The active asset test is a requirement under Division 152 of the Income Tax Assessment Act 1997 (Cth) for the small business CGT concessions to apply. To satisfy the test, the asset being sold must have been an active asset (used in the course of carrying on a business) for at least half of the period the seller owned it, or for at least 7.5 years if the seller owned it for more than 15 years.
The test is one of several requirements that must each be satisfied for the concessions to apply.