Tax Laws Amendment (2009 Measures No. 2) Act 2009 (42 of 2009)

Schedule 2   CGT concessions for small business

Part 1   Main amendments

Income Tax Assessment Act 1997

4   After subsection 152-10(1)

Insert:

Passively held assets - affiliates and entities connected with you

(1A) The conditions in this subsection are satisfied in relation to the *CGT asset in the income year if:

(a) your *affiliate, or an entity that is *connected with you, is a *small business entity for the income year; and

(b) you do not carry on a *business in the income year (other than in partnership); and

(c) if you carry on a business in partnership - the CGT asset is not an interest in an asset of the partnership; and

(d) in any case - the small business entity referred to in paragraph (a) is the entity that, at a time in the income year, carries on the business (as referred to in subparagraph 152-40(1)(a)(ii) or (iii) or paragraph 152-40(1)(b)) in relation to the CGT asset.

Note 1: For determining whether an entity is a small business entity , see Subdivision 328-C (as affected by section 152-48).

Note 2: For businesses that are winding up, see section 152-49 and subsection 328-110(5).

Passively held assets - partnerships

(1B) The conditions in this subsection are satisfied in relation to the *CGT asset in the income year if:

(a) you are a partner in a partnership in the income year; and

(b) the partnership is a *small business entity for the income year; and

(c) you do not carry on a *business in the income year (other than in partnership); and

(d) the CGT asset is not an interest in an asset of the partnership; and

(e) the business you carry on as a partner in the partnership referred to in paragraph (a) is the business that you, at a time in the income year, carry on (as referred to in subparagraph 152-40(1)(a)(i) or paragraph 152-40(1)(b)) in relation to the CGT asset.

Note 1: For determining whether an entity is a small business entity , see Subdivision 328-C (as affected by section 152-48).

Note 2: For businesses that are winding up, see section 152-49 and subsection 328-110(5).