6. Small Business Entities (SBEs)

Question 1

What is an SBE under s. 328-110 for general concession purposes?

Answer 1

A taxpayer that is carrying on, or in the process of winding up a business
Must satisfy the less than $10 mil in aggregated turnover test

Question 2

What is an SBE under s. 152-10 for CGT concession purposes?

Answer 2

1 of the three tests
< $2mil aggregated turnover test
Partner is a partnership that is a CGT SBE
Satisfy $6mil net asset value test

Question 3

What are the three aggregated turnover tests?

Answer 3

Prior year test (prior year < threshold)
Current year test (current year likely < threshold AND one of two previous years < Threshold)
Additional Test (current year actual < Threshold)

Question 4

What are the 4 general SBE concessions?

Answer 4

Trading stock - no adjustment where movement =

Question 5

What are the 5 basic SBE CGT concession eligibility conditions?

Answer 5

CGT event
Capital gain
CGT SBE or Net asset value test
Active asset of 1/2 test period
Additional test for shares or trust interests

Question 6

What are the 4 basic SBE CGT concessions?

Answer 6

15 year CGT asset exemption
50% reduction
Retirement exemption
Rollover

Question 7

Can the general CGT 50% discount be applied when SBE concessions are available?

Answer 7

Yes, it is applied first s. 102-5