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age is just a number

Discussion in 'General Investing Discussion' started by techbrick, 28th Feb, 2013.

  1. techbrick

    techbrick New Member

    28th Feb, 2013
    melbourne, VIC
    hi all, long time reader first time poster.

    i left school at 16 to pursue other channels, due to being bored and disgruntled at the education system in Australia. i am now 20 and having finished a apprenticeship in the field of bricklaying September last year i now run my own business with a partner (28y/o) who handles the onsite side of things moreso as i am running the business side of things 2 days a week and onsite 3 days a week.
    we currently have 6 employees, and are looking to get our accounts more sorted. ( currently running 2 seperate ABNs) i was thinking of going down the path of an ACN with both of us listed as employees paying ourselves 40K p/a
    claiming all excess expenses and minimizing tax via company growth. what do you guys think?

    I am looking to head into property development in 3 years time, This post is really just to delve into the plethora of knowledge on this site and ask you guys if you have any tips on:

    -tax minimisation
    -partnership structure
    -business structure and systematization
    -business growth
    -best way to buy and develop property under an ACN?
    -getting overdraft accounts at a reasonably young age?

    thanks guys and girls, any advice would be amazing
  2. Kelly Black

    Kelly Black Member

    25th Mar, 2013
    Melb, VIC
    I would suggest considering a trust setup. It gives you a bit more flexibility in getting funds out to owners than a company, and allows you to distribute funds to family members, etc to minimize tax.

    With regard to property, trusts are entitled to a 50% discount on capital gains made when you hold an asset for over 12 months (ie profits on property sales in your case), so you effectively only pay tax on half your gains. A company is not entitled to this reduction, so pays tax on the full gain.

    Keep in mind that a company does offer you personal protection of your own assets, but it is also possible to get this protection through a trust, provided your trust has a corporate trustee (most accountants set it up this way)