If you’ve worked out that you’re eligible to apply the small business CGT concessions, the first concession to consider is the small business 15-year exemption.

This concession can be used if:

• you’ve continuously owned an active asset for 15 years, and
• you're aged 55 or over and are retiring or permanently incapacitated.

The concession allows you to disregard a capital gain entirely when you sell an asset and you don’t apply any other concessions.

To use the small business 15-year exemption, you must meet:

• the basic eligibility conditions, and
• these specific conditions:
  • you’ve continuously owned the active asset for 15 years, and
  • you're aged 55 or over and are retiring or permanently incapacitated
  • if the CGT asset is a share in a company or interest in a trust, there was a significant individual in relation to that company or trust for at least 15 years.

If these conditions are satisfied and you make a capital loss from the CGT event, you may use this capital loss to reduce other capital gains.

There are additional requirements that must be met for a company or trust to apply the exemption.

The small business 15-year exemption takes priority and is used first, before the other small business concessions and the general CGT discount.