Author Topic: Small business tax rate for family investment companies  (Read 590 times)

marty998

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Small business tax rate for family investment companies
« on: August 02, 2017, 05:51:47 AM »

http://www.dailytelegraph.com.au/news/national/ato-signals-tax-windfall-for-the-wealthy/news-story/b9ddf95cf3ae2fcb35bb3db74be12f99

I don't normally read the Daily Terror but this article was passed across to me.

The small business tax cuts for companies previously applied only to active/trading/operating businesses, not passive investment companies that hold family wealth in shares and real estate etc.

That ruling may change... Suddenly makes setting up a company much more appealing if my marginal rate is 39% but I could house investments in a company at 27.5%, then distribute the earnings back to me when I'm FIRE and get all those franking credits back down the line.