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CGT small business concessions and contributions to super

Contributing proceeds to super where 15-year exemption applies

Section: 8.4

If the sale of an asset qualifies for the 15-year exemption on the capital gain, the owner has the option of contributing all or some of the total proceeds from the sale to super. The proceeds from the sale will likely exceed the capital gain from the sale.

The contribution of the sale proceeds will not be treated as either a concessional or a non-concessional contribution if the contribution does not exceed the person's lifetime CGT cap, which is currently $1.415 million (2016-2015)

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.

Last modified: Tuesday, May 2, 2017