What “Boomers” need to know

Born between 1946 and 1964, baby boomers (or “boomers”) were said to be raised in a time of a healthy economy and optimism. Now in their 50s to 70s, it is (generally) believed that this generation are quite financially comfortable. So, it makes sense that they may now be looking at their succession plans for wealth, investments and businesses. This is an important time to be careful about the management of these transfers in the eyes of the ATO.

What’s happening?
The ATO has announced it will be focusing on tax risks associated with succession planning for baby boomer Australians in 2025.
Wealthy “boomers” are under the spotlight in relation to how they plan/structure/dispose of assets.

What should we do about it?
It is important to ensure your business/investments/wealth have been set up in a way that provides a legitimate reason for its current and future structure.

How you and your family benefit from this structure needs to be assessed from a tax compliance and legal perspective.
If you are thinking about how to manage your succession planning, now is good time begin talking to us about how to structure your affairs in a way that will minimise tax and ensure the best outcome for you, your family and your business.

Reducing risk
When approaching retirement and looking to keep wealth within the family there are certain areas that need to be considered.
If there are multiple entities for you or your family, these will need to be looked at closely.
If you are now looking to step away and make changes to loans/shares/trustees/partnerships/assets, all these things will need to be considered from a tax and legal perspective. A restructure may be required to safeguard your position.
If any of these scenarios resonate with you, your family or your business, please feel free to contact us.

Read more: AFR: ATO to crack down on Baby Boomer wealth transfer ‘risks’

Published: March 2025