Company Tax Rate

  1. Year 2020-21, Small Business 26%. Applies to small businesses with aggregated turnover less than $50M.
  2. Year 2021-22, Small Business 25%. Applies to small businesses with aggregated turnover less than $50M.
  3. Others: 30%

Small Business CGT Concessions

  • The 15-year exemption- If you are aged 55 or older and retiring or are permanently incapacitated, and you have owned an active business asset for at least 15 years, you won’t pay CGT when you dispose of the asset by sale, gift or transfer.
  • The 50% reduction - If you’ve owned an active business asset, you’ll only pay tax on 50% of the capital gain when you dispose of the asset.
  • The retirement exemption - There is a CGT exemption on the sale of an active business asset, up to a lifetime limit of $500,000. If you are under 55, money from the disposal of the asset must be paid into a complying superannuation fund or a retirement savings account. Amounts from this exemption may be able to be contributed to your super fund without affecting your non-concessional contributions limits.
  • Rollover - If you dispose of an active business asset and buy a replacement asset or improve an existing one, you can defer your capital gain until a later year. The replacement asset can be acquired one year before or up to two years after the last CGT event in the income year for which you choose the roll-over.