Joanne has owned her own optometrist business for the last 17 years.   Over the last five-years Joanne has borrowed heavily from her practice company to finance extensive house renovations. Joanne is concerned about eliminating her personal debt and providing for her retirement.  


  • $378,000 taxable income (company & individual).  
  • $401,000 Div 7A loan balance.
  • Single and aged 53. 
  • Current tax paid – $113, 524

Accountant’s Advice: 

  • Tax Strategy 68: Establish a Family SMSF - This involves establishing a family SMSF and rolling in her public offer superannuation balances.  
  • Tax Strategy 114: Share Buybacks -  This involves buying back 40% of the equity (shares) in her practice company for $600,000. This eliminates her directors loan and saves $24,060 pa in interest. By accessing the CGT Retirement concession and contributing $150,000 to her SMSF, Joanne will eliminate any tax on the buyback.


  • Pays out the $401,000 directors loan and eliminates the need to make annual loan repayments of $57,285 (for 7 years).
  • Contributes $150,000 into her SMSF for retirement.
  • Saves $7,168 tax per year.