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The Federal Government has announced proposed changes to the Small Business CGT Concessions.
Specifically to the CGT Small Business Entity Test (the turnover test) in relation to the Small Business 50% Reduction.
Currently, the CGT Small Business Entity Test has a threshold of $2,000,000.
The Government proposes to increase this to $10,000,000, but only in respect of the Small Business 50% Reduction.
It would seem that, based on the announcement, the increased threshold would not apply in relation to the other three small business concessions, being the Small Business 15-year Exemption, the Small Business Roll-over, or the Small Business Retirement Exemption.
This announcement is likely a direct result of the significant backlash from the small business community in relation to the proposed changes to the up to 50% general discount for discount capital gains.
We will keep you updated as things progress.