The Australian government will introduce a 15% additional tax on superannuation assets exceeding $3 million from 1 July 2025. With Labor's parliamentary majority and crossbench support, this legislation will likely pass. Most of us will not be affected now but the plan clearly is to expand it over time as the plan lacks inflation indexation.

If you hold your shop in your superannuation funds in a typical neighbourhood strip shop has values typically ranging from $500,000 to $1.5 million, a $1 million shop today would be about $3 million within 15 years, a $1.5 million shop would get to $3 million in 8 years based on current market projections. Most of us plan to be around for more then that.

I would suggest that many of you consult our financial advisor particularly as the tax is on the assets  as once the fund goes over $3 million gets over $3 million you will face a particular challenge, as this tax is on assets. So whether you have the cash or not you need to pay the tax. Now unlike say shares, where you can always sell a few shares to pay the tax, a property cannot be easily divided, yet you will need the cash to pay it.

The other issue is that the more complex accounting burdens on the superannuation will certainly create more accounting costs.

Written by:

Bernard Zimmermann is the founding director at POS Solutions, a leading point-of-sale system company with 45 years of industry experience. He consults to various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.

Creating a business plan for your shop

Making a well-crafted business plan can be rewarding and valuable. It provides clarity, direction, and a framework for moving forward.

Cost-Effective Planning Approaches

DIY vs Professional Business Plans

You can choose between crafting it yourself (DIY) or enlisting a professional. Both strategies offer distinct advantages and costs.

The DIY approach is cost-effective and typically free. It allows for intimate knowledge of your business and flexibility in timing and content. Many Australian banks offer free templates, which are familiar to the bank if you're seeking funding. A good one is available here, which is extensive and presentable.

Generally, it will take you about a week to work a few hours a day. It's one of those things that is easy on the third attempt, so count on mucking a few up in your first attempt. It should take a few hours a day over a few days. Remember, perfection isn't the goal; having something is better than having nothing.

If you prefer a professional business plan, writing typically costs around $6,000. You can expect a month-long timeline for completion. The process requires significant input from you to help writers understand your business model. While more expensive, this option provides high-level industry expertise. One plus is that it's perfect if you need a business plan for a bank or investors.

Draft the plan and present it to the professional for refinement to streamline the professional process and save time and money.

The closer the purpose aligns with securing funding, the more likely I find that the plan will be professionally designed and written.

Implementation and Monitoring

Your plan should include a section on budgeting for the upcoming year. Using your accountant's profit and loss statement is a good way to do this. I find the best approach is to take last year's figures, adjust them for the current year, and create a budget.

Once you've created your initial business plan, updating it in subsequent years becomes much more manageable. Typically, in my experience, only about 20% of the content changes annually, making it a manageable task.

The Power of Planning: Success Rates and ROI

“By failing to prepare, you are preparing to fail.” – Benjamin Franklin.

Don't overthink.

The goal is not perfection but a clear, actionable plan to guide your business towards success in the coming financial year and beyond.