You’ve built your business, navigated every challenge, and now you have a solid offer on the table. But there’s a silent business partner who always expects a share...the ATO.
Here's how smart planning with a tax advisor can help you keep more of your hard-earned money.
Why Structure Matters
The first decision? Are you selling shares in your company, or just the business assets?
- Share sale: The buyer takes everything (the good and the bad), and you may be eligible for favourable CGT concessions - especially for small business.
- Asset sale: Only the “good bits” transfer, but the tax treatment may not be as beneficial.
The 6 Million Dollar Question
If you (and your associates) have less than $6 million in assets combined, you could access generous CGT concessions, potentially reducing your tax on the sale to around 12%. Sometimes, accepting a slightly lower sale price can leave you with more in your pocket after tax.
Why Early Prep Wins
3 things we recommend from day one of planning a business exit strategy:
- Model your “after-tax” outcome: Don’t just focus on the headline offer.
- Clean up family loans and mixed assets: Personal assets run through the business (like a caravan or beach house) can complicate things.
- Know your timelines: Sometimes, making changes this year (rather than next) can make a significant difference to your tax position.
Don’t Let the Buyer Dictate Your Outcome
Buyers will structure deals to minimise their own risk and tax – not yours. Don’t wait for their accountants to scrutinise your numbers. The earlier you engage your advisors, the more you could potentially save, and the less stress you’ll have.
Ready to Chat About Your Next Move?
If you’re thinking about selling your business , our deal and tax advisory teams are here to help. No pressure, no jargon – just clear, confidential advice. Fill in the form below and we’ll get in touch for a straightforward chat about your options.
