Key Person Insurance is most often viewed alongside the Small Business Capital Gains Tax (CGT) concessions when capital-purpose cover (loan protection, buy/sell, equity buyout) is held by the business or related entities. The concessions in Division 152 of the Income Tax Assessment Act 1997 — 15-year exemption, 50% active asset reduction, retirement exemption, and rollover — can apply when a CGT event occurs in connection with an active small-business asset. If the business owns key-person cover and the proceeds at claim time are tied to the disposal or revaluation of an active asset (most commonly when buy/sell-style cover funds the disposal of equity from a deceased or disabled partner's estate), the interaction with the concessions becomes important — particularly the 'maximum net asset value' test ($6 million) and 'small business entity' test ($2 million aggregated turnover) that gate eligibility. The structure of policy ownership (business-owned versus cross-owned versus trust-owned), the documented purpose, and how proceeds flow at claim all materially affect whether the concessions can be claimed by the recipient or the disposing partner. This is a tax-structuring matter, not an insurance product feature — work with a registered tax agent or accountant familiar with the small-business CGT rules before finalising ownership and beneficiary structure. The General Advice Warning above continues to apply.