Small business CGT concessions calculator
Sold an active asset of your small business? Apply the four small business CGT concessions in the ATO's order. The 15-year exemption disregards the whole gain. Otherwise it's your capital losses, then the 50% CGT discount, the 50% active asset reduction and the retirement exemption (up to $500,000 over your lifetime). It also checks the $2 million turnover and $6 million net asset tests and the active asset test, and grosses up a trust distribution. Figures reproduce the ATO's worked examples.
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CalculatorOrder of concessionsExamplesFAQ
The order of the small business CGT concessions
- Basic conditions: a CGT small business entity (aggregated turnover under $2 million), or net CGT assets of $6 million or less, plus the active asset test.
- 15-year exemption: you've owned the asset continuously for 15 years and you're 55 or older and retiring, or permanently incapacitated. The whole gain is disregarded and your capital losses aren't used up.
- Capital losses reduce the gain.
- 50% CGT discount for assets owned at least 12 months (not for companies).
- 50% active asset reduction, applied automatically unless you choose not to.
- Retirement exemption up to a $500,000 lifetime limit. If you're under 55, the amount goes into super. A rollover is the other option.
Active asset test: the asset was active for at least half the time you owned it, or at least 7.5 years if you owned it more than 15 years. The periods don't need to be continuous.
Examples (ATO)
| Example | Result |
|---|---|
| Kendra: $20,000 gain − $4,000 loss = $16,000 → discount $8,000 → reduction | $4,000 |
| Lana: $17,000 − $3,000 = $14,000 → $7,000 → reduction | $3,500 |
| Harry: $1 million market value − $600,000 cost base = $400,000 → $200,000 → $100,000 → retirement exemption | $0 |
| Gert, beneficiary: $25,000 × 4 = $100,000 − $10,000 loss → $45,000 → reduction | $22,500 |
| Jodie: shop owned 8 years, used in the business 5 years | Passes active asset test |
FAQ
In what order do you apply the small business CGT concessions?
First the 15-year exemption, which disregards the whole gain if it applies. Otherwise reduce the gain by capital losses, then the 50% CGT discount, then the 50% active asset reduction, then the retirement exemption or rollover.
How much is the small business retirement exemption?
Up to $500,000 over your lifetime. You don’t need to be retiring to use it. If you’re under 55 when you choose it, the exempt amount must be paid into a complying super fund or retirement savings account.
What is the active asset test?
The asset must have been used, or held ready for use, in your business for at least half the time you owned it, or for at least 7.5 years if you owned it for more than 15 years. The periods don’t have to be continuous.
Who can get the small business CGT concessions?
Generally a small business with aggregated turnover under $2 million, or a taxpayer whose net CGT assets (including connected entities and affiliates) are $6 million or less, selling an asset that passes the active asset test.
How do the CGT discount and active asset reduction combine?
Each halves the gain, so together they leave a quarter of the gain after losses. In the ATO’s Kendra example, $20,000 less a $4,000 loss is $16,000, the discount makes it $8,000 and the reduction makes it $4,000.
Sources (checked 17 Oct 2026): ATO CGT concessions eligibility overview; Active asset test; Maximum net asset value test; CGT small business entity eligibility; 15-year exemption; 50% active asset reduction; Retirement exemption.
General information, not tax advice. You confirm eligibility yourself. This doesn't test connected entities and affiliates, significant individuals and CGT concession stakeholders for companies and trusts, extra conditions for shares and trust interests, the rollover, or super contribution caps. These concessions are complex, so check with a registered tax agent before you rely on them.