As a small business owner you work hard to make your business a success. For most small businesses the owners are integral to the ongoing success of the business, but if you or your business partner dies or cannot work for a medical reason, what happens to your asset? 

This is a question that most Australian business owners cannot answer with confidence. Why? Because they don’t have a defined plan in place to deal with it. 

When it comes to managing key man risk, it is far cheaper and cleaner to transfer the financial risk to an insurer and Yield are experts in helping our clients manage this. Along with appropriate insurance advice, we assist our clients to consider the questions they need to ask and agree between themselves, well in advance of anything bad happening. This way there are predetermined ‘agreed’ outcomes that put the business in the best possible position to transition from the loss of a key person in the short, medium or long term.

Read more about managing risk, business partnership agreements and the insurances available to manage business risk.


Having worked hard to build your business to this point, you have had to make compromises. It’s typical that as a business owner you’ve had to sacrifice personally to see your business prosper, but when it comes time to consider exiting your business, you want to realise the maximum value you can for your asset. 

At Yield Financial Planning we will help you understand how to do this. We work with our clients and related advice professionals to create a succession plan designed to maximise the business value and transition it in a timely way. We can show you how to apply tax exemptions that are specifically designed for small business owners that can result in no tax payable on sale.


Structuring to minimise liability risk

How you own your assets is extremely important for taxation reasons and to manage liability risk.  As a business owner, risks are naturally increased personally, as issues that can affect the business (with creditors, aggrieved customers or suppliers, solvency or even personal financial issues of a business partner), can result in personal liability risk.

Liability risk is the risk that you are sued or pursued personally and the threat that this applies to your personal assets like your home. In the context of your financial plan, we consider these issues for clients and where specific legal or tax advice is identified we work with you and your related advice professionals to help you minimise this risk. 

Insurance is one option you have to transfer some of this risk to the insurer, with professional indemnity and public indemnity cover and we work closely with general insurance experts that can help.

When helping you invest, we consider structuring advice and help you weigh up the pro’s and con’s of different structuring decisions, considerate of the tax implications and risk management. 


This is a strategy that can work fantastically well for self employed people who own or aspire to own the commercial premises they work from. Some of the advantages of this strategy include:

  • You are the tenant – unlike other commercial property purchases, you are not relying on demand from the market, to ensure your property remains rented. Considering commercial tenancy demand is fueled by the strength of the prevailing economy, there is a greater risk of low occupancy than residential property.
  • You can get more into your super fund – In this scenario you can theoretically make maximum pre-tax contributions to super annually, as well as paying in the rent you pay yourself.
  • You have some control over the rent you pay – within reasonable market limits you set the rent you pay.
  • You can buy it in a Self Managed Super Fund – if you sell your premises, once your super has been converted to a pension, it is possible to sell with 0% capital gains tax implications. This could naturally lend itself to when you are no longer in need of the premises for your business when you retire.