Taxation

March 22, 2019

Tax Implications When Selling a Business

When it comes to selling a business, it’s never as simple as it seems. There are a number of factors to consider and one of the majors ones that is often overlooked is Capital Gain Tax (CGT). CGT arises when you sell or dispose of an asset that was acquired on or after 19 September 1985, minus any capital losses – and this includes businesses. Under certain circumstances, company/trust shares may be subject to CGT even if acquired before this date. Though there is good news for small business. Concessions are available for small business owners that meet certain criteria– making it possible to reduce the CGT amount. The turnover threshold for CGT concessions is $2 million. According to the ATO […]
September 5, 2017

How to Sell Your Business, Tax Effectively

Too often business owners fail to take advantage of the generous capital gains tax (CGT) concessions available when selling a business. It takes hard work and dedication to build and manage a successful business, but all that effort could amount to very little if you end up being hit with high CGT on the sale proceeds. There are four CGT small business concessions available under Division 152 of the Income Tax Assessment Act 1997 (Cth), each potentially providing you with sizable tax savings on the sale of your business. If you are currently in the process of selling your business or thinking about doing so in the not too distant future, it is important to keep the available concessions in […]
July 4, 2017

Capital Gains Tax

There are a number of factors to consider when selling your business, one of the most important being how much you would like to sell your business for. Selling your business can be a challenging task, so it’s important to get it right. Here are some suggested steps to guide you through the process. 1. Make sure selling is the right decision If you’re thinking of selling because of financial problems or because you find it hard to comply with government regulations, consider whether getting help or advice might put your business back on track. You’ll also need to consider how selling your business will affect your personal and financial circumstances. . Decide whether to use professionals Consider using a […]