# Setting up for trading - best structure for tax



## casseldale (24 May 2009)

I'm setting up for trading and there are many views about trading in a trust or company rather than in your own name. I'm not a fan of trusts (major changes coming).

Can anyone recommend a good accountant / tax guy on Sydney's north shore?

Thanks in advance


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## beamstas (25 May 2009)

Simple question

1) Is your personal tax taken out at above the company tax rate? (36 or so %)

If you earn enough to be charged in a higher bracket look at a company or trust. 

2) Do you expect to make money from trading?


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## casseldale (25 May 2009)

beamstas said:


> Simple question
> 
> 1) Is your personal tax taken out at above the company tax rate? (36 or so %)
> 
> ...




Yes and Yes.


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## ChilliBlue (27 May 2009)

Advise given from my financial planner was:

If buying slowly to build up wealth, place under individual tax.

If looking at actively buying and selling with the aim that your income will place you in a higher tax bracket than 30% - start up a company but remember costs of running that company.

Best method is setting up your own superfund and pay only 15% tax.


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## Jack Payback (27 May 2009)

ChilliBlue said:


> Advise given from my financial planner was:
> 
> If buying slowly to build up wealth, place under individual tax.
> 
> ...




Just beware that the costs of having a self managed super can be quite high, you will need an independent audit each year on top of the usual accounting costs, so the costs of maintaining the trust could outweigh any tax benefit.


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## Chorlton (27 May 2009)

ChilliBlue said:


> Best method is setting up your own superfund and pay only 15% tax.




But surely once the money is in there then there is no way of getting it out should you need to. Is this correct?

I guess it depends on where you are in your life....


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## Krusty the Klown (27 May 2009)

Once the funds are inside the super fund they cannot be accessed until at least age 55, or if you become totally permanently disabled and can never work again/.


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