@Ausproperty95 - rising rates
- oil shock
- bubble valuations in property
- rising unemployment
- largest tax increases on investors in 50 years
.... a recession is baked into the cake.
@tax_oz The work around for the minimum 30% tax rate on trusts is for each of the desired beneficiaries set up an ABN as a sole trader and invoice the trust for services, so they are charged at their marginal tax rate. A bucket company could do the same.
@DrCameronMurray@LJensen41642 If the distributions were never going to be taxed in the first place, why punish families for implementing these structures, which are usually implemented for asset protection rather than tax avoidance (such as divorce by one of the kids spouses).
@DrCameronMurray@LJensen41642 It is pretty simple, if the parent dies and there is no discretionary testamentary trust in place, it gets distributed to the kids directly and is untaxed. If a testamentary trust has been set up, it is now taxed at 30%.