When you sell your business and provided that your business has sales of less than $2,000,000 per annum, you might be able to access the Small Business Tax Concessions. 

These concessions are outlined in Section 152 of income tax assessment act 1997 and include:

- The small business 15 year exemption (Subdiv 152-B)

- The small business 50% reduction (Subdiv 152-C)

- The small business retirement concession (Subdiv 152-D)

- The small business rollover (Subdiv 152-E)

If you satisfy Subdiv152-B the entire capital gain can be disregarded. 

Subdiv 152-C allows you to disregard 50% of the capital gain. 

Subdiv 152-D allows the entire gain to be disregarded provided the proceeds of the sale are used in connection with your retirement. 

Subdiv 152-D allows you to defer the capital gain from the sale.

Section 102.5 shows the method for calculating your capital gain. Division 115 details when a discounted capital gain is applicable. This is in addition to the small business 50% reduction.

The above can be used by themselves or in conjunction, if permitted to give the best tax result. 

If you would like to discuss further, please contact us:
 
 

McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
 www.mcnamaraandco.au/contact-us
 Phone +61 3 9428 1062
 Email admin@mcnamaraandco.au

Please refer to disclaimer at the bottom of the page