ruling period: Financial year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is your spouse taken to be your affiliate in accordance with section 152-47 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. In your case, you own the property which is used in a business that is connected with your spouse. Therefore your spouse is considered to be your affiliate for the purposes of the small business concessions. | Q2: Do you satisfy the basic conditions of section 152-10 of the ITAA 1997 for the capital gain derived by you to be reduced or disregarded by Division 152 of the ITAA 1997? | A2: Yes. In your case, a CGT event happened in the 20XX income year when the property was sold which resulted in a capital gain. You were connected with the small business entity through your spouse. The property was an active asset of the small business entity in that year. Accordingly, you satisfy the basic conditions to access the small business concessions.

Relevant facts and circumstances: Your spouse operates a small business entity. The business operated at a property purchased by you for the conduct of your spouse’s business. The small business entity operated at the property for over 15 years. The business ceased in the 20XX income year. The property was sold in the same year. You do not carry on any business.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 102-20 | Income Tax Assessment Act 1997 Section 152-10 | Income Tax Assessment Act 1997 Section 152-35 | Income Tax Assessment Act 1997 Section 152-40 | Income Tax Assessment Act 1997 Section 152-47 | Income Tax Assessment Act 1997 Section 328-110 | Income Tax Assessment Act 1997 Section 328-115 | Income Tax Assessment Act 1997 Section 328-120 | Income Tax Assessment Act 1997 Section 328-125