What small business CGT concessions are
As a small business operator, there are 4 capital gains tax (CGT) concessions available to you. If you're eligible, you can use these concessions to reduce the amount of CGT.
The way you report the concession depends on your business structure. This means, if you're a:
- sole trader or partnership, in the supplementary section for individuals in your tax return
- company or trust, in the CGT schedule for companies and trusts.
Our focus
We want to ensure that small businesses accessing the CGT concessions are genuinely eligible and reporting the correct amount. The common errors we see when applying CGT concessions are a result of:
- misunderstanding or misuse of the eligibility requirements, including requirements around
- whether you are carrying on a business (not a hobby or personal asset)
- whether your aggregated turnover exceeds $2 million and the business assets owned are under $6 million
- your age
- incorrect reporting or application of correct concession codes
- miscalculation by
- using the wrong dates when buying or selling an asset
- applying a discount incorrectly
- inappropriate use of
- CGT rollover relief
- a CGT discount.
How to get it right
As a small business operator reporting CGT concessions, we want to make sure you're aware of:
- the small business CGT concessions eligibility conditions
- how to calculate and report your net CGT position. See the CGT schedule and tax return instructions for details
- CGTExternal Link
You can also contact your tax professional to obtain advice specific to your business needs.