Private ruling: Small Business Concessions - Retirement Exemption.
Date of advice: 11 December 2019
Published: February 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you entitled to the Capital Gains Tax Small Business Retirement Exemption? | A1: Yes

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You and your spouse purchased a property over 15 years ago as joint owners. The property was used leased to your business in which you have a 50% shareholding. Your spouse holds the remaining 50%. The property has been used solely to operate the business with no private use since it was purchased and meets the aggregated turnover of less than $2,000,000. A contract for the sale of the property has been signed with the settlement date imminent. You are under 55 years of age and will make a personal contribution equal to the exempt amount to your Self-Managed Superannuation Fund. You satisfy the maximum net asset value test as the net asset value of you, your spouse, affiliates and connected entities is less than $6,000,000.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-40 | Income Tax Assessment Act 1997 subsection 328-125 | Income Tax Assessment Act 1997 subsection 328-125 | Income Tax Assessment Act 1997 Subdivision 152-D