Small Business CGT Concessions: Who Qualifies and What You Get
Learn how small businesses in Australia can reduce or avoid paying capital gains tax when selling business assets.
These concessions are tax reliefs designed to help small businesses reduce or entirely avoid paying capital gains tax when they sell certain business assets.
Who it's for
This scheme is for small businesses that are selling assets related to their business operations.
What you get
You may be able to access various reductions or exemptions on the capital gains tax you would otherwise owe from the sale of your business assets.
What it costs you
There is no direct financial fee to access these concessions, but the eligibility criteria are complex. You will need to spend time ensuring you meet all the specific requirements or consult a professional to navigate the rules.
The catch to know
To qualify, the asset you are selling must pass an "active asset" test, meaning it must have been used actively in your business to be eligible.
How to apply
- Determine if the asset you are selling meets the definition of an active asset.
- Calculate your potential capital gains from the sale.
- Review the specific eligibility criteria for the various concessions available.
- Report the sale and any applied concessions on your tax return.