Taxation Planning – Diverting Income

15 May 2023

Admin User

Taxation Planning – 6 ways of increasing your business deductions.                      

Warning - What can tax planning do to the value of your business -

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.


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.


If you would like to discuss further please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
Phone +61 3 9428 1062

Please refer to disclaimer at the bottom of the page.

Ready to take your first step to better business and unlock opportunities for true business value?

Together we'll help you evolve and thrive.