I would just like to pick some brains if I could regarding trading/investing via an ABN.
I am currently just trading in just my name via commsec however would like to know if someone could give me some info/thoughts on the pro's and con's of actually obtaining an ABN and trading/investing through it. As to minimise losses through Tax.
The one major pro I see and hence why I am looking into this (If I am right that is? lol) is that business tax is only 30% flat rate which is already 5% lower than my marginal rate plus I am not far from the next bracket which blows that margin out even further if I was to get a few good trades. So the saving's in tax alone could be a small fortune.
However:
How do you actually withdraw any earnings back from the business? Do you have to pay yourself a wage? which would clearly be a waste of time as you would then be taxed twice.
Any info would be much appreciated Thanks in advance
ps. It's 5am and I have had the pleasure of working all night so hopefully this all makes sense haha
