Small Business CGT Concessions Explained
Selling a business or business premises can create a large capital gain. Eligible small business owners may be able to reduce – or even eliminate – the tax using four special small business CGT concessions.
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The four concessions
15-year exemption
Disregard the whole gain if the asset was owned for 15 years and you are 55 or over and retiring (or permanently incapacitated).
50% active asset reduction
Reduce the gain on an active asset by 50%.
Retirement exemption
Disregard gains up to a lifetime limit of $500,000. If you are under 55, the amount generally must be paid into super.
Rollover
Defer the gain if you buy a replacement active asset or improve an existing one within the time allowed.
Basic conditions
- Size test: aggregated turnover under $2 million, or net assets (including related entities) of no more than $6 million just before the sale
- Active asset test: the asset was used in carrying on a business for long enough
- Extra conditions apply for shares, trust interests and assets used by related businesses
Changes from 1 July 2027
From 1 July 2027, the 50% CGT discount for individuals, trusts and partnerships is replaced with cost base indexation and a 30% minimum tax rate on gains that accrue after that date. The government has said the four small business CGT concessions remain. Planning the timing of a sale is more important than ever.
How UV TAX helps
- Check which concessions you may qualify for
- Work out the tax on different sale options
- Plan the timing and structure of a sale
- Coordinate super contributions under the retirement exemption
⚠️ General information only – not tax or legal advice. The small business CGT concessions are complex and have strict conditions. Upcoming CGT changes may affect how they apply. Specific advice is essential before selling. This page is a simple overview as at November 2026 and does not consider your personal circumstances. Tax laws, rates and thresholds change regularly. Please get advice for your situation before acting.
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0466 268 405Frequently asked questions
What are the small business CGT concessions?
The 15-year exemption, the 50% active asset reduction, the retirement exemption and the rollover.
Who can use them?
Generally small businesses with aggregated turnover under $2 million or net assets of no more than $6 million, where the asset is an active asset.
How much is the retirement exemption?
Up to a lifetime limit of $500,000.
Are the concessions changing in 2027?
The CGT discount is changing from 1 July 2027, but the government has said the four small business concessions remain.
Related
General information current as at November 2026.