The 'Magic Pudding' does exist

Tax Law: 22 March 2019

We recently provided tax advice to a financial advisor on the restructure of a business owned by a husband and wife client which resulted in significant savings. The couple, each aged 55, had during their working life run a small business using a family trust and owning their business premises.

By working closely with the client's financial advisors, we were able to have the client:

• contribute $3,000,000 into a newly formed self-managed superannuation fund;
• create an immediate tax saving of $75,000 per annum and an more than $950,000 during a projected 10 year period; and
• save an anticipated capital gains tax liability of $630,000 immediately and $850,000 over time.

All this was achieved without paying any stamp duty, GST, income tax or capital gains tax.

John McKell is an Accredited Specialist in Taxation Law.

Please note: The information in this article is provided for general information purposes only and does not constitute legal advice. It is not intended to be comprehensive or to apply to any specific circumstances. You should seek independent legal advice before acting on any information contained in this article.