02/06/2026
Everyone’s sharing the line that “the government becomes a 47% shareholder when you sell.” For a genuine small business sale, that’s not what the 2027 CGT change does. But there IS a real shift underneath it - and it doubles the taxable slice for owners who don’t plan.
The part that survives the headlines: the four small business CGT concessions (Division 152) were carved out of the reform. On an active business asset - premises, goodwill, plant, tools - they’re unchanged before and after 1 July 2027.
What changes: from 1 July 2027 the general 50% CGT discount for individuals, trusts and partnerships is gone. That discount used to STACK on top of the small business 50% active asset reduction. Remove it, and the stack underneath shifts.
The math on a $2M gain (owner under 55, held under 15 years, relying only on the active asset reduction, top marginal rate):
BEFORE → ~$500K taxable (25%) → ~$235K tax
AFTER → ~$1M taxable (50%) → ~$470K tax
Same sale. ~$235K more. The taxable portion doubles.
The lesson: the discount that disappeared was never the one that mattered most. The 15-year exemption, the retirement exemption ($500K lifetime), age-55 timing and the holding-period clock still drive the outcome - several can take an exit close to $0. The owners who plan are barely touched. The ones who don’t now pay double on the taxable slice.
Swipe through for the full breakdown. Tag a business owner thinking about an exit.
Comment NUMBERS and we’ll book a free session to map your exit tax before the rules shift.
─── DISCLAIMER ───
Educational content, not financial advice, and not a judgment of any business. Published figures: Treasury, PM media release, ATO. The $2M scenario is estimated at the 47% top rate; outcomes vary by age, holding period, eligibility and structure. Not affiliated with any government body or third party. Full disclaimer on final slide. DM us for any correction.
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