Selling Your Business? Don’t Miss the Lifetime CGT Cap Opportunity
For many Australians, selling a business is one of the biggest financial events of their lives. However, many business owners don’t realise they may be able to contribute a significant portion of the sale proceeds into superannuation under the Lifetime CGT Cap. Because these contributions sit outside the normal concessional and non-concessional contribution caps, they can significantly boost your retirement savings while taking advantage of valuable Capital Gains Tax (CGT) concessions.
What is the Lifetime CGT Cap?
The Lifetime CGT Cap allows eligible small business owners to contribute proceeds from the sale of qualifying business assets into superannuation without using their standard contribution caps.
For the 2025–26 financial year, the Lifetime CGT Cap is $1.865 million.
Depending on your circumstances, you may qualify to contribute amounts under:
- the 15-year CGT exemption
- the Small Business Retirement Exemption
- certain other qualifying small business CGT concessions.
Eligibility Matters
You must satisfy specific eligibility requirements before you can access these concessions. In addition, each concession has its own qualifying rules, so careful planning is essential.
Importantly, you should seek advice before signing a sale contract. Early planning often creates better tax and retirement outcomes, whereas trying to restructure after the sale may limit your options.
Planning Can Make a Big Difference
The way you structure your business, the timing of the sale and the CGT concessions you choose can all affect your financial outcome. As a result, careful planning may help you:
- reduce the Capital Gains Tax you pay
- maximise the amount you contribute to superannuation
- improve your long-term retirement savings.
At Forman Financial Services, we work alongside your accountant to develop a strategy that aligns your tax planning with your retirement goals.
Speak With Us Before You Sell
Selling a business often creates a once-in-a-lifetime opportunity to strengthen your retirement savings. Therefore, obtaining professional advice before you finalise the sale can make a significant difference.
If you’re considering selling your business, contact Forman Financial Services to discuss how the Lifetime CGT Cap and the small business CGT concessions may apply to your situation.
Visit https://www.formanfinancial.com.au/contact-us/ to book a consultation.
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.