Tax Bites

Board of Taxation Report re the Small Business tax concessions

20th December 2019

The Board of Taxation undertook a review of Small Business tax concessions.  It issued a report to the Treasurer in March 2019.  That report has now been released to the public.
Specifically in relation to the Small Business CGT concessions, the Board recommends:
  1. Integrating the eligibility criteria with the small business entity regime by raising the aggregated turnover threshold to $10 million per annum;
  2. Repealing the maximum net asset value test; and
  3. Collapsing the 15-year exemption, active asset reduction and retirement exemption and replacing them with one CGT exemption subject to a cap.
Assuming the above is implemented, the Board also recommends that contemporaneous reforms be considered in relation to:
  1. Improving the operation of the grouping rules; and
  2. Addressing any anomalies and integrity issues that are not addressed by other recommendations.
The Government has not yet formally responded to the Board’s recommendations.
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Tax Bites are general in nature and are not a substitute for specific advice. They are the opinion of Tax Advisory Specialists, and the ATO or the Courts may take a different view. They are not updated for changes in the law or the interpretation of the law since publication.


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