Small Business CGT Concessions

Small Business Capital Gains Tax (CGT) Concessions
There are four CGT concessions which are potentially available on disposal of a qualifying small business asset:
a) 15 year Exemption
b) 50% Active Asset Reduction
c) Up to $500,000 Retirement exemption
d) Small Business Roll-Over relief


What entity is disposing of the asset?
The concessions apply to disregard, reduce or defer a capital gain made by an entity where the relevant conditions are met.  The entity may be any of the following:

  • Individual
  • Partnership
  • Company
  • Trust

Basic Conditions
The basic conditions that are required to be satisfied are:

  • The turnover or maximum net asset value test
  • Active Asset Test
  • Additional conditions where the asset is a share in a company or interest in a trust

Source: Australian Taxation Office (ATO)

Small Business Capital Gains Tax (CGT) Concessions is a highy technical and complex area of advice.  If you want to do a preliminary assessment on whether you qualify for any of the above concessions when disposing of your business assets:
Contact us on to arrange for an initial consultation at a place and time convenient for you to discuss your eligibility for the small Business CGT concessions.