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), with the evidence trail documented in full given the ATO's ongoing scrutiny of these claims. The fee is set by the annual turnover of the business: $1,495 + GST under $2 million, $2,495 + GST from $2 million to $10 million, and $3,495 + GST over $10 million, with each connected entity counted for the maximum net asset value test a published +$795. 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.
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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.
What it costs
The fee is set by the annual turnover of the business: $1,495 + GST for annual turnover under $2 million, $2,495 + GST from $2 million to $10 million, and $3,495 + GST over $10 million. The evidence and reasoning a concession claim needs, including the active asset analysis and the supportable range, are part of the work at every package level. Delivery time starts once payment and all required information have been received.
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?+
The fee is set by the annual turnover of the business: $1,495 + GST for annual turnover under $2 million, $2,495 + GST from $2 million to $10 million, and $3,495 + GST over $10 million. Additional entities, which are common where connected entities and affiliates are counted for the maximum net asset value test, are a published +$795 each. Delivery time starts once payment and all required information have been received.
- ·Small business CGT concessions, Australian Taxation Office
- ·Small business CGT concessions: eligibility conditions, Australian Taxation Office
- ·Market valuation for tax purposes (guide), Australian Taxation Office
- ·Market valuation of assets, Australian Taxation Office
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Small Business Valuation
$1,495 + GST
For a business with annual turnover under $2 million. Signed and delivered in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the outcome.
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