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Opening up a Share Trading Business

Discussion in 'Business & Startup Investing' started by TrevorMc, 3rd Aug, 2011.

  1. TrevorMc

    TrevorMc New Member

    Joined:
    3rd Aug, 2011
    Posts:
    1
    Location:
    Perth WA
    Hi Experts,

    I want to start investing in shares shortly. Was looking at my options that are available to me. I was thinking about opening up a business for my share trading as i think in Australia its 30% Tax on what income you make off any profits. Im on the highest tax bracket at the moment with my job.

    I was thinking of investing long term in blue chip companies. Is there any related threads on this anyone can direct me too. Is there any in's and Out's anyone knows. Would it be diffucult to setup. Is there a minimum the company has to make per financial year.

    Regards
    TrevorMc
     
  2. MattR

    MattR Well-Known Member

    Joined:
    23rd May, 2007
    Posts:
    229
    Location:
    Sydney
    Long term investing looks more like capital account than revenue account.

    If that's the case and you are eligible for the general discount (CGT 50%), then even on the top individual tax bracket, the CGT on capital gains would be less than the company tax rate. The only downside is the franking credits on dividends earned will need topping up tax-wise.