Would like to get some opinions from members regarding situation where you start building share portfolio for income while still working and gradually things start to compound and you are in situation of earning high income from employment and investments and you start to pay top marginal tax rate. I know it's a good problem to have but still you want to find best solution to this problem. I am in this situation where both of us are earning good incomes. Have setup family trust to build share portfolio which is generating good cashflow. We need to distribute all income and franking credits each financial year. The portfolio is growing each year due to savings re-invested and we still are in our mid to late 30s so have long way to go before we quit full time employment. We salary sacrifice full limit each year into SMSF. This problem of paying lot of tax is going to get bigger and bigger as years pass by and income keeps rising. I believe family trust would work well when both of us quit full time employment. And even then say you build portfolio well into seven figures generating cash into six figures you definitely are not going to spend it all so how do you structure so that income can be taxed at lower rate and can be reinvested. One option that comes to mind is company structure where you cap your tax to 30% but obviously you lose capital gains tax concession. What about situation where you setup bucket company that distributes family trust income to it and the company pays 30% tax and declares some dividends and franking credits to shareholders and rest gifts back to family trust to reinvest? Can this work? Are there better alternatives? What do some of you do to handle tax situation once investment income crosses 30% tax threshold? Cheers Oracle.