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Can I do this or?

Discussion in 'Accounting, Tax & Legal' started by layer181, 9th Nov, 2009.

  1. layer181

    layer181 Member

    Joined:
    9th Nov, 2009
    Posts:
    5
    Location:
    goldcoast
    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
     
  2. R185

    R185 Member

    Joined:
    10th Nov, 2009
    Posts:
    5
    Location:
    Sydney, NSW
    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>
     
  3. layer181

    layer181 Member

    Joined:
    9th Nov, 2009
    Posts:
    5
    Location:
    goldcoast
    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
     
  4. PJCA

    PJCA Member

    Joined:
    30th Oct, 2009
    Posts:
    18
    Location:
    Adelaide
    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.
     
  5. R185

    R185 Member

    Joined:
    10th Nov, 2009
    Posts:
    5
    Location:
    Sydney, NSW
    It would be hard for me to comment without knowing more about your personal circumstance...

    I suggest that you see an accountant.

    Regards
    R
     
  6. layer181

    layer181 Member

    Joined:
    9th Nov, 2009
    Posts:
    5
    Location:
    goldcoast
    Thanks for trying

    Thanks for the advise PJCA and you are right R185 I will speak to an accountant