milesg, There are family trusts. These legally allow (in the correct circumstances) income splitting and you can also pay your children a sum tax free. The trust can distribute income to the beneficiaries tax effectively and pass-though the tax the trustee has paid on profits.
Most if not all high paid executives use trusts to legally minimise the amount of tax payable.
Also, there is preferential tax treatment of shares that are given as part of a salary package, these are taxed at a much lower rate than if it was paid as cash income, even though the benefit equivalent is the same.
That's just for starters, all legal, all used by high income earners (including I might add a lot of the pollies).
