Capital Gain Tax For Pre-CGT Asset

I am in the farming industry with a pre-CGT asset. The sale of that asset is tax-free but I have been advised that the sale is a CGT event and as such the proceeds can be rolled over into a superannuation fund.  Does the small business 15-year exemption affect the $500,000 retirement limit? 

 

 

The sale of a pre-CGT asset (i.e. one acquired before September 20, 1985) has no CGT consequences (ITAA 1997 s 104-10(5)(a)). Thus, the availability of the small business relief is not relevant to the sale of a pre-CGT asset and no CGT applies. The 15-year exemption (ITAA 1997 Subdiv 15-B) and the $500,000 retirement exemption (ITAA 1997 Subdiv 152-D) are different. Under the retirement exemption, if an individual is under 55 at the time the CGT event happens, then they will be required to pay their gain into their superannuation fund (ITAA 1997 s 152-305(1)(b)).