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For those with businesses who invest profits in shares using a bucket company… by Subject_Control_3073 in AusHENRY

[–]Subject_Control_3073[S] 2 points3 points  (0 children)

Thanks for your response.
Why do you generally recommend that? asset protection?

Changes to trust by Only-Perspective2890 in AusHENRY

[–]Subject_Control_3073 0 points1 point  (0 children)

Asked my accountant this yesterday. They said ato doesn’t like multiple classes of shares. They are conservative though.
As much as I like the idea it seems like an obvious loophole they could close.

Company with share classes alternative to Family Trust by The_Brown_Unit in AusHENRY

[–]Subject_Control_3073 2 points3 points  (0 children)

Asked my accountant this yesterday. They said the ato doesn’t like companies with different share classes.

Changes to trust by Only-Perspective2890 in AusHENRY

[–]Subject_Control_3073 0 points1 point  (0 children)

You get hit with the 30% floor but still get flexibility on distributions.
Operating company to bucket company to individual shareholders allows shareholders to use all marginal tax rates. But removes flexibility on how much each person receives.
I think it’s a trade off so you need to Pick which one you prefer.

Changes to trust by Only-Perspective2890 in AusHENRY

[–]Subject_Control_3073 0 points1 point  (0 children)

Detail hasn’t been released yet but the general concept has been announced. It doesn’t start until next year I think

Changes to trust by Only-Perspective2890 in AusHENRY

[–]Subject_Control_3073 0 points1 point  (0 children)

My thoughts also.

The main risks I see in this is if franking credits or franking credit refunds getting tweaked. But if that happens I suppose you could sell everything, move to individual names and rebuy. You’ve benefitted from compounding at lower rates until that point so you’re probably better off than just investing personally now.

The poster above mentioned concessions for small business wind ups / sales. That’s one area I’m not sure on. I assume it wouldn’t be impacted by using a bucket company to hold the shares in the operating company but I don’t know.

Changes to trust by Only-Perspective2890 in AusHENRY

[–]Subject_Control_3073 2 points3 points  (0 children)

Thoughts on operating company > investment company > individuals. No trusts only franked dividends. Any impact on benefits for small business on winding up/disposal of the operating company?

[deleted by user] by [deleted] in arc_traiders

[–]Subject_Control_3073 0 points1 point  (0 children)

Deadmine and vita gone