You are a long-time retired
Rohan Brown • November 29, 2023
For many retirees, there is now a reasonable expectation of increased life expectancy. For many this could mean 20-30 years of life after retirement. However, for many this is a challenge after a long working life.
It is becoming a challenge for many and leading to mental health challenges for retirees. The issue is that for many, work has been go, go, go for 30-40 years of our lives. For many it is also what defines who we are and what we are about. Other than family it is probably the one thing that provided day to day direction and purpose. Work can also be a social outlet, allowing mixing with fellow team members and customers.
A point I make with many of my clients is that in retirement they must have a reason to get out of bed in the morning. A purpose to drive then, keep mentally stimulated. Often at such a retirement stage it is hopefully not about the financial reward, but fulfillment and purpose. Where a family business is concerned retirement may mean more of a pottering stage of life. Coming and going as they feel, still being depended on and sense of being needed and still being there adding to the business overall success. For others, retirement may mean selling out of a business or total retirement from active employment in that business. In such as cases there may not be the ability to be involved in the business or industry.
So, what can we do?
- Plan for retirement, think about those things you are wanting to do that work has always got in the way of. Write a bucket list and do them. Fishing, bowls or golf everyday may sound like fun, but will that challenge you long term?
- Before retirement discuss with your partner the concept of retirement. Do you have the same expectations? It will be a big change in your lifestyle dynamic.
- Phase towards retirement. There is no hard rule of being all or nothing when it comes to work. Where possible consider working towards a phase out approach, start by not working on certain days, ease out of certain work commitments or pass on many of the tasks you perform.
- Take a sabbatical from work, re-energise and go back. The break may also allow a reset in the way you work and on return the role may have evolved to keep you engaged for a few more years.
- Change the sort of work you do, moving into different roles or change employers.
- Consider voluntary work, providing you years of skills to other organisation that may be requiring assistance. This is win-win, the group get expertise and you have continued purpose.
- Keep learning new things, taking the opportunity to do short courses, learn practical skills. This may also include skills learnt in volunteering on the job.
- Pay it back, use your long career of skills to upskill the future generation just starting in your industry.
- Join clubs and special interest groups to mix with other likeminded people. Don’t just join for the activities, but also to socialise.
If there is something to take from this article it is, be aware of mental health. Check in on yourself, others around you or family members that are transitioning. If you are feeling ‘retirement’ is taking a toll, seek help. There are many great resources to assist this change in life, simply do an internet search for retirement mental health.
The post You are a long-time retired appeared first on Green Taylor Partners.
More GTP Articles
When you take money out of your company for personal use, it’s not automatically a tax-free loan. To the ATO, that payment must be one of these: Salary and wages A declared dividend A properly set up loan If it’s none of the above, the ATO can treat the amount as a dividend and add it to your personal taxable income. This rule is called Division 7A. A common situation is when a business owner transfers money from the company account to their own account, planning to “put it back later”. Without the right paperwork, the ATO may say that money was actually a dividend, not a loan. For example: You take $50,000 from your company to renovate your home. If you do nothing, that $50,000 can be treated as a dividend. You will need to pay personal income tax on the full $50,000, and you don’t get any franking credits to reduce the tax. To avoid this, you can either: pay the $50,000 back to the company before the company’s tax return is due, or put a formal Division 7A loan in place. A proper Division 7A loan means: a written loan agreement interest charged at the ATO rate minimum yearly repayments over up to 7 years (or longer if secured by property) If you set up the loan correctly, you might repay roughly $9,000 per year (principal plus interest, depending on the rate and term). As long as you make those repayments on time each year, the ATO treats it as a loan, not a dividend. Problems usually happen when people: take money out casually don’t sign a loan agreement miss the required yearly repayment If a repayment is missed, the unpaid amount for that year can still be treated as a taxable dividend. In short, company money is not your personal spending account. If you use company funds for private purposes, either repay it quickly or set up a proper loan and stick to the repayments, or you risk an unexpected personal tax bill. If you have any questions or would like to discuss how Division 7A applies to your situation, please feel free to contact our office for appointments.
For nearly 3 years now the Government has been proposing to bring in a new tax on taxpayers with high total superannuation balances. It has been referred to as the $3 million tax. Previous versions of the draft legislation resulted in significant opposition from both industry groups and political parties due to the unfair and unintended consequences of poorly worded legislation. Most significant was the taxing of unrealised capital gains within Self-Managed Superannuation Funds (SMSFs). Prior to Christmas, the Government finally released their updated draft legislation for the introduction of the new Division 296 tax. The main points are as follows: · The introduction of the tax will commence on 1 July 2026 (rather than 1 July 2025), which means the first financial year will be the year ending 30 June 2027. · The tax of 15% will apply on the portion of earnings on total superannuation balances above $3 million. · An extra tax of 10% will now also apply on the portion of earnings on total superannuation balances above $10 million. · The $3 million and the $10 million thresholds will now be indexed in line with CPI (previous legislation had no indexation). · After the first year the calculation of the portion above the $3 million will be based on the higher of the opening and closing total superannuation balance during the financial year. This is a significant change as previously it was only based on the 30 June balance at the end of each year. This allowed taxpayers to withdraw superannuation assets prior to 30 June to reduce their member balance and therefore avoid any application of Division 296 tax. · The definition of earnings has also changed. Earnings will now be based on normal tax principles and be closer to the calculation of taxable income (which is much fairer). Unrealised capital gains will no longer be considered as part of earnings. · Special protections will be included to ensure any capital gains accrued up to 30 June 2026 will not be included in future earnings calculations. The draft legislation was open for industry comment up to 16 January 2026. The Self-Managed Superannuation Fund (SMSF) Association and other industry groups have tabled concerns regarding the complexity and over-complicated nature of the draft legislation. In their eyes this can only lead to higher compliance costs (in addition to the tax). We will keep you informed if there are any further proposed changes prior to this legislation becoming law.
January is when many business owners review their profit targets for the year ahead. That’s understandable — but in practice, it’s cash flow that determines how calm or stressful the year will feel. Clients who enter the year with clear cash visibility tend to make better decisions, move faster, and sleep better. Those who don’t often spend the year reacting rather than leading. Here’s why January is the right moment to reset your cash discipline — and where to focus first. 1. Cash flow is a timing issue, not just a performance issue Many profitable businesses still experience cash pressure. The reason is usually timing, not effort or demand. Common issues we see include: Invoices going out later than expected Payment terms that don’t match cost cycles Large expenses landing before revenue catches up January is ideal for mapping these timing gaps while the year is still flexible. Even a simple month-by-month view of expected inflows and outflows can highlight where pressure is likely to arise. 2. A rolling forecast beats a static budget Annual budgets often look impressive in January — and are forgotten by March. A rolling cash forecast, updated monthly, is far more useful. It allows you to: Anticipate short-term funding needs Make confident decisions about hiring or investment Spot problems early, while there are still options This doesn’t need to be complex. The goal is visibility, not perfection. 3. Client payment behaviour deserves attention Late payments are one of the most common causes of avoidable cash stress. January is a good time to ask: Are our payment terms clear and enforced? Do we follow up consistently? Are some Clients always slower than others? Often, small changes to invoicing timing or follow-up processes make a noticeable difference without harming relationships. 4. Cost creep is easiest to fix early Costs have a habit of accumulating quietly. Software subscriptions, contractors, and discretionary spending often feel manageable in isolation but add up quickly. Reviewing these early in the year gives you more control — and avoids rushed decisions later. Software subscriptions, contractors, and discretionary spending often feel manageable in isolation but add up quickly. Reviewing these early in the year gives you more control — and avoids rushed decisions later. 5. Strong cash control creates optionality The real benefit of cash clarity isn’t restriction — it’s choice. Businesses with healthy cash visibility can: Invest when opportunities appear Absorb surprises without panic Negotiate from a position of strength That flexibility is one of the biggest competitive advantages a business can have. January cash discipline isn’t about being conservative. It’s about giving yourself room to manoeuvre as the year unfolds. If you’re unsure how robust your current cash position really is, a short review now can save a lot of pressure later.
Payday Super rules introduced by the Federal Government is now legislation and we can provide more detail for the new rules for employers. Currently employers have 28 days from the end of a quarter to process the quarter’s super guarantee (SG) amounts for employees through an approved clearing house. This means the December quarter SG is due for lodgement and payment by 28 January. The Payday super rules require an employer to lodge and pay the employee SG at the same time they are lodging and paying the employees. These are the new rules: New Deadline From 1 July 2026 the deadline for super payments will be 7 days from the day an employee pay is paid. This means a super fund must record receipt of the employee SG via an approved clearing house within these 7 days. There is an exemption for new employees where an extension is provided of 20 days when it’s the first payment of a new employees super. Calculating Super Amounts From 1 July 2026 you will calculate an employees’ superannuation based on their qualifying earnings (QE). Qualifying earnings is made up of: - An employee’s Ordinary Time Earnings (OTE) - Amounts of OTE that have been used as part of a salary sacrifice arrangement for super contributions - Other amounts which are currently included in an employee’s salary or wages for SG Late Payments and Super Guarantee Charge Super Guarantee charge (SGC) applies to amounts not received by a super fund within the 7 business days of payday. From 1 July 2026 Super Guarantee charge will be: - Assessed by the ATO (previously it was self-assessed by the employer) - Calculated based on Qualifying earnings - Includes interest that compounds daily at the general interest charge rate - Includes an administrative uplift based on the employer’s history of meeting super guarantee obligations - SGC will be tax deductible - Penalties start at 25% of unpaid SGC and will increase to 50% depending on prior history Small Business Superannuation Clearing House As previously advised the small business superannuation clearing house will no longer be available. Other Important Points - Super Choice Forms are still required to be provided to new employees - Employers can request Stapled super details for new employees at the time of suppling the super choice form rather than waiting until their first pay allowing employers to gain their super details in a timelier manner. - Super funds will have 3 days to advise and return super contributions rather than the previous 20 days Our tip is to start Payday super now. If you are already using a software based super option than consider building into your pay process of processing a super payment at the same time If you are using the ATO SBCCH as your super clearing house you need to consider your options to what super clearing house you will be using from 1 July 2026. Our team at Green Taylor Partners can assist you with the move to Payday super.
The True Cost of Hiring Your First Employee in Australia Hiring your first employee is a huge milestone for any business. It often signals growth, increased demand, and the shift from “doing everything yourself” to building a team. But while many business owners budget for wages, the true cost of employing someone is far higher than just their salary. If you’re planning to hire staff members, here’s what you really need to factor into your budget. Base Wage or Salary (The Obvious Cost) This is the figure most business owners focus on first. Whether you’re paying: An hourly wage A casual rate Or a full-time salary You must ensure it meets: Fair Work minimum award rates Any applicable enterprise agreements Penalty rates, overtime, and allowances where required Superannuation (Currently 12%) On top of wages, you must pay Superannuation Guarantee (SG) for eligible employees. This is currently 12% of ordinary time earnings. Example: If your employee earns $70,000 per year, super cost = $8,400 per year (at 12%) This cost is in addition to their salary, not part of it (unless you’ve structured a total remuneration package). Workers’ Compensation Insurance Workers’ comp insurance is compulsory in every state and territory. The cost varies depending on: Your industry Your claims history The risk classification of your work Total payroll For low-risk office environments it may be modest, but for trades, transport, or physical industries it can be a significant annual expense. Payroll Tax (For Growing Businesses) You won’t pay payroll tax immediately, but once your total wages exceed your state or territory threshold, payroll tax applies. This often catches growing businesses by surprise, especially when they: Hire their second or third employee Scale quickly Employ across multiple states While it may not apply to your very first hire, it should absolutely be part of your forward planning. Leave Entitlements If you employ someone full-time or part-time, you’re responsible for: Annual leave Personal leave Public holidays Long service leave These entitlements build up as a liability on your balance sheet, even though you’re not paying them immediately. This affects your real profit and cash flow. Recruitment & Onboarding Costs Hiring isn’t free. Many businesses underestimate the upfront costs, such as: Job ads on employment platforms or recruitment agencies Time spent reviewing applications and interviewing Training and supervision during the onboarding period During the early weeks or months, your new employee may not yet be fully productive — but you’re still paying full costs. Systems, Software & Equipment Your new employee may require: A laptop, phone, or tablet Software subscriptions Uniforms or protective equipment Desk space, tools, or vehicles These costs can easily run into thousands of dollars upfront. Increased Accounting & Compliance Costs Once you employ staff, your compliance responsibilities grow: Payroll processing Single Touch Payroll (STP) reporting Superannuation processing Workers’ comp reporting Leave tracking and entitlements Many businesses require upgraded accounting support or payroll services once they take on staff. The “Real Cost” Multiplier A common rule of thumb is that the true cost of an employee is 1.25x to 1.4x their base salary once you factor in super, insurance, leave, payroll systems, and overheads. For example: Base Salary Estimated True Cost $60,000 $75,000–$84,000 $80,000 $100,000–$112,000 This is why hiring without proper cash-flow forecasting can put enormous strain on small businesses. Can Your Business Actually Afford the Hire? Before hiring, it’s worth asking: Will this employee increase revenue, or only reduce workload? How many extra sales or billable hours are needed each month to break even? Do you have 3–6 months of wage costs buffered in cash? Hiring too early can be just as risky as hiring too late. Hiring your first employee is exciting, but it’s also one of the biggest financial commitments your business will ever make. Looking beyond wages to understand the full financial impact can help you: Avoid cash-flow pressure Stay compliant Grow your business sustainably If you’re considering your first hire, or adding extra staff, and want help modelling the true cost, forecasting cash flow, or setting up payroll properly, please feel free to contact our office to discuss this further.
