Business & Tax

Business Sale CGT Calculator

Estimate Capital Gains Tax when selling your business using Business Sale CGT Calculator. Includes all 4 small business concessions 15-year exemption, active asset reduction, retirement exemption & rollover. ATO-aligned.

Small Business Concessions50% Active Asset ReductionNo SignupLatest ATO Rates
Business Sale CGT Calculator Australia

🏢 Business Sale CGT Calculator — Australia

Estimate Capital Gains Tax on selling your business. Includes small business CGT concessions — 15-year exemption, 50% active asset reduction & retirement exemption.

🏢 Standard Sale: CGT applies to the capital gain on selling business assets. The 50% CGT discount applies if held 12+ months. Use this for businesses not eligible for small business concessions.
✅ Small Business Concession: Eligible if: aggregated turnover under $2M OR net CGT assets under $6M. Active asset test must be met. You may qualify for 15-year exemption (zero CGT), 50% active asset reduction, or retirement exemption (up to $500k).
💼 Goodwill: Goodwill is a CGT asset. The cost base is usually what you paid to establish or acquire it. If internally generated, the cost base may be zero — meaning the entire sale price is a capital gain.
Your Business Sale CGT Estimate
✓ Small Business Concession Applied
Capital Gain
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Taxable Gain
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Estimated CGT Payable
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Includes 2% Medicare levy · 2025–26 ATO rates
Step-by-Step Breakdown
Sale Proceeds—
Less: Cost Base—
Less: Selling Costs—
Capital Gain—
50% CGT Discount—
Active Asset / Retirement Reduction—
Taxable Capital Gain—
Tax at Marginal Rate—
Medicare Levy (2%)—
Total CGT Payable—
Net Proceeds After CGT
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Effective CGT Rate
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⚠️ Estimate only — not tax advice. Small business CGT concessions are complex and require professional advice before the contract is signed. Consult a registered tax agent specialising in business sales.
What is Business Sale CGT?

Capital Gains Tax When Selling a Business

When you sell your business whether it’s the goodwill, business assets, or shares in a company the profit is generally subject to Capital Gains Tax (CGT). CGT is not a separate tax in Australia; the gain is added to your assessable income and taxed at your marginal rate.

The good news: Australian small business owners have access to four powerful CGT concessions that can reduce or even eliminate tax on the sale. To access them, your business must meet the basic eligibility conditions either the small business entity test (aggregated turnover under $2 million) or the maximum net asset value (MNAV) test ($6 million or under).

Understanding which concessions apply to your situation can save tens of thousands of dollars. Use our calculator below to estimate your position.

Try Business Sale CGT Calculator for free to get most accurate estimates.

Calculating Guide

How to calculate CGT on Business Sale CGT Calculator

Step by step guide on Business Sale CGT Calculator

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Small Business Concessions

4 Ways to Reduce Your Business Sale CGT

Applied in order each concession can reduce your gain further. You may qualify for more than one.

Or check ATO’s Official Site for comprehensive information.

Concession 1

15-Year Exemption

If you’ve continuously owned the active asset for 15+ years and are aged 55+ retiring (or permanently incapacitated), your entire capital gain is exempt. This is applied first if it applies, no other concessions are needed.

Lifetime CGT cap $1,865,000

Concession 2

50% Active Asset Reduction

Reduce your capital gain by 50% on active business assets. This stacks on top of the general 50% CGT discount if held 12+ months meaning your effective gain can be reduced to just 25% of the original gain.

Stacks with 50% CGT discount

Concession 3

Retirement Exemption

Exempt up to $500,000 of capital gains over your lifetime. If you’re under 55, the amount must be contributed to superannuation. If 55 or older, you can keep the proceeds without contributing to super.

Lifetime limit $500,000

Concession 4

Small Business Rollover

Defer your capital gain by rolling it into replacement active assets purchased within 2 years. This doesn’t eliminate the gain, it delays it, giving you time to reinvest and restructure before paying tax.

2-year replacement period
How it works

How Business Sale CGT is Calculated 

Four inputs in Business Sale CGT Calculator, one result your estimated tax bill in under a minute.

Enter Sale Price

What did you sell the property for? Include all proceeds from the sale.

Add Cost Base

Include stamp duty, legal fees, inspections, and improvements. This reduces your capital gain.

Check Holding Period

Held 12+ months? You get a 50% discount on your capital gain. Huge savings!

Calculate Your Tax

Your income determines your tax rate. We add the capital gain to your taxable income.

Eligibility

Do You Qualify for Small Business CGT Concessions?

Basic Conditions, You Must Meet ONE of:

✅ Small business entity test aggregated annual turnover under $2 million

✅ Maximum net asset value (MNAV) test net assets $6 million or less

✅ Asset is an active asset (used or held ready for use in a business)

✅ Active asset test satisfied for at least half the ownership period

Common Reasons You May NOT Qualify:

❌ Asset is primarily used to derive rent, interest, or royalties

❌ Turnover exceeds $2M AND net assets exceed $6M

❌ Asset acquired before 20 September 1985 (pre-CGT asset)

❌ Company fails the 80% active asset test for shares concession

FAQs

Business Sale CGT Common Questions

It depends on your capital gain, how long you’ve owned the business, and which small business concessions you qualify for. Without concessions, the gain is added to your income and taxed at your marginal rate (up to 45% + 2% Medicare Levy). With the 50% CGT discount and 50% active asset reduction, the taxable gain can be reduced to just 25% of the original gain. Use the calculator above for your personalised estimate.

You need to satisfy either the small business entity test (aggregated annual turnover under $2 million) or the maximum net asset value (MNAV) test (net assets of $6 million or less at the time of the CGT event). These are the basic eligibility conditions for accessing all four small business CGT concessions.

If you have continuously owned an active business asset for at least 15 years, are aged 55 or older, and the CGT event happens in connection with your retirement (or you are permanently incapacitated), your entire capital gain may be exempt from tax. Up to $1,865,000 (2025–26 cap) can be contributed to superannuation tax-free under the CGT cap contribution rules.

The small business retirement exemption allows you to exempt up to $500,000 of capital gains from selling an active business asset over your lifetime. If you are under 55, the exempt amount must be contributed to a complying superannuation fund. If you are 55 or older, you can simply keep the proceeds. This lifetime limit is per individual, not per business.

Yes. Goodwill is a CGT asset and a gain made on its disposal is generally subject to CGT. However, goodwill created in the course of carrying on a business is usually an active asset, meaning it can qualify for all four small business CGT concessions. If you’ve held the business (and its goodwill) for 12+ months, the 50% CGT discount and 50% active asset reduction can reduce your taxable gain to just 25%.

The ATO requires that CGT be calculated on the market value of the asset if you sell it below market value to a related party. This is known as the market value substitution rule. If you sell to an arm’s-length third party at a negotiated price, you use the actual proceeds — even if below book value.

Yes. Capital losses from any source (shares, property, other assets) can offset your business sale capital gain before you apply the CGT discount or concessions. Capital losses cannot be applied against ordinary income such as salary, wages, or business revenue they can only reduce capital gains.