Treasury Laws Amendment (Tax Integrity and Other Measures) Act 2018 (124 of 2018)

Schedule 2   Improving the integrity of the small business CGT concessions

Income Tax Assessment Act 1997

1   Section 152-5

Omit:

The 3 major basic conditions are:

(a) the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000;

(b) the CGT asset must be an active asset;

(c) if the asset is a share or interest in a trust, there must be a CGT concession stakeholder just before the CGT event, and the entity claiming the concession must be a CGT concession stakeholder in the company or trust or CGT concession stakeholders in the company or trust must have a small business participation percentage in the entity of at least 90%.

substitute:

The 2 major basic conditions are:

(a) the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000; and

(b) the CGT asset must be an active asset.

Additional basic conditions must be satisfied if the CGT asset is a share in a company or an interest in a trust.