The SAS Test
Small Business CGT Concessions
Download a detailed Flow Chart of the SAS Test: below:
A3 SAS Test Poster
A4 SAS Test Poster
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Capital Gains Tax – Exemptions & Discounts
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50% CGT discount
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Discount for individuals/trust (if held >12 months
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50%
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Tax rate for super fund (if held >12 months)
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10%
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Small Business CGT relief
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Net asset threshold (don’t include private assets)
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$6m
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Or (at your option) use “turn over test”
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$2m
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Retirement Exemption for Small Business
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$500k
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Indexation frozen 30/9/99 at indexation number
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123.4
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Conditions -
- CGT event happens and capital gains arises
- You fulfill the SASS Test
- You are a Small business, (<$2m turnover) OR
you satisfy the maximum net asset value test (<$6m Net Assets), OR you are a
partner in a partnership that is a small business entity for the income year and
the CGT asset is an asset of the partnership
- You are Active / Active asset test is satisfied
- You are Significant / If the CGT asset is a share in a company
or an interest in a trust, you have to be a CGT concession stakeholder in the company
or trust, OR CGT concession stakeholders in the company or trust together have a
small business participation percentage in the interposed entity of at least 90%
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Concessions -
1) 15 years exemption (55+ and retiring OR permanent incapacity)
2) 50% active asset exemption
3) Retirement exemption (Lifetime limit of $500,000)
4) Rollover Relief (replacement, two years automatic deferral)
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Remember -
Concessions 1, 3 and 4 subject to further conditions, e.g. continuous ownership,
age 55, significant individual test etc
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