Private ruling: CGT – small business concessions – 15 year exemption
Date of advice: 17 July 2018
Published: September 2018
Ruling period: Financial year ending 30 June 2018 | Financial year ending 30 June 2019
Date scheme commenced: 1 July 19XX

Ruling: Q1: Are you eligible for the 15 year exemption in Subdivision 152-B of the Income Tax Assessment Act 1997 in relation to the sale of your post-CGT farmland and post-CGT water rights? | A1: Yes. You meet both the basic conditions of the CGT small business concessions and additional conditions relevant to the 15 year CGT exemption.

Relevant facts and circumstances: You are partners and carry on a primary production business in partnership. You originally acquired pre-CGT farmland and water rights with another party and commenced your activities in partnership. After 19 September 1985, the partnership between the two parties was dissolved, and the assets divided by a deed. You continued to hold some of the assets. You later acquired further farmland and water rights. You will retire and sell your farmland. You have provided details of the acquisition costs at different times. You also hold water rights. The farmland and water rights have been used in your primary production business since acquisition of each parcel, with the exception of a small amount of water rights sold in a previous year. The property is currently listed for sale with an agent. You are both aged over 55 and are permanently retiring. The aggregated turnover of the business has always been less than $2million.

Relevant legislative provisions: Income Tax Assessment Act 1997 Part 3-1 | Income Tax Assessment Act 1997 Part 3-3 | Income Tax Assessment Act 1997 Subdivision 152-A | Income Tax Assessment Act 1997 Subdivision 152-D