The Size Test is a basic eligibility requirement for the Small Business CGT Concessions under Division 152. A taxpayer must satisfy either the $6 million Net Asset Value (NAV) Test or the $2 million Aggregated Turnover Test to access the concessions. ChangeGPS CGT calculates both tests using the financial details you enter. For the NAV Test, the app aggregates the net asset values of the client entity and all connected or affiliated entities added in the Connected Entities section of Step 2. For the Turnover Test, the app aggregates annual turnover across the same group. Superannuation assets, assets used principally for personal use (such as a main residence), and certain other assets are excluded from the NAV calculation. If the client passes either test, they meet the Size Test threshold and can proceed to the other eligibility requirements.
What is the Size Test and how does ChangeGPS calculate it in Capital Gains Tax?
Understand the Size Test and how ChangeGPS calculates the Net Asset Value and Aggregated Turnover thresholds.