• In general terms to satisfy the active asset test the CGT asset must be an active asset for at least:

• 7.5 years if the asset has been owned for more than 15 years; or
• half of the test period if the asset has been owned for less than 15 years.

• The test period starts when the asset was acquired and ends at the earlier of:

• when the asset is disposed of which is referred to as a ‘CGT event’; or
• when the business ceased.

• The asset does not have to be an active asset right before the CGT event.

An asset is considered to be active if you or your affiliates own it and you use it or have it ready to use in your business. It includes intangible assets such as goodwill