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This finding is both striking and concerning, especially at a time when generational transition has never been more complex, and the stakes have never been higher.
Over the next 20 years, more than $3.5t in wealth is expected to transfer between generations. Without robust planning, families risk losing not only financial value but also stability, opportunity, and the legacy built over decades.
Despite its importance, succession planning is often postponed. Family businesses without documented plans are exposed to heightened commercial risk, vulnerable to sudden leadership voids, and more likely to experience conflict among family members.
Often, families who believe verbal agreements or implicit understanding is 'good enough', only to discover that ambiguity means misalignment, leading to tension. A documented plan does not remove uncertainty entirely, but it offers direction when unexpected events arise.
Australia is on the cusp of the largest intergenerational wealth transfer in its history. This transition will redefine ownership, leadership and investment decisions for thousands of family enterprises. Yet without a structured succession pathway, families risk poor tax outcomes, inefficient wealth distribution and reactive decision‑making.
Statistically, making it to the third generation is a challenge. This is not due to a lack of capability or intention; it is most often the result of inadequate planning, unclear expectations, or an absence of governance structures. Families who plan early are better equipped to sustain the value of their businesses, preserve relationships and make decisions that strengthen rather than fracture their legacy.
People believe succession planning is only about stepping back, retiring, or for when they are no longer here. mistakenly believe that succession planning is only about stepping back, retiring, or considering mortality. This misconception leads families to delay the conversation, assuming it can wait until a major life event forces the issue.
In reality, succession planning is about setting the next generation up for success, not about stepping away. Effective succession involves developing capability, building confidence and providing clarity well in advance of any transition. When families focus on preparing their next generation early, they give them time to learn, grow and contribute meaningfully. This proactive approach strengthens both the business and the family and ensures the rising generation is genuinely ready when the time comes.
Whether your business is years away from transition or already contemplating its next chapter, having a clear succession framework is essential. We work closely with families to create structured, practical and values‑aligned plans that protect your business, your wealth and your relationships.
If you would like to explore how to document or strengthen your succession plan, we are here to guide you every step of the way. Reach out to one of our accredited advisers today.
*2025 Grant Thornton Family Business Report
The announced 30 per cent minimum tax on discretionary trusts creates significant challenges for private groups.
Succession is no longer just about who takes over. Many family businesses are using succession planning as a catalyst to reassess whether their current structure is still fit for purpose. As businesses scale, trust or partnership structures can become restrictive. Issues may include limited asset protection, challenges winning commercial contracts, reduced buyer appeal, and constraints on reinvesting profits to support growth.
In estate planning, the focus is often on technical elements like drafting a will, appointing executors, minimising tax, and ensuring assets pass as intended. While these steps are important, they only form part of the picture.
