In FCT v Eichmann [2019] FCA 2155 (Eichmann), the Federal Court overruled the decision in Eichmann v FCT [2019] AATA 162 and held that land used for the storage of equipment and materials that were utilised in the respondent’s building, bricklaying and paving business was not an active asset for the purposes of accessing the small business capital gains tax (CGT) concessions contained in Division 152 of the Income Tax Assessment Act 1997 (Cth) (Act).

Redeveloping your home by subdividing off a building block or demolishing and rebuilding two or more dwellings is a growing trend. Some recent matters we have been involved in show that the potential tax consequences are often overlooked.

When you sell land that you became the owner of on or after 20 September 1985, you must include any capital gain made on the sale as part of your income.