Mastering the small business CGT concessions
Published Date: 24 Apr 2026
The small business CGT concessions in Div 152 of the Income Tax Assessment Act 1997 (Cth) are often described as generous, yet their practical application remains fraught with complexity. This article examines a number of nuanced issues that regularly undermine eligibility for the concessions, notwithstanding otherwise careful planning. In particular, it explores what is, and is not, included in the maximum net asset value test, the treatment of liabilities that purport to reduce asset values, and the often misunderstood concepts of personal use, connected entities and unpaid present entitlements. Drawing on recent and significant case law, the article highlights how assumptions about market value, asset use and related party arrangements can quickly unravel a small business CGT strategy. It also considers the Commissioner’s ongoing willingness to challenge valuations and the circumstances in which multiple valuations may be warranted. The article concludes with practical guidance for advisers on evidentiary preparation and engaging valuers, emphasising the importance of disciplined analysis well before a CGT event occurs.
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- Published By: John Ioannou CTA
- Published On:24 Apr 2026
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