For eligible Australian small business owners, selling an active business asset may unlock one of the most powerful super contribution opportunities available: the Lifetime CGT Cap. In 2025–26, this cap allows qualifying individuals to contribute up to $1.865 million to super outside standard concessional or non-concessional caps.
What Can Qualify?
Eligible proceeds may include:
- 15-year exemption proceeds
- Retirement exemption amounts
- Certain pre-CGT assets
- Permanent incapacity sales
Why This Matters:
For business owners who have built substantial wealth in business assets rather than super, this strategy may create a major retirement planning opportunity.
Key Benefit:
Unlike standard contribution caps, Lifetime CGT Cap contributions can allow very large amounts to enter super without using regular annual contribution limits.
Important:
Eligibility for small business CGT concessions can be highly technical, with multiple basic and specific conditions needing to be satisfied.
Selling a Business and Considering Super Contributions?
The small business CGT concessions and Lifetime CGT Cap rules may create significant retirement planning opportunities for eligible business owners. However, the eligibility requirements and contribution rules can be highly technical.
Contact us today to discuss your business sale, super contribution opportunities and retirement planning strategy.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.