A CGT small business entity can disregard a capital gain arising from a CGT asset that it has owned for at least 15 years if certain conditions are met. Capital losses are not affected.

Also, any amount of income a company or trust derives from a CGT event covered by this Subdivision is neither assessable income nor exempt income. If the company or trust makes payments to its CGT concession stakeholders that are attributable to the exempt amount, the payments will not be taken into account in determining the taxable income of the company, trust or recipient.

The main conditions are that:

•   the basic conditions for relief in Subdivision   152 - A are satisfied;

•   the entity continuously owned the asset for the 15 - year period leading up to the CGT event;

•   if the entity is an individual, the individual retires or is permanently incapacitated;

•   if the entity is a company or trust, the entity had a significant individual for a total of at least 15 years during which the entity owned the asset and the individual who was the significant individual just before the CGT event retires or is permanently incapacitated.

The Subdivision also allows time periods to continue to run if there has been a roll - over because of marriage or relationship breakdown or compulsory acquisition.