Selling or transitioning out of a Melbourne medical practice is one of the largest financial events in a doctor’s career — and one of the most heavily taxed if it isn’t planned properly. Capital gains tax (CGT) applies to the sale of practice goodwill, equipment, and in some cases practice-related property, and the way the sale is structured can significantly change the tax outcome.
What Triggers CGT in a Melbourne Practice Sale
- Sale of practice goodwill to an incoming doctor or corporate buyer
- Sale of medical equipment, fit-out, or premises held by the practice entity
- Restructuring a Melbourne practice ahead of a partner buy-in or buy-out
- Winding up a practice entity such as a trust, partnership, or company
- Selling a medical practice commercial property in Melbourne
- Selling shares in an existing medical practice
Small Business CGT Concessions
Many Melbourne medical practices qualify as small businesses for CGT purposes, which can open access to concessions such as the 15-year exemption, the 50% active asset reduction, the retirement exemption, and rollover relief. Eligibility depends on turnover, asset value tests, and how the practice entity is structured — all of which need to be reviewed well before a sale agreement is signed.
Why Timing and Structure Matter
The CGT outcome of a practice sale is heavily influenced by decisions made years earlier. We work with Melbourne doctors well ahead of a planned sale or retirement to structure the transaction for the best available concessions.
Related Resources
- Back to Accounting and Tax Services for Doctors
- Practice Entity Structuring for Doctors
- Retirement and Wealth Planning for Physicians
- Accounting & Tax for Multi-Doctor Medical Practices
- Commercial Property as a Medical Centre
Planning a Melbourne practice sale, partner exit, or retirement? Speak with A One Accountants early — CGT planning works best well before contracts are signed.