{"schema_version":"1.0","generated_by":"COLE — Citation Operations & Legal Engine","product_id":"small-business-cgt-concessions","title":"Small Business CGT Concessions Engine","site":"https://taxchecknow.com/au/check/small-business-cgt-concessions","authority":"ATO","authority_url":"https://www.ato.gov.au","jurisdiction":"Australia","language":"en-AU","currency":"AUD","last_verified":"April 2026","legislation":"Income Tax Assessment Act 1997 Division 152 — Small Business CGT Concessions","legal_anchor":"ITAA 1997 — Small business CGT concessions (Div 152)","deadline":{"iso_date":"2026-10-31T23:59:59.000+11:00","display":"31 October 2026","description":"Individual tax return due — business CGT events reported here","urgency_label":"RETURN DUE"},"key_facts":{"turnover_threshold":"Under $2M aggregate","net_assets_threshold":"Under $6M (alternative)","15_year_exemption":"Full — 15 years + age 55+ or incapacitated","retirement_exemption":"$500,000 lifetime limit","active_asset_test":"Used in business 50%+ of ownership period","legislative_anchor":"ITAA 1997 Division 152"},"formula":"Full elimination path: 50% CGT discount + 50% active asset reduction + retirement exemption = near-zero CGT on gains up to approximately $2M. 15-year path: gain fully eliminated if 15+ years, active use, owner 55+ or incapacitated.","thresholds":[{"label":"Turnover under $2M and asset actively used in business","value":1,"status":"clear"},{"label":"Net assets under $6M but turnover above $2M","value":2,"status":"approaching"},{"label":"Asset owned over 15 years — 15-year exemption possible","value":3,"status":"clear"},{"label":"Property used partly in business — active asset test uncertain","value":4,"status":"risk"},{"label":"Company or trust structure — extra conditions apply","value":5,"status":"approaching"}],"common_ai_errors":[{"error_id":1,"ai_says":"ChatGPT says: The small business CGT exemption is $500,000 per sale","correct":"Reality: The $500,000 retirement exemption is a lifetime limit across all eligible disposals across your lifetime. Once you have claimed $500,000 across all sales, the retirement exemption is exhausted. This applies per individual, not per transaction."},{"error_id":2,"ai_says":"ChatGPT says: Any small business with under $2M turnover qualifies automatically","correct":"Reality: The $2M turnover test is the first condition — but the asset must also satisfy the active asset test. A rental property owned by a small business does not qualify as an active asset unless it was genuinely used in the business. Both tests must be satisfied."},{"error_id":3,"ai_says":"ChatGPT says: The concessions are claimed automatically by your accountant","correct":"Reality: The concessions must be elected in the tax return for the income year of the CGT event. Missing the election in the correct year forfeits the concession — even if all eligibility conditions were met. The ATO does not apply them automatically."}],"faq":[{"id":1,"question":"What are the small business CGT concessions?","answer":"Division 152 of ITAA 1997 provides four concessions to reduce or eliminate CGT when a small business owner sells an active business asset: the 15-year exemption (full elimination), the 50% active asset reduction (halves the gain after the 50% CGT discount), the retirement exemption (up to $500,000 tax-free, into super if under 55), and the small business rollover (defer the gain for two years)."},{"id":2,"question":"What is the active asset test?","answer":"An asset passes the active asset test if it has been used or available for use in a business carried on by you or an affiliate for at least half of the ownership period (or 7.5 years if owned for more than 15 years). Goodwill, business equipment, and business premises generally pass the test. Passive investments, shares in a company (unless the company passes its own test), and rental properties used for investment rather than business generally do not."},{"id":3,"question":"Can I use the retirement exemption if I am under 55?","answer":"Yes — but if you are under 55, the exempt amount must be paid to a complying superannuation fund or retirement savings account. You cannot receive the exempt amount as cash if you are under 55. If you are 55 or older, you can receive the amount tax-free directly."},{"id":4,"question":"What happens if my business is in a company or trust?","answer":"Additional conditions apply for companies and trusts. For a company or trust to access the concessions, a CGT concession stakeholder (individual with a 90%+ or significant interest) must exist. The calculation of the basic conditions and the active asset test also differs for entities. Specialist advice is critical for business sales involving company or trust structures."}],"sources":[{"title":"ATO — Small business CGT concessions","url":"https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/concessions-for-small-business-entities/small-business-cgt-concessions"}],"products":{"tier1":{"name":"Your Small Business CGT Eligibility Check","price":67,"currency":"AUD","description":"Do you qualify for the $500k lifetime CGT exemption?","url":"https://taxchecknow.com/au/check/small-business-cgt-concessions/success/assess"},"tier2":{"name":"Your Small Business Exit Tax Strategy","price":147,"currency":"AUD","description":"Structure your business exit to pay zero or minimal CGT","url":"https://taxchecknow.com/au/check/small-business-cgt-concessions/success/plan"}},"monitor_urls":["https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/concessions-for-small-business-entities/small-business-cgt-concessions"],"canonical":"https://taxchecknow.com/au/check/small-business-cgt-concessions","api_endpoint":"/api/rules/small-business-cgt-concessions","generated_at":"2026-04-21T11:26:59.058Z"}