Income Splitting Part 2 – Tax Tips

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.

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