Market valuations for small business CGT concession eligibility.
For the 15-year exemption, 50% active asset reduction, retirement exemption and rollover relief. Evidence-led valuations prepared with the increased ATO scrutiny of small business CGT concessions in mind.
In most cases, yes — a small business CGT concession claim needs an independent market valuation, because eligibility turns on the $6 million maximum net asset value (MNAV) test, which is measured at the market value (not book value) of the net CGT assets of the entity together with its connected entities and affiliates at the time of the CGT event. A valuation is also used to value the business interest being disposed of and to support the active asset test (s152-40 ITAA 1997). Oliver Group prepares defensible market valuations for all four concessions — the 15-year exemption (s152-105), 50% active asset reduction (s152-205), retirement exemption (s152-305) and rollover relief (s152-410) — typically as a Defensible Valuation File from $8,995 + GST given the ATO's ongoing scrutiny of these claims. Oliver Group is an independent valuer, not a registered tax agent, so your tax adviser confirms the legal application.
Why these matters require care
Small business CGT concessions have been an ATO focus area for several years. Eligibility tests, active asset tests, and the $6m net asset value test all depend on substantiated market values. Where the value is marginal — close to the $6m threshold or close to other eligibility lines — the ATO reviews the methodology and evidence carefully. A defensible valuation is essential.
Methodology and the supportable position
For concession eligibility matters, the methodology must be selected with the specific test in mind. The maximum net asset value test requires a different focus than the active asset test. Where the supportable range straddles an eligibility threshold, the report explicitly addresses the question and identifies the most supportable position. We do not adopt positions to engineer eligibility; we identify what the evidence supports and document the reasoning.
Tier recommendation
Small business CGT concession matters generally warrant the Defensible Valuation File tier (from $8,995 + GST) due to ATO review risk. Where eligibility is marginal or contested, the Valuation Range & Scenario Review premium engagement is the right level — it produces a structured range analysis that supports the position the evidence allows.
Common questions.
Is the $6m net asset value test based on book value or market value?+
It is market value of the net CGT assets of the entity and connected entities at the time of the CGT event. Book value is typically not sufficient. An independent market valuation establishes the position.
Can you assist with the active asset test?+
Yes. Our reports include analysis of whether the assets being valued are active assets within the meaning of s152-40 ITAA 1997. This is methodology-relevant and goes into the supportable position analysis. Note we do not provide tax advice — your tax adviser confirms the legal application.
Do I need a valuation for the small business CGT concessions?+
Usually yes, because eligibility depends on substantiated market values — particularly the $6m maximum net asset value test and the value of the interest being sold. Where the value is marginal (close to the $6m threshold or another eligibility line), the ATO reviews methodology and evidence carefully, so an independent, defensible valuation is essential.
Can my accountant do the valuation instead of an independent valuer?+
The ATO's market valuation guidance expects objectivity, and a value prepared by the adviser who benefits from the tax outcome is far weaker under review than an independent one. Oliver Group provides the independent valuation evidence while your accountant retains the tax advice — Oliver Group does not give tax advice.
What does a small business CGT concession valuation cost?+
These matters generally warrant the Defensible Valuation File tier from $8,995 + GST due to ATO review risk. Where eligibility is marginal or contested, the Valuation Range & Scenario Review from $12,995 + GST produces a structured range analysis supporting the most supportable position the evidence allows.
Talk to a valuer
Tell us what you need valued.
A fifteen-minute call confirms the tier, the fixed fee and the delivery date — before you commit to anything.
0433 475 518Mon–Fri, 9am–5:30pm AEST
Fixed fees from $1,495 + GST · 10–35 business days