Do the small business CGT concessions still apply after 1 July 2027?

What continues and what changes

All four concessions in Division 152 survive the changes:

• the 15-year exemption, which can disregard the whole gain for a long-term owner aged 55 or over who is retiring, or who is permanently incapacitated
• the 50% active asset reduction
• the retirement exemption, up to a lifetime limit
• the small business roll-over, which can defer a gain into a replacement asset

The change is who can reach the 50% reduction. The Tax Reform No. 1 Act 2026 switches off the 2 million dollar turnover limit for that concession alone, leaving the general small business test of aggregated turnover under 10 million dollars, from the income year that includes 1 July 2027.

The other three keep the existing gateway: turnover under 2 million dollars, or net assets of 6 million dollars or less. The active asset test and the other basic conditions still apply to all four.

Who the higher threshold may help

Mainly businesses turning over 2 to 10 million dollars whose net assets exceed 6 million dollars. They were generally shut out of every concession. From the income year that includes 1 July 2027 the 50% reduction may open up.

Accountants may want to revisit clients in that band who were ruled out before.

Where a valuation still fits

A concession does not make value irrelevant:

• The net asset test runs on market value just before the sale, including connected entities and affiliates. Balance sheets often leave out goodwill the business built itself.
• For individuals and trusts, a later gain is generally split at 30 June 2027. The 50% reduction applies after the discount or indexation, so the split can still change the result.
• If the 15-year exemption applies, the whole gain is disregarded and the split may matter little.

Eligibility is tested when you actually sell, not on 30 June 2027. The deemed sale at that date is set aside for that test, so it is not meant to reset your ownership history.

Whether to get a 30 June 2027 value, use an apportioning method once it is finalised, or rely on a concession is your tax adviser's call. Independent Business Valuation values the business or interest at the agreed date. More in small business CGT concessions and where a valuation fits.