Small Business CGT Concessions Web Series 2025 - Session 1 The Grouping Rules
Step-by-step guide to working through the small business CGT concessions. Recorded 11 March 2025
Session 1 of the Small Business CGT Concessions Web Series 2025 applying the grouping rules
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The small business CGT concessions are very generous for those who meet the relevant conditions. However, the rules can also be very complex and difficult to apply in practice and claims made under the concessions are at a high risk of being reviewed by the ATO. Also, recent changes to the rules mean that extra tests need to be satisfied to access the concessions in some cases.
This comprehensive 3-part Small Business CGT Concessions Web Series focuses on the key aspects of the small business CGT concessions in a methodical and practical way. Across the series we cover a wide range of issues including the problem areas that often prevent clients from accessing the concessions and the solutions that might make the difference, maximising the tax effectiveness of the concessions, planning opportunities for clients who are thinking of selling business assets, and preparing clients for a CGT audit.
Session 1 covers the Grouping Rules & Other Essential Concepts.
Part 1 Recorded 11 March 2025.
The Grouping Rules & Other Essential Concepts
Before applying the basic conditions to access the small business CGT concessions, it’s important to work through the various grouping rules. Understanding these rules is vital as they can have a significant impact on whether an asset can pass the active asset test, whether a taxpayer can pass the $6m net asset value test, and whether a taxpayer can pass the $2m turnover test.
We also explain the concepts of a significant individual and CGT concession stakeholder and what this means in practice. These are relevant whenever a company or trust wants to apply the retirement exemption or 15 year exemption or whenever a taxpayer is selling shares in a company or units in a trust.
This session works through a series of practical issues accountants & advisers face including:
- The control rules that apply to companies, partnerships, fixed trusts and discretionary trusts;
- What the courts have said about applying the control tests to discretionary trusts;
- The special rules that can apply when the control percentage is between 40% and 50%;
- How to determine whether an entity is an affiliate of another entity;
- The special rules that apply to spouses and how this can make the difference between accessing the concessions and missing out altogether;
- How to determine whether someone is a significant individual or CGT concession stakeholder of a company or trust; and
- How different share classes can make life very difficult and what can be done about it.
Michael Carruthers
Tax Director, Knowledge Shop
Michael is an adviser, author, in demand presenter, mentor to Knowledge Shop’s technical team, and is well known for his capacity to translate highly technical information into tangible and useable advice for the profession. He has a knack for seeing through the complexity and helping advisers work through highly technical issues with certainty and accuracy.
Michael works with advisers every day to help them negotiate and implement the constant tide of change impacting the industry. He was a long-term member of the advisory panel for the Board of Taxation and was a member of the reference group for the Board’s review of small business concessions.
He was also an expert panel member for the Board’s review of tax impediments facing small business.
Small Business CGT Concessions Web Series 2025 - Session 1 The Grouping Rules
Tax & Accounting
3 modules
Investment per person: $ 453.64 + GST
Team cost: $ 1,136.36 + GST
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