These concessions are designed to support genuine small business owners, and they can make a real difference when managing your financial outcomes, especially during a sale or restructuring.

The way you report these concessions depends on your business structure.

• If you’re a sole trader or in a partnership, you’ll report them in the supplementary section of your individual tax return.
• If you’re operating through a company or trust, the details must be included in a CGT schedule attached to your tax return.

The Australian Taxation Office (ATO) is focusing on ensuring that only genuinely eligible businesses claim these concessions. That means it’s more important than ever to apply them correctly.

Before claiming any CGT concessions, make sure you:

• Understand the eligibility rules, including whether your business qualifies as a genuine enterprise (not a hobby)
• Check that your aggregated turnover is under $2 million or that your net business assets are less than $6 million
• Ensure you meet any age or retirement conditions, where applicable
• Accurately calculate and report your net capital gain or loss

Common Pitfalls To Avoid

Some frequent mistakes include:

• Misunderstanding eligibility, especially around business turnover or asset thresholds
• Using incorrect dates when calculating ownership periods
• Applying rollover relief or the 50% CGT discount incorrectly
  • Failing to use the correct concession codes when completing tax returns