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.pdfEach 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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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!
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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
