top of page
  • Gabriella Ferraro

Business Structures

Written by Dallas Sather

Edited by Catherine Micallef

How you decide to own your property can be equally as important as what property you purchase. A wrong decision can end up losing you thousands, if not hundreds of thousands of dollars.

There are 5 ways property can be owned:

1. in a company;

2. by an individual;

3. in a partnership;

4. in a trust; or

5. in superannuation.

When making the decision which structure to use, there are two key criteria to take into account:

1. the tax implications; and

2. asset protection

Tax Considerations

The right business structure can reduce your tax in the following ways:

1. Splitting the income- if you were to make $100,000.00 per year, your top marginal tax rate would be 37%. However, if you were able to make the same amount of income but be taxed as though two or more people were making that income your effective tax rate would be much lower. Whether this can be achieved will depend on your personal circumstances.

2. Government Implemented Measures-

· Capital gains discount - the government encourages individuals to sell property by providing a 50% capital gains discount to investors who have held residential property for more than 12 months. This discount will apply to most trusts and individuals. This discount does not apply to companies. Complying superannuation funds receive a discount of 33.33%.

· Superannuation- The government encourages investment in the superannuation fund by providing a flat 15% tax rate on income and a capital gains discount.

· Company tax rate- small businesses are taxed at a flat 25%, the tax rate for all other companies is 30%.

Asset Protection

When you buy as an individual, you have unlimited liability, towards your debts. Conversely corporate structures can limit the amount of your personal liability. A well-prepared business structure may help protect yours and your loved one’s assets from:

· Bankruptcy;

· Family law claims; and

· Contesting of a Will, by family members.


The right business structure for you can save thousands of dollars in tax and can make sure that the assets that you worked so hard to earn remain entirely yours. Before making your next property or business purchase book an appointment at Ferraro & Singh Lawyers to discuss what options are right for you.

17 views0 comments

Recent Posts

See All


Couldn’t Load Comments
It looks like there was a technical problem. Try reconnecting or refreshing the page.
bottom of page