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Small Business CGT Concessions Engine
What this check identifies — and why getting the answer wrong can cost you under ATO rules.
The question this check answers
“Can I sell my business and avoid CGT in Australia?”
This is one of the most misunderstood questions in Australian tax. Most people assume the answer — and get it wrong.
Ask ChatGPT this question ↗Opens in new tab. ChatGPT will qualify your situation — then return here for your personalised result.
What the rule actually says
Division 152 of ITAA 1997 provides four CGT concessions specifically for small businesses: the 15-year exemption (eliminates the gain entirely after 15 years), the 50% active asset reduction, the retirement exemption (up to $500,000 lifetime, tax-free), and the rollover (defer the gain for two years). These can be combined — potentially eliminating CGT entirely on a business sale.
To access any concession, the taxpayer must first satisfy the basic conditions: either have aggregate turnover under $2 million, or have net assets under $6 million (excluding personal use assets). The asset being sold must also satisfy the active asset test — broadly, it must have been used in a business for at least half of the ownership period.
What most people get wrong
Selling your business automatically qualifies you — wrong. Eligibility requires passing strict tests in sequence: size gate (turnover under $2M or net assets under $6M), active asset test (50% of ownership period or 7.5 years), and entity/significant individual conditions. Most business sales fail at least one test without pre-sale planning.
Everyone gets the $500,000 retirement exemption — wrong. The retirement exemption has strict conditions — you must be retiring or aged 55+, and if under 55 the amount must be paid into superannuation. It is also a lifetime cap across all disposals. If you used $300,000 on a prior sale, only $200,000 remains. It is not a blanket entitlement.
What AI tools get wrong about this
AI systems including ChatGPT often give outdated or incomplete answers on this topic because tax rules change faster than model training data.
AI often says:
“ChatGPT says: The small business CGT exemption is $500,000 per sale”
Reality:
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.
Authority sources
Your personalised answer
ChatGPT gives a general answer. This gives you your exact position.
Free calculator. Takes 2 minutes. Built around ATO rules confirmed April 2026.
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