|
Sole Investor |
Partnership |
Private Company |
Unit Trust |
Discretionary Trust |
Superannuation Fund |
Administered by |
Individual |
Partners |
Directors |
Trustee |
Trustee |
Trustee |
Responsible to |
N/a |
Partners |
Shareholders |
Unit holders |
Appointer |
Members |
Cost to establish and run |
Low |
Fairly low |
Higher |
Higher |
Higher |
Higher |
Protection of assets from outside risks/claims |
No |
No |
Only if owned by discretionary trust |
Only if owned by discretionary trust |
Yes |
Yes |
Maximum tax rate |
Up to 47% plus Medicare levy |
Up to 47% plus Medicare or 30% if Partner is a Company |
30% if profit retained |
Up to 47% or if unit holder is company 30% |
Up to 47% or 30% if able to distribute to a company beneficiary |
15% if a complying fund (47% if non- complying) |
Potential for slitting income |
No |
Between partners |
Between shareholders |
Between unit holders |
Between beneficiaries |
No, but reduces members tax |
Streaming of income |
No |
limited |
No |
Dependent on trust deed |
Yes, subject to trust deed |
No |
Taxable capital gains |
Paid by individual |
paid by partners |
Paid by company |
Paid by unit holder |
Paid by beneficiaries |
Paid by trustee |
Access to CGT discount for assets held greater than12 months |
Yes |
Yes |
No |
Yes |
Yes |
Yes |
Other realised capital profits |
Not taxed |
Not taxed |
Taxed as an unfranked dividend to shareholder |
May be taxed as capital gain |
Not taxed |
15%in a complying |
Can losses be distributed? |
Yes |
Yes |
No |
No |
No |
No |
Tax-free 'tithing' |
No |
No |
No |
Via family trust unit holder |
Yes, subject to trust deed |
No |
Interest-free loan to relatives |
Not taxed as income |
Not taxed as income |
May be taxed as deemed dividend |
Not taxed as income |
Not taxed as income |
Not permitted |
Flexibility |
Poor |
Fairly poor |
Fair |
Good |
Very good |
Fairly poor |
Admission for new parties |
New structure is required |
Usually permitted |
Usually permitted |
Usually permitted |
May be difficult for non family members |
Usually permitted |
Changing ownership |
N/a |
Partnership interest |
Shares |
Units |
By appointer |
N/a |
