Income and deductions for small business

Capital gains

You must include any net capital gain you made during the income year in your assessable income.

Your net capital gain is the total of your capital gains for the year, less:

• your total capital losses for the year or earlier years
• any concessions you can use.

You make a capital gain or loss if you sell a business asset, such as your business premises or goodwill.

If you operate your business as a company or trust, you make a capital gain or loss if you sell your shares or trust interest.

Some assets are exempt from capital gains tax. These include:

• assets you purchased or acquired before 20 September 1985
• your main residence, unless you are carrying on your business from home
• trading stock
• cars and motorcycles.

Capital gains tax generally doesn't apply to depreciating assets you use in your business, such as tools or motor vehicles.

Sections within Capital gains

• When capital gains or losses occur
• Capital gains tax (CGT) concessions
• Keeping records for capital gains tax