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Small businesses that make a capital gain from business assets may be eligible for the Small Business Capital Gains Tax Concessions [click here for more information].
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A guide has been released by the Tax Office to explain the recent changes to the Capital Gains Tax [CGT] small business concessions
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The new changes, which were passed on June 23, 2009, are designed to improve access to the concessions.
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Generally, the recent amendments will apply to payments and CGT events happening on or after June 23, 2009 and will:
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a. Enable certain liabilities to reduce an entity's net asset value in applying the $6 million maximum net asset value test;
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b. Ensure all uses of assets, except certain personal use assets and certain uses from which passive income is derived, are considered in determining what an asset's main use is.
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c. Improve the operation of the retirement exemption to remove unintended consequences.
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| 5. |
Other minor changes to improve the operation of the concessions include:
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a. Increasing the circumstances and purposes for which a spouse or child under 18 years is taken to be an individual's affiliate.
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b. Removing unintended consequences for the retirement exemption by correcting the treatment of capital proceeds received in instalments.
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The amendments also increase access to concessions for joint tenants and trustees of testamentary trusts where a gain arises from an asset within 2 years of the individuals death, where the deceased would have been entitled to the concessions.
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| 7. |
Click here for a copy of the guide or visit the ATO website at http://www.ato.gov.au
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