An active asset is one that is either used or held ready for use in a business operated by a taxpayer. There are further extensions to cover affiliates and associated entities.

 

To qualify as an active asset the asset must have been used in the business for at least half of its life or 7.5 years where it is held longer than 15 years.

 

Various concessions exist in relation to capital gains made on active assets. The concessions cover the 15 year exemption, a 50% reduction, a retirement exemption and a rollover exemption. Conditions must be met to qualify for these exemptions.

 

There are specific rules relating to trusts and companies. 

 

If you require specific advice for your circumstances please contact us.