Short Term Trading Weekend Lounge: 17-19 Nov, page-74

At a simple level without detailed explanation ... Via a company connected family trust ... Profits earned by the trust get distributed into company and individual trust beneficiaries each year. This smooths the distribution cycle. Say if you have big win 1 year and none the next you can spread income over two or multiple years by holding the excess in the (bucket) company. You can also control how much is paid out of co each year to shareholders. Company must pay tax on profit each year regardless circa 30%. My accountant handles most of the setup and admin of it and it is not insignificant there are minutes, director meetings etc etc. Admin is significant. You effectively running a fully fledged investment trust and company and are a trustee, director etc etc . So some hassle involved get a good accountant