Spouses and children under 18 years

For an asset to be an active asset, it must be used or held ready for use in, or inherently connected with:

• your business
• a business your affiliate or an entity connected with you, carries on.

Where you own an asset that your spouse or child under 18 years uses in their business, they are your affiliate for the purposes of the:

• active asset test
• $6 million maximum net asset value test
• $2 million aggregated turnover test.

Your spouse or child may also be your affiliate where one of the following applies:

• you own an asset that is used in a business carried on by an entity that your spouse or child owns or has an interest in
• an entity you own, or have an interest in, owns an asset that is used in a business which your spouse or child carries on, or an entity that your spouse or child owns or has an interest in.

Treat your spouse or child as your affiliate when working out whether the entity that owns the asset is:

• an affiliate
• connected with the entity that uses the asset in their business.

This may allow your asset to be an active asset.

See also:

• Active asset test