Business owners often spend years building valuable assets but give little thought to how those assets can fund retirement. Small Business CGT Concessions and retirement planning should go hand in hand, as the decisions you make before selling your business can have a lasting impact on your financial future.
The Small Business CGT Concessions were specifically designed to help eligible business owners transition wealth from their business into superannuation while potentially reducing capital gains tax.
Small Business CGT Concessions: More Than Just Tax Savings
A well-designed business exit strategy considers much more than tax savings. It should also include:
- Capital Gains Tax concessions
- Super contribution opportunities
- Retirement income planning
- Asset ownership structures
- Estate planning
- Cash flow requirements in retirement
These decisions are interconnected, and changing one part of the strategy can influence the others. Coordinating your tax, superannuation and retirement planning before the sale of your business can help maximise the opportunities available under the Small Business CGT Concessions.
Start Planning Before You Sell
The best planning opportunities usually exist before a business is sold.
Waiting until contracts have been signed can remove valuable strategies that may have significantly improved your retirement position. Early advice also allows time to review your business structure, superannuation contribution opportunities and long-term financial goals.
If you’re considering selling a business within the next few years, now is the ideal time to begin planning.
Speak With Forman Financial Services
Selling a business is one of the most significant financial events in your lifetime. Obtaining professional advice before signing a contract can help you maximise available tax concessions, optimise your superannuation strategy and improve your long-term retirement outcomes.
Contact Forman Financial Services here to arrange a confidential consultation. We’ll help you coordinate your tax, superannuation and retirement planning strategies before your business sale, so you can make informed decisions with confidence.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.