Private ruling: Small business CGT concessions
Date of advice: 20 March 2019
Published: May 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Do you meet the basic conditions for the small business CGT concessions on the sale of the property? | A1: Yes. You satisfy the basic conditions for the following reasons. Your CGT asset is used in a business carried on by a small business entity that is your affiliate. You satisfy the conditions of the active asset test as the asset has been used for at least 7.5 years in a business carried on by your affiliate and the exceptions do not apply. Further information on the small business concessions and passively held assets can be found by searching 'QC 44192' on ato.gov.au

Relevant facts and circumstances: You own a property. You do not carry on a business but primary production businesses are undertaken on your property. One is carried on by your spouse and the other is carried on by a com pany. You are a shareholder of the company along with your spouse and your adult child and their spouse. The Company pays rent which varies from year to year and may or may not amount to a market rent in any year. There are no written leases in place. The combined turnover of your spouse and the company is less than $2 million. You plan to transfer your property to your adult child as part of a farm family succession plan.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 section 152-47 | Income Tax Assessment Act 1997 section 328-115 | Income Tax Assessment Act 1997 section 328-130