BUSINESS OWNERS HAVE UNIQUE TAX ADVANTAGES WHEN THEY ARE READY TO SELL!
Several years ago, Prime Minister John Howard implemented legislation which acknowledged Business Owners considered their businesses to be their retirement ‘nest egg’ or their superannuation. Business owners have the advantage to pay very little tax upon the sale of their business depending on the structure of ownership. The ownership and personal tax position of the owner/s should be investigated prior to the signing of a contract (which is the sale date) and the sale process needs to be considered for the business.
The tax benefits are signifi cant and time lines can also provide additional tax benefits if well planned. It may be possible to eliminate Capital Gains tax on the sale of a business together with the establishment of a tax-free retirement pension from the age of 6o years. This tax benefit is also available to a spouse and other family members involved in the business. Younger family members could receive capital gains tax benefits regardless of age. Those who are under the age of 60 years would not be eligible for a tax-free pension but would eventually.
The above business sale advantages are not well known or utilised. Information and advice saves money and provides power!