TIME-POOR small to medium enterprise (SME) owners on the Gold Coast risk missing out on one-off opportunities from superannuation changes because they are under-informed about the new rules.
Feedback from NAB's business bankers indicates many SME owners are not fully aware of how they can take advantage of the superannuation changes.
NAB regional executive Southport for business banking Gary Atkinson says southern Queensland SMEs who are in a position to invest funds to maximise their retirement savings can benefit from the new super rules - particularly before the end of the 2006-2007 financial year.
NAB regional executive Burleigh Heads Greg Cook says people can contribute up to $1 million in after-tax dollars to their super between now and June 30. After June 30, individuals will only be able to contribute up to $150,000 per year - or $450,000 over a three-year period, depending on age and circumstances.
"Also, if you're a business owner or you salary sacrifice, increasing your post-tax contributions - or even delaying retirement until age 60 - will allow you to maximise your tax-free super payments," he says.
Mr Cook says SME owners should act now and seek advice from a specialist - be it their banker, accountant or financial planner - in relation to the super changes.
"This issue is gathering momentum as we approach the crunch date of 30 June. At NAB, we're assisting people who may be affected by the changes - especially business owners considering retirement within the next five years," he says.
"People need to think through the options to determine the right strategy to secure their own financial future.
"We're encouraging people to act promptly to allow sufficient time to plan."
* It should be noted that certain contributions will not count towards the non-concessional cap. The Capital Gains Tax (CGT) cap will allow contributions up to a lifetime limit of $1 million (indexed) in certain circumstances.
The CGT cap allows for certain proceeds from the disposal of small business assets that qualify for the small business 15-year exemption and the $500,000 CGT retirement exemption up to a lifetime limit of $1 million (indexed).
There are various requirements that need to be satisfied to access the CGT exemptions. Proceeds from a settlement for an injury resulting in permanent disablement are exempt.
NAB has not taken into account your objectives, financial situation or needs and recommends that you consider whether any advice offered here is appropriate for your circumstances.
NAB employs more than 5650 business banking specialists and 450 financial planners and specialists at more than 158 business banking centres Australia wide.
)
