Tax Laws Amendment (2006 Measures No. 7) Act 2007 (55 of 2007)

Schedule 1   Small business relief for CGT events

Income Tax Assessment Act 1997

32   Subsection 152-40(1)

Repeal the subsection, substitute:

(1) A *CGT asset is an active asset at a time if, at that time:

(a) you own the asset (whether the asset is tangible or intangible) and:

(i) you use it, or hold it ready for use, in the course of carrying on a *business; or

(ii) it is used, or held ready for use, in the course of carrying on a business by your *small business CGT affiliate, or by another entity that is *connected with you; or

(b) if the asset is an intangible asset - you own it and it is inherently connected with a business that you, your small business CGT affiliate, or another entity that is connected with you, carries on (for example, goodwill or the benefit of a restrictive covenant).

Note: An intangible asset need satisfy only paragraph (a) or paragraph (b).