Small Business CGT · Calculator

Small Business CGT Concessions Calculator

Estimate how much you could save when selling a business asset using the four Division 152 concessions. See the 15-year exemption, 50% active asset reduction, retirement exemption, and rollover applied step-by-step.

4 concessions modelled$6M asset test$2M turnover test
01 —INPUTS
Eligibility

You must satisfy one of these basic conditions

Active for at least half the test period, or 7.5 years if owned for more than 15 years.

Asset Details

Legal, agent, valuation fees

Alternative to age 55+ for 15-year exemption

Tax Details

Current-year and carried-forward losses must be applied before the CGT discount.

Salary/wages excluding this capital gain

Concession Choices

Optional. You may proceed directly to the retirement exemption or rollover.

$500,000 lifetime cap — enter amount from prior claims

Defer remaining gain — must acquire replacement asset within 2 years

02 —RESULTS
Awaiting input

Enter your asset details to see CGT concession savings

Edit inputs ↑
How Division 152 works

When you sell a business asset at a profit, you normally pay CGT on the capital gain at your marginal tax rate. Division 152 of the Income Tax Assessment Act 1997 provides four concessions that can significantly reduce or eliminate this tax — potentially saving hundreds of thousands of dollars.

The 15-year exemption is checked first because it can disregard the whole gain without first using capital losses. If it does not apply, current-year and carried-forward capital losses come before the general CGT discount and the remaining Division 152 concessions.

The four concessions

1. 15-year exemption (Subdiv 152-B)

The entire capital gain may be exempt if the asset was continuously owned for at least 15 years and the relevant individual is permanently incapacitated, or is at least 55 and the CGT event happens in connection with retirement. The basic conditions, including the active asset test, must also be met.

2. 50% active asset reduction (Subdiv 152-C)

After applying the general 50% CGT discount (for assets held 12+ months), you get an additional 50% reduction on the remaining gain. This means only 25% of your original gain is potentially taxable — before the retirement exemption.

3. Retirement exemption (Subdiv 152-D)

You can exempt up to $500,000 of capital gains over your lifetime. If you're under 55, the exempt amount must be paid into a complying superannuation fund. This cap is tracked cumulatively across all CGT events where you claim the exemption.

4. Small business rollover (Subdiv 152-E)

Any remaining capital gain after the other concessions can be deferred by acquiring a replacement active asset within 2 years (or 4 years for compulsory acquisitions). The gain isn't eliminated — it's deferred until you sell the replacement asset.

Worked example

Say you sell a business asset for $700,000 that you purchased for $200,000 (with $50,000 in costs), held for 8 years, earning $80,000 in other income:

→ Gross gain: $700,000 − $250,000 = $450,000
→ After 50% CGT discount: $225,000
→ After 50% active asset reduction: $112,500
→ After retirement exemption: $0 (within $500K cap)
→ Tax saved: over $140,000 compared to no concessions
FAQ
What are the basic conditions for Division 152 concessions?
You must satisfy at least one of: (1) the $2 million aggregated turnover test — aggregated turnover must be under $2 million, or (2) the $6 million maximum net asset value test — relevant net CGT assets must not exceed $6 million. The asset must also satisfy the active asset test. Connected entities and affiliates can affect both threshold tests. From the 2027-28 income year (Act 49 of 2026), the 50% active asset reduction alone becomes available to businesses with aggregated turnover under $10 million — the other three concessions keep the $2M/$6M tests.
What is an active asset?
An active asset is a CGT asset used or held ready for use in carrying on a business, or an intangible asset inherently connected with a business (like goodwill). It must have been an active asset for at least half of the ownership period, or at least 7.5 years if owned for 15+ years. Shares in a company or interests in a trust can also be active assets if the entity meets the 80% active asset test.
In what order should I apply the concessions?
Check the 15-year exemption first — if eligible, you disregard the whole gain without first applying capital losses. Otherwise, apply current-year and carried-forward capital losses, then the general 50% CGT discount if available, followed by the selected Division 152 active asset reduction, retirement exemption and rollover. You may choose not to use the active asset reduction.
What is the $500,000 retirement exemption lifetime cap?
The retirement exemption under Subdivision 152-D allows you to exempt up to $500,000 of capital gains over your lifetime. This is a cumulative cap — if you've previously claimed $200,000, you have $300,000 remaining. If you're under 55, the exempt amount must be contributed to a complying superannuation fund. Over 55, there's no mandatory super contribution.
How does the small business rollover work?
Under Subdivision 152-E, you can defer any remaining capital gain by acquiring a replacement active asset (or improving an existing one) within 2 years. The CGT event is deferred, not eliminated — when you eventually dispose of the replacement asset, the deferred gain will be triggered. You can apply the other concessions to the replacement asset at that time.
Can a trust access these concessions?
Yes. A trust can access all four Division 152 concessions if it meets the relevant conditions. For the 15-year exemption, it generally needs a significant individual for the required ownership period; at the CGT event the relevant significant individual must be permanently incapacitated, or at least 55 with the event connected to retirement. Stakeholder and payment rules also affect trust claims.
Do companies qualify for the 50% CGT discount?
No. Companies are not eligible for the general 50% CGT discount — only individuals, trusts, and complying super funds can claim it. However, companies can still access the other Division 152 concessions: the 15-year exemption (for qualifying shareholders), the 50% active asset reduction, the retirement exemption, and the rollover. This calculator covers individuals and trusts only.
What happens if I have a capital loss?
If your sale price is less than your cost base, you have a capital loss. The small business concessions don't apply to capital losses — they only reduce or eliminate capital gains. However, the capital loss can be used to offset other capital gains in the same or future financial years.

Related guides

CGT Reform and Divorce: What the Relationship Breakdown Rollover Means After 1 July 2027 The marriage-breakdown rollover transfers cost base and acquisition date — after 1 July 2027 it can transfer a deferred gain too. Check before settling. CGT Reform for Family Trusts: Streaming, Bucket Companies, and the Separate 2028 Trust Minimum Tax CGT reform taxes each beneficiary from 1 July 2027. A separate 2028 trust minimum tax (not yet law) stacks on top. Two 30 June jobs for trustees. CGT Reform and Holiday Homes: Why the Third Element of Cost Base Matters Most Here CGT reform indexes four of five cost base elements, not the third (ownership costs). Holiday homes rely on that element more than any other property.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This calculator uses 2026-27 resident individual tax rates and the Medicare levy, including the low-income levy calculation. It only applies Division 152 concessions when you confirm the active asset test. Trust outcomes are shown using the entered individual's income as an illustration; stakeholder and distribution rules can change the actual result. Companies and super funds are outside scope.

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