Preamble
Webb Martin has been appointed by the Board of Taxation as a Consultant to the
Board’s ‘Post implementation review of the quality and effectiveness of the small business capital gains tax concessions ’.
The small business capital gains tax (CGT) concessions in Division 152 of the
Income Tax Assessment Act 1997 were introduced in September 1999 and comprise:

the small business 15 year exemption;

the small business 50% active asset reduction;

the small business retirement exemption; and

the small business replacement asset roll-over
.
The Treasurer’s Press Release announcing the concessions can be viewed at http://www.treasurer.gov.au/tsr/content/pressreleases/1999/058.asp
Further information regarding Board of Tax review can be found at http://www.taxboard.gov.au/content/post_imp_small.asp
This survey forms the basis upon which Webb Martin will seek to gather information regarding tax adviser experiences with the small business CGT concessions.
The survey has been approved by the Australian Government Statistical Clearing
House and is assigned approval number 01606
– 01

Demographic information:
Please indicate the size and location of your firm (PROGRAMMER: OPTIONS TO BE
RADIO BUTTONS)
Size of firm
Large
Medium
Small
Sole
Practitioner
(20+ partners)
(6-19 partners)
(2-5 partners)
Location of firm
 CBD
 Metropolitan

Regional




State
NSW
Victoria

Western Australia

Tasmania
Queensland

South Australia
Northern Territory

ACT




All of the questions below relate to the application of the small business CGT concessions. When completing this survey please do so in relation to your experiences in advising clients as regards the application of the concessions to their transaction/circumstances.
S01) Are you the person in your firm who is most familiar with the application and impact of the small business CGT concessions?
Yes 1 Go to Q1
No
Don’t know
(for assistance refer to Treasur er’s Press
Release announcing the concessions http://www.treasurer.gov.au/tsr/content/p ressreleases/1999/058.asp
)
2
3
Go to Instruction below
Go to Instruction below
Please forward the survey to the person who is most familiar with the application and impact of the small business CGT concessions, so that they are able to fill in all the details of the survey.

The next few questions relate to your clients who have a net worth of $5 million or less.
Q1) How many of your clients would have a net worth of $5 million or less (for
Division 152 purposes)? Your best estimate is fine here. (PROGRAMMER:INSERT
TEXT BOX)
Q2) Since 1999, to how many of these clients have you considered the possible applicability of the small business CGT concessions? Your best estimate is fine.
(PROGRAMMER: INSERT TEXT BOX)
Q3) Approximately, how many of them were successfully able to apply the concessions?
(PROGRAMMER: INSERT TEXT BOX)
Q4 Of those who applied the concessions, what is the break down of the concessions applied? Please ensure the breakdown includes situations where the taxpayer applied more than one concession to a single transaction. Your best estimate is fine here.
(PROGRAMMER: PROGRAM SUCH THAT THE TOTAL IS 100% - PROMPT FOR
TOTAL OF 100%)
Taxpayers applied a single concession to the transaction
15 year exemption only
50% active asset reduction only
Retirement exemption only
%
%
Replacement asset roll-over only
Taxpayers applied more than one concession to the transaction
50% active asset reduction and retirement exemption
50% active asset reduction and replacement asset rollover
%
%
50% active asset reduction and retirement exemption and replacement asset rollover
Retirement exemption and replacement asset rollover
TOTAL 100%
%
%
Q5a) For those of your clients who did not apply, or did not qualify for, the concessions, please rank the most common reason why. Please choose the most common reason as rank ‘1’ and the least common reason as rank ‘4’. Only rank those reasons that are relevant to you.
(PROGRAMMER: PROVIDE TEXT BOXES FOR RANKING. PROVIDE N.A OPTION)

Compliance costs were a deterrent
Failed eligibility criteria
Satisfied specific eligibility criteria but chose not to apply
Other (PROGRAMMER: INSERT TEXT BOX)
N.A
N.A
N.A
Q5b) For those of your clients who did not qualify for the concessions, please rank the most common reasons below. Please choose the most common reason as rank ‘1’ and the least common reason as rank ‘6’. Only rank those reasons that are relevant to you.
(PROGRAMMER: PROVIDE TEXT BOXES FOR RANKING)

Taxpayer did not satisfy the $5 million threshold

Taxpayer did not satisfy the active asset test

Taxpayer did not satisfy the controlling individual test
N.A
N.A
N.A

15 year exemption

Replacement asset roll-over

Retirement exemption
Other, please specify (PROGRAMMER: INSERT TEXT
BOX)

Not applicable (all clients qualified for the concessions)
N.A
N.A
N.A
N.A
Q5c) Think about those of your clients who met the eligibility criteria but chose not to apply the concessions. Please rank the most common concessions where the eligibility criteria were met but the concession was not applied. Please choose the most common as rank ‘1’ and the least common as rank ‘4’. Only rank those reasons that are relevant to you.
(PROGRAMMER: THE OPTIONS TO BE RADIO BUTTONS)
Satisfied specific eligibility criteria but chose not to apply

15 year exemption

50% active asset reduction

Retirement exemption

Replacement asset roll-over
Not applicable
N.A
N.A
N.A
N.A
N.A

Q6) Have you experienced situations where you feel clients should have been entitled to the concessions but were not? If so, please specify (by concession type) the main reasons why you feel an entitlement to the concessions should have existed.
(PROGRAMMER: INSERT TEXT BOX NEXT TO EACH OPTION)
15 year exemption N.A
50% active asset reduction
Retirement exemption
Replacement asset roll-over
N.A
N.A
N.A
Q7)
Which of the following eligibility criteria is ‘ easiest to qualify for
’? Please rank them from 13 where ‘1’ is the ‘easiest to qualify for’ and ‘3’ is the ‘hardest to qualify for’.
Only rank those criteria that are relevant to you.
(PROGRAMMER: PROVIDE TEXT BOX FOR RANKING NEXT TO EACH OPTION.
PROVIDE FOR N.A)
Rank
Maximum net asset test ($5 million test)
Active asset test
N.A
N.A
Controlling individual test N.A
Q8) Whi ch of the following small business CGT concessions is ‘ easiest to qualify for ’ ? Please rank them from 14, where ‘1’ is the ‘easiest to qualify for’ and ‘4’ is the
‘hardest to qualify for’. Only rank those concessions that are relevant to you.
(PROGRAMMER: PROVIDE TEXT BOX FOR RANKING NEXT TO EACH OPTION.
PROVIDE FOR N.A)
15 year exemption
50% active asset reduction
Retirement exemption
Rank
N.A
N.A
N.A
Replacement asset roll-over N.A
Q9) How would you rank the small business CGT concessions on ‘ease of application’ (as opposed to how easy they are to satisfy)? Please rank them from 1-4, where ‘1’ is the ‘easiest’ and ‘4’ is the ‘hardest’.
Only rank those concessions that are relevant to you.
(PROGRAMMER: PROVIDE TEXT BOX FOR RANKING NEXT TO EACH OPTION.
PROVIDE FOR N.A)

15 year exemption
50% active asset reduction
Retirement exemption
Replacement asset roll-over
Rank
N.A
N.A
N.A
N.A
Q10) Thinking of the majority of your cases/clients, how would you rate each of the following aspects of the concessions on ‘complexity of application’? Please use a scale of 1-
5, where 1 is ‘extremely complex’ and 5 is ‘extremely simple’.
(PROGRAMMER: LIST TO BE RADIO BUTTONS UNDER EACH RATING)
Extremely complex
Extremely simple
N.A
1
1
2
2
3
3
4
4
5
5
6
6 Maximum net asset test ($5 million test)
Active asset test
Controlling individual test
15 year exemption
1
1
2
2
3
3
4
4
5
5
6
6
50% active asset reduction
Retirement exemption
Replacement asset roll-over
1
1
1
1
2 3 4
2 3 4
2 3 4
2 3 4
5
5
5
5
6
6
6
6
Q11a) Did you find the legislative provisions, on the whole, to be free from ambiguity ?
(PROGRAMMER: LIST TO BE RADIO BUTTONS)
Yes 1
No 2
(PROGRAMMER: IF Q11a=’2’ GO TO Q11b, ELSE SKIP TO Q12a)
Q11b) Why not? (provide examples as appropriate) (PROGRAMMER: INSERT TEXT
BOX)
Q11a) Did you find the legislative provisions contain sufficient guidance as to application of the small business CGT concessions? (PROGRAMMER: LIST TO BE RADIO
BUTTONS)
Yes
No
1
2

(PROGRAMMER: IF Q11a=’2’ GO TO Q11b, ELSE SKIP TO Q12a)
Q11b) Why not? (provide examples as appropriate) (PROGRAMMER: INSERT TEXT
BOX)
Q12a) In applying the concessions, did you seek external assistance from another tax professional? (PROGRAMMER: LIST TO BE RADIO BUTTONS)
Yes 1
No 2
(PROGRAMMER: IF Q12a= ‘1’ GO TO Q12b, ELSE SKIP TO Q13a
Q12b) On what issue(s) did you most commonly seek external assistance?
(PROGRAMMER: INSERT TEXT BOX)
Q13a) In applying the concessions, did you seek any guidance from the ATO?
(PROGRAMMER: LIST TO BE RADIO BUTTONS)
Yes 1
No 2
(PROGRAMMER: IF Q13a = ‘1’ GO TO Q13b, ELSE SKIP TO Q14
Q13b)Was the guidance available from the ATO: (PROGRAMMER: LIST TO BE
RADIO BUTTONS).
Yes No
Sufficient
Accurate
1
1
2
2
Easy to Access 1 2
Q14) On a scale of 15, where 1 is ‘not at all’ and 5 is ‘very well’, how would you rate the extent to which you have a thorough understanding of the applications of the concessions? (LIST TO BE RADIO BUTTONS UNDER EACH RATING)
Understanding of application
Not at all
1 2 3
Very well
4 5

Q15) For each of the categories below, please describe any particular aspects of the law that you feel cause difficulty as regards their application. (PROGRAMMER: INSERT
TEXT BOX NEXT TO EACH OPTION. PROVDIE FOR N.A OPTION)
Eligibility under the $5 million threshold
Eligibility under the active asset test
N.A
N.A
Eligibility under the controlling individual test
Application of the specific conditions required for:

The 15 year exemption

The retirement exemption

The replacement asset roll over
Other
N.A
N.A
N.A
N.A
N.A
N.A
Q16a) Have you had a ny of your client’s entitlements to the concessions challenged by the ATO?
Yes 1 Continue
No 2 Go to Q17
Q16b) On which of the grounds listed below were the entitlements challenged by the
ATO :
. (PROGRAMMER: LIST TO BE RADIO BUTTONS)

Eligibility under the $5 million threshold 1

Eligibility under the active asset test

Eligibility under the controlling individual test

Application of the specific conditions required for:
2
3 o The 15 year exemption o The retirement exemption
4
5 o The replacement asset roll over

Other (INSERT TEXT BOX)
6
Q17 To what extent do you think the small business CGT concessions meet the following policy objectives? ( for assistance refer to Treasurer’s Press Release announcing the concessions http://www.treasurer.gov.au/tsr/content/pressreleases/1999/058.asp
)
Policy Objective Completely
Meets
Doesn’t
Meet
Improving incentives to save and invest
1
1
2
2
3
3
4
4
5
5
Don’t
Know

Increase the level of benefits available to small business taxpayers
Provide greater flexibility in how small business can access the various benefits
1
1
2
2
3
3
4
4
5
5
Don’t
Know
Don’t
Know
Rationalise eligibility for small business capital gains tax relief
Reduce compliance costs for small business capital gains tax relief
Provide small business people with access to funds for retirement or expansion
1
1
1
2
2
2
3
3
3
4
4
4
5
5
5
Don’t
Know
Don’t
Know
Don’t
Know
Remove impediments to efficient asset management
Allow small business taxpayers to benefit successively from all of the concessions for any one disposal
1
1
2
2
3
3
4
4
5
5
Q17) Do you have any additional comments that you would like to make about the small business CGT concessions?
If yes, please add any additional comments
Insert text box
Finally, do we have your permission to associate your company name with your responses and reveal this to Webb Martin? They will use this information only if they wish to clarify any of your responses.
Yes 1
No 2
Thank you for participating in this survey.
Record time taken to fill survey : (PROGRAMMER: INSERT BOX)
Don’t
Know
Don’t
Know
Details of Respondent (optional) (PROGRAMMER: INSERT TEXT BOX)
Name
Firm / Company
Email
Telephone

If you would like to further discuss any of the questions or your responses directly with Webb Martin, please email CGTreview@webbmartin.com.au