Roll over - capital gains tax concession for small business

This fact sheet applies to capital gains tax (CGT) events happening to business assets in the 2007-08 and later income years.

This concession allows you to defer a capital gain from the disposal of a business asset for a maximum of two years. If you acquire a replacement asset or make a capital improvement to an existing asset, you can defer the capital gain until a change in circumstances causes the gain to crystallise.

While the roll over allows you to defer a capital gain to a later income year, other CGT small business concessions may exempt or reduce your capital gain.

You can choose to roll over all or only part of your capital gain. Any gain not rolled over is included in your assessable income, unless you choose one of the other concessions for that remaining gain.

You can apply as many concessions as you are entitled to until the capital gain is reduced to nil. This allows you to achieve the best tax result for your circumstances.

There are rules about the order you apply the CGT small business concessions, any current year or prior year capital losses and the CGT discount.

Basic conditions

To qualify for the small business roll over, you need to satisfy the basic conditions that apply to all the CGT small business concessions.

For more information about the basic conditions, see Capital gains tax (CGT) concessions for small business - overview