When you’ve spent more than two decades building a business, the idea of retirement can feel like both a reward and a risk. For many small business owners, most of their wealth isn’t sitting in superannuation – it’s tied up in their business. That makes selling the business not just a financial decision, but the cornerstone of their retirement plan.
That was the case for John and Mary (names changed for privacy), a couple in their early 60s who came to us after running a successful services business for 22 years. At 63, they were ready to sell, downsize their home, and finally enjoy the coastal lifestyle they’d long dreamed of. But there was a problem: after decades of hard work, they had almost no superannuation.
Facing the retirement gap
Like many small-business owners, John and Mary had poured everything into growing their business. Every spare dollar went back into operations, staff, and clients – not into their own super. As retirement drew closer, they started to wonder:
- How could they turn their business sale into income they could live on?
- Would they be forced to rely on dwindling personal assets?
- How much of the business sale would disappear into tax?
Their biggest fear was capital gains tax. They knew the sale would create a large tax liability but had no idea what strategies were available to reduce it. Nor did they know how they could move a lump sum into super – something they were keen to do but assumed they’d already “missed the boat.”
As they put it: “We were worried we’d worked this hard for nothing. We had no idea how to get from a business on paper to money in super that we could actually retire on.”
A new blueprint for retirement
Working alongside their accountant, we created a strategy that combined small-business CGT concessions, contribution caps and downsizer rules to completely reshape their financial future.
Here’s how the plan came together:
- Small-business CGT concessions: Both John and Mary contributed $500,000 each into superannuation from the business sale – completely tax-free.
- Non-concessional contributions: By timing contributions across financial years, they each contributed $480 000 – $120, 000 in June and $360,000 in July under the bring-forward rule.
- Downsizer contribution: By selling their Brisbane home and moving to the Sunshine Coast, they each added $300,000 into super.
The result? A combined $2.56 million placed into superannuation, starting from virtually zero. Even better, the funds went into pension phase – meaning the income they draw is entirely tax-free.
“John and Mary had no idea we could get $2.5 million into their super from their business sale — and it was tax-free.” — Byron Breckle, Principal & Senior Adviser
From uncertainty to clarity
With the plan in place, John and Mary were able to replicate the lifestyle they’d enjoyed while running their business, without the stress.
- A tax-free income of $120, 000 p.a. + $20, 000 for travel
- A move from Brisbane to the Sunshine Coast for the lifestyle they wanted
- The freedom to travel and enjoy life, knowing their finances are secure
As Mary told us: “We thought retirement security was out of reach. We didn’t know it was even possible to have this much in super — and still pay no tax.”
Lessons for other business owners
- Don’t assume it’s too late. Even with little or no super, there may be ways to catch up quickly.
- Plan early. The 12–24 month window before selling is ideal.
- Coordinate with your accountant. Timing and eligibility matter.
- Aim for pension phase. That’s where the tax-free magic happens.
Turning hard work into lasting freedom
John and Mary’s story shows what’s possible with the right structure. Years of effort can become lasting financial freedom, not stress.
As Byron puts it:
“The best exit isn’t about the highest price. It’s about structuring it so you can enjoy the life you’ve worked for.”
Ready to turn your business into your best investment?
Book a confidential consultation with our team.