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Edited version of private advice
Authorisation Number: 1052485742427
Date of advice: 10 December 2025
Ruling
Subject: CGT - small business concession
Question 1
Does the property (Property) satisfy the active asset test pursuant to section 152-35 of the Income Tax Assessment Act 1997 (ITAA 1997) and the meaning of active asset pursuant to section 152-40 of the ITAA 1997?
Answer 1
Yes. The Property meets the definition of active asset under section 152-40 of the ITAA 1997 and satisfies the active asset test pursuant to section 152-35 of the ITAA 1997 as it was actively used to carry on your business for the entire ownership period.
Question 2
Do you satisfy the basic eligibility conditions for the small business capital gains tax concessions under section 152-10 of the ITAA 1997 in relation to the sale of the Property?
Answer 2
Yes. All basic eligibility conditions for the small business capital gains tax concessions under section 152-10 of the ITAA 1997 have been met as CGT event A1 happened when you disposed of the Property which resulted in a capital gain. You were a small business entity with an annual aggregate turnover of less than $2 million for the relevant income year.
This ruling applies for the following period:
Income year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You acquired the Property to carry on your business in 20XY.
You used the Property to run your business for the entire ownership period.
You entered into a contract to sell the property in 20XX.
The sale of your property resulted in a capital gain.
Your annual aggregated turnover was less than $2 million for the relevant income years.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 104-10
Income Tax Assessment Act 1997 section152-10
Income Tax Assessment Act 1997 section152-35
Income Tax Assessment Act 1997 section152-40
Income Tax Assessment Act 1997 paragraph 152-40(4)(e)
Income Tax Assessment Act 1997 section 328-110
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