21/06/2026
What if a capital gains tax bill could help create a lasting family legacy?
For many business owners and investors, selling a successful asset can trigger a significant capital gains tax liability.
But in the right circumstances, that moment can also become an opportunity to do something more meaningful: turn part of a tax outcome into a long-term philanthropic legacy.
Consider John and Joanne, who receive a $4 million offer for a business they purchased many years ago for $1 million. After the 50% CGT discount, each has a taxable capital gain of $750,000.
Without further planning, their combined tax liability could be approximately $684,276.
After receiving professional advice, they explore establishing a named endowment account within The Lachlan James Pritchard Foundation Community Benefit Fund and making a tax-deductible contribution.
If they each contribute $250,000, the Fund receives $500,000 and their combined tax liability may reduce by around $235,000. More importantly, those funds can continue supporting charities and community organisations for many years to come.
This is not just about tax planning. It is about giving families a structured way to talk about values, involve children and grandchildren, and support causes that matter across generations.
For business owners approaching retirement, investors with large unrealised gains, or families thinking seriously about legacy, this type of strategy may be worth discussing with professional advisers.
The question is not only, “How much tax can be saved?” It is also, “What lasting impact could this wealth create?”
If this is relevant to you or your clients, we would be pleased to work with you and your adviser to explore whether a named endowment account could form part of a broader tax and legacy planning strategy.
www.lachlanpritchard.org.au
The Lachlan James Pritchard Foundation Limited was established on 13 November 2024 by Steven and Margaret Pritchard, and their friends to commemorate the life of Lachlan James Pritchard.
