For many families across NSW, the farm is more than an asset; it is a way of life. It carries your decades of work, your routine and the foundation of your family’s identity. So, when you are considering a sale, we understand it’s not a simple decision for you.
“We’ve worked hard all our lives. We don’t want to make a mistake at the end.”
“We’re uncertain about the exact amount of tax that will be deducted from the sale.”
“We want a steady income. We don’t want to worry about money in ten years.”
These are questions we regularly hear at Twomeys. And understandably so. You’re not just thinking about the value of the land or the sale price. You’re thinking about what the next stage of life will look like. You want to protect what you’ve built, make sure your savings last and feel confident that you’re making well-considered choices.
Keeping More of the Sale Proceeds
When we work through the farm sale with you, the first area we look at is tax. Understanding your Capital Gains Tax (CGT) position early gives you a clear sense of what the sale means in terms of the numbers.
- If you are over 55 and retiring and have held the property for 15 years or more, then you may be eligible for a 15-year CGT exemption.
- You may also be able to use the retirement exemption, which allows up to $500,000 tax-free.
- And the CGT cap contribution, currently $1.865 million, can be a valuable way to move part of the proceeds into super.
Now, these are just a few of the concessions. Each of these concessions works differently, but together they can make a substantial difference in how much tax you save.
Important: These concessions generally apply if you meet the small business eligibility criteria and other conditions. Always seek advice to confirm your position before making decisions.
Turning the Sale into a Steady Income Stream
Once you have clarity of what portion you’re likely to keep, the next practical step is deciding how to turn proceeds into income you can comfortably rely on. Farm income has its own rhythm, so adjusting to a new retirement structure can feel unfamiliar at first..
This is where your Super becomes an important foundation. Once your balance moves into the pension phase, the income you draw becomes tax-free.
From there, we help you build an investment portfolio that gives you stability and comfort throughout your retirement years.
- A base level of guaranteed or lower-risk income
- A portion for growth to protect against rising costs
- Cash reserves for short-term needs or emergencies
The aim is simple. You should feel comfortable drawing your income each month without watching markets or worrying about whether your money will last.
Important: Super contributions are subject to age and contribution rules. Always seek advice to confirm your position before making decisions.
Making Sure the Money Lasts for the Next Three Decades
When we sit down with you to plan for the long term, we focus on ensuring your savings support you and your family for the next 20 – 30 years. Your needs and expenses will change over the years, so your plan needs to adapt as well. That usually means having a mix of steady income, some growth to keep pace with rising costs, and enough liquidity to handle big expenses when they arise.
We look at how you can keep your income reliable by diversifying your investment portfolio. This balance helps your income stay steady and reduces the impact of occasional market fluctuations and losing your purchasing power to inflation. We also work through setting aside emergency funds, so you can manage larger or unexpected expenses without disrupting your long-term plans.
It’s not a necessity that you need to have a complete plan for the next twenty years. What matters is having a structure that supports you through different stages of retirement and allows you to live comfortably.
Keeping the Family on the Same Page
A farm sale often raises important family conversations. Different expectations, different hopes and different ideas about what should happen next. This is normal, and clarity helps avoid confusion down the track.
We help you review your wills and estate plans, document your intentions clearly and think through how wealth will pass to the next generation without unnecessary tax. If one child is staying involved in farming, we help work through fair and practical options for succession.
These conversations tend to go much more smoothly when everyone understands the plan and the reasons behind each decision.
Know your Options
If you’re considering selling your farm or planning your retirement, please get in touch with your local Team Twomeys office for advice. We’ll help you plan the next stage and protect what you’ve built.
