Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p1
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/19)
Character Range: 2033–5034

1  Section 149‑170 (link note)
Repeal the link note, substitute:

[The next Division is Division 152.]

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 Applying the small business concessions
152‑D Small business retirement exemption
152‑E Small business roll‑over

[This is the end of the Guide.]

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, then a small business entity may be able to reduce its capital gains using the small business concessions in this Division.
      The 3 major basic conditions are:

                (a) a limit of $5,000,000 on the net value of assets that the business and related entities own;
                (b) the CGT asset must be an active asset;
                (c) if the asset is a share or interest in a trust, there must be a controlling individual just before the CGT event and the entity claiming the concession must be a CGT concession stakeholder in the company or trust.

      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.
      The small business concessions (apart from small business roll‑overs) are not available for CGT events J2 and J3.

Table of sections

Basic conditions for relief

152‑10 Basic conditions for relief

Maximum net asset value test

152‑15 Maximum net asset value test
152‑20 Meaning of net value of the CGT assets
152‑25 Meaning of small business CGT affiliate
152‑30 Meaning of connected with the entity

Active asset test

152‑35 Active asset test
152‑40 Meaning of