Commonwealth Consolidated Acts Commonwealth Consolidated ActsThis Subdivision sets out some basic conditions for relief. If the basic conditions are satisfied, an entity may be able to reduce its capital gains using the small business concessions in this Division.
The 2 major basic conditions are:
(a) the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000; and
(b) the CGT asset must be an active asset.
Additional basic conditions must be satisfied in the following circumstances:
(a) the CGT asset is a share in a company or an interest in a trust;
(b) the CGT event involves certain rights or interests in relation to the income or capital of a partnership.
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.
There are limitations on the availability of the small business concessions for CGT events J2, J5 and J6.
You do not need to satisfy the basic conditions for the retirement exemption in relation to CGT events J5 and J6.
Table of sections
Basic conditions for relief
152 - 10 Basic conditions for relief
152 - 12 Special conditions for CGT event D1
Maximum net asset value test
152 - 15 Maximum net asset value test
152 - 20 Meaning of net value of the CGT assets
Active asset test
152 - 35 Active asset test
152 - 40 Meaning of active asset
152 - 45 Continuing time periods for involuntary disposals
Treatment of passively held CGT assets
152 - 47 Spouses or children taken to be affiliates for certain passively held CGT assets
152 - 48 Working out an entity's aggregated turnover for passively held CGT assets
152 - 49 Businesses that are winding up
152 - 50 Significant individual test
152 - 55 Meaning of significant individual
CGT concession stakeholder
152 - 60 Meaning of CGT concession stakeholder
Small business participation percentage
152 - 65 Small business participation percentage
152 - 70 Direct small business participation percentage
152 - 75 Indirect small business participation percentage
Nomination of controllers of discretionary trust
152 - 78 Trustee of discretionary trust may nominate beneficiaries to be controllers of trust
CGT event happens to asset or interest within 2 years of an individual's death
152 - 80 CGT event happens to an asset or interest within 2 years of individual's death