Small business CGT concessions

Written and accurate as at: 15 March 2022

According to a recent report*, small business (as per ATO definition) accounts for 98.4% of all businesses—as at June 2019, there were 2,375,753 actively trading businesses in the Australian economy. Small business employs 4.7 million people (41% of the business workforce) and 59.4% of small business owners are aged 45+.

When considering the sale of business assets, you may be eligible for a range of small business CGT concessions, which could help reduce, eliminate, or defer an associated capital gain—and boost your retirement savings

In this animation, we illustrate a number of small business CGT concessions, which include:

  • the small business 15-year exemption, 
  • the small business 50% (active asset) reduction, 
  • the small business retirement exemption, and 
  • the small business rollover.

Please note: The rules governing the eligibility and use of small business CGT concessions are complex. As such, consider seeking qualified professional advice—to assess your eligibility and their appropriateness.

*Australian Government, Australian Small Business and Family Enterprise Ombudsman. (2020). Small Business Counts December 2020.