Edited version of private advice

Authorisation Number: 1052526431869

Date of advice: 2 April 2026

Ruling

Subject: Capital gains tax - small business concessions

Question

Do you satisfy the basic conditions under section 152-10 of the Income Tax Assessment Act 1997 (ITAA 1997) to apply the small business capital gains tax concessions in relation to the sale of your interest in the property?

Answer

Yes, the basic conditions in section 152-10 of the ITAA 1997 are satisfied. A CGT event occurred when you sold your interest in the property, which resulted in a capital gain. Immediately before the CGT event, you were a partner in a partnership that was a CGT small business entity, and the property was a partnership asset. The active asset test is satisfied as the asset was owned for less than 15 years and was used in your business as an active asset for more than half the ownership period where it's main use was not to derive rent.

This ruling applies for the following period:

Year ending 30 June 2026

The scheme commenced on:

1 July 2025

Relevant facts and circumstances

You and your spouse owned a property equally as joint tenants.

The property was acquired less than X years ago.

The land and property are on a single title and comprises approximately X acres.

You and your spouse listed the property for sale and the property has now been sold.

You and your spouse commenced a partnership (the Partnership).

You and your spouse each have a 50% interest in the Partnership.

The Partnership commenced a primary production business on the property in the first half of your ownership period which it continued to do until disposal of the property.

A few years later income was also derived from:

•                 A camping area with sites hireable for a fee.

•                 Cabins with limited services (if any)

The cabins and camping were advertised through websites such as Airbnb.

All the activities undertaken have been treated as business income and been reported as such in the relevant party's income tax return.

Over X% of the property has been used for the primary production business.

Approximately X% of the property has been used for the camping area and cabins.

You and your spouse are not connected to any other entities nor do they have any affiliates.

Aggregated turnover of you and your spouse, including connected entities and affiliates, did not exceed $2million in the previous financial year and will not exceed $2million in the current financial year.

There are no development applications over the land.

You and your spouse are both over X years of age.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 152-10

Income Tax Assessment Act 1997 section 152-35

Income Tax Assessment Act 1997 section 152-40

Income Tax Assessment Act 1997 section 328-110

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