• Maximum net asset value test

    Prior to 1 July 2006

    From 1 July 2006

    From 1 July 2007

    From royal assent 23 June 2009

    This test did not allow the possibility of a negative net asset value for an entity. The threshold is $5 million.

    This test takes into account a negative net asset value in looking at the net assets of an entity. The threshold is $5 million.

    Threshold increased to $6 million.

    No change

    This test only took into account the assets and related liabilities of an entity.

    This test takes into account the assets and related liabilities of an entity and provisions for annual leave, long-service leave, unearned income and tax liabilities.

    No change

    No change

    For a partnership, this test applied to a partnership as a whole.

    For a partnership, this test only applies to the individual partner’s interest in a partnership, unless the partner is connected with the partnership.

    No change

    No change

    The assets of an individual include the entire value of a dwelling that had an income producing use.

    The assets of an individual include only the proportion of a dwelling that was used for income producing purposes.

    No change

    No change

    In calculating an entity’s net asset value, disregard that entity’s interests (and any liabilities associated with those interests) in a connected entity or affiliate. This avoids double counting the asset’s value.

    No change

    No change

    An entity may reduce their net asset value by the amount of any liabilities associated with disregarded interests in their connected entities.

      Last modified: 21 Jun 2016QC 21145