Small business CGT concessions, in plain words

The four small business CGT concessions

The ATO lists four small business CGT concessions. Each has its own conditions, and you may be able to use more than one.

• 15-year exemption. For an asset held for at least 15 years, when certain conditions are met.
• 50% active asset reduction. Reduces a capital gain on an active asset.
• Retirement exemption. Lets you disregard some or all of a gain, up to a lifetime limit.
• Small business rollover. Lets you defer a gain if you buy a replacement asset or make capital improvements.

What changes on 1 July 2027

The Tax Reform No. 1 Bill passed on 25 June 2026. From 1 July 2027, the 50% CGT discount is replaced by indexing your cost base for inflation, for individuals, trusts and partnerships. Reports say the small business CGT concessions are not part of it.

Why timing matters

The rules can change the tax on a sale. That is a reason to talk to your accountant early, years before you sell. It is not a reason to rush a sale.

What to ask your accountant

• Which concessions might apply to me and my structure?
• Does the 1 July 2027 change affect me?
• What records do I need to keep now?
• Should my structure change before a sale?

Where I fit

I am not an accountant or financial adviser. I help get the business ready to run without you, and I work alongside your accountant on the tax side.

Questions owners ask

What are the small business CGT concessions?

Four ATO concessions that can reduce or defer capital gains tax when you sell a small business asset: the 15-year exemption, the 50% active asset reduction, the retirement exemption and the small business rollover. Each has conditions.

Should I sell before 1 July 2027?

That depends on your situation. Talk to your accountant and a licensed financial adviser before deciding.