Capital Gains Tax (CGT) cap
A separate cap may apply if you contribute to super when selling active business assets.
If you’re selling certain business assets and meet other requirements, you may be able to contribute certain amounts to superannuation under the ‘Small Business CGT cap’.
What is the CGT cap in 2024/25?
The CGT cap depends on the small business concession you claim, as summarised in the following table.
CGT cap in 2024/25
Lifetime cap amount |
Generally available when you claim the1: | Source of funds that can be contributed |
|---|---|---|
$1,780,000 |
15 year CGT exemption |
Exempt capital gains and/or sale proceeds |
$500,0002 |
CGT retirement exemption |
Exempt capital gains only |
1. Conditions apply. To find out more, we suggest you speak to a registered tax agent or go to the Australian Taxation Office website.
2. Also reduces the lifetime cap that can be used under the 15 years CGT exemption.
Important things to consider
- If you are eligible, want to make a contribution into super and have the contribution count towards the CGT cap, you must provide your fund with a ‘CGT cap election’ form in the approved format at the time or prior to making the contribution.
- In some circumstances, you may be required to contribute an amount to super under this cap to be eligible to receive small business CGT tax concessions on the sale of an asset.
- The CGT small business concessions are complex. A registered tax agent can help assess your eligibility and maximise the benefits.
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General advice and information only
Any advice and information on this website is general only, and has been prepared without taking into account your particular circumstances and needs. Before acting on any advice on this website you should assess or seek advice on whether it is appropriate for your needs, financial situation and investment objectives.
Tax disclaimer
Any general tax information on this website is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.
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