FinNest: Latest News

The latest news from the nest

At FinNest Financial, we strive to educate our clients about how to plan, grow and protect their wealth. Here are some of the latest topical financial updates specially selected for our clients.

Planning to Retire

Wednesday, 8 June 2022
  • your age including if you have reached your preservation age
  • when you can access your super
  • how much tax you will pay on amounts you receive
  • if good leaver conditions apply if you are part of an Employee Share Scheme
  • if the retirement capital gains tax concession applies, if you sell your small business.

Special rules apply if you receive an employment termination payment, genuine redundancy payment or payments from an approved early retirement scheme.

Payments leading into retirement

If you receive a lump sum payments from your employer for unused annual or long service leave, you may pay tax on it at a lower rate than your other income. Your employer will report any lump sum payments at either ‘Lump sum A’ or ‘Lump sum B’ on your income statement or payment summary. You will need these details when you prepare your tax return.

redundancy payment is a payment made to you when you are dismissed. This usually occurs because the job you have been doing has been abolished. Payments under redundancy are tax-free to a limit depending on the number of years you worked for that employer.

Your employer may offer staff an early retirement scheme to encourage certain groups of employees to retire early or resign. You may pay less tax on payments you receive under an early retirement scheme.

After you retire

Once you retire, you can access a number of tax offsets, such as:

If you have income from an Australian superannuation income stream, you may be able to claim a tax offset if you’re:

  • receiving a disability superannuation benefit
  • receiving a death benefit income stream
  • 60 or over.

Employee share schemes

If you are a member of an employee share scheme (ESS), you need to consider the ‘good leaver’ conditions. Good leaver conditions in an ESS may allow employees to retain ESS interests if they cease employment to retire from the workforce permanently during the forfeiture period.

Whether ESS interests acquired under an ESS with good leaver conditions are at a real risk of forfeiture will depend on the facts and circumstances. This includes how the ESS operates and the employee’s personal circumstances.

CGT retirement exemption for small business

If you are selling your small business assets, the capital gains tax retirement concession may apply. The retirement concession can exempt a capital gain on a business asset, up to a lifetime retirement exemption limit of $500,000. This concession allows you to provide for your retirement.

If you choose the retirement exemption, there is no requirement to terminate any activity or cease business.

If you are under 55 years old just before you choose to use the retirement exemption, you must make a personal contribution equal to the exempt amount to a complying superannuation fund or a retirement savings account.

Australian Taxation Office
(ATO) 



IMPORTANT INFORMATION.
This web site has been prepared by FinNest Financial Pty Ltd. Finnest Financial Pty Ltd ACN 163 390 547 is a Corporate Authorised Representative No. 440812 of Matrix Planning Solutions Limited ABN 45 087 470 200, AFSL & ACL 238256.
The information provided on this website is intended to provide general information only and the information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs. In particular, you should obtain professional advice before acting on the information contained on this website and review the relevant Product Disclosure Statement (PDS).


FinNest Financial

Contact information

Office 07 3831 7629
Email enquiries@finnest.com.au
Level 3, 67 Astor Terrace
Spring Hill QLD 4000
FinNest Financial Pty Ltd
ACN 163 390 547
is a Corporate Authorised
Representative (No. 440812) of
Matrix Planning Solutions Limited
ABN 45 087 470 200,
AFSL 238526

Financial Planning Association of Australia
Advisor Ratings Platinum Advisor

© 2022 FinNest Financial Pty Ltd. All rights reserved

WEB DESIGN BY KOE&CO

IMPORTANT INFORMATION.

This web site has been prepared by FinNest Financial Pty Ltd. FinNest Financial Pty Ltd ACN 163 390 547 is a Corporate Authorised Representative (No. 440812) of Matrix Planning Solutions Limited ABN 45 087 470 200, AFSL 238526. The information provided on this webpage is intended to provide general information only and the information has been prepared without taking into account any particular person’s objectives, financial situation or needs. Before acting on such information, you should consider the appropriateness of the information having regard to your personal objectives, financial situation or needs.

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