• CGT concessions

    There are four capital gains tax (CGT) concessions you may be eligible for in relation to assets used to conduct your business ('active assets'):

    15-year asset exemption

    If you are aged 55 or older and retiring or are permanently incapacitated, and you have owned an active business asset for at least 15 years, you won’t pay CGT when you dispose of the asset by sale, gift or transfer.

    50% active asset reduction

    If you’ve owned an active business asset you’ll only pay tax on 50% of the capital gain when you dispose of the asset.

    Retirement exemption

    There is a CGT exemption on the sale of an active business asset, up to a lifetime limit of $500,000. If you are under 55, money from the disposal of the asset must be paid into a complying superannuation fund or a retirement savings account.

    Rollover

    If you dispose of an active business asset and buy a replacement asset or improve an existing one, you can defer your capital gain until a later year. The replacement asset can be acquired one year before or up to two years after the last CGT event in the income year for which you choose the rollover.

    Contributions to your super fund

    Amounts from the 15-year exemption and the retirement exemption may be able to be contributed to your super fund without affecting your non-concessional contributions limits.

    See also:

     

  • Last modified: 22 Jun 2015QC 22655