Selling after 55: tax and retirement questions to take to your accountant
The small business tax concessions many owners only hear about late. Take these questions to your accountant before you agree to anything.
By This article covers tax and financial matters. It's general information to help you ask better questions, not advice for your situation. Velaro isn't a law firm, registered tax agent or licensed financial adviser. Please check anything important with a qualified adviser before you act.
In short
- Small business CGT concessions can reduce or remove tax on a sale for eligible owners.
- The 15-year exemption and retirement exemption are especially relevant for owners 55 and over.
- Plan a year or two ahead. Some concessions depend on structure and timing.
For many owners, the business is their retirement. How a sale is structured can make a real difference to what you keep. This guide is not tax advice and I'm not your adviser. It is a list of topics worth raising with your accountant early, ideally before any offer is on the table.
Do I qualify for the small business CGT concessions?
The ATO offers capital gains tax concessions for small business owners who meet certain basic conditions. Broadly, these involve the size of the business, measured by turnover or net assets, and whether the assets being sold were active assets used in the business.
Ask your accountant whether you meet the conditions and which concessions might apply to you. The ATO's small business CGT concessions pages are a good starting point for background reading.
What is the 15-year exemption, and could it apply to me?
Where the conditions are met, an owner who has held a business asset for at least 15 years and is 55 or older and retiring may be able to disregard the capital gain entirely. For some long-standing owners this is the most valuable concession of all.
The rules around ownership periods, retirement and structures such as companies and trusts are detailed. Ask your accountant to check it properly rather than assuming.
What about the retirement exemption and super?
The retirement exemption can allow a capital gain up to a lifetime limit to be disregarded. If you are under 55, the amount generally needs to be paid into super.
There are also rules about contributing sale proceeds to super.
Ask your accountant how the retirement exemption and your super could work together, and whether a financial planner should be involved.
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Should the sale be of the business assets or the company?
Selling the business assets and selling the shares of the company that owns them can have very different tax outcomes, and they affect what the buyer takes on. Buyers of small businesses often prefer to buy assets.
Ask your accountant to model both where relevant, including GST. The sale of a business as a going concern can be GST-free if the conditions are met.
When should I start planning?
Earlier than most people think. Some concessions depend on how long you have owned assets and how the business is structured, and changes can take time.
Starting a year or two before a sale gives you options.
If a buyer approaches you before you have had this conversation, it is fine to say you need to speak with your accountant first. A reasonable buyer will expect it.
Your checklist
What to do next
- Book a sale-planning meeting with your accountant
- Ask whether you meet the small business CGT basic conditions
- Ask about the 15-year exemption and the retirement exemption
- Ask how an asset sale compares with a share sale
- Ask about GST on the sale of a going concern
- Consider involving a financial planner for super
Example
A 62-year-old owner who had run his business for 20 years assumed he would lose a large share of the sale price to tax. His accountant confirmed he qualified for the 15-year exemption, which changed the price he needed to be comfortable with retiring.
An illustrative example, not a real client or transaction.
Questions owners ask
Can Velaro advise me on tax?+
No. I'm the buyer, so I can't be your adviser. Your accountant should advise you.
Where can I read more?+
The ATO website has detailed information on small business CGT concessions. Your accountant can apply it to your situation.
Does the structure of the deal affect tax?+
Yes. Payment timing, asset or share sale, and how the price is allocated can all matter. Get advice before you agree to a structure.
Sources and further reading
- ATO: Small business CGT concessions
- ATO: CGT concessions eligibility overview
- ATO: Sale of a going concern (GST)
Information checked against these sources as at October 2026. Rules and thresholds can change, so check the current position with your adviser.
Important
This article is general information only. It doesn't take your personal circumstances into account and isn't financial, legal, tax, employment or valuation advice. Velaro Group is a buyer of businesses. It isn't a business broker, licensed financial adviser, registered tax agent or law firm, and it doesn't act for sellers. Please get advice from your own accountant, solicitor or financial adviser before making any decision. Read the full disclaimer.
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