High income and investment structures

Discussion in 'Accounting & Tax' started by oracle, 24th Sep, 2016.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    This is a good strategy - divert income into the company by owning the income shares in the company and the capital growth shares in the trust.
     
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  2. Nodrog

    Nodrog Well-Known Member

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    Meant to add to the above that once a SMSF tax free pension is commenced you can stop the DSSP then start receiving the dividends again. Not only tax free but the franking credits are refunded as well.

    So dividends get to compound tax free via the DSSP whilst you're working then when you're retired switch back to receiving the dividends tax free and with the bonus of a franking credit refund through the use of a SMSF account based pension.
     
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