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Edited version of private advice
Authorisation Number: 1051618498233
Date of advice: 11 December 2019
Ruling
Subject: Small Business Concessions - Retirement Exemption.
Question
Are you entitled to the capital gains tax small business retirement exemption?
Answer
Yes. In this case you are over 55 and you satisfy the basic conditions. You are eligible to reduce your gain by applying the small business retirement exemption up to your life time limit of $500,000. Additionally as you're over 55 years there is no requirement to pay any amount into a complying superannuation fund or retirement savings account. However you must keep a record of the amount you choose to disregard. Further information can be found by searching 'QC 52290' on ato.gov.au
This ruling applies for the following period:
Year ending 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You and your spouse purchased a property over 15 years ago as joint owners.
The property was leased to a connected entity. You have provided details of you interests in that connected entity. The connected entity carried on a business from the property.
The property has been used to operate the business with no private use since it was purchased.
The business has an aggregated turnover of less than $2,000,000.
You satisfy the $6,000,000 maximum net asset value test
You are over 55 years of age, but are not retiring.
The property has recently been sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-40
Income Tax Assessment Act 1997 section 328-125
Income Tax Assessment Act 1997 Subdivision 152-D