One of the most common things I hear from business owners is that they have been thinking about selling for a while, but the timing never quite feels right. The business could be a little more polished. The market could be a little more certain. Life could be a little less busy.
The 2026 Federal Budget has done something that rarely happens in business planning: it has made the question of timing considerably clearer. For many business owners, the proposed changes to capital gains tax have created a genuine and well-defined window to sell, one that comes with real financial advantages and, for those who qualify for the small business concessions, the potential to keep significantly more of what they have spent years building.
This is not a reason to panic or rush. It is a reason to pay attention, have the right conversations, and make a considered decision about whether now is the right time for you.
What the Budget change means in plain terms
Under the current rules, if you sell a business asset you have held for more than 12 months, half of your capital gain is effectively tax-free. The 2026 Budget proposes to change that from 1 July 2027, in a way that is likely to mean a higher tax bill for owners who hold assets personally or through a family trust and choose to sell after that date.
The mechanics of the new calculation are a conversation for your accountant. What matters from a planning perspective is this: gains that have already built up before July 2027 are protected under the existing rules. For those who choose to sell before that date, the current, more favourable treatment applies. The legislation has not yet passed Parliament, but business owners are factoring it into their plans already.
And here is the part of the story that often gets lost in the broader CGT headlines: for many small business owners, the protections already available to them are extraordinary, and they remain completely unchanged.
The tax picture is better than most owners realise
One thing that genuinely surprises many business owners when we start talking about a sale is how much protection already exists for them on the tax side. There are concessions specifically designed for small business owners that can significantly reduce what they owe when they sell, and in some cases eliminate it altogether.
If you have owned your business for 15 years or more, for example, you may pay no CGT at all on the sale. There is also a retirement exemption that can shelter a meaningful amount of your gain, and further reductions available on top of that. These concessions were confirmed unchanged by the 2026 Budget, which is genuinely good news for small business owners, and a part of the story that tends to get buried under the broader headlines about CGT reform.
The detail of what you qualify for is a conversation for your accountant, and it is one worth having early.
Timing matters, but preparation matters more
If you are considering selling before July 2027, it is worth understanding how long a sale actually takes. In Australia, a business sale typically takes between six and twelve months from the time you engage a broker to the point of settlement. It is settlement, not listing, that triggers the CGT event.
That means owners who want to take advantage of the current rules have a window to act, but it is a window best used thoughtfully rather than hastily. The sellers who achieve the strongest outcomes are not the ones who move fastest. They are the ones who go to market well prepared.
In my experience, the single biggest driver of a strong sale price is how confident a buyer feels about what they are taking on. A business that has clean, well-documented financials, clear processes, and does not depend entirely on the owner being present everyday commands a premium. A business that is presented reactively, without preparation, leaves buyers uncertain, and uncertainty shows up in the offer price.
The good news is that most of what makes a business attractive to buyers is also what makes it a better business to own in the meantime. Getting the fundamentals right before going to market is rarely wasted effort.
What to focus on before you go to market
If you are thinking seriously about selling in the next one to two years, these are the areas worth focusing on now:
- Your financials. Buyers and their advisers will scrutinise your accounts closely. Three years of clean, well-presented financials that clearly show the profitability of the business make the due diligence process smoother and give buyers confidence. If your books are mixed with personal expenses or hard to follow, addressing that before you go to market is worth the effort.
- The businesses reliance on you. One of the most common concerns buyers raise is whether the business will continue to perform once the owner steps away. If key relationships, knowledge, or decisions sit entirely with you, thinking about how to document, delegate, or transition those before a sale strengthens your position considerably.
- Your records. For CGT purposes, the ATO requires documentation of purchase costs, ownership timelines, and business use of assets. Good records now will make the tax side of the transaction far simpler, and your accountant will thank you.
- Your advisers. Selling a business involves more moving parts than most people anticipate, and having the right team in place early makes a significant difference. Your accountant should be across your tax position well before you go to market. A lawyer experienced in business sales will be essential when it comes to contracts and due diligence. And your broker will help coordinate the commercial process from end to end. If you need recommendations, we work closely with trusted accountants and have AP Legal in house to assist with the legal side of the transaction.
Is now the right time for you?
The honest answer is that it depends on your circumstances, your structure, and what you want the next chapter of your life to look like. The CGT changes have created a genuine financial incentive to consider timing carefully, but they are not a reason to sell before you are ready or before the business is at its best.
What the Budget has done is remove some of the ambiguity that makes the decision to sell feel constantly deferrable. For owners who have been thinking about an exit for a while, this is a useful moment to have a serious conversation about whether the conditions are right.
The questions worth asking yourself are straightforward. Have I spoken to my accountant about my tax position so there are no surprises when a sale completes? Is my business in the shape I would want it to be in if a buyer walked through the door tomorrow? And am I clear on what I want the next chapter to look like?
If the answers point toward yes, the window ahead is a genuinely good one. And if they point toward not quite yet, that is useful information too, because it tells you exactly what to work on next.
Selling a business is one of the most significant financial events most owners will ever go through. The CGT changes have made the timing conversation more concrete than it has been in years. Used well, that clarity is an advantage, not a pressure.
Note: This article is general in nature and does not constitute tax or financial advice. CGT rules are complex and depend on individual circumstances. Always consult a registered tax agent or accountant before making decisions about the timing or structure of a business sale. The proposed Budget measures have not yet passed Parliament and may be subject to change.
Written by Luke Taylor, Business Broker – Mabble
Built on the foundations of AP Group, Mabble draws on more than a decade of experience supporting business owners through complex business sales across Australia.
Over that time, AP Group developed industry-leading systems, technology and processes to manage transactions with greater structure, confidentiality and control.
Mabble brings those proven systems and specialist-led processes to business sales more broadly, offering a smarter, more structured approach that supports transactions from first enquiry through to settlement.
Mabble combines intelligent technology with experienced business sales specialists to help buyers and sellers move forward with clarity and confidence.
About the Author:
Luke has built businesses, run businesses, and sold businesses – giving him a first-hand understanding of what owners go through and what’s truly at stake in a sale. Over more than a decade, he owned and operated multiple businesses across Melbourne in design and hospitality. He holds a Bachelor of Communication Design from RMIT and a real estate licence, combining creative thinking with sharp commercial awareness.
Luke’s approach is personal and grounded. He takes the time to understand the story behind a business – not just the numbers – and clients consistently describe working with him as feeling supported rather than sold to. That distinction matters when the stakes are this high.
Outside work: coffee, great food, design, camping, surfing, and time with his wife and two boys.