Retirement Planning

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Non Superannuation Asset Accumulation

Retirement Income Streams

Sale of Business and Business Assets

50% Active Asset Reduction

When an eligible “Active Asset” is sold and a capital gain is realised, the assessable gain can be reduced by 50%. This 50% discount is in addition to the general 50% discount which is available to individuals if they have held an asset for more than 12 months.

Replacement Asset Rollover

This concession is available when the intention is to purchase a replacement active asset. This concession does not result in the gain being exempt, but it essentially defers the gain until the new asset is sold. The above concessions may then be available on the sale of the replacement asset .

Small Business Retirement Exemption

This exemption can be applied either in place of or after the 50% Active Asset Reduction. There is a lifetime limit of $500,000 per individual. If the individual seeking to apply the exemption is under the age of 55 the amount must be contributed to superannuation. If over the age of 55, there is no compulsion to contribute the funds to superannuation but the contribution does not fall under the non concessional limit so it can often be an attractive strategy to make the contribution voluntarily.

15 Year Exemption

The most attractive of the concessions is the 15 Year Exemption. This can become available when an active asset has been owned for 15 years and is being sold in connection with an individual’s retirement.

This concession results in the whole gain being entirely exempt from tax. It also opens up a unique superannuation limit which allows the individual making the gain to contribute a significant amount to superannuation which is not assessed against the concessional or non concessional.

Centrelink Strategies

Transition to Retirement Strategies

This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information contained in this publication. You should also obtain and read a copy of the Product Disclosure Statement before making any decision to acquire a financial product. Jason Ellis of Southern Finance Solutions Pty Ltd, Authorised Representative of Politis Investment Strategies Pty Ltd, ABN 71 106 823 241, AFSL 253125.

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