What the Budget Means for Selling an RTO
- Shiv Jaidka
- May 15
- 2 min read
Updated: Jul 9
Travis is back to share important updates that every RTO owner needs to know.
The 2025 Federal Budget has introduced the biggest tax reform in 25 years, and if you’re considering selling your RTO, the changes coming from 1 July 2027 could have a major impact on your capital gains tax.
In his latest video, Travis breaks down:
How the current 50% Capital Gains Tax discount will be replaced by a minimum 30% tax on real capital gains after 30 June 2027
The opportunity to split your capital gains into “before” and “after” 1 July 2027 values — which could save you thousands
Why RTO valuations are unique and require a defensible, documented approach
The impact of new proposed taxes on family trusts from 1 July 2028
Why acting now to get a proper valuation is essential to protecting your financial future
Whether you’re planning to sell soon or just want to be prepared, this blog is a must-watch to help you understand what’s ahead.
The "Split" That Could Save You Money
Under the new legislation, you'll be able to split your capital gains into two parts:
Value accrued before 1 July 2027 – still protected by the existing 50% CGT discount
Value accrued after 1 July 2027 – taxed under the new rules
This split could result in significant tax savings on a future sale, but only if you can prove to the ATO what your RTO was worth on 1 July 2027.
Why RTO Valuations Are Different
Valuing an RTO isn't like valuing other businesses. A generic business calculator or simple appraisal won't cut it. The ATO and courts require a defensible, documented valuation that accounts for:
Scope of registration
Compliance history
Funding contracts
Student pipeline
Internal systems
Goodwill
Industry and regulatory factors
Two RTOs with identical revenue can sell for vastly different amounts depending on these underlying drivers.
Additional Consideration: Family Trusts
If your RTO sits inside a family or discretionary trust, there's another change to note. From 1 July 2028, a proposed minimum 30% tax on trust income will come into effect. Restructuring relief is available, but it comes with conditions, costs, and a limited window.
The Bottom Line
This isn't a reason to panic, but it is a reason to act. Whether you're planning to sell soon or not for years, having a defensible valuation of your RTO before the July 2027 deadline is no longer optional. It's essential for protecting your options and potentially saving significant money in taxes.
Selling your RTO or training business is one of the most important decisions you’ll make. Stay informed, plan, and set your organisation up for success.
Infinity Business Brokers are highly experienced RTO sales, acquisitions and mergers specialists. They are Australia’s leading RTO sales authority, having brokered over $140 million in RTO sales.
RTO Investment Strategist
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