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CGT small business concessions and contributions to super

Additional eligibility rules for 50% (active asset) reduction

Section: 8.7

There are no additional rules for the 50% (active asset) reduction. Amounts exempt from capital gains tax under this exemption may be contributed to super as a non-concessional or concessional contribution.

Business owners have the option of not applying the active asset reduction when selling CGT assets. By not applying this 50% reduction, the amount of capital gain that can be exempt under the $500,000 retirement exemption (and contributed to super under the lifetime CGT cap) can, in many cases, be maximised.

Last modified: Tuesday, May 2, 2017