Blimey BB, I have an idea, but thats it, as you know you need to...

  1. 2,070 Posts.
    Blimey BB, I have an idea, but thats it, as you know you need to speak to your accountant.

    You could setup a Div7A compliant loan from the company to you. You can then lend the money to the Trust. ATO guidelines regulate a strict repayment schedule which could be repaid by using distributions from the trust. From memory its something like 7-15 years??

    You should also make sure your company is named as a beneficiary of the trust within the trust deed, the company then acts as a bucket company taking excess distributions capping tax rate at 30%, this distribution is then lent back to the trust in the form of a beneficiary loan, letting benefits accumulate within the trust. However a loan account accrues in the company's benefit.

    The alternative is windup the company / pay divvie and cop the tax.

    Make sure you see a decent accountant (not necessarily a big name firm), they'll not doubt have a whizz bang solution for you.

    Good luck, this isnt advice, good chance im totally wrong, just amateur musing.

 
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