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  • CGT concessions

    As a small business, you may be eligible for the following capital gains tax (CGT) concessions on assets used to conduct your business. We call these 'active assets'.

    The turnover threshold for CGT concessions is $2 million.

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    You must meet eligibility conditions to access these concessions. There are additional conditions if the asset is a share in a company or an interest in a trust.

    There are other CGT exemptions, rollovers and concessions that aren't specific to small businesses. You may still be able to access these, if eligible.

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    15-year 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.

    Amounts from this exemption may be able to be contributed to your super fund without affecting your non-concessional contributions limits.

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    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.

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    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.

    Amounts from this exemption may be able to be contributed to your super fund without affecting your non-concessional contributions limits.

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    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 roll-over.

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    Last modified: 05 Oct 2018QC 22655