26/06/2026
The CGT 'deadline' scaring business owners into selling? For Joe, waiting is the smarter play
Joe runs a manufacturing business. Last month, a business broker urged him to sell before July 2027 or risk losing out due to the CGT change.
But he was focusing on the wrong number.
Here’s the change everyone’s worried about: starting July 1, 2027, the 50% CGT discount will go away. Instead, cost-base indexation will be introduced, along with a 30% minimum tax on real gains.
However, that applies to the general discount. Joe isn’t selling shares; he’s selling active business assets, which follow different rules.
The four small business CGT concessions remain unchanged. In fact, one just got better.
The 50% active asset reduction threshold is increasing from $2 million to $10 million in turnover.
Joe’s turnover is about $6 million.
With the old $2 million limit, he couldn’t use the concession. Now, under the new $10 million limit, he qualifies.
Consider the numbers. If Joe makes a $1.2 million capital gain on his active assets, the 50% active asset reduction that he now qualifies for reduces the assessable gain by $600,000 before he even considers the other three concessions.
For Joe, waiting might be more beneficial than rushing.
A tax "deadline" that pushes you to sell at a low price can be the costliest mistake in any deal. If you sell based on a deadline, you give the buyer an advantage.
So, don’t list just to meet a date. First, verify your turnover and concession eligibility against the actual rules. That figure, not July 2027, should guide your decision.
What’s your broker focused on, the calendar or your turnover?
Don't be Joe.
This is general information only, not personal tax or financial advice. The figures are illustrative and depend on your circumstances.
