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the major problem to be aware of with share trading or shares...

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ddzx

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24/12/17

22:20

Post #: 29864090
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Originally posted by The outvestor ↑

Back in the day that was a very popular strategy. However the ATO got savvy to this about 4-5 years ago and introduced legislation to impose the highest tax rate for children under the age of 18. If you don't have suitable family members to distribute to and are on a high tax rate, one option is to take advantage of the 30% company tax rate by setting up a company and distributing to it. Ideally a franked dividend can be paid out of the company in future years when you are on a lower tax rate. If you're not experienced in this kind of stuff you would obviously need to see an accountant.

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the major problem to be aware of with share trading or shares investing using a Trust or Company structure is, if losses are made, the losses get stuck in the Trust or Company. in other words, the losses cannot be used to offset any personal income or offset any personal investments

regards

Last edited by ddzx: 24/12/17
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