Capital gains tax

In certain situations, under the CGT cap, amounts arising from the disposal of qualifying small business assets that are contributed to super can be excluded from the non-concessional contributions cap under section 292-100External Link.

CGT cap

The CGT cap applies to all excluded CGT contributions, whether they were made either:

  • between 10 May 2006 and 30 June 2007
  • after 30 June 2007.

Table 6: CGT cap amounts

Income year Amount of cap


$1.255 million


$1.205 million


$1.155 million


$1.1 million


$1.045 million


$1 million

In accordance with section 960-285External Link, the CGT cap amount is indexed in line with AWOTE, in increments of $5,000 (rounded down).

The person must make a choice in the approved form to apply the exclusion and give this to the super fund on or before the time when the contribution is made.

If the person does not notify the fund that they are electing for the exclusion to apply, before or at the time of making the contribution, the fund must report the amount as a personal contribution.

There are also qualifying rules about the timing of the contribution depending primarily on the circumstances of the CGT event.

This exclusion recognises that many small business owners invest in their business rather than make regular contributions into super and later use the equity in their business to fund their retirement.

The contributions must arise from the following special CGT rules:


The 15-year exemptions apply to the capital proceeds whereas the small business retirement exemption only applies to the capital gain.

End of attention
    Last modified: 22 Nov 2013QC 34181