Private ruling: Small business concessions
Date of advice: 18 September 2020
Published: November 2020
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will Individual A and Individual B satisfy paragraph 152-10(1)(c)(iii) of the Income Tax Assessment Act 1997 on the disposal of the properties? | A1: Yes. The Commissioner is satisfied that Individual A and Individual B are partners in a partnership and the properties are CGT assets of the partnership.

Relevant facts and circumstances: Individual A and Individual B currently own a 50% interest in the Properties. For the period from 19XX through to 30 June 20XX, you carried out a primary production business over these properties (and other properties they also held during that period) through the partnership. From 1 July 20XX through to 30 June 20XX Individual A and Individual B continued to carry out a primary production business on these properties through various partnerships in which they held between them more than 40% of the partners' interests. During the period 1 July 20XX through to 30 June 20XX, the partnership continued to operate as a tax law partnership between Individual A and Individual B. During this period the partnership leased the properties along with other properties they held during this period, to the various trading partnerships noted above. On 1 July 20XX, Individual A and Individual B commenced a cattle trading business through the partnership. The aggregated turnover from this business activity was less than $XXX for the 20XX-20XX year, and the partnership has continued carrying on this business to date. This business is conducted on other land held by the partnership. From 1 July 20XX, the partnership started leasing the properties and other land held by the partnership (excluding the land the partnership is using for its own cattle trading operations) to another entity that is not connected to the partnership, Individual A and Individual B for the purposes of subdivision 328-C of the ITAA 1997. The partnership has retained the same ABN since this number was issued to the partnership on XX January 20XX. The properties have consistently been reported on the balance sheet of the partnership. Individual A and Individual B have considered these properties to be assets of the partnership since their respective times of acquisition. Individual A and Individual B wish to transfer the properties to Individual C within the next 12 months.