2 Applying the CGT concessions to a capital gain from a small business asset

Information on applying the CGT concessions.

Last updated 10 August 2021

The flowchart below shows the order in which you apply capital losses and the CGT concessions to each capital gain made after 11:45 am on 21 September 1999.

You don't necessarily have to go through each step. For example, if you qualify for the small business 15-year exemption, you can disregard the entire capital gain and, therefore, don't need to complete the remaining steps.

Also, you can choose not to apply the 50% active asset reduction and go straight to the small business retirement exemption or rollover.

Choosing the concessions

Step 1 Determine whether you satisfy the basic conditions for the small business CGT concessions

Step 2 Determine whether you qualify for the small business 15-year exemption

Step 3 Offset any capital losses

Step 4 Determine whether you are eligible for the CGT discount

Step 5 Determine whether the capital gain is from a depreciating asset

Step 6 Determine whether you qualify for the small business 50% active asset reduction

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