Happy 40th Birthday CGT: What Capital Gains Tax Changes Could Mean for Your Business
- Future Accounting
- Oct 3
- 3 min read
Updated: Oct 3
Written by: Chris Mulcahy
What family and farming businesses must do before 40th Birthday CGT rules change
This year marks 40th Birthday CGT in Australia. They say life begins at 40 - but for Capital Gains Tax, it could mean a facelift from the ATO. And not the kind that makes you look younger. More like a tightening-up designed to raise more revenue.
For family and farming businesses, that’s a big deal. The generous concessions that have helped many business owners pass assets to the next generation could be reworked, reduced, or even removed.
A mid-life facelift for CGT 40 years in Australia
Since its introduction back in 1985, CGT has had plenty of small tweaks. But the small business CGT concessions - including the 15-year exemption, retirement exemption and rollover relief - have stood the test of time.
With CGT now hitting middle age, the ATO may decide it’s due for a “facelift.” That could mean changes to eligibility, reduced concessions, or new rules designed to ensure more tax ends up in Canberra.
Why family and farming businesses should care
For family enterprises and farming families, this isn’t just cosmetic. These concessions are often the difference between a smooth handover and a large tax bill.
Over the past 40 years, land values and business goodwill have grown dramatically. Without the ability to access today’s concessions, families may face tax liabilities that erode the wealth they’ve worked hard to build.
So while a facelift might sound harmless, in practice it could mean losing the ability to transfer assets without a major tax hit.
Use the concessions before they change
The good news? Right now, the concessions remain in place. That means there’s still time to plan - whether it’s restructuring, selling, or preparing a succession strategy. Acting now can make a difference worth hundreds of thousands, or even millions, of dollars.
Don’t wait for CGT to book its 40th birthday makeover. The rules could change quickly, and the opportunity to take advantage of these concessions could disappear. That’s why we’ve launched our campaign: Use them before we lose them.
Final thoughts and next steps
CGT 40 years in Australia is a milestone worth noticing. Like many people turning 40, it may be ready for a style change. Unfortunately, that could mean fewer concessions and higher tax bills for families and businesses.
Before CGT gets its facelift, make sure you’ve secured the benefits that still exist. Use them before we lose them - contact us today to book an appointment and start planning your strategy.
Because while life may begin at 40… your tax bill shouldn’t.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
