Dominic is the CEO of Lawpath, dedicating his days to making legal easier, faster and more accessible to businesses. Dominic is a recognised thought-leader in Australian legal disruption, and was recognised as a winner of the Australian Legal Innovation Index and recently a winner of the LexisNexis 40 Under 40 (APAC).
💡Key Insight
- Recent changes to small business Capital Gains Tax (CGT) relief following a Full Federal Court decision have made it harder for small business sellers to qualify for CGT exemptions on the sale of a business by tightening the “net asset value less than $6 million” test, potentially increasing tax payable on capital gains.
- This development signals that small business owners planning a sale must revisit their tax strategy and eligibility assessments early, because relief that previously reduced CGT on disposal of business assets may no longer apply as readily.
- Professional tax and legal advice is recommended to navigate eligibility criteria and structure the sale to preserve as much relief as possible under the updated interpretation of the CGT rules.
Getting the small business Capital Gains Tax relief is often critical when selling a small business. The Full Federal Court has recently made it more difficult to come within the “net asset value less than $6M test”. See this guide at Lexology for more details.
The Helpful Lawyer
