Make Capital Gains Tax Concessions Simple.

The Small Business Capital Gains Tax Concessions are tax relief measures designed to help business owners pay less tax (and potentially no tax) on the sale of their business or business assets.  They can also help business owners get more money into superannuation. 

The Small Business Capital Gains Tax Concessions consist of four separate concessions. They are: 

1. The small business 15-year exemption. 
2. The small business 50% reduction. 
3. The small business roll-over. 
4. The small business retirement exemption. 

An overview of the concessions is below in the “How do the Small Business Capital Gains Tax Concessions work?” section. 

The Small Business Capital Gains Tax Concessions can help you: 

1. Pay less income tax. 
2. Defer paying income tax. 
3. Get cash out of entities tax-effectively. 
4. Contribute additional amounts into superannuation. 

If you are eligible for the concessions, they can apply to reduce or disregard capital gains on the sale of business assets and business entities. 

The small business 15-year exemption completely disregards the capital gain.  It can also assist with the tax-effective distribution of the disregarded capital gain from the entity which made the capital gain (e.g. a company). 

The small business 50% reduction reduces the capital gain remaining after applying capital losses and any discount for discount capital gains by 50%. 

The small business roll-over effectively defers the capital gain remaining after applying capital losses and any discount for discount capital gains for at least 2 years, or longer in certain circumstances. 

The small business retirement exemption disregards, per eligible individual, up to $500,000 of the capital gain remaining after applying capital losses and any discount for discount capital gains.  It can also assist with the tax-effective distribution of the disregarded capital gain from the entity which made the capital gain (e.g. a company). 

Estimate your potential capital gains tax savings with our user-friendly Small Business CGT Calculator.  This tool helps you quickly estimate the benefits you might be able to obtain from the Small Business CGT Concessions and provides a calculation to inform your financial decisions. 

You can access the Small Business CGT Calculator at https://www.sbcgt.com.au/calculator.

This will depend on a number of things. 

Do you satisfy the basic eligibility requirements including but not limited to the CGT Small Business Entity Test or the Maximum Net Asset Value Test, as well as the Active Asset Test? 

Do you satisfy the additional eligibility requirements for the small business 15-year exemption or the small business retirement exemption? 

Do you satisfy the ongoing requirements for the small business roll-over to extend beyond two years? 

Do you need to undertake pre-sale transaction steps to satisfy some of the above requirements? 

What mix of choices or elections might you need to make to obtain access to the Small Business Capital Gains Tax Concessions? 

You can view a flowchart overview of the eligibility requirements at https://www.sbcgt.com.au/flowchart.

The Small Business Capital Gains Tax Concessions should be relevant to your situation if you are planning to sell, or have sold, a business asset or a business entity for a capital gain. 

All businesses can potentially benefit.  The concessions are not industry specific. 

You just did. 

We are the Small Business Capital Gains Tax Concessions experts. 

So far we've helped our clients save $93,579,569 of income tax by reducing their capital gains by $239,616,087.

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