Business Planning Consultancy Brisbane
It is not uncommon for business owners to be imbued with self-belief and the need for control. They generally need these attributes to succeed. Unfortunately, many extend the self-belief mantra well beyond the point of common business sense.
Even when operating well inside your own field of expertise, it is wise to build a good team around you. But whenever you move outside this zone, good advice from trusted advisers becomes a must.
It is not surprising then that many business owners having generated good returns by coordinating processes and influencing people around them; logically extend the notion to their superannuation. However, self-belief and the desire for control are not enough.
Either you have the time, the desire, and the necessary expertise to generate your own superannuation returns and comply with the law, or you must pay someone else to do it on your behalf. The law and the ATO (who administers the laws relating to self managed super funds) are fairly unforgiving.
Even managed (e.g. retail) superannuation is not easy, which is why many Australians are reluctant to engage with it. Self-managed superannuation is even harder. It encompasses all of the laws of superannuation, and then some.
Most business owners regard their business as a large part of their superannuation. Rightly so, and the government recognises this. For instance, the law does recognise the connection between a ‘real business property’ asset and a self-managed superannuation fund by allowing business owners to transfer business premises to their self-managed funds and lease back. The rules are strict so advice is crucial.
The link between business and superannuation is further recognised in the small business CGT (capital gains tax) concessions, allowing eligible business owners to convert all or part of the ultimate sale proceeds of their business into superannuation with prescribed CGT concessions, after meeting certain gateway tests. In this case, independant tax and accounting advice is crucial.
The value of appropriate advice from suitably qualified professionals cannot be emphasised enough. As well as gaining access to the necessary expertise (e.g. financial, legal, tax), timely advice well in advance of any property transfer or sale allows for appropriate eligibility, structuring and compliance planning.
General advice only
This information is of a general nature only and does not take into account what you currently have, or what you want and need for your financial future. It is important for you to consider these matters, seek professional advice and to read the appropriate Product Disclosure State-ment (PDS) before you make a decision to buy, cancel or continue to hold any product. Call me for a copy of any relevant PDS.
Gary Weigh is the Director of Gary Weigh & Associates Pty Ltd ABN 41 084 228 679, Authorised Representative (no. 256617) of The FinancialLink Group Pty Ltd ABN 12 055 622 967 AFSL No. 240938