Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p7
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 7/29)
Character Range: 2861603–2864390

CGT event.
Note: A normal business payment, for example, a payment of wages, would not be made "in relation to the exempt amount".
 (2) In determining the taxable income of the company, the trust, the individual, or any of the interposed entities, disregard the total amount of the payment or payments made to the *CGT concession stakeholder, up to the following limit:
  where:
stakeholder's participation percentage means:
 (a) in the case of a company or a trust referred to in item 2 of the table in subsection 152‑70(1)—the stakeholder's *small business participation percentage in the company or trust just before the relevant *CGT event; or
 (b) in the case of a trust referred to in item 3 of that table—the amount (expressed as a percentage) worked out using the following formula:
 (3) If a company makes such a payment, this Act applies to the payment, to the extent that it is less than or equal to the limit mentioned in subsection (2), as if:
 (a) it were not a *dividend; and
 (b) it were not a *frankable distribution.
 (4) The Commissioner may extend the time limit under paragraph (1)(b).

Subdivision 152‑C—Small business 50% reduction

Guide to Subdivision 152‑C

152‑200  What this Subdivision is about

      This Subdivision tells you how to apply the small business CGT concessions mentioned in step 4 of the method statement in subsection 102‑5(1).
      A capital gain is reduced by 50% if the basic conditions in Subdivision 152‑A are satisfied.
      If the capital gain has already been reduced by the discount percentage, the 50% reduction under this Subdivision applies to that reduced gain.
      The capital gain may be further reduced by the small business retirement exemption or a small business rollover, or both.
      Alternatively, you may choose not to apply the 50% reduction and instead apply the small business retirement exemption or small business rollover.
      None of these rules apply if the 15‑year exemption already applies to the capital gain, since such a gain is disregarded anyway.

Table of sections
152‑205 You get the small business 50% reduction
152‑210 You may also get the small business retirement exemption and small business roll‑over relief
152‑215 15‑year rule has priority
152‑220 You may choose not to apply this Subdivision

152‑205  You get the small business 50% reduction
  The amount of a *capital gain remaining after applying step 3 of the method statement in subsection 102‑5(1) is reduced by 50%, if the basic conditions in Subdivision 152‑A are satisfied for the gain.
Example: For an individual (other than one who opts to claim indexation instead of the discount), the discount percentage that applies under step 3 of the method statement is 50%. Therefore, the combined effect of the discount percentage