Case Study: Bill and Susan and CGT concessions (retirement exemption)

The Situation for Bill and Susan

Bill and Susan, both in their mid-50s, wanted to retire in the next few years and sought advice on how to sell their business, a successful cafe they’d run for 20 years. They owned the business premises through a trust. They had no money in super: any excess cash went into the business.

The ASC Solution

Bill and Susan were able to access the small business CGT concessions upon the sale of their business, whereby they could each contribute the proceeds of up to $500,000 into superannuation using the retirement exemption. Bill and Susan received an offer to purchase their business for $1,200,000 and were able to contribute this amount into superannuation for their retirement by contributing $1,000,000 as part of the small business CGT concessions plus additional non-concessional contribution of the $200,000. When Bill and Susan received the offer on the business they contacted their accountant and as part of their annual tax lodgment, they completed necessary forms to have the $1,000,000 proceeds be allocated to superannuation using the retirement exemption and have the proceeds deposited into superannuation before the lodgment of the annual tax return.

Share This