Market valuations for small business CGT concession eligibility.
For the 15-year exemption, 50% active asset reduction, retirement exemption and rollover relief. Evidence-led valuations prepared with the increased ATO scrutiny of small business CGT concessions in mind.
A small business CGT concession valuation establishes whether a business meets the $6m net asset value test or other concession eligibility thresholds, and the market value of the relevant business or business interest at the CGT event. The four concessions — 15-year exemption (s152-105), 50% active asset reduction (s152-205), retirement exemption (s152-305) and rollover relief (s152-410) — each carry specific valuation requirements and ATO review risk.
Why these matters require care
Small business CGT concessions have been an ATO focus area for several years. Eligibility tests, active asset tests, and the $6m net asset value test all depend on substantiated market values. Where the value is marginal — close to the $6m threshold or close to other eligibility lines — the ATO reviews the methodology and evidence carefully. A defensible valuation is essential.
Methodology and the supportable position
For concession eligibility matters, the methodology must be selected with the specific test in mind. The maximum net asset value test requires a different focus than the active asset test. Where the supportable range straddles an eligibility threshold, the report explicitly addresses the question and identifies the most supportable position. We do not adopt positions to engineer eligibility; we identify what the evidence supports and document the reasoning.
Tier recommendation
Small business CGT concession matters generally warrant the Defensible Valuation File tier (from $8,995 + GST) due to ATO review risk. Where eligibility is marginal or contested, the Valuation Range & Scenario Review premium engagement is the right level — it produces a structured range analysis that supports the position the evidence allows.
Common questions.
Is the $6m net asset value test based on book value or market value?+
It is market value of the net CGT assets of the entity and connected entities at the time of the CGT event. Book value is typically not sufficient. An independent market valuation establishes the position.
Can you assist with the active asset test?+
Yes. Our reports include analysis of whether the assets being valued are active assets within the meaning of s152-40 ITAA 1997. This is methodology-relevant and goes into the supportable position analysis. Note we do not provide tax advice — your tax adviser confirms the legal application.
Ready to discuss your engagement?
Fifteen-minute discovery call. We confirm the tier, fee and timing before you commit.
Talk to a valuer