This test is outlined under Section 152-15 of the Income Tax Assessment Act 1997.

If just before the CGT event the sum of the following amount does not exceed $6,000,000:

•  The net value of the CGT assets of the taxpayer;
•  The net value of the CGT assets of any entities connected with the taxpayer;
•  The value of the CGT assets of any affiliates of the taxpayer or entities connected with tax payers affiliates.

Section 152-20 sets out how to calculate the taxpayers net value:

 The sum of the market value of the CGT assets, less the liabilities relating to the assets, less provisions made for annual or long service leave, unearned income or tax liabilities.

McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandco.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.au

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