As your business grows, you may start to consider selling some of your capital assets, like your commercial premises (if you own them) or motor vehicles. This could allow you to buy or lease larger premises, or purchase other motor vehicles. 

If your business sells an asset, such as property, you usually make a capital gain or loss. This is the difference between what it cost you and what you get when you sell, or dispose of it.

CGT is the tax you pay on profits you make from selling an asset. It’s calculated separately from your other income and deductions. Any net capital gain is added to your assessable income.

You may be able to use small business CGT concessions to reduce, disregard or defer some or all of a capital gain from an active asset.