For educational purposes only. Not tax, legal, or financial advice. Tax laws change frequently. Consult a registered tax agent or CPA for your specific situation.

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    TaxKiln Australia

    Small Business CGT Concession Eligibility Wizard

    Walks the four concessions in Division 152 ITAA 1997 — the 15-year exemption, 50% active asset reduction, $500k retirement exemption and replacement-asset rollover.

    Step 1 — Basic conditions (s 152-10)

    Pass

    Threshold: $6,000,000.00. Includes connected entities + affiliates' assets, less liabilities; excludes PPR and most personal-use assets.

    Step 2 — Active asset test (s 152-35, s 152-40)

    Pass

    Need ≥ 5.0 active years (half of ownership).

    Step 3 — Your circumstances

    Pass

    Lifetime cap: $500,000.00. Remaining: $500,000.00.

    Result

    15-year exemption

    N/A

    Entire capital gain disregarded — asset held ≥ 15 years + 55+ retiring or incapacitated.

    s 152-105 ITAA 1997

    50% active asset reduction

    Available

    Additional 50% reduction of the remaining gain. Stacks with the Div 115 individual discount.

    s 152-205 ITAA 1997

    Reduces gain by: $75,000.00

    Retirement exemption

    Available

    Up to $500,000 lifetime exemption per CGT concession stakeholder. <55: must contribute to super.

    s 152-305 ITAA 1997

    Reduces gain by: $75,000.00

    Rollover

    Available

    Defer the gain by acquiring replacement active assets within 2 years (4 years for involuntary disposals).

    s 152-410 ITAA 1997

    Gross capital gain: $300,000.00

    After 50% Div 115 discount: $150,000.00

    Final taxable gain after SBCGT concessions: $0.00

    Lifetime cap tracker: $0 of $500,000.00 retirement exemption used. After this transaction: $75,000.00.

    Related: CGT calculator · Entity structures · 2027 CGT reform

    Frequently asked questions

    Do these concessions stack with the general 50% CGT discount?+
    Yes. The general Div 115 50% discount for individuals applies first, then the 50% active asset reduction (Div 152-205). Combined effective reduction is 75% before any further retirement exemption or rollover.
    What is an active asset?+
    An asset used (or held ready for use) in the course of carrying on a business by you, your affiliate, or an entity connected with you. Rental property is generally NOT active (TD 2006/63, TD 2007/13). Goodwill of an operating business is active.
    Are the SBCGT concessions affected by the 2027 CGT reform?+
    No. The announced 1 July 2027 changes to the general CGT discount for individuals do not amend Division 152. The small business concessions continue to apply on top of (or instead of) the post-2027 indexation regime.

    Not tax, legal or financial advice. Estimates only. Based on Division 152 ITAA 1997 ss 152-10, 152-35, 152-40, 152-105, 152-205, 152-305, 152-410; ATO public rulings TD 2006/63 and TD 2007/13.. Tax law changes frequently — confirm current rates with the relevant revenue office and your registered tax agent before relying on these numbers.

    Indicative only. Doesn't model the significant individual / participation percentage rules for companies and trusts, the in-house asset 80% test for trading stock, or interaction with the small business restructure rollover (Subdiv 328-G).

    Active asset — what the Full Federal Court said

    Eichmann v Federal Commissioner of Taxation [2020] FCAFC 155 — land used to store tools and equipment for the business can satisfy the active asset test in s 152-40(1)(a) ITAA 1997 even where the storage is not directly part of day-to-day trading operations. The Full Federal Court rejected a narrow "direct functional relevance" reading. Practical effect: tradies and operators with separate storage yards or sheds can often clear the active asset gate that the wizard checks above.