Tax Concessions Aussies Could Lose: Why 2025 Could be a Turning Point for Small and Family Businesses
- Future Accounting
- Aug 7
- 2 min read
Updated: Aug 12
Act now to protect your business from looming tax reforms
Small and family business tax concessions are under threat; on paper you look wealthy and may be an easy target for tax reform. If you're planning a business sale, a business restructure, implementation of a succession or estate plan, this could be a once-in-a-generation window to lock in benefits we may soon lose.
Tax concessions Aussies could lose in 2025
With the Australian government reviewing major tax reform options, many of the current CGT tax concessions available to small businesses and trusts may soon change or disappear entirely. At the same time, there is increasing discussion around the return of death duties in Australia, which could dramatically alter how wealth is transferred and taxed at death.
1. CGT-related tax concessions
Australia’s Capital Gains Tax (CGT) small business concessions are powerful tools for reducing tax when selling or restructuring business assets.
These include:
15-year exemption - No CGT for business owners aged 55+ retiring after 15 years.
50% active asset reduction - Cuts capital gains in half for eligible business assets.
Retirement exemption - CGT-free gain when rolled into superannuation (up to $500,000).
Small business rollover relief - defers tax when reinvesting in a replacement asset.
However, these concessions are being reviewed by Treasury and are often labelled 'inefficient' or 'inequitable'. There's a strong possibility that access will be tightened or removed in future tax legislation.
2. What about Small Business Restructure Roll-over (SBRR)?
The Small Business Restructure Roll-over (SBRR) allows small businesses to transfer active assets between entities without triggering a disposal and therefore triggering capital gains tax. This is only available as part of a genuine restructure of the business operations.
This is not one of the four CGT small business concessions, but it can interact with them. It is a very valuable concession for small and family businesses to use as part of succession planning.
3. Will death duties be reintroduced in Australia?
While death duties (inheritance taxes) were abolished in Australia in 1979, there is renewed policy debate suggesting they could return. Several tax reform proposals include estate taxes to increase revenue and reduce reliance on income tax.
If reintroduced, Australian death duties could:
Apply to deceased estates over a certain threshold.
Affect inter-generational wealth transfers and family business succession.
Combine with CGT to create double taxation events for beneficiaries.
What should you do now?
To make the most of the tax concessions Aussies could lose in 2025, it’s wise to act now rather than wait:
Assess asset ownership. Are assets held in personal name(s)?
Summarise asset cost base details - date of purchase and purchase value.
Review your CGT position and asset ownership structures while current concessions still apply.
Bring forward asset sales, restructures, or inter-generational transfers where feasible.
Update estate plans to allow flexibility in the event death duties return.
Who should be paying attention?
This issue affects a broad range of clients, including:
Small and family business owners planning a future exit.
Family businesses with active assets (i.e. business assets).
Farmers, property investors, and SMSF trustees.
Individuals nearing retirement relying on CGT exemptions.
Future Accounting can help
Book a complimentary strategy session with Future Accounting today - we’ll help you take full advantage of the tax concessions we could lose.
