Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 3/18)
Character Range: 2807468–2810438

the stopping time.

Division 152—Small business relief

Guide to Division 152

152‑1  What this Division is about

      To help small business, if the basic conditions for relief are satisfied, capital gains can be reduced by the various concessions in this Division. Those basic conditions are in Subdivision 152‑A. Some of the concessions have additional, specific conditions that must also be satisfied.
      The 4 available small business concessions are:

                (a) the 15‑year exemption (in Subdivision 152‑B);
                (b) the 50% reduction (in Subdivision 152‑C);
                (c) the retirement concession (in Subdivision 152‑D);
                (d) the roll‑over (in Subdivision 152‑E).
      A capital gain that qualifies for the 15‑year exemption is disregarded entirely and is not taken into account under the method statement in subsection 102‑5(1). By contrast, the other concessions are only activated by step 4 of that method statement. This means that you must apply all available capital losses against your capital gains (under steps 1 and 2) before you can reduce them using those 3 concessions.

Table of Subdivisions
152‑A Basic conditions for relief under this Division
152‑B Small business 15‑year exemption
152‑C Small business 50% reduction
152‑D Small business retirement exemption
152‑E Small business roll‑over

Subdivision 152‑A—Basic conditions for relief under this Division

Guide to Subdivision 152‑A

152‑5  What this Subdivision is about

      This Subdivision sets out some basic conditions for relief. If the basic conditions are satisfied, an entity may be able to reduce its capital gains using the small business concessions in this Division.
      The 2 major basic conditions are:
             (a) the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000; and
             (b) the CGT asset must be an active asset.
      Additional basic conditions must be satisfied in the following circumstances:
             (a) the CGT asset is a share in a company or an interest in a trust;
             (b) the CGT event involves certain rights or interests in relation to the income or capital of a partnership.
      Some of the concessions have additional, specific conditions that also must be satisfied. For example, the 15‑year exemption applies only if you have held the CGT asset for at least 15 years and you retire.
      There are limitations on the availability of the small business concessions for CGT events J2, J5 and J6.
      You do not need to satisfy the basic conditions for the retirement exemption in relation to CGT events J5 and J6.

Table of sections

Basic conditions for relief
152‑10 Basic conditions for relief
152‑12 Special conditions for CGT event D1

Maximum net asset value test
152‑15 Maximum net asset value test
152‑20