Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p8
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 8/18)
Character Range: 2819960–2822629

J5 and J6 in relation to the retirement exemption (see subsection 152‑305(4)).

152‑12  Special conditions for CGT event D1
 (1) Paragraphs 152‑10(1)(a) and (d) do not apply in the case of *CGT event D1.
 (2) Instead, it is a basic condition that the right you create that triggers the *CGT event must be inherently connected with a *CGT asset of yours that satisfies the active asset test (see section 152‑35).

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, the sum of the following amounts does not exceed $6,000,000:
 (a) the *net value of the CGT assets of yours;
 (b) the net value of the CGT assets of any entities *connected with you;
 (c) the net value of the CGT assets of any *affiliates of yours or entities connected with your affiliates (not counting any assets already counted under paragraph (b)).
Note 1: Some assets are not included in the definition of net value of the CGT assets: see subsections 152‑20(2), (3) and (4).
Note 2: The meaning of connected with is affected by section 152‑78.

152‑20  Meaning of net value of the CGT assets

Meaning of net value of the CGT assets
 (1) The net value of the CGT assets of an entity is the amount (whether positive, negative or nil) obtained by subtracting from the sum of the *market values of those assets the sum of:
 (a) the liabilities of the entity that are related to the assets; and
 (b) the following provisions made by the entity:
 (i) provisions for annual leave;
 (ii) provisions for long service leave;
 (iii) provisions for unearned income;
 (iv) provisions for tax liabilities.

Assets to be disregarded
 (2) In working out the net value of the CGT assets of an entity:
 (a) disregard *shares, units or other interests (except debt) in another entity that is *connected with the first‑mentioned entity or with an *affiliate of the first‑mentioned entity, but include any liabilities related to any such shares, units or interests; and
 (b) if the entity is an individual, disregard:
 (i) assets being used solely for the personal use and enjoyment of the individual, or the individual's *affiliate (except a *dwelling, or an *ownership interest in a dwelling, that is the individual's main residence, including any adjacent land to which the main residence exemption can extend because of section 118‑120); and
 (ii) except for an amount included under subsection (2A), the *market value of a dwelling, or an ownership interest in a dwelling, that is the individual's main residence (including any relevant adjacent land); and
 (iii) a right to, or to any part of, any allowance, annuity or