An accountant that is preparing tax returns. Accounting and tax return documents, pages and calculators. An elderly couple planning with their superannuation funds. A business man working on his investment property in Gordon.

Structure Advice

The choice of entity structuring is of critical importance to any business or investment structure. Delaying the advice until later can result in significant CGT and stamp duty problems.

The choice of entity can affect:

  • Basic income tax outcomes
  • Personal liability
  • Loss of workers compensation protection
  • Stamp duty
  • Discretion over profits rather than fixed entitlements
  • Capital gains tax at a later date (ie change of shareholders)
  • Asset protection and exposure to creditors
  • Estate planning, inheritance and succession planning

We can provide initial formation advice and also more complex re-structuring advice.

Entities that should be considered by your adviser are listed below. Many accountants are not familiar with each of these entities and may offer a simple fix that could bite you later. Beware the accountant that suggests:

  • Sole trader
  • Partnership

without considering a broad range of issues. Other entities to be considered should include:

  • A fixed trust - To apportion income and capital but which can allow new parties to be introduced later with stamp duty.
  • A discretionary (family) trust - To apportion income and capital in a discretionary manner for favourable tax outcomes. The "trustee" owns the business and this can frustrate claims on the home of the Trustee Directors.
  • A company - A separate legal entity which enjoys its own legal identity and a lower tax rate of 30%.
  • A Hybrid Trust - A blend of a fixed trust and a discretionary trust applicable to special circumstances.
  • A Class Trust - A trust structure ideal for combining two families in a business venture. Each family enjoys a fixed % share of income and capital but each family can then apportion income and capital in a discretionary manner.

You can be assured that we will meet with you are offer personalised advice that considers your tax needs as well as estate planning and asset protection needs and which considers the impact of stamp duty, CGT and other concerns. We are able to assist with the entity formation and its correct registration for ABN, GST and all other required matters.

Latest Accounting News

  • ATO increasing data exchange with international regulators

    Data sharing between tax regulators in different countries is rapidly increasing with the ATO turning in around 30,000 US expats to the IRS just last year according to a US tax lawyer.

  • Our 'hardest' SMSF tasks

    What are the hardest aspects of running your self-managed super fund (SMSF)? There are certainly more and more tasks and professional help my be needed to manage them properly.

  • Uber drivers hit for 10% tax

      In a recent decision, the Federal Court has held that the UberX service supplied by Uber’s drivers constitutes the supply of “taxi travel” for the purposes of GST. 

  • Lack of literacy promotes unrealistic goals

    A large proportion of Australians have unrealistic retirement goals.  (NB: There are financial tools on this site that can help as too can a financial planner)

Tax Specialists

We specialize in providing proactive tax planning strategies for our clients. High earning individuals and business clients can benefit by speaking to one of our tax advisors.

Bookkeeping

Good, fundamental book keeping will ensure that your accounts are up to date and give you proper control of your business. With over 85% of business failure attributed to poor financial control, skilled and professional bookkeeping will give you results that speak for themselves.

Superannuation Planning

Taking the time to plan for your future makes good financial sense. Ensure you have the money to live the lifestyle you'd like during your retirement.

Investment Properties

Preparation of negative gearing tax schedules for all investment properties. Including Depreciation Calculations and Special Building Write offs.