Someone please clear this up,
Just spoke to my acca and she reckons the amount you are able to distribute to the beneficiaries in a family trust is $643.00 if they are under 18.
There’s a reason i had five kids, and this aint one of them…
WF
If they do not work the maximum amount you can pay them without going over the child tax rate is $643 (over this amount and they have to pay 48.5%l, so the highest marginal rate).
If they work for you however you can pay them as you would pay a normal person. Of course homework is NOT considered work [
].Check out a manual/book called Trust Magic (p://www.gatherumgoss.com/shopping.htm), I think it would help you out in your quest to reduce tax.
Rgds.
Lucifer_auStop playing games you little devil…
What constitutes work, and can a 12 month old be considered an employee,and can a trust fund have employees. If I have to read another book, i’ll then be awake for 23.5 hours in the day….[sleepyanim]
A Trust can have employees, but 12 months old??
You can still distribute any amount to minors, but they must pay tax at a rate of about 66% for amounts over $643.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Well it depends on how far you wish to push – use the baby in a advertising campaign (do a deal where you pay royalties).
Just maks sure it’s similar enough to a commercial deal – but otherwise, as I suggested before, get Trust Magic (p://www.gatherumgoss.com/shopping.htm). It contains all these details and alot more (so you will be paying almost no tax).
You probably wouldn’t try to use your 18 month old child, but the eldest could do administration duties for you. Or use some of the suggestion Trust Magic contains.
Rgds.
Lucifer_auHmmm, O.K half an hour of sleep it is
Thanks
WF
Wallflower,
Just for fun not advice:
There is a case of a primary producer successuflly claiming for wages paid to a 4 year old because he could prove that the 4 year old was capable of brining the cows in for milkingMilking it for all he can get eh !!
[cowboy2]WF
].
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