What Is Small Business CGT Concession in Australia?

Conclusion

The small business CGT concessions can provide significant tax relief for eligible Australian business owners when selling qualifying business assets. The four main concessions — the 15-year exemption, 50% active asset reduction, retirement exemption and rollover — each have different eligibility requirements and tax consequences.

The most important point is to plan before the CGT event occurs. Business structure, asset ownership, active asset history, turnover, connected entities and the intended use of sale proceeds can all affect the outcome.

If you are considering selling a business or a significant business asset, professional tax accounting and planning can help you understand the available options and prepare for the associated ATO requirements. The rules are complex, so advice should be based on your specific circumstances rather than a general assumption that a concession will apply.

Also read: 20 Tax Deductions Australians Can Claim in 2026

Frequently Asked Questions

Is the small business CGT concession available to every small business?

No. Being a small business does not automatically make you eligible. You generally need to satisfy the basic conditions and any additional requirements that apply to the specific concession and asset.

What is the small business CGT turnover limit?

A common eligibility pathway is an aggregated turnover of less than $2 million. However, certain businesses may qualify through the maximum net asset value test instead. Connected entities and affiliates can also affect the calculation.

What is the $6 million CGT asset test?

The maximum net asset value test generally requires the total net value of relevant CGT assets not to exceed $6 million immediately before the relevant CGT event. The calculation can involve connected entities and affiliates.