All Topics / Legal & Accounting / Trust Distribution to Children – $2666 tax free???

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  • Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    The latest CBD Accounting newsletter reports that children can have an income of up to $2666 in the 2008-09 financial year from unearned income such as trust distributions and pay no tax. The figure was about $1600 in the last tax year.
    http://www.cbdaccounting.com.au/userfiles/File/Document.pdf

    Each child could save you $1280 pa in tax if you structured your investments in a discretionary trust.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of eddieceddiec
    Member
    @eddiec
    Join Date: 2004
    Post Count: 113

    And those children become exceptionally tax effective when they turn 18 and don't earn substantial income because they will be taxed as adults under the normal marginal tax rates!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Terry

    In addition i have my 3 kids on the payroll and pay them $400 per annum each for secretarial dutues which again is Tax Free.

    Richard Taylor | Australia's leading private lender

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