Document ID: chunk:federal_register_of_legislation:C2010C00612:clause:1_1:p2
Version: federal_register_of_legislation:C2010C00612
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 2/19)
Character Range: 4792–7495

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 active asset
152‑45 Continuing time periods for involuntary disposals

Controlling individual test

152‑50 Controlling individual test
152‑55 Meaning of controlling individual

CGT concession stakeholder

152‑60 Meaning of CGT concession stakeholder

[This is the end of the Guide.]

Basic conditions for relief

152‑10  Basic conditions for relief

 (1) A *capital gain you make may be reduced or disregarded under this Division if the following basic conditions are satisfied for the gain:
 (a) a *CGT event happens in relation to a *CGT asset of yours in an income year;
 (b) the event would (apart from this Division) have resulted in the gain;
 (c) you satisfy the maximum net asset value test (see section 152‑15);
 (d) the CGT asset satisfies the active asset test (see section 152‑35).

 (2) If the *CGT asset is a *share in a company or an interest in a trust, there are 2 additional basic conditions:
 (a) the company or trust satisfies the controlling individual test (see section 152‑50);
 (b) you are a *CGT concession stakeholder in the company or trust.

Example: Ann and her spouse Brett carry on a business through a company in which Ann owns 40% of the shares and Brett 60%. Ann sells her shares and wants to claim the small business concessions. The condition in paragraph (a) is satisfied because Brett's 60% makes him a controlling individual of the company. The condition in paragraph (b) is satisfied because Ann is a CGT concession stakeholder in the company, in that Ann owned some shares just before the CGT event and was the spouse of a controlling individual (Brett) at that time.

 (3) In addition to the basic conditions in this section, some of the concessions in this Division have extra conditions that must be satisfied for the concession to be available. These extra conditions are set out in the relevant Subdivisions.

 (4) This Division, apart from Subdivision 152‑E, does not apply to *CGT events J2 and J3.

Note: Those CGT events are about previous applications of the roll‑over in Subdivision 152‑E.

Maximum net asset value test

152‑15  Maximum net asset value test

  You satisfy the maximum net asset value test if, just before the *CGT event:
 (a) the sum of the following amounts does not exceed $5,000,000:
 (i) the *net value of the CGT assets of yours;
 (ii) the net value of the CGT assets of any entities *connected with you;
 (iii) the net value of the CGT assets of any *small business CGT affiliates