In the lead-up to 30 June 2019, we want you to be aware that you need to complete your trust distribution resolutions before 30 June. Why? To avoid paying extra tax of up to 47% of Trust profits.

Do you have a Discretionary Trust (also known as a Family Trust)?

If yes, you MUST keep reading!

How can this happen?

If a Trustee of a Trust fails to make a resolution to distribute the income of the Trust before the end of the financial year, the Trustee may be assessed by the Australian Taxation Office (ATO) on the Trust income at the highest marginal tax rate of 47%, rather than the intended beneficiary(s) being taxed.

What we are doing to help you…

Even though preparing a trust distribution resolution before the end of the financial year can be quite complex, we need to help you to comply with the trust taxation laws. 

The steps we need to undertake on your behalf include:

  • Review of your prior year Trust Distribution Resolution
  • Confirmation with you of the estimated Trust income of your Trust for the year ended 30 June 2019
  • Review of your Trust Deed to ensure that the income definition and distribution clauses in your Trust Deed allow the proposed Trust Distribution Resolution for 30 June 2019
  • Advise on the most tax effective distribution of this estimated Trust income
  • Preparation of Trust Distribution Resolution and ensuring it is signed by the Trustees PRIOR to 30 June 2019

NEXT STEPS

Contact us TODAY! The sooner we get started, the sooner we can help you save tax – well before 30 June for sufficient time to implement tax saving strategies.

 

Imagine what you could do with your tax saved!

  • Reduce your home loan
  • Top up your Super
  • Have a holiday
  • Deposit for an Investment Property
  • Pay for your children’s education
  • Upgrade your Car

We look forward to helping you!

 

If you have any questions about this, please feel free to contact the team at Wiseman Accountants so we can assist you further.

Have you missed our other tax planning media releases? Not to worry – you can catch up here!

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Annual Tax Return

Save Tax – Opportunities with Super for 2019

There are a huge number of tax laws that may change this year as a result of the upcoming 2019 Federal Election. Labor are proposing the following:

Individuals could be affected by:

  • Losing franking credit refunds to their Self-Managed Super Funds and to themselves personally
  • Paying higher capital gains tax on asset sales (property, shares etc)
  • Losing tax benefits from negative gearing into investment property
Taxes

Businesses could be affected by:

  • Changes to the laws for loans from Companies (known as “Div 7A”)
  • Discretionary Trusts (also known as “Family Trusts”) being taxed at 30% of their income

Politics, religion and money are all sensitive topics. We’re not going to recommend who you vote for, but it’s important that you have an understanding of how these taxes and other changes will affect you.

For the moment, we are recommending to our clients a “wait and see” approach before taking any specific action on any of these proposals. An election needs to be won and then legislation needs to be passed before new laws take effect.

But there may be some opportunities that open up soon to restructure your tax and wealth affairs to give you some significant tax benefits as a result of these changes.

Over the next few months, we plan to send you a number of brief updates to keep you fully informed.

2019 is shaping up to be a very interesting year!

If you have any questions about this, please feel free to contact the team at Wiseman Accountants so we can assist you further.

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