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1 Do property 1 and property 2 satisfy the active asset test under section 152-35 of the ITAA 1997?

1 Yes. Property 1 and property 2 have been owned for more than 15 years. The Commissioner accepts that both properties have been used in the course of carrying on a business by a connected entity, the partnership, for more than XX years during the ownership period. Therefore, both property 1 and 2 satisfy the active asset test. This ruling applies for the following period: X of XX 20XX to X of XX 20XX The scheme commenced on: X of XX 20XX

Person 1 and Person 2 acquired property 1 on X of XX 19XX Person 1 and Person 2 acquired property 2 on X of XX 19XX A main residence was constructed on property 2. Both properties were used to carry on a hobby farm until person 1 and person 2 transitioned to a primary production business.

Income Tax Assessment Act 1997 section 152-35 Income Tax Assessment Act 1997 section 152-40