I am an employee who will be reciving an anuual bonus in July of $150,000. Can my employer write a cheque to my family trust and then i make a distribution to my wife who does not work, therfore reducing my tax? Or does my employer have to pay the bonus to me personally ? Any help would be appreciated. Not sure if it matters but my annual salary without car and super and bonus is $98,000, i am just looking at ways to reduce my tax without putting it into super that i cant touch for years i am 34 years old also. Thanks in advance. Twiggy
Thanks Terry Does that mean i could posibly provide my employer with a tax invoice from my family trust for " consulting services" and my employer would write a cheque to the trust for $150,000, i would then bank it. When would my wife and i have to pay the tax man the tax ?
Yes possible but whether your employer would be prepared to do that i doubt.
Other consideration is who is the Trustee of the Trust. If it is a personal trustee /s then when you distribute the funds from the Trust at year end the benficiary will be taxed at the rate at their own marginal rate. If all of the funds are distributed to your wife then she will still be on the same marginal rate as you would be.
If you have a Corporate Trustee then you could possibly save yourself 16% off in Tax.
Richard Taylor | Australia's leading private lender
I think Richard meant 'beneficiary'. It wouldn't matter who the trustee is as the trustee's role to to determine the distribution, it is the beneficiary that has to pay the tax.
Having a company as trustee who help as it would look less like a blatant scheme to avoid tax. The people at the ATO are not only handsome, they are smart so it would be wise to spend a bit of money and to go and see a good accountant. It could save you thousands in tax.
Tax is usually paid at the end of the year, tax year, and if you use an accountant to do your tax return you could delay it up to March the year after!