CGT Small Business Concession Estimator
This is an estimator for the four CGT small business concessions in Division 152 of the ITAA 1997 — the 15-year exemption, 50% active asset reduction, retirement exemption, and small business rollover. Enter the capital gain and eligibility flags and it indicates which concessions stack and an indicative net taxable gain. Always have the final numbers confirmed by a registered tax agent.
What this calculator does
The CGT small business concessions in Division 152 of the ITAA 1997 can reduce a gain on the sale of an active business asset to nil in the right circumstances. The concessions have strict eligibility gateways — the basic conditions in Subdivision 152-A, then the individual concessions in 152-B, 152-C, 152-D, and 152-E. This estimator models how they stack on a gain.
Legal basis
The CGT small business concessions sit in Division 152 of the Income Tax Assessment Act 1997 (Cth) — basic conditions in Subdivision 152-A, 15-year exemption in 152-B, 50% active asset reduction in 152-C, retirement exemption in 152-D, and small business rollover in 152-E. The small business CGT concession stakeholder tests sit in Subdivision 152-A and s 152-10.
How the calculation works
If the 15-year exemption applies, the whole gain is disregarded. Otherwise: (1) apply the general 50% CGT discount if held >12 months, (2) apply the 50% active asset reduction under s 152-C, (3) apply the retirement exemption (up to $500,000 lifetime cap) under s 152-D, (4) apply the small business rollover under s 152-E, (5) remaining gain is the assessable amount.
Interactive calculator coming soon
For a $1,000,000 capital gain on a qualifying active asset held >12 months, not eligible for the 15-year exemption: after 50% general discount = $500,000, then 50% active asset reduction = $250,000, then $250,000 retirement exemption = $0 assessable. Remaining $0.
In the meantime, use the worked example above to validate your figures and confirm the final amount with the relevant revenue office or authority before relying on it in a matter.
Start free trialWhat you fill in
- Capital gain before concessions (AUD) (currency): Must be a positive number
- Held >12 months (eligible for general 50% discount)? (select): Required
- 15-year exemption available (s 152-B: 55+ and retiring, 15+ yrs ownership)? (select): Required
- Retirement exemption amount used (AUD, lifetime cap $500,000) (currency): 0 to 500,000
- Small business rollover amount (AUD) (currency): Must be ≥ 0
- Meets basic conditions (Subdiv 152-A)? (select): Required
Limitations
- Does not verify the basic conditions in Subdivision 152-A (small business entity test, $6m maximum net asset value, connected/affiliated entity rules)
- Does not model the 15-year exemption superannuation payment requirements and contributions caps
- Does not apply the retirement exemption under-55 super contribution requirement
- Does not handle partnership, trust, or company distributions through to the small business CGT concession stakeholder
- Does not address the interaction with Division 149 market value substitution or pre-CGT asset rules
What to do next
The basic conditions are where most advice effort goes — the $6m MNAV test, affiliates and connected entities, and the active asset test under s 152-35. Talk to a registered tax agent or CA/CPA-qualified tax lawyer before the sale is signed. Quillio supports business lawyers drafting sale agreements and share transfer documents — see /practice-areas/business-lawyers.
Calculator FAQs
What are the basic conditions?
Under Subdivision 152-A, the taxpayer must either be a small business entity (aggregated turnover <$2m) or satisfy the $6m maximum net asset value test, and the asset must satisfy the active asset test in s 152-35. Additional conditions apply for shares and units.
How does the 15-year exemption work?
Under Subdivision 152-B, the whole gain is disregarded if the taxpayer has continuously owned the asset for at least 15 years, is 55+ and retiring (or permanently incapacitated), and the basic conditions are met. It is the most generous concession.
What is the active asset reduction?
The 50% active asset reduction under Subdivision 152-C reduces any remaining gain (after the general 50% CGT discount) by a further 50%. It applies automatically where the basic conditions are met.
What is the retirement exemption cap?
The retirement exemption under Subdivision 152-D has a $500,000 lifetime cap per individual. If the individual is under 55, the exempt amount must be paid into a complying superannuation fund.
Can I combine concessions?
Yes — the general 50% CGT discount, 50% active asset reduction, retirement exemption, and small business rollover can all stack on the same gain in that order. The 15-year exemption is all-or-nothing.
What is the small business rollover?
Under Subdivision 152-E, a gain can be deferred for 2 years if the taxpayer intends to acquire a replacement active asset. If no replacement is acquired, the deferred gain is triggered.
Is this tax advice?
No — it is a planning estimator. Division 152 has complex eligibility tests and penalties for getting them wrong. Always engage a registered tax agent or tax lawyer.
Get help with the matter
For business lawyers and CA-qualified tax lawyers, Quillio drafts share purchase agreements, business sale agreements, and earn-out clauses — and flags Division 152 issues in the warranties. See /practice-areas/business-lawyers.
This calculator is an estimator only. The CGT small business concessions in Division 152 ITAA 1997 have strict eligibility tests. Always engage a registered tax agent or tax lawyer before relying on the estimate for a transaction.
Quillio handles the next steps.
The calculator gives you the number. Quillio handles the rest of the matter — drafting, review, research, and correspondence. The free trial requires no credit card.
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