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Edited version of your private ruling
Authorisation Number: 1052156121918
Date of advice: 15 August 2023
Ruling
Subject: Small business - capital gains concessions
Question
Does section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997) apply to disregard the capital gain arising from the disposal of the farm?
Answer
Yes. You are a small business entity. You have owned and operated your farm for over 15 years. You are over 55 years old, and the sale of the farm is in connection with your retirement. As such, you can disregard the capital gain from the disposal of the farm.
This ruling applies for the following periods:
Income year ending 30 June 2024
Income year ending 30 June 2025
Income year ending 30 June 2026
The scheme commenced on:
1 July 2023
Relevant facts and circumstances
You purchased a farm and commenced a sole trader activity of cattle grazing and fattening.
You operate the farm part time while remaining in full-time employment elsewhere.
You have operated the farm for over 15 years.
You are planning on selling the farm within 3 years.
Upon the sale of the farm, you will retire from farming but remaining in full-time employment.
You are planning on retiring from your full-time employment in 5 to 6 years.
You are a small business entity. Your aggregated turnover is less than $2m.
The farm is an active asset.
You are over 55 years old.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-105
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