Joe owns a farm land and a company (Joe and his wife are the only directors and shareholders) carries on the business of farming using the land in its business. The company’s aggregate turnover is $ 1.5 m. Because of the land Joe cannot satisfy the maximum net asset value test.
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Since Joe cannot satisfy the maximum net asset value test the only way in which he can hope to claim the concessions is by falling within the small business entity test. Since the company is an entity connected with Joe and is a small business entity (aggregate turnover less than $2m) Joe can claim the concessions.