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Michael Hutton

When investment company is better than a family trust

We set out the key steps in growing family wealth through a company to avoid extra tax once the $3 million super cap kicks in.

Once the proposed super “soft” cap of $3 million comes into effect – scheduled from July 1, 2025 – there may be better options for the structure in which family wealth is accumulated.

This is based on tax, accessibility, estate planning and/or simplicity. The proposal is that earnings on super balances above the soft cap will incur an additional 15 per cent tax including unrealised capital gains.

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Michael Hutton is wealth management partner at HLB Mann Judd Sydney.

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    Original URL: https://www.afr.com/wealth/personal-finance/when-investment-company-is-better-than-a-family-trust-20230530-p5dcee