| Disclaimer You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of private advice
Authorisation Number: 1052183249474
Date of advice: 6 November 2023
Ruling
Subject: CGT - small business concession
Question
Will the disposal of the farm satisfy the requirements of the 15-year exemption in section 152-105 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. You satisfy the maximum net asset value test. You have owned the farm for more than 15 years and it was used in your business from 19XX to 20XX. The farm was continuously owned for a 15-year period before the CGT event. You are going to use the sale of your farm to retire. You are over 55 years old and plan to be retired after the settlement of the sale of the farm.
This ruling applies for the following period:
Year Ending 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You operated a farming business.
The farm was purchased in 19XX.
This business commenced in 19XX.
In 20XX the business operations were wound down.
You decided to sell the farm and this occurred in 20XX.
At the time of sale of the farm, you were over 55 years old.
The farm was sold so that you could retire.
You plan to be retired after the settlement of the sale of the farm.
The farm was an active asset.
The farm operated as a business continuously for more than 15 years.
You meet the maximum net asset value at the time the property sold.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 152-10
Income Tax Assessment Act 1997 section 152-35
Income Tax Assessment Act 1997 Subdivision 152-B
Income Tax Assessment Act 1997 section 152-105