--- title: "Small Business CGT Concession Valuation Melbourne" url: https://businessvaluationsmelbourne.com.au/services/small-business-cgt-concession-valuation/ description: "Market values for the $6 million test and the 80% test, for Melbourne owners and accountants. Signed report, fixed fees from $1,495 + GST." updated: 2026-11-10 --- # Small business CGT concession valuations, including the $6 million test, from $1,495 + GST. Business Valuations Melbourne values for the small business CGT concessions from $1,495 + GST, with a small-business report in 2 business days. Delivery time starts once payment and all required information have been received. Get a fixed fee Annual turnover $1,495 + GST Signed report in 2 business days. Delivery time starts once payment and all required information have been received. Fee From $1,495 + GST Signed by The valuer responsible Independent Fee never depends on the value Our valuers have valued businesses since 2014 Get a fixed feeCall 03 8375 4177 - The fee is fixed before we start, and it is never tied to the answer. - No referral fees from brokers or advisers. - The working file behind your report is retained for ten years. ## What you get ### What a concession valuation sets out A small business CGT concession valuation gives the market value of a business, its goodwill, or shares or units, just before the CGT event. Those values decide the $6 million maximum net asset value test and, for shares and units, the 80% test. Business Valuations Melbourne values each entity your accountant names in one signed report; your accountant decides how the concessions apply. [See a sample report (52 pages, PDF)](https://businessvaluationsmelbourne.com.au/business-valuations-melbourne-sample-valuation-report.pdf) ### Summary Maximum net asset value test $6 million Not indexed Tested just before - Before the contract - Contract signed The CGT event - Settlement Section 152-15, ITAA 1997 Every counted asset at market value. The test - The limit: net CGT assets up to $6 million, not indexed. - The CGT event: for a sale, generally when the contract is made. - Tested: just before the CGT event. We are not a registered tax agent: your accountant confirms eligibility and applies the concessions. ### Illustrative Net value of CGT assets | Goodwill of your business | | 2,600,000 | | Plant, stock and debtors | | 700,000 | | Company you control: net CGT assets | | 1,500,000 | | Less: related liabilities and provisions | | (600,000) | | Net value | | 4,200,000 | Market values, less related liabilities and certain provisions. In this example - Your business: goodwill 2,600,000, other assets 700,000. - Company you control: 1,500,000 counts; your shares in it do not. - Net value: 4,200,000, after 600,000 of liabilities and provisions. Illustrative only. The figures are constructed for this example and are not a client's. ### Illustrative The 80% test, in figures | Goodwill | | 1,250,000 | | Plant and equipment | | 300,000 | | Debtors and business cash | | 150,000 | | Property let to an unrelated tenant | | 300,000 | | All assets | | 2,000,000 | Every figure is a market value, including goodwill. In this example - Counted: goodwill 1,250,000, plant 300,000, debtors and cash 150,000. - Not counted: property let to an unrelated tenant, 300,000. - Result: 1,700,000 of 2,000,000 is 85%, which is 80% or more. Illustrative only. The figures are constructed for this example and are not a client's. ### A past valuation date | | How it is handled | | Valuation date | Just before the CGT event | | Hindsight | Not used | | A future date | Never valued | Only what was known or foreseeable at that date. The approach - Valuation date: just before the CGT event. - Hindsight and future dates: never used. ## Why independent A value set out so it can be tested. For tax, a valuation is usually judged on the process rather than on who did it. Every report is independently reviewed by a suitably qualified business valuer. | | A figure with no report | Our valuation | | Market value definition? | Not on record | Stated in the report | | Method and reasons? | Not on record | Set out in full | | Assumptions and information? | Not on record | Stated in full | | Independence statement? | Not on record | In every signed report | ### What the ATO looks at in a valuation Read the detail The ATO's guide to market valuation says that for tax, a valuation is usually judged on the process rather than on who did it. When the ATO reviews one, it generally has a valuer look at how well the process was documented, the market value definition, the method, and the assumptions and information relied on. The guide's own $6 million example is a company that valued its assets itself; the ATO's valuer found three properties understated by 25%, the company failed the test, and a recklessness penalty applied. No valuer can promise how a review ends. Our report puts each point a review looks at on the record, which a figure with no report behind it cannot do. The guide also says a value is better supported where the valuer's fee did not depend on the result; ours never does. Every report is signed by the valuer responsible and carries an independence statement. ## How it works Four steps to your signed report. - ### Send the form We reply within one business day. No documents needed to start. - ### A fifteen-minute call The call confirms the package, the fixed fee and the delivery date. - ### Pay and send the information We tell you exactly what that information is before you engage. - ### Your signed report 2 business days for a small business. Delivery time starts once payment and all required information have been received. ## What it costs A fixed fee by turnover. Fixed fees by annual turnover | Annual turnover | Fee | | Under $2 million | $1,495 + GST | | $2 million to $3 million | $2,495 + GST | | $3 million to $10 million | $3,495 + GST | | Over $10 million | Quoted in writing | Get a fixed fee → Business Valuations Melbourne's fees are set by the annual turnover of the business: $1,495 + GST under $2 million, $2,495 + GST from $2 million to $3 million, $3,495 + GST from $3 million to $10 million, and a written quote above $10 million. A small-business report arrives in 2 business days and a medium or large report in 3 business days; above $10 million we agree the delivery date before work begins. Delivery time starts once payment and all required information have been received. Defined add-ons | +$495 | Retrospective valuation date per historical date | | +$795 | Each additional entity per entity | Read the detail Each extra entity is +$795 and each past valuation date is +$495, both agreed at engagement. Everyone pays the same published fee, and it never moves with the value we reach. A signed business valuation report from Business Valuations Melbourne is $1,495 + GST for a business with annual turnover under $2 million, delivered in 2 business days; $2,495 + GST for turnover between $2 million and $3 million, delivered in 3 business days; $3,495 + GST for turnover between $3 million and $10 million, delivered in 3 business days; and above $10 million the fee is quoted in writing before work starts, with the delivery date agreed before commencement. Delivery time starts once payment and all required information have been received. ## When the concessions depend on a market value Two eligibility tests run on market value. Read the detail - Selling a business, or its assets, with aggregated turnover of $2 million or more - Selling shares in a company or units in a trust - A group with connected entities or affiliates whose assets may count - A position close to the $6 million limit - A business or shares passed to family for nothing, or not at arm's length - A sale that has already happened, valued at that past date Two of the eligibility tests for the small business CGT concessions run on market value. The $6 million maximum net asset value test is one way to be an eligible entity, and selling shares or units adds the 80% test. A business with aggregated turnover under $2 million, counting affiliates and connected entities, can qualify on turnover instead (section 152-10), and some partners and owners of assets used in a related business can qualify without the $6 million test too. Where none of those applies, the $6 million test is what is left. From the income year that includes 1 July 2027, the 50% active asset reduction on its own uses a $10 million turnover test (section 152-205); the other three concessions keep $2 million. And where a business or shares pass to family for nothing, or not at arm's length, the gain itself can be worked out on market value (section 116-30). Your accountant decides which tests apply; we provide the values. ## The detail behind the numbers $6 million test ### The $6 million maximum net asset value test Tested just before - Before the contract - Contract signed The CGT event - Settlement Market values, not book values, and goodwill counts. Read the detail The test adds up the net value of the CGT assets of you, entities connected with you, your affiliates and entities connected with them. An entity you control, generally with 40% or more of its income, capital or votes, is connected with you. You pass if the total just before the CGT event is no more than $6 million (section 152-15). Net value is market value less related liabilities and provisions for annual leave, long service leave, unearned income and tax (section 152-20). It uses market values, not book values, and goodwill counts. The $6 million is not indexed. For a sale under a contract, the CGT event is generally when the contract is made, not at settlement (section 104-10). Every CGT asset of each entity counts unless the law leaves it out, not just business assets; for affiliates and their connected entities, only assets used, or held ready for use, in your business or a connected entity's business count. The ATO lists getting the $2 million turnover and $6 million asset limits wrong among the common errors it sees. A property valuer values real property; we value the business, its goodwill, and shares or units. - Shares, units and other non-debt interests in an entity connected with you or your affiliate are left out, so nothing counts twice; liabilities related to them still come off. - For an individual, assets used solely for personal use are left out, and so is the home, except to the extent it produced income. - For an individual, superannuation rights and life insurance policies are left out. - A liability comes off only if it relates to counted assets, such as a loan for business premises. - An interest-earning personal bank account counts, because it earns income. Shares and units ### Selling shares or units: the 80% test Only the 80% test makes shares or units active assets. Read the detail A share in an Australian resident company, or an interest in a resident trust, can be an active asset only through the 80% test (section 152-40). The market value of the entity's active assets, plus cash and financial instruments inherently connected with its business, must be at least 80% of the market value of all its assets. An asset mainly used to earn rent, such as property let to an unrelated tenant, is generally not active. Every figure is a market value, goodwill included. The test must be met for at least half the time you owned the shares or units, or 7.5 years if you owned them for more than 15 years; it is not applied day by day. We value the company or trust and any entity the test looks through to. For CGT events from 8 February 2018, selling shares or units also has extra conditions (section 152-10): - You carry on a business just before the CGT event, or you meet the $6 million test. - The company or trust itself meets the $2 million turnover test or the $6 million test, counting entities it controls at 20% rather than 40%. - You are a CGT concession stakeholder in it, or the 90% test is met. - The shares or units pass a modified 80% test that looks through to entities the company or trust holds. The concessions ### The four concessions Four concessions can reduce, disregard or defer the gain. Read the detail Once the basic conditions are met, four concessions can reduce, disregard or defer the gain. All but the 50% reduction have extra conditions of their own. Which apply, and in what order, is for your accountant. - 15-year exemption (Subdivision 152-B): the whole gain is disregarded where, among other conditions, the asset was owned for 15 years and the owner (or, for a company or trust, a significant individual) is 55 or over and retiring, or permanently incapacitated. - 50% active asset reduction (Subdivision 152-C): the gain is halved, automatically unless you choose otherwise. - Retirement exemption (Subdivision 152-D): gains disregarded up to a $500,000 lifetime limit per individual; under 55, the amount goes into a super fund or retirement savings account. - Roll-over (Subdivision 152-E): the gain is deferred where a replacement asset is acquired, or capital improvements are made, generally from one year before to two years after the last CGT event in the year. Past dates ### Valuing at a past date On what was known just before the CGT event. Read the detail If the sale has already happened, we value as at just before the CGT event, using only what was known, or reasonably foreseeable, then. The ATO's guide judges prudence at the valuation date, not with hindsight, and names a retrospective date as something a report should state. We never value at a future date: the guide says a prospective assessment will not be considered reasonable or acceptable for tax. Your accountant ### What your accountant receives Valued to the tests and date your accountant gives us. Read the detail Your accountant tells us which tests apply, which entities count, and the date of the CGT event. We value to that and state exactly what was valued and as at when. One signed report gives a separate conclusion for each entity, with the date, the market value definition, the method and reasons, and the evidence, assumptions and information relied on, plus a supportable range beside the concluded value and an independence statement. The working file is kept for ten years. We are not a registered tax agent; your accountant applies the values. Before you engage we tell you what we need, usually: - Financial statements for the last three years, and year-to-date accounts, for each entity - The group structure, including connected entities and affiliates - The sale contract, or the expected contract date - The asset register and depreciation schedule - Share and unit registers - Loans, other liabilities and leave provisions - Your accountant's note of the tests and the date to value at Melbourne ### Melbourne owners: premises, groups and timing Premises and connected entities count at market value. Read the detail For many Melbourne owners the business is only part of the $6 million count. The factory in Dandenong South or Campbellfield, the shop in a family trust, or a rental property owned by a connected entity can all count, and they count at market value, not cost. A property valuer values that real property; we value the business, the goodwill and the shares or units, to the same date so the figures add up. Group structures matter too: a company or trust you control at 40% or more is connected with you, so its assets come in as well. Because the test is applied just before the CGT event, the sensible time to run the numbers is before the contract is signed, while your accountant can still act on them. ## What it costs One fee covers one entity valued at one date. Read the detail One fee covers one entity valued at one date. Where the $6 million test counts more than one entity, each extra entity valued is +$795; where the CGT event has already happened, each past valuation date is +$495. ## Common questions. ### Do I need a valuation for the small business CGT concessions? Not always. A business with aggregated turnover under $2 million can qualify without the $6 million test, though selling shares or units adds the 80% test. Your accountant decides which tests apply. ### Is the $6 million test based on book value or market value? Market value: each counted CGT asset, goodwill included, less related liabilities and certain provisions, just before the CGT event (sections 152-15 and 152-20). ### What date is the valuation at? Just before the CGT event: for a sale under a contract, generally when the contract is made (section 104-10). If that date has passed, we value on what was known then. ### Who values the property in the $6 million count? A property valuer values real property. We value the business, its goodwill, and shares or units, to the same date. ### Will the ATO accept the valuation? No one can promise that. The ATO can review any market valuation, and its guide says a review looks at the documentation, the definition, the method, and the assumptions and information. Our report sets out each of those. ## Related services [Selling a business · Melbourne Pre-Sale Business Valuation Melbourne](https://businessvaluationsmelbourne.com.au/services/selling-a-business-valuation/)[Capital gains tax · Melbourne CGT Valuation Melbourne](https://businessvaluationsmelbourne.com.au/services/cgt-valuation/)[Restructures · Roll-overs · Melbourne Business Restructure Valuation Melbourne](https://businessvaluationsmelbourne.com.au/services/restructure-valuation/) Sources - [Small business CGT concessions: maximum net asset value test](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/small-business-cgt-concessions/small-business-cgt-concessions-eligibility-conditions/maximum-net-asset-value-test), Australian Taxation Office - [Small business CGT concessions: active asset test](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/small-business-cgt-concessions/small-business-cgt-concessions-eligibility-conditions/active-asset-test), Australian Taxation Office - [Small business CGT concessions: extra conditions for shares and trust interests](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/small-business-cgt-concessions/small-business-cgt-concessions-eligibility-conditions/additional-conditions-if-the-cgt-asset-is-a-share-or-trust-interest), Australian Taxation Office - [Small business CGT concessions: eligibility overview](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/small-business-cgt-concessions/small-business-cgt-concessions-eligibility-conditions/cgt-concessions-eligibility-overview), Australian Taxation Office - [Small business CGT concession risks](https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/our-focus-areas-for-small-business/small-business-focus-areas/small-business-capital-gains-tax-concession-risks), Australian Taxation Office - [Market valuation for tax purposes (guide)](https://www.ato.gov.au/law/view/document?docid=SGM/market_val), Australian Taxation Office - [Income Tax Assessment Act 1997 s 152-205: the 50% active asset reduction](https://www.ato.gov.au/law/view/document?docid=PAC/19970038/152-205), ATO legal database - [Income Tax Assessment Act 1997](https://www.legislation.gov.au/C2004A05138/latest/text), Federal Register of Legislation Talk to a valuer ## Tell us what you need valued. A fifteen-minute call confirms the package, the fixed fee and the delivery date, before you commit to anything. 03 8375 4177 Mon to Fri, 9am to 5:30pm Melbourne time Send the form and we reply within one business day. No documents needed to start. Last reviewed 10 November 2026 by Business Valuations Melbourne, Level 7, 55 Collins Street, Melbourne. Fixed fee from $1,495 + GST, confirmed in writing before we start. Call 03 8375 4177Get a fixed fee --- Business Valuations Melbourne · Level 7, 55 Collins Street, Melbourne VIC 3000 · 03 8375 4177 · https://businessvaluationsmelbourne.com.au/start/