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Choosing small business concessions

Last updated 11 August 2021

You must choose the 15-year exemption, the retirement exemption, and the rollover for those concessions to apply. However, the 50% active asset reduction applies automatically if the basic conditions are satisfied and you have not specifically chosen that it not apply.

Generally, a choice available under the CGT law must be made by the day you lodge your income tax return for the income year in which the relevant CGT event happened, or within such further time as the Commissioner allows.

The way you prepare your income tax return is generally sufficient evidence of the choice you have made. However, the retirement exemption requires you to keep a written record of the amount you choose to disregard.

If you became eligible for the concessions as a result of the March 2012 amendments, you have until the later of:

  • the day you lodge your income tax return for the income year in which the relevant CGT event happened, or
  • 22 March 2014 (2 years after the commencement date), or
  • a later date allowed by the Commissioner.

The extension of time to make a choice applies where your original assessment was made before 22 March 2012.

If you became eligible for the concessions as a result of the June 2009 amendments, you have until the later of:

  • the day you lodge your income tax return for the income year in which the relevant CGT event happened, or
  • 23 June 2010 (12 months after the commencement date), or
  • a later date allowed by the Commissioner.

The extension of time to make a choice applies to CGT events happening before 23 June 2009.

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