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Trusts

Many media commentators suggest that Trusts are a tax dodge and opaint a picture that trusts are mis-used to hide assets, split income an avoid tax. However, this is not correct.

Trusts are one of the oldest legal structures under common law. They predate companies by hundreds of years and have the fully recognition of our legal system.

Trust permit assets to be held "on trust" by a trustee for the benefit of a class of identifiable beneficiaries until such time that the trustee determines to distribute income and the capital of the trust to those beneficiaries. Each trust has a end-date called a vesting date. On the vesting date (or earlier) all assets in the trust become assets of the beneficiaries.

There are numerous trusts structures available but the most common are:

  • Fixed trusts which provide a fixed proportion entitlement to beneficiaries. Some fixed trusts permit the proportion to be changed.
  • Discretionary Trust which provide the trustee with powers to use discretion so that within the class of beneficiaries only some beneficiaries may receive income or capital. This allows a greater flexibility as the tax outcomes can be managed to seek the lowest tax outcomes.

Trust affairs are complex and after recent court decisions, the conduct of trusts is under taxation review. We have expertise in trust establishment and trust compliance including issues concerning Tax Rulings, ATO views on trust deed powers, ATO views on trust distribution minutes and much more.

Property investors should seek advice before acquiring property in personal names as there are some benefits of a property trust holding property in NSW. This can allow the beneficial owner of the property to be changed at a later date without impact of stamp duty. This form of ownership may also assist a SMSF to later acquire some, or all, of the trust interest and avoid the Superannuation prohibition on a SMSF acquiring residential property from a member. We are also familiar with the "re-borrowing principal" which is unique to property trusts which may allow refinancing of the trust property to repay unitholder non-deductible debt and allow tax deductions to be refreshed.

We welcome enquiries from prospective clients to provide advice on trust issues and also ongoing accounting and taxation affairs of existing trusts.

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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.

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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.

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