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

Capital Gains Tax – Exemptions & Discounts

50% CGT discount

 

Discount for individuals/trust (if held >12 months

50%

Tax rate for super fund (if held >12 months)

10%

Small Business CGT relief

Net asset threshold (don’t include private assets)

$6m

Or (at your option) use “turn over test”

$2m

Retirement Exemption for Small Business

$500k

Indexation frozen 30/9/99 at indexation number

123.4

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%

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)

Remember -

Concessions 1, 3 and 4 subject to further conditions, e.g. continuous ownership, age 55, significant individual test etc

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