Q: I have a farming client who's selling a pre-September 20, 1985 asset, which means they won't pay capital gains tax (CGT) on the sale. I've heard they can roll over the sale proceeds into a superannuation fund. Does the small business 15-year exemption affect the $500,000 retirement limit?
A: Selling a pre-1985 asset means no CGT applies. So, the small business relief doesn't matter here. The 15-year exemption and the $500,000 retirement exemption are separate. If the seller is under 55, they'll need to put the gain into their super fund under the retirement exemption.
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