Urgent retirement action required before July 2012

Executives and business owners nearing retirement or planning an exit from their business need to urgently rethink their planned date of retirement from employment.

Federal budget changes mean that from 1 July 2012 the tax on retirement payments may increase by up to $52,500.  People affected should consider retirement in June 2012.  In such circumstances, it may still be possible to consult back to the business in a changed role.

Businesses where family succession plans are underway should also consider whether there is an opportunity to take advantage of this closing opportunity in June 2012 for the family members that are handing down the business to the next generation.

For more information, please contact your Adviser.  

Stephen Cribb is a Director of Business Services and Tax at Prosperity Advisers Group.