Capital gains tax, Geelong

CD&G Accountants can help Geelong businesses plan for capital gains tax in advance and ensure that you have applied for any tax CGT exemptions or deferrals that are available to you, particularly if you are a small business.

What is capital gains tax?

“Capital gains” are made when you make some money through the sale of a business asset or investment. Capital gains tax (CGT) is the tax payable on any capital gain that is made, and is not considered as a separate tax. CGT is actually a part of your income on your annual income tax return.

For small businesses, there are capital gains tax exemptions that we can advise you on. These include:

15-year exemption

Where an asset has been continuously owned by your business for 15 years and you are 55 years of age or over and are retiring or are permanently incapacitated, when you sell the active asset there will not be an assessable capital gain and hence there will be no CGT owing.

50 percent active asset reduction

A capital gain can generally be discounted by 50 percent if an individual or small business disposes of an active asset. There are particular circumstances where it is possible to deter or “roll over” a capital gain on a CGT event until another CGT event happens.

Retirement exemption

Where you sell a business you can choose to be exempt from CGT on that sale if you are aged 55 years or over. There is a lifetime limit of $500,000.


A “rollover” is where you can defer or even disregard a capital gain on a CGT event until another CGT event happens. Examples include where a marriage breaks down and property is transferred from one spouse to the other. No tax will be due and payable until another CGT event happens, such as the property being sold to someone else.

CD&G Accountants in Geelong will be able to expertly advise you on any capital gains tax property transactions may create or that can be deferred. Don’t let capital gain tax be an afterthought – taxation liabilities can often directly affect the success or failure of your business. Contact us today and let us assist you with your taxation planning and obligations as well as all other business and corporate taxation services.