The Problem Most Business Owners Face
You’re making good money. The business is growing. But come tax time, you’re handing over a bigger slice than you’d like.
Most business owners pay tax. Smart business owners plan tax.
What Is a Trust and Company Hybrid?
It combines the flexibility of a discretionary trust with the efficiency of a company structure.
The Trust:
- Operates the business
- Distributes income to beneficiaries
- Splits income among family members in lower tax brackets
The Company:
- Receives and holds retained profits at 25–30% (lower than top personal rates)
- Protects assets from personal liability
- Creates a long-term wealth vehicle
Together: control, flexibility, protection, and tax efficiency.
Why Use This Structure?
✔ Income Streaming & Tax Efficiency
Distribute income strategically instead of paying 47% top marginal rate.
Example:
- Business profit: $200,000
- $50K to spouse (lower bracket)
- $150K to company (taxed at 25%)
- Result: Tens of thousands saved annually
✔ Asset Protection
Business assets aren’t in your personal name. If something goes wrong, your personal wealth is protected.
✔ Flexibility
Adjust distributions yearly based on family circumstances, tax thresholds, and business performance.
✔ Long-Term Wealth Building
Retain earnings at lower rates. Reinvest in business or other ventures. Build a succession vehicle.
✔ ATO Compliant
Legitimate strategy — when structured properly. The ATO scrutinizes poor setups, so professional advice is essential.
The Two Biggest Mistakes
Mistake #1: DIY Setup A poorly designed structure triggers ATO audits, penalties, and back-taxes.
Mistake #2: Set and Forget You need annual resolutions, distribution minutes, and ongoing reviews. Ignoring maintenance voids the benefits.
Who Benefits Most?
🔹 Profitable businesses ($150K+ annual profit)
🔹 Business owners in high tax brackets
🔹 Family businesses
🔹 Growth-focused entrepreneurs
🔹 Anyone seeking asset protection
Real-World Impact
Before: Professional services business earning $300K as sole trader — paying $112,000+ in tax.
After restructuring:
- $100K to spouse
- $200K to company (25% rate)
- Annual saving: $30,000+
- 10-year impact: $300,000+ saved
The Bottom Line
A trust and company hybrid is one of the most powerful structures in Australia — but it’s not DIY.
There’s a difference between paying tax and planning tax.
Ready to Structure Your Business Properly?
Don’t leave money on the table or expose yourself to unnecessary risk.
Book a consultation with Saby + Partners.
Led by Nitin Saby — former ATO Tax Director and Ex-Tax Principal of a Top 10 Accounting Firm (AFR).
📞 Book your free strategy session here
💼 Stop paying tax. Start planning tax.