The IBCC explained

The Innovative Business CGT Concession, in plain English.

A proposed 50% CGT discount for founders, employees and early investors in eligible Australian start-ups. It's one part of the wider CGT reform, and it's still a bill.

Last reviewed 13 November 2026

Status

A bill, not yet law.

11 Sep 2026Exposure draft released by TreasuryHappened
27 Oct 2026Tax Reform No. 4 Bill introduced to ParliamentHappened
To be confirmedBill passes both housesNot yet
1 Jul 2027Wider CGT reform starts (already law)Law

Company tests

What the company needs to look like.

Australian and unlisted: The company is an Australian company whose shares are not listed on a stock exchange.
Under 15 years old: Less than 15 years since incorporation. Affiliates are tested too.
Turnover of $50m or less: Aggregated turnover, including connected entities and affiliates, tested when the shares are issued.
Mostly based in Australia: At least 50% of employees and assets are in Australia.
Innovation test: The company carries on a qualifying innovative activity. Some activities, such as lending, are excluded, though finance technology is not.
Activity test: At least two of assets, workforce and income are 50% or more in qualifying activity for the prior completed year.

Shareholder tests

What the shareholder needs.

Who can claim: Individuals, trusts and partnerships. Companies, complying super funds and foreign residents are excluded.
Shares issued directly: Shares, or convertible notes that are not debt, issued directly to you by the company.
Held at risk: Generally held at risk for at least three years, waived on a cash takeover of all or substantially all shares. Some buy-back or put option terms may affect this.
Cash, not scrip: Shares sold for scrip (shares in the buyer) lose IBCC status. There is no lifetime cap and no minimum stake.

Registration

The company registers, and reports every year.

Under the draft, the company must register as an IBCC company and lodge annual reports. That puts the job of getting the paperwork right with the company, on behalf of everyone who holds its shares.

Not sure if your company could qualify? Try the eligibility checker, or see how the IBCC compares with indexation in the CGT calculator.

FAQs

Common questions.

Is the IBCC law yet?

No. It's in the Tax Reform No. 4 Bill, introduced on 27 October 2026, and still has to pass both houses of Parliament. The wider CGT reform it sits alongside (indexation and the 30% minimum tax) is already law.

What happens without the IBCC?

Shares that don't qualify fall under the general rules: the 50% discount for gains to 30 June 2027 and indexation after. The CGT calculator compares both routes.

Who registers: the company or the shareholder?

Under the draft, the company registers as an IBCC company and lodges annual reports. Shareholders rely on that registration.

Does Consig give tax advice?

No. Consig provides general information and software. For advice on your own situation, speak with a registered tax agent.

Based on the Tax Reform No. 4 Bill and explanatory memorandum, and Treasury's September 2026 exposure draft as summarised by Cooper Partners and RSM Australia.

General information only, not tax advice. Measures may change as legislation progresses.

Before 1 July 2027

See what the changes mean for your shares.

Work through 24 real-world scenarios and compare the tax on each route, before and after the reform.

Try the CGT calculator Get updates