Small Business CGT Concessions: Eliminate Up to $230k in Tax When You Sell
A $1M capital gain without concessions costs you $230k+. With correct concession sequencing, the tax payable is zero. Most owners discover this too late to act.
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Why Most Small Business Owners Miss Out on CGT Concessions
Small business capital gains tax concessions are not a tax-time line item. They are a planning outcome that requires years of positioning, and your window to act is narrower than you think.
Most owners hear about small business CGT concessions for the first time when they call their accountant to sell. By then, their structure is wrong, their aggregated turnover has crossed the threshold, and the concessions that could have eliminated the CGT event are gone.
Parkview reviews your CGT eligibility continuously, not once a year after the fact. Structural risks are fixed before they become permanent. The difference between these two approaches is measured in hundreds of thousands of dollars. The question is which one your business is running on.
Four Small Business CGT Concessions That Eliminate Tax on Exit
Each concession reduces a different portion of your capital gain. Applied in the right order, they can reduce your tax bill to zero. Most owners qualify for at least two, but never find out until it's too late.
Small Business CGT Eligibility Tests: What Most Owners Get Wrong
The $2M aggregated turnover test
Your aggregated turnover includes connected entities and affiliates, not only the entity making the gain. The ATO counts all of them. If you own 40% of another business, its revenue counts toward your $2M threshold. Many owners assume they qualify because they only count one entity. Small business CGT concessions eligibility fails here more often than anywhere else.
The $6M maximum net asset value test
Net assets owned by you, your connected entities, and affiliates must not exceed $6M. The family home is excluded, but passive investments are not. Owners frequently undercount because they forget assets held by connected entities.
The active asset test
The asset must be actively used in your business for at least half the ownership period. Shares, trust interests, and passive investments don't qualify. All tests are reassessed at the CGT event itself, not at last year's balance date — a business that qualified six months ago may not qualify today.
Structure and Sequencing Determine Your Final Tax Bill
The rules are public. But applying them in the wrong order, or through the wrong structure, can cost you hundreds of thousands. This is where most owners get it wrong, even when they think they're prepared.
Business structure determines which concessions are available
How you hold the business directly affects which concessions are available. A company can't access the 50% CGT discount. A trust distribution to the wrong beneficiary can disqualify the concession entirely. Structure needs to be right before you go to market, not after.
Explore business structuringConcession application order determines the final tax bill
The four concessions apply in a fixed sequence. Each one reduces the remaining gain before the next is applied, so getting the order wrong wastes concessions. On a $1M gain, correct sequencing can reduce the final tax bill to zero.
See the full flowchartWe work to your timeline, not the sale's.
How Parkview Works
Eligibility review and structure assessment
We review your structure, turnover, and net assets against all CGT eligibility tests. If something needs fixing, we address it now, not the day you decide to sell.
Ongoing eligibility monitoring
Monthly reporting tracks the metrics that determine your eligibility in real time. If your turnover approaches $2M or your net assets approach $6M, you know before it becomes a disqualifying event. Regular strategic meetings surface risks early. Day-to-day decision support means you can ask 'does this acquisition affect my CGT position' before you sign.
Pre-sale concession sequencing and execution
When the sale approaches, we map the optimal concession sequence and coordinate with your legal advisors. Our retainer model means our incentives are aligned with your outcome, not billable hours.
Selling Your Business Is Not the Time to Discover What Your Accountant Missed
The gap between correct and incorrect concession application is hundreds of thousands of dollars. A focused CGT concessions review gives you a definitive answer on eligibility and a plan to maximise every concession before you go to market.
Common Questions Before Selling a Business
Some strategies require advance planning, and the range of options narrows once a sale is underway. But concessions can still be applied and sequenced correctly mid-sale. Small business CGT concessions eligibility is assessed at the CGT event itself, so there is still ground to cover. The sooner you get advice, the more options remain open to you.
Your Exit Is Too Valuable to Leave to Chance
The difference between the right advisor and no advisor is measured in hundreds of thousands of dollars.
Parkview's CGT concessions review gives you a definitive answer on eligibility, optimal structure, and concession sequencing before you go to market. One conversation now protects the value you spent years building.
