Selling Your Business? Don’t Just Review the Contract — Review the Tax!
When you’re selling a business, most advisers focus on the contract.
We focus on the contract and the tax outcome.
Under Division 152 of the Income Tax Assessment Act 1997, eligible business owners may be able to significantly reduce — or even eliminate — capital gains tax on the sale of their business.
Handled correctly, these concessions can mean:
Up to 75%-100% reduction of a capital gain
Access to a $500,000 lifetime retirement exemption
Potential full CGT exemption in certain long-term ownership scenarios
Strategic superannuation contributions
Improved retirement and asset protection outcomes
Handled incorrectly, they can be lost entirely.
Why Tax Matters Before You Sign
Division 152 does not apply automatically. Eligibility depends on:
Turnover and asset value thresholds
Ownership structure (company, trust, unit trust, individual)
Significant individual and control tests
Proper documentation and elections
How the deal is structured (asset sale vs share sale)
Once a contract is signed, options can become limited.
The way the transaction is structured can materially affect whether concessions are available — and how much tax is payable.
More Than Just a Contract Review
When acting on a business sale, Practical Edge Legal can provide:
✔ Legal review and negotiation of the sale agreement
✔ Assessment of Division 152 eligibility
✔ Structuring advice before contract execution
✔ Coordination with your accountant
✔ Strategic planning around retirement exemption and superannuation
✔ Risk review of trusts, companies and connected entities
This ensures the legal and tax positions align — not conflict.
The Real Benefit
For many business owners, the sale of their business is the largest financial event of their lifetime.
A properly structured transaction can preserve hundreds of thousands of dollars. An incorrectly structured one can create avoidable tax exposure.
If you are considering selling your business — even if it’s early days — obtaining integrated legal and Division 152 advice can materially change your net outcome.
If you’re selling, don’t just ask “Is the contract acceptable?”
Ask “Is the tax outcome optimised?”
Practical Edge Legal can provide both.