Private ruling: Small business concessions
Date of advice: 9 September 2020
Published: October 2020
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you meet the basic conditions for small business concessions in accordance with section 152-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The Commissioner accepts that you meet the basic conditions to make use of the small business replacement asset rollover as per subdivision 152-E of the ITAA 1997. For more information please see QC 52291 on ato.gov.au. Please note that the Commissioner has not determined your eligibility to use the small business 15-year exemption or the small business retirement exemption.

Relevant facts and circumstances: You operated a primary production business of cattle grazing and hay production with your spouse in a family partnership on property 1. Your purchased property 1 after leasing it for the previous XXX years. Property 1 has been used in the partnerships primary production business for a number of years. The income for the partnership is less than $XXX dollars per year. You have lodged partnership income tax returns with the Australian Taxation Office (ATO) declaring the income from your primary production activities. Property 1 was sold creating a capital gain. Your share of the sale proceeds is XX% and your spouse's share is the remaining XX%. You and your spouse have had a marriage breakdown. You and your spouse entered into a Binding Financial Agreement (BFA) in accordance with section 90C of the Family Law Act 1975 . You and your spouse also own property 2 as joint tenants. The BFA advises that the ownership title of property 2 will be transferred to you as the sole owner after transferring your spouse an amount of $XXX. You will commence your own primary production business of cattle grazing and hay production on property 2. Property 2 will also be your main residence. Property 1 has been used in the partnerships primary production business for at least half of the active asset test period.

Relevant legislative provisions: Income Tax Assessment Act 1997 section100-45 | Income Tax Assessment Act 1997 section 152-10 | Income Tax Assessment Act 1997 section 152-35 | Income Tax Assessment Act 1997 subdivision 152-E