Small business tax offset targets individuals carrying out small businesses as sole traders and those who receive part of their net small business income through trusts and partnerships. They must also have an aggregated turnover of less than $5 million to be eligible for the tax offset.
Rental properties in Australia can be some of the most financially rewarding long-term investments and offer a variety of tax benefits. Maximize the benefits to turn a negative cash flow property into a positive cash flow.
Trustees must sign a resolution for income distribution in a Discretionary/Family Trust by June 30, 2021 for the distributions to be effective in determining who is to be assessed on the Trust’s income and to avoid paying up to 47% tax on the Trust’s profits
A “bucket company” allows you to “cap” the tax on profits distributed by a trust to 30% or 27.5%. This is much less than the individual top marginal rate of 47%!