Private ruling: CGT - small business concession
Date of advice: 10 December 2025
Published: 27 January 2026
Ruling period: Income year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Does the property (Property) satisfy the active asset test pursuant to section 152-35 of the Income Tax Assessment Act 1997 (ITAA 1997) and the meaning of active asset pursuant to section 152-40 of the ITAA 1997? | A1: Yes. The Property meets the definition of active asset under section 152-40 of the ITAA 1997 and satisfies the active asset test pursuant to section 152-35 of the ITAA 1997 as it was actively used to carry on your business for the entire ownership period. | Q2: Do you satisfy the basic eligibility conditions for the small business capital gains tax concessions under section 152-10 of the ITAA 1997 in relation to the sale of the Property? | A2: Yes. All basic eligibility conditions for the small business capital gains tax concessions under section 152-10 of the ITAA 1997 have been met as CGT event A1 happened when you disposed of the Property which resulted in a capital gain. You were a small business entity with an annual aggregate turnover of less than $2 million for the relevant income year.

Relevant facts and circumstances: You acquired the Property to carry on your business in 20XY. You used the Property to run your business for the entire ownership period. You entered into a contract to sell the property in 20XX. The sale of your property resulted in a capital gain. Your annual aggregated turnover was less than $2 million for the relevant income years.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 104-10 | Income Tax Assessment Act 1997 section152-10 | Income Tax Assessment Act 1997 section152-35 | Income Tax Assessment Act 1997 section152-40 | Income Tax Assessment Act 1997 paragraph 152-40(4)(e) | Income Tax Assessment Act 1997 section 328-110