INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 17B - Disposal of small business assets: proceeds used for retirement  

Subdivision B - Taxpayers who are individuals  

SECTION 160ZZPZD   CONDITIONS FOR EXEMPTION  

160ZZPZD(1)   First condition.  

The first condition is that:

(a) the requirements of paragraphs 160ZZPQ(1)(a) to (c) must be satisfied in relation to the disposal of an asset by the taxpayer other than as a trustee; and

(aa) the asset is a roll-over asset within the meaning of subsection 160ZZPL(7) ; and

(b) the taxpayer must receive all of the actual consideration (see section 160ZZPZO ), if any, in respect of the disposal within the period beginning one year before, and ending 2 years after, the disposal.

The whole of the actual consideration mentioned in paragraph (b) need not be received all at once; parts of the actual consideration may be received at different times during the period.

160ZZPZD(2)   Second condition.  

The second condition is that:

(a) the taxpayer must elect in writing, on or before the date of lodgment of the taxpayer's return of income for the year of income mentioned in paragraph 160ZZPQ(1)(a) , that this Division is to apply to the taxpayer in respect of the disposal; and

(b) the election must specify an amount as the asset's CGT exempt amount ; and

(c) that amount must not be greater than the amount of the capital gain concerned (possibly as reduced by Subdivision D, which deals with previous years' net capital losses); and

(d) the asset's CGT exempt amount must not exceed the individual's CGT retirement exemption limit (see section 160ZZPZN ) immediately before the election is made; and

(e) the taxpayer must not have already made an election under section 160ZZPQ in respect of the disposal.