Capital gains tax exemption for small business

Small business owners often don't understand the exemption from capital gains tax that applies if the business has been owned for 15 years.
An eligible small business owner is exempt from capital gains tax and can contribute part of the proceeds into superannuation without it being counted towards the normal annual contributions limits, under the small- business capital gains tax retirement exemption.
To qualify, a capital gain must flow from the sale of a small business where the owner had either net assets of less than $6 million or the business had a turnover of less than $2 million.
If the business was owned for 15 years and the owner is over 55 and is retiring, the business can be sold tax free. Furthermore a substantial part or all of the proceeds can be injected into superannuation and not count towards the normal contributions limits.
The source for this blog is The Financial Review 16-17 February 2013.
For further information, you should see your accountant.