Nod,I think you're going a bit far suggesting he should let go of his accountant, as I don't think ru-serious has given enough information to be able to advise that. As you noted, it doesn't sound like he/she fully understands their own tax situation and I would suggest they spend some time getting their head around that properly first, along with having their accountant explain why it is setup the way it is and whether there is a better tax structure that they could implement. If they are pay tax at such high rates, then it would be well worth the cost of restructuring, even if it comes at the cost of several thousand.
On the face of it though, i would suggest that even just settng up a new company solely for the purpose of trading would immediately limit their tax on profits to 30% (vs 48%). There are ongoing costs associated with administering companies though and they would need to explore that with their accountant further. They will also potentially pay the extra tax if they paid themselves a dividend from the company (if they are already paying the maximum tax rate in their own name), but it does enable some flexibility in terms of being able to have a spouse be a member of the company (they may pay low tax personally) and they could time paying dividends to themselves in years that they aren't earning much.
For anyone approaching retirement age, one of the best financial decisions you ever make could be setting up your trading in a self managed super fund. This is complicated though and requires in depth advise from accountants and/or financial planners. Smsf's very specific to each person's situation and cannot be properly advised on through a forum (beyond general information).
