The Three-Year Countdown: Priming Your Business for a Tax-Free Exit.
Succession & Exit
Why Your 2026 Strategy Determines Your 2029 Retirement.
For many Sydney founders, the business is the single largest asset on their balance sheet. Yet, all too often, the 'Exit' is treated as an event rather than a process. In the 2026 regulatory environment, if you wait until you have a signed Letter of Intent to look at your tax structure, you have likely waited too long.
At Aspley Jandera, we believe a successful exit is 'engineered.' By starting the priming process three years before a sale, we can often move a client from a 47% tax position to a 0% tax position on the first $1.8 million to $6 million of their sale proceeds.
1. The 'Gatekeeper' Tests: $2M vs. $6M
To access the life-changing Small Business CGT Concessions, you must first pass one of two 'Gatekeeper' tests at the time of the sale:
The Turnover Test: Your aggregated annual turnover is less than $2 million.
The Net Asset Test: The total net value of your business and related assets (excluding your family home and super) is under $6 million.
In Sydney’s 2026 property market, many business owners inadvertently 'fail' the $6M test because their commercial premises have appreciated so rapidly. We work with you years in advance to manage 'asset bloat,' ensuring you stay under these thresholds to keep the concessions alive.
2. The 'Holy Grail': The 15-Year Exemption
If you have owned your business for more than 15 years, are over age 55, and are selling 'in connection with retirement,' you may be eligible for the 15-Year Exemption.
This is the most powerful tool in the Tax Act. It allows you to disregard the entire capital gain from the sale—regardless of whether it is $1 million or $10 million. In 2026, the ATO is closely auditing the 'in connection with retirement' clause, requiring proof of a significant reduction in working hours. We help you document this transition to ensure your 'tax-free' status is bulletproof.
3. The Retirement Exemption: The $500,000 Safety Net
If you don’t hit the 15-year mark, you can still access the Retirement Exemption. This allows each 'Significant Individual' in the business to exempt up to $500,000 (lifetime limit) of capital gains.
For a husband-and-wife team, this is a $1 million tax-free shield. If you are under age 55, these funds must be paid into your superannuation; if you are over 55, you can take the cash. We ensure your 'Significant Individual' status is correctly documented in your company minutes years before the sale.
4. Priming for Value: Beyond the Balance Sheet
A buyer isn't just buying your profit; they are buying your 'Systems.' In the lead-up to 2029, we help you de-risk the business by:
Removing 'Owner Dependency': Ensuring the business can run without you.
Cleaning the Balance Sheet: Moving lifestyle assets (like boats or non-business vehicles) out of the company to avoid 'Division 7A' complications during due diligence.
Optimising the EBITDA: Ensuring your accounts are 'Audit-Ready' so a buyer can see the true, sustainable profit of the enterprise.
Your Future, Architected
Traicha, Martin, and the team manage the intricate details of your tax position, allowing you to lead your business while we keep your personal wealth on a deliberate and strategic trajectory.
General Advice Warning & Disclaimer The information provided on this website is general in nature and does not constitute personal financial, investment, or taxation advice. It has been prepared without taking into account your personal objectives, financial situation, or needs. Before acting on any information on this website, you should consider the appropriateness of the information having regard to your objectives, financial situation, and needs.
Aspley Jandera recommends that you seek independent professional advice from a qualified tax agent or financial adviser before making any financial decisions. Taxation law is complex and subject to change. While every effort has been made to ensure the accuracy of this information at the time of publication (April 2026), Aspley Jandera and its directors accept no liability for any loss or damage arising from reliance on the information contained herein.
