If you’re single or both you and your spouse fall under the highest tax brackets, you may want to consider establishing an investment company.
This type of company is subject to a flat tax rate of 30%, which can be reduced to 25% if the company earns at least 20% of its income from non-passive sources and has an annual turnover below the small company threshold of $50 million.
This can be a highly effective strategy for minimising your tax payable, especially if you have a significant amount of investment income that you’re looking to protect.
Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before taking action.
