Our Tax Planning Service comprehensively covers advice on tax-effective structures, ownership, and the holding of assets. With these matters carefully considered, you can have confidence that your tax position has been optimised prior to financial year-end. As always, please note that if you intend to distribute trust income to a corporate beneficiary, the legal entity must be established before 30 June. If a corporate beneficiary is not established before year-end, it cannot be validly nominated or made entitled to distributions.
As you will recall from previous discussions, Prosperity offers a number of tax planning solutions tailored to your specific needs.
Option 1: Strategic Tailored Tax Planning
Our tailored solution is required where your entity structure or income sources are complex. Prosperity will provide a comprehensive analysis of the relevant factors, including detailed calculations of your tax planning options. We also consider your anticipated cash flow and overall tax position.
Option 2: Strategic Tailored Tax Planning for Trusts
Where your structure includes a trust, assistance in preparing the appropriate resolution is essential. Prosperity provides a comprehensive review of the trust deed, consideration of the definition of trust income, and an analysis of the anticipated tax position for potential beneficiaries.
Our Trust Advanced service includes preparation of the resolution with the objective of implementing the most effective distribution strategy.
Option 3: Trust Basic – Resolution Preparation
Each trustee must document how trust income and capital will be determined and which beneficiaries will be entitled to that income and/or capital prior to 30 June. Decisions made after 30 June will be ineffective and may result in the trustee being assessed on the entire trust income at the highest marginal tax rate (currently 47% including Medicare levy). To avoid this outcome, Prosperity can prepare a resolution to support compliance with ATO and trust law requirements.
Our Trust Basic service is suitable for trusts with a single beneficiary, where comprehensive tax planning advice is not required and where taxable income and the definition of trust income are straightforward.
Looking ahead – Federal Budget and EOFY Planning Update
The upcoming Federal Budget on 12 May may introduce changes that impact tax planning strategies for both individuals and businesses. We will provide a Budget summary shortly after the announcement, outlining the key measures and any relevant implications.
Following this, we will also issue our EOFY Planning update, bringing together key year-end strategies for individuals and businesses, incorporating any Budget changes and highlighting important actions ahead of 30 June.
We will keep you informed of any developments that may affect your position.
Your next step...
Contact us to arrange your tax planning solution. We can discuss the most appropriate service level for your circumstances if you are unsure. Fees will depend on the complexity of your situation and the selected option and can be provided on request. Meetings are available face-to-face, by phone, or virtually. Contact your Principal Adviser or call our office on 1300 795 515.
