Diverting income is another widely used and effective means of minimising your taxation liability. Using a Discretionary (Family) Trust can prove to be very effective business / investment structure, for diverting taxable income to beneficiaries that are in a low or lower tax environment.

A discretionary trust means that the beneficiaries are discretionary. Therefore the trustee has flexibility when it comes to making the distributions as the distributions are not fixed.

http://www.mcnamaraandcompany.com.au/blog/what-are-the-advantages-and-disadvantages-of-operating-a-business-investment-using-a-discretionary-trust

Note that it is important that the trustee of the trust make the beneficiaries entitled to the trust’s income by way of a resolution by the end of the financial year. https://www.ato.gov.au/General/Trusts/In-detail/Trust-tax-time-toolkit/Resolutions-checklist/?page=2#Before_30_June

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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