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.

Eligibility

You must satisfy one of these basic conditions

Asset Details

Legal, agent, valuation fees

Alternative to age 55+ for 15-year exemption

Tax Details

Salary/wages excluding this capital gain

Retirement Exemption

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

Defer remaining gain — must acquire replacement asset within 2 years

Enter values above to see results

How Division 152 Concessions Work

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 concessions are applied in a specific order. The 15-year exemption is checked first because it gives a complete exemption. If that doesn't apply, the remaining three concessions are applied sequentially to progressively reduce your taxable gain.

The Four Concessions Explained

1. 15-Year Exemption (Subdiv 152-B)

The most generous concession — your entire capital gain is exempt if you've continuously owned the asset for at least 15 years and you're 55 or older (or permanently incapacitated) at the time of the CGT event. If this applies, you don't need the other concessions.

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

Frequently asked questions

What are the basic conditions for Division 152 concessions?
You must satisfy at least one of: (1) the $2 million aggregated turnover test — your business's annual turnover plus connected entities is under $2M, or (2) the $6 million maximum net asset value test — the total net CGT assets of you and your connected entities don't exceed $6M. The asset must also be an 'active asset' used in your business.
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 get full exemption and don't need the others. Otherwise, apply in order: (1) the general 50% CGT discount (for assets held 12+ months), then (2) the 50% active asset reduction, then (3) the retirement exemption up to your remaining $500K lifetime cap, then (4) rollover on any remaining gain. This order maximises your tax savings.
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 basic conditions. For the 15-year exemption, the trust must have a 'significant individual' (someone with at least a 20% interest) who is 55 or over, or permanently incapacitated. The retirement exemption and rollover are claimed by the trust but the $500K cap applies to each CGT concession stakeholder individually.
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.

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Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

This calculator uses 2025-26 ATO tax rates and Medicare levy. It assumes the asset qualifies as an active asset and that basic conditions under Division 152 are met. The calculator covers individuals and trusts only — companies and super funds have different rules. Always verify your eligibility with a registered tax agent before making financial decisions based on these estimates.

Last updated 17 April 2026 Tax year 2025-26

Data sources: ATO (ato.gov.au), Services Australia

This tool is general information only, not financial advice.

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