Sharon & Tim, small business owners

Small business owners Sharon and Tim operated a successful family retail business through a partnership structure. They also owned the commercial property in their personal names.

The Challenge

Sharon and Tim had concerns about the amount of tax they were paying and their level of asset protection. They approached Acceler Advisory for help to become more tax effective and to put structures in place to protect thier wealth.

How Acceler helped

Acceler Advisory’s highly skilled staff were able to set up a discretionary trust with a corporate trustee structure and transfer the business from the partnership structure to the trust. A corporate trustee structure would allow Sharon and Tim to gain the benefits of limited liability and protection of their assets. It would also allow for easier separation of trust assets and personal assets. We also utilised small business concession rules to minimise any tax implications from the transfer.

In addition, we set up a Self Managed Super Fund (SMSF) to transfer the commercial property from Sharon and Tim’s personal names to the SMSF. This would allow Sharon and Tim to benefit from tax savings, as well as gain flexibility and control over their investments. We transferred the commercial property into the SMSF, paying only a $50 stamp duty.

Our work with Sharon and Tim resulted in savings of over $30,000 in tax per year by paying their own commercial rent. By separating the property from the business, we enabled Sharon and Tim to gain greater protection over their assets.

What we achieved

Savings of over $30k
in tax per year

Greater asset protection

Stamp duty of only $50

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