Tax & Superannuation: Capital Gains - Guides
Capital Gains
6. Net Assets Value Test
Last updated: 03 Jul 2015
- This test can be satisfied if the maximum net asset value of the business entity just before the CGT event did not exceed AU$6 million (previously this was AU$5 million). This is calculated by adding together:
- the net value of the entity’s CGT assets;
- the net value of the CGT assets of entities connected with the first entity; and
- the net value of the CGT assets of any affiliate or connected entity of the first entity provided the assets are used in the business conducted by the affiliate or the connected entity.
- The market value of the assets must be established just before the CGT event.
- For this test:
- entities are connected with each other if either controls the other entity or if both entities are controlled by another third entity; and
- an individual or a company will be an affiliate of yours if they act or could reasonably be expected to act in accordance with your directions or wishes or in concert with you in relation to their business. A spouse or a child under 18 is not automatically an affiliate.
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