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CGT small business concessions and contributions to super

Contributing capital gains to super where $500,000 retirement exemption applies

Section: 8.6

If the sale of an asset qualifies for the retirement exemption, the owner has the option of contributing all or some of the exempted capital gain to super. The capital gain that is exempted from capital gains tax is limited to a lifetime limit of $500,000.

The amount of the capital gain (maximum of $500,000) that is contributed to super will not be treated as either a concessional or non-concessional contribution if the contribution counts towards and does not exceed the person's lifetime CGT cap, which is $1.415 million for 2016-17.

The person must meet the work test to contribute the amount to super if they are between age 65 and under 75. From age 75, a person is not permitted to make personal or voluntary employer contributions to super and therefore may not contribute the sale proceeds to super.

There are further administrative requirements for contributing these proceeds to super (see section 8.11).

Last modified: Tuesday, May 2, 2017