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The ‘Magic Pudding’ does exist

John McKell

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.

Tags: tax law
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