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Distribution of personal services income

Discussion in 'General Investing Discussion' started by rajiv, 11th Sep, 2008.

  1. rajiv

    rajiv Member

    16th May, 2008
    Perth, WA

    Thanks Sim for responses to all my posts. I did glance through alienation of personal services income link. Just to double check that I can NOT distribute the personal services income to my family members through a trust - as in my case my IT consultancy company will have only one client and all the income would come from it.

    Does this scenario change if the consultancy company is also an investment company and invests in negative gearing property etc. Can I combine rental income an personal services income and then distribute the net income to family members through trust, legally of course?

  2. Nigel Ward

    Nigel Ward Team InvestEd

    10th Jun, 2005

    Can I suggest you talk to an accountant.

    We can give you some observations and thoughts, but specific advice on your specific circumstances is essential.

    My thoughts are: PSI will be treated as added to your assessable income. True investment income derived by the trustee of your trust can be distributed in accordance with the terms of your trust deed as part of the net income of the trust.

    But you must get your own legal, accounting and tax advice.