21st Century Accounting Tax Minimisation & Asset Protection for Investors

21st Century Accounting - Reduce Tax

We can establish the most appropriate Asset Protection and Tax Minimisation Structures available for Investors

Specifically designed strategies that will assist our investor clients to establish effective asset protection and tax minimisation structures.

Services Available:

- Establish your Pty Ltd Company

- Establish your Company/Trust Structures

- Establish a compliant Self Managed Super Fund

- Understand how these structures offer asset protection strategies plus an opportunity to minimise taxation.

- Annual Audit of Self Managed Super Funds

Services are provided by our team of specialists. They assist 21st Century Investor clients to effectively establish the best asset protection and tax minimization strategies available to investors through the use of company and trust structures and self managed super funds.

(This fact sheet is for general information only and should not be construed as financial advice.)

Why set up a Pty Ltd Company?

There are many benefits associated with establishing a Pty Ltd Company. Because a company is a separate legal entity from the owners, company shareholders can benefit from income splitting, profits can be retained in the Pty Ltd company and be taxed at the 30% corporate rate and excellent asset protection is available if the Pty Ltd Company shares are owned by a discretionary trust.

How long does it take to set up my Pty Ltd Company?
Answer Generally allow 7 working days from when we receive your order.

Is it a good idea to set up a company before renting shares?

If your current tax rate is higher than the 30% company rate then the income from share renting will be taxed at your marginal rate. If this were the case, then establish your Pty Ltd Company before renting shares.

Do I just need one company if I wish to run a business, rent shares and purchase property?
If you intend to run an active business it is often a good idea to have this business operating as a separate Pty Ltd Company.

It is not recommended that the one company be used to run a business, rent shares and own property. Why?

If something goes wrong inside the business then any property owned by the business will be at risk. If you wish to accumulate other assets such as property, contact our qualified practitioners who will establish purpose built company/trust structures designed to achieve the ultimate in assets protection.

How many Directors / Shareholders do I need to set up a Company?
Directors - Every proprietary company must have at least 1 director that must ordinarily reside in Australia. A director must be at least 18 years of age. There is no upward age limit. An undischarged bankrupt or a person subject to disqualification under certain sections of the Companies Law cannot act as a director or be involved in the management or promotion of a limited liability company in Australia. A Director may, or may not be, a Shareholder of the company.

Shareholders – While a Pty Ltd Company must have at least 1 shareholder (individual or company) but are limited to a maximum of 50. There is no requirement for any shareholder to be a resident of Australia.

What other the other advantages of trading through a Pty Ltd Company?
A limited liability company is liable only for assessment of taxation on its own profits and any taxation assessed is payable by the company itself and not personally by the directors or shareholders. The profits of a limited liability company are assessed at a flat rate, which under the New Tax System is 30%. This is substantially less than the current highest marginal tax rate of 48.5 per cent, as per the personal income tax scale. Directors of course pay income tax on any personal income tax and on profits derived from the company.

Can I get a margin loan for share renting with a Company as easy as if it was in my personal name?
Yes. Our 21st Century Academy Share brokers can arrange this for you.

If I haven’t bought any investment properties yet, for my first one, do I really need to set up a trust structure?
There are varying opinions regarding this. Our opinion is, it’s best to purchase your first investment property in your own name for tax purposes. Thereafter it is wise to consider setting up a trust structure for future properties.

Should I set up a separate trust structure for each property?
Opinions vary regarding this also. It’s up to the individual. It’s wise however not to put to many properties into one trust and it’s quite common for sophisticated investors to set up a separate trust structure to have only one or two properties per trust to increase the level of asset protection in case one trust is breached it’s quarantined from all other properties and assets.

Before starting to rent shares as taught in the 21st Century Homestudy should I first set up a trust structure?
Once again opinions will vary. We find that momentum is the key to success and on starting that to rent shares in your own name is fine. Once you develop a much larger portfolio though we can establish a trust structure for future acquisitions to protect your assets and potentially minimise tax for you.

Can 21st Century Accounting set up trust structures for its Members & friends?
Yes. We can do this quickly and easily, simply email your request to accounting@21stca.com.au and we will send you the required form to complete.

How much is it to establish a Trust and Company?
For 21st Century Homestudy Members it is $1100 incl GST for a Trust and $1100 incl GST for a Company $1,100 for a Self-Managed Superannuation Fund. For Non-members it is $1295 per Trust, Company and Self Managed Super Fund.

Can I get Trusts and Companies cheaper elsewhere?
Currently accountants and lawyers will charge $1000 to $1500. However, it’s important that the Trust and/or Company is set up correctly and structure is set up in a way to maximise the asset protection and tax benefits.

How long will it take to set up a trust structure?
Allow us 7 days to arrange generally upon completion of the paperwork or you can order online and it will occur faster.

Can I speak to a 21st Century Accounting Team Member?
Yes, you can either email your questions to accounting@21stca.com.au or request a free phone or in-person consultation. Often by emailing your questions this is enough to provide you with the answers and to ascertain if you require a Trust Structure set up now or later. If it is not then we’ll recommend a free phone or in-person consultation. Before this can occur you simply have to complete the 21st Century Financial Fact Form sheet. Click here to download.