Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

William Buck warns business owners are missing out

Business owners are missing out on tax-free superannuation contributions when selling their business, according to William Buck.

News Michael Masterman 18 November 2014
— 1 minute read

Anna Carrabs, director at William Buck said that in her experience, 70 per cent of business owners who satisfy the CGT small business concessions are unaware that when they sell a business there are opportunities to place substantial funds, tax-free, into their superannuation account.

Advertisement
Advertisement

Ms Carrabs said eligible individual business owners may be entitled to place up to $1.355 million tax-free into a super fund when this business transaction occurs, while joint couple owners can deposit up to $2.71 million.

"It is imperative that planning is undertaken well before the sale occurs to ensure maximum contributions to super can be made,” she said.

“Many business owners focus solely on the sale, and fail to review where their funds should be placed post-sale to ensure the best financial position for their retirement,” added Ms Carrabs.

“Super is one of the most tax effective structures that can be utilised to ensure a strong financial future. It is imperative that business owners plan ahead, especially if the age of 75 is looming.”

“Business owners should seek advice from a super expert who understands their personal circumstances to gain the greatest financial advantage when selling a business. Many business owners cannot capitalise on super tax advantages because they find out about them too late. Timely planning can help ensure a comfortable financial life during retirement.”

Ms Carrabs highlighted a number of areas business owners should consider when selling their business to gain maximum super advantages:

• Determine whether the small business CGT concessions are available in the individual’s circumstances, as this may provide eligibility to access additional super contribution caps 
• Consider building wealth in a super fund to prepare for retirement 
• The Australian Tax Office has strict rules governing super funds and the sale of businesses. Check how these rules impact on individual situations
• Seek the advice of a super and tax professional to maximise financial advantages 
• Plan ahead to ensure full financial benefits are obtained

William Buck warns business owners are missing out
image intro
accountantsdaily logo
News
FROM THE WEB