(03) 9720 2922

Jansen Walsh and Grace

Business Structures to Help Your Business Grow

We provide the full range of advice on business structures:
  • Partnership;
  • Joint venture;
  • Company
  • Trading Trust;
  • Shareholders' agreement.

Company.  You may wish to use a company.  Companies pay a lower rate of income tax than the top marginal rate of income tax for an individual.

If, however, you use a company, the landlord will require you to guarantee the lease.

In addition, companies are excluded from the 50% CGT discount.


Family Trust. Do you wish the company to be the Trustee of a Family Trust for you and your children?

This is good for minimising your income tax and for asset protection.

A trust, like an individual, can access the 50% GST discount.


Phoenixing
Illegal phoenixing involves the deliberate misuse of the corporate form. It affects all working Australians, including: customers who get scammed by not receiving their paid goods or services; small business and sole-trader creditors through lost payments; employees through lost wages and superannuation entitlements; and ultimately all Australian taxpayers through lost tax revenue. In addition, illegal phoenix operators gain an unfair advantage over their honest competitor businesses, which has a broader economic impact.
In fiscal balance terms, the cost to the budget of

The federal Government announced on 8 May 2018 that it will amend the Corporations Act and tax laws and provide the ASIC and the ATO with additional tools to assist them to deter and disrupt illegal phoenix activity. The package includes reforms to:
• introduce new phoenix offences to target those who conduct or facilitate illegal phoenixing;
• prevent directors improperly backdating resignations to avoid liability or prosecution;
• limit the ability of directors to resign when this would leave the company with no directors;
• restrict the ability of related creditors to vote on the appointment, removal or replacement of an external administrator;
• extend the Director Penalty Regime to GST, luxury car tax and wine equalisation tax, making directors personally liable for the company’s debts; and
• expand the ATO’s power to retain refunds where there are outstanding tax lodgements.