Bad years on the farm are hard to take, but there are often enormous opportunities for positive outcomes in the area of tax planning and succession planning that can be of huge benefit to the farm’s future.
A significant part of any farm succession plan is planning for retirement.
Given ever-increasing farm, living and education cost, most farming enterprises will only support one child and their family of the succeeding generation.
Family farms are part of the fabric of rural Australia.
Unfortunately the landscape is dotted by a large number of farms that disappeared from families who either had no succession plan or the estate plan was seriously inadequate.
Many Australian business owners are frustrated at not reaching their growth targets because they haven’t identified the need to transition from an accountant providing basic tax compliance advice to a business advisor who can help implement the right growth and profit targets via strategic advice.
In the lead up to 30 June no doubt cash flows and taxation projections were a focus for many SME owners.
One of your plans could have been to contribute a sum of cash into superannuation and claim a tax deduction.