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> Australia does not allow tax combining. Australia has family trusts, which can allow significant savings on tax. Or used to, I haven't lived there for most o
by jacques_chester 5y ago
> Australia does not allow tax combining.
Australia has family trusts, which can allow significant savings on tax. Or used to, I haven't lived there for most of a decade.
- tybit 5y agoWe do but a family trust isn’t relevant to an employee’s salary. E.g his Netflix salary wouldn’t be able to go into the trust until after paying income tax on it. If he wanted to e.g invest in his wife’s name for tax reasons he could just transfer her the taxed income for her to invest with instead of using a trust. Trusts provide the flexibility to distribute that future investment income to whichever member in that particular year to optimise tax.
- jacques_chester 5y agoThanks for the correction.
- flashgordon 5y agoYou also forgot negative gearing. Investment losses can only be adjusted in the us on sale. In Australia real estate losses via negative can even offset income. I know folks who have a field day with this!
- davidbanham 5y agoThe primary barrier to distributing your salary through a trust is the personal services income rule. https://www.ato.gov.au/Business/Personal-services-income/ https://www.ato.gov.au/Business/Personal-services-income/