Hi Everyone, First thread on this forum I have been lurking in the background for awhile. I have plucked up the courage to ask for some help. Having survived two heart attacks and heart bypass surgery I have been left with a badly damaged heart and I am on six different medications a day.I have been on the disability pension last few months and finding it a tad hard to cope ,wife does not work(and too proud to claim a carers pension) I can't be too hard on her she is 58years old and has always been a housewife looking after our five children. All my five children are grown up and self sufficient Thank God.I still have a full Real Estate licence and an ABN.My question is if anyone can help.Can I set up a small business and work up to 8 hrs a week?Have my wife as a fulltme worker/partner/contractor or similar and pay her the bulk of income earned as I do not want to lose my pensioner concession card.My medications would normally cost $350.00 + and only cost about $27.00 with the card. Someone suggested I could use a trust and do it that way.I would greatly appreciate some advice or any other ideas I could implement to do this if at all possible before I approach a solicitor and an accountant. Many thanks. Layer181
having your wife as a contractor and transferring your income to her will not be accept by the ATO, as they do not see it as an arms-length transaction. setting up a trust which owns the company you created and have you as a salaried employee is probably the better way to go about it... Cheers R <Thoughts NOT advice> <Do your own research>
Thanks for the help R185. I was wondering wether I need to go to the extent of a trust and a company structure or would just a business registration do the trick,I do not think I will be able to put too many hours which means it wiil not be a great income. My sincere thanks once again. Layer181
It may be the case that you can trade through a discretionary trust and distribute the income to your spouse. A sticking point will be the Personal Services Income provisions and whether you are able to meet them. A general comment, not advice.
It would be hard for me to comment without knowing more about your personal circumstance... I suggest that you see an accountant. Regards R