Subcontracting Income through a trust

I just had a look at the Pat IVA. It appears that you would not be allowed to purely 'stream' your parters income through a trust and distribute it to yourself to save tax.

From the Part IVA document:

In the absence of unusual features, therefore, Part IV A would not
apply to such husband and wife partnerships. The sort of unusual
features that could see Part IV A apply include where the:

– income generating activity was in reality a disguised
employment arrangement, or
– use of the partnership is prohibited by regulatory or other laws.

In employee?like arrangements, provisions in the income tax law
which specifically deal with the alienation of personal services
income may apply in any event. This would mean that the
partner performing the main bulk of the work is taxed on all
of the partnership income. In such cases, Part IVA would have
no application.

Reading the above, it appears that your husbands work is in fact a disguised employee arrangement. He is getting paid as a contractor although in reality he is an employee (I could be wrong though as I dont really know the nature of your husbands work).

I think you really should talk to a good accountant as they may have a way around this so you can stream the income to save tax.

Cheers,
Luke