Boosting Super Balances with the Small Business CGT Concessions

The small business CGT concessions can be extremely beneficial in minimising CGT on the disposal of active assets. This benefit can further extend to the opportunity to bolster superannuation balances in a tax effective environment, if the right conditions are met. This session explores the situations where this double benefit may apply, including:

• How contributions arising from the CGT small business concessions interact with the non concessional contributions cap
• Implications the total superannuation balance and transfer balance cap have on contributions that include CGT active asset sale proceeds
• How timing of contributions arising from the CGT small business concessions can impact on potential to make other contributions, including:
  • non concessional contributions
  • downsizer contributions
• In what situations may choosing the small business retirement exemption prove beneficial, instead of opting for:
  • the 50% active asset reduction
  • triggering CGT events J2, J5 and J6
• Interaction of CGT cap, small business 15 year exemption, small business retirement exemption and non concessional caps, including:
  • benefits of using the capital gains tax cap election
• Strategies using the small business CGT concessions to tax effectively maximise super balances
• Case study