• Retirement exemption

    Prior to 1 July 2006

    From 1 July 2006

    From 1 July 2007 to 23 June 2009

    From royal assent 23 June 2009

    No equivalent

    Amendments allowed indirect ownership of an entity to be used to qualify a capital gains tax (CGT) concession stakeholder. However, the small business CGT retirement exemption was not updated to allow for payments to be made to that CGT concession stakeholder via interposed entities.

    No change

    The small business CGT retirement exemption caters for CGT exempt payments flowing through interposed entities to an ultimate CGT concession stakeholder without adverse tax consequences.

    Certain payments made by private companies to satisfy the retirement exemption conditions are treated as dividends if they are paid to a director, shareholder or associate - Section 109 and 109C of the Income Tax Assessment Act 1936 (ITAA 1936).

    No change

    No change

    Payments made to satisfy the retirement exemption conditions are not treated as dividends if they are paid to a director, shareholder or associate.

      Last modified: 21 Jun 2016QC 21145