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Old 07-24-2003, 10:27 AM  
rowan
Too lazy to set a custom title
 
Join Date: Mar 2002
Location: Australia
Posts: 17,393
Quote:
Originally posted by richard123
So... how do you get the money out from the company without paying the balance between the 47% and the 30%?
I'm about to look into this myself, I'm already losing money as an individual by not setting up a company... I don't know if there will be any direct monetary benefits (unless you do tricky things like deliberate losses or keep most of your profits sitting untouched in a corporate bank account), but there should be indirect benefits such as salary sacrificing (cheaper new car!) and super. Another way to save a bit of on income tax with a teired system like Australia is to employ your partner and split the salary down the middle.

Let's say...

100k taxable income on Joe Aussie
=$33,807 in tax

But split that in half...

50k taxable income on Joe Aussie
50k taxable income on Jo Aussie
=$11,172 each ($22,344 total tax)

BTW, I'm in Melbourne too.
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