INCOME TAX ASSESSMENT ACT 1997
This 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:
Additional basic conditions must be satisfied if the CGT asset is a share in a company or an interest in a trust.
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.
[ CCH Note: S 152-5 will be amended by No 95 of 2019, s 3 and Sch 2 item 1, by substituting " 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. " for " Additional basic conditions must be satisfied if the CGT asset is a share in a company or an interest in a trust. " , effective 1 January 2020 and applicable in relation to CGT events happening after 7.30 pm, by legal time in the Australian Capital Territory, on 8 May 2018.]