Welcome to my weekly Insights blog. Once a week, we cover a wide range of topics such as wealth creation, super, estate planning and tax.
When you own an asset personally, it’s exposed to everything that happens to you: a business failure, a professional negligence claim, a car accident, a bankruptcy or a relationship breakdown.
Ask a wealthy family what they own and you may get a surprising answer: very little, at least in their own names. The investment properties sit in a family trust. The business operates through a company. The share portfolio is held by a self-managed super fund.
This isn’t secrecy or tax trickery. It’s a deliberate strategy that separates control of wealth from ownership of it. Done well, it protects assets from lawsuits and creditors, gives the family flexibility on tax, and makes passing wealth to the next generation far simpler.
The good news? These same structures are available to everyday investors and small business owners on the Northern Beaches. You don’t need to be a billionaire to think like one.
Key takeaways
Wealthy Australian families typically hold investments in a family trust, run businesses through a company and hold retirement savings in an SMSF, rather than owning assets in their own names.
These structures let you keep control of assets without legally owning them, which can protect them from personal creditors and claims.
Family trusts also offer flexibility to distribute income among family members and make succession simpler, because a trust continues after you die.
Structures have costs and trade-offs, including NSW land tax, trapped losses in trusts, and CGT and stamp duty if existing assets are moved. The family home is usually best held personally.
Asset protection only works if it is set up before trouble arrives.
Ownership vs control: the core idea
When an asset is held by a properly structured trust or company, you can still control it as director or trustee. You decide when to buy, sell, borrow and distribute income. But you don’t legally own it, so in many cases your personal creditors can’t reach it.
Think of it as steering the boat without having your name on the hull.
The four structures wealthy families use
Structure
Typically holds
Main advantage
Family (discretionary) trust
Investment property, shares, business interests
Flexibility to distribute income among family members each year, plus asset protection
Company
An operating business, or acting as trustee or a “bucket” beneficiary
Limited liability and a capped tax rate on retained profits
Self-managed super fund
Shares, cash, commercial property (including your business premises)
Concessional tax rates and strong protection from creditors
Testamentary trust
Assets left under your Will
Protects heirs and allows children under 18 to be taxed at adult rates
Most families use a combination. A common pattern is an operating company for the business, a family trust that owns the shares in that company, a corporate trustee in place of individual trustees, and an SMSF for long-term retirement savings.
Asset protection: a tale of two builders
Consider two builders in Brookvale, each with a successful business and two investment properties.
Builder A runs the business as a sole trader and owns both properties in his own name. A defective work claim on a job exceeds his insurance cover. Because everything is in his name, the business assets, the properties and even the family savings are all exposed.
Builder B runs her business through a company. Her investment properties are held by a family trust with a separate corporate trustee. When she faces a similar claim, it is generally limited to the company’s assets. The family trust’s properties sit outside the claim.
Same trade, same bad luck, very different outcome. Structures don’t make you bulletproof, and directors can still be personally liable in some situations, such as unpaid super, PAYG withholding and GST. But they put meaningful walls between your risks and your wealth.
(Names and details are illustrative only.)
The tax and succession benefits
Asset protection is only half the story. The right structure can also help with tax and with passing wealth on.
Income splitting. A family trust can distribute income to adult family members on lower tax rates, such as a spouse not working or adult children at university.
Capital gains. Trusts can generally pass on the 50% CGT discount to individual beneficiaries when an asset held for over 12 months is sold.
Retained profits. A company can retain business profits at the company tax rate rather than having them taxed at the owner’s marginal rate, subject to the Division 7A rules if the money is later accessed.
Smoother succession. A trust doesn’t die. When you pass away, control passes to the next appointor or trustee under the trust deed. There is no need to transfer properties, pay stamp duty or wait for probate on those assets.
That last point is often the biggest. Assets in a trust don’t form part of your estate, so they are generally harder to challenge. Be aware that NSW’s “notional estate” rules can sometimes reach non-estate assets in a family provision claim, so trust planning should be done alongside your estate lawyer.
The catch: structures aren’t free or automatic
Structures are powerful, but they’re not right for everyone. Before setting one up, weigh the trade-offs.
Set-up and running costs. Each entity needs its own deed or constitution, tax return, financial statements and, for companies, an ASIC annual review fee.
NSW land tax. A discretionary trust holding land in NSW generally doesn’t get the land tax-free threshold available to individuals. Trust deeds also need the right clause excluding foreign beneficiaries to avoid surcharge land tax.
Negative gearing. Losses are trapped in a trust and can’t be distributed to reduce your personal tax. A heavily geared property may suit personal ownership better in the early years.
Moving existing assets is costly. Transferring a property you already own into a trust can trigger CGT and stamp duty. Structure first, buy second.
ATO scrutiny. Trust distributions must reflect real arrangements. The ATO is actively reviewing distributions under section 100A, where income is distributed to one person but enjoyed by another.
No main residence exemption. Your family home is usually best held personally to keep the CGT main residence exemption.
Common mistakes we see
Individual trustees instead of a corporate trustee. If the trustee is you personally, the trust’s liabilities can still land on you. A corporate trustee adds a further layer of protection and makes succession cleaner.
Forgetting the appointor. The appointor controls the trust because they can replace the trustee. If your Will and trust deed don’t say who takes over, control can end up somewhere you never intended.
Mixing personal and entity money. Paying personal bills from the company account can create Division 7A loans and undermine the structure’s protection.
Setting it and forgetting it. Deeds drafted 20 years ago may not reflect current law or your family’s circumstances. Review them regularly.
Timing. Asset protection must be in place before trouble arrives. Transfers made when a claim is looming can be clawed back.
Frequently asked questions
Can creditors reach assets held in a family trust?
Generally, a beneficiary’s personal creditors can’t reach assets held in a properly established discretionary trust, because the beneficiary doesn’t own them. The protection weakens if you are the individual trustee, if the trust owes you money through a loan account or unpaid distributions, or if assets were transferred in when a claim was already likely.
Should I put my family home in a trust?
Usually not. A home owned by a trust loses the CGT main residence exemption and, in NSW, the trust generally doesn’t get the land tax-free threshold. Most families hold the home personally, often in the name of the spouse with the lower risk profile.
Do I need a corporate trustee for my family trust?
It isn’t legally required, but it’s strongly recommended. A company acting as trustee keeps the trust’s liabilities away from you personally and makes it easier to change control later, because you change directors instead of re-titling every asset.
Can I move an investment property I already own into a trust?
You can, but the transfer is usually treated as a sale at market value. That can trigger capital gains tax and NSW transfer duty. It’s generally far cheaper to set up the structure first and buy the next asset in it.
Is your wealth in the right hands?
The wealthiest families don’t get there by accident. They plan their structures early, review them often, and make sure control passes smoothly to the next generation.
Whether you’re buying your first investment property, growing a business or thinking about succession, the right structure today can save your family a great deal of cost and stress tomorrow.
At TaxAssist Accountants Dee Why, we help Northern Beaches investors and business owners review their existing structures and plan new ones. Call us on (02) 9045 1511 or email [email protected] to book a structure review.
This article contains general information only and does not take into account your personal circumstances. It is not legal or financial product advice. Please speak with a qualified adviser before making decisions about your structure.
The September quarter has closed, and your July–September 2026 BAS is next on the list. It’s also the first full quarter under Payday Super, so a few things look different this time.
Due dates
28 October 2026 if you lodge yourself.
25 November 2026, generally, if you lodge electronically through a registered tax or BAS agent.
Late lodgement can attract penalties and general interest charges, which are no longer tax deductible. If you can’t pay in full, lodge on time anyway and talk to us about a payment plan.
Pre-lodgement checklist
Bank feeds reconciled to 30 September for every account and credit card.
GST coding checked: no GST claimed on bank fees, insurance stamp duty, wages, super or overseas subscriptions without GST; GST-free sales coded correctly.
Tax invoices on file for purchases over $82.50 (including GST) where you’re claiming GST credits.
PAYG withholding (W1 and W2) agrees with your Single Touch Payroll reports for the quarter.
Super paid every pay run: under Payday Super there’s no longer a quarterly catch-up date, so check nothing was missed from July onwards.
Capital purchases recorded at G10, and flagged for the $20,000 instant asset write-off if eligible.
Fuel tax credits claimed if you use fuel in heavy vehicles or machinery.
PAYG instalment reviewed: if your income has dropped, you may be able to vary it.
Set aside GST as you go
A simple habit that saves a lot of stress: move the GST component of each sale into a separate savings account when you’re paid. When the BAS arrives, the money is already there.
Let us lodge it for you
Our Growth and Established packages include BAS review and lodgement, and lodging through us generally gives you the later November due date.
From 1 December 2026, you will no longer be able to pay your tax bill with a credit card. The ATO has confirmed it will stop accepting Visa, Mastercard and American Express credit cards after 30 November, following the Reserve Bank’s ban on card surcharges.
Why this matters for small business
For many small businesses, putting a BAS or income tax bill on the credit card has been a practical way to manage cash flow – buying up to 55 days of breathing space when a large tax payment lands at the same time as wages, rent and supplier bills. Small businesses make up a significant share of credit card payments to the ATO, so this change will be felt locally.
If you currently have an ATO payment plan or direct debit linked to a credit card, you’ll need to change your payment method before your first instalment due after 30 November. Missing this could put your payment plan at risk.
What you can do now
Keep using your card – the smart way. Until 30 November, you can still pay the ATO directly by credit card. From 1 December, our partner pay.com.au lets you keep paying your tax on card: you pay pay.com.au by card, and they pay the ATO by bank transfer. You keep your card’s interest-free period and your points. Fees apply.
Update payment plans linked to a credit card before December.
Plan for your next BAS. Setting aside GST and PAYG in a separate account each week takes the pressure off when the bill arrives.
Review your PAYG instalments if your income has dropped – you may be paying more than you need to.
Talk to us before the due date, not after. Remember, ATO interest charges are no longer tax deductible, so carrying a tax debt is now more expensive than it used to be.
We can help
At TaxAssist Accountants Dee Why, we work with Northern Beaches businesses every day on cash flow and tax payments. Through our partnership with pay.com.au, we can set you up to keep paying your BAS, PAYG and income tax on your credit card after the ATO cut-off – so your cash flow doesn’t take a hit.
We can also help you set up an ATO payment plan, prepare a cash flow forecast so tax bills don’t catch you short, and review your PAYG instalments.
TaxAssist Accountants Dee Why may receive a fee for referrals to pay.com.au. This article is general information only and does not take into account your personal circumstances.
From 1 October 2026, Australian businesses can no longer add a surcharge when a customer pays by card. The Reserve Bank’s reforms cover debit, credit and prepaid cards on the eftpos, Mastercard and Visa networks, and American Express and UnionPay are removing surcharging from the same date.
If you’re a café, retailer, tradie or professional services business on the Northern Beaches that currently passes on card fees, today is the day to get ready.
1. Switch surcharging off everywhere
Card terminals: most banks and providers (Tyro, NAB, CommBank and others) are removing surcharge settings automatically, but check your own terminal on Thursday morning.
Online invoices and payment links: if your Xero, MYOB or QuickBooks invoices use a “pass on the card fee” option through Stripe or another gateway, turn it off.
Websites, menus and signage: remove any “card surcharge applies” notices.
2. Invoices already sent still count
The ban applies to the payment date, not the invoice date. If a client pays on or after 1 October, you can’t add a surcharge, even if the invoice went out in September.
3. Don’t rename it
Relabelling a card fee as a “service fee”, “admin fee” or “booking fee” is not a way around the ban and risks misleading-conduct issues with the ACCC. You can still offer a genuine discount for cash or bank transfer if you choose.
4. Protect your margin
The RBA is also lowering interchange fee caps from 1 October, so your merchant fees should fall. Now is a good time to:
Compare your current merchant fees with the new rates, and ask your provider for a better plan if they haven’t passed on the savings.
Work out what card fees cost you as a percentage of sales, and whether a small price adjustment is needed.
Encourage bank transfer or PayTo for larger invoices.
Need a hand?
We can review your merchant fees, update your invoicing settings and model the effect on your cashflow.
The biggest change to employer super obligations in more than a decade took effect on 1 July 2026. If you employ staff on the Northern Beaches, here is what you need to know.
What changed
Super is paid with wages. Contributions must be received by the employee’s fund within 7 business days of payday. The old quarterly deadlines are gone.
SG rate is 12% of qualifying earnings, which now explicitly includes ordinary time earnings, commissions and salary-sacrificed amounts.
The ATO Small Business Superannuation Clearing House has closed. Employers who used it need another payment channel — for most of our clients that’s the auto super feature in Xero, MYOB or QuickBooks.
Stapled fund lookups can now be requested earlier in the onboarding process, which helps you pay new starters on time.
What happens if you’re late
The Super Guarantee Charge has been redesigned. It now includes the shortfall, interest compounding daily at the general interest charge rate, and an administrative uplift. One upside: the redesigned charge is tax deductible, which the old SGC was not. It is still far cheaper to pay on time.
Three things to check this week
Your pay run timing. If you pay fortnightly on a Thursday, super must be in the fund by the following Friday week. Processing on payday is the safest habit.
Your clearing house. Confirm your software’s super payment is switched on and that fund details for every employee are current. Rejected payments don’t count as received.
Cash flow. Super now leaves your account every pay cycle rather than every quarter. Adjust your cash-flow forecast accordingly.
If you’d like us to review your payroll setup or move you off the closed clearing house, book a call or phone (02) 9045 1511.
Each year the ATO tells tax agents where it will be looking. For 2026 the message is consistent: declare all your income, claim only what you’re entitled to, and keep the records to prove it.
1. All income, not just the payslip
Side-hustle and gig income, interest, dividends, rental income, crypto disposals and foreign income are all pre-filled or data-matched. If you drive for a rideshare platform, sell online or freelance alongside a job, that income belongs in your return.
2. Work-related and business deductions
Working from home: the fixed-rate method is 70 cents per hour for 2025–26, and you need a record of actual hours worked — not an estimate. Or use the actual-cost method with receipts.
Car expenses: home-to-work travel is not deductible. For anything else, keep a logbook or a record supporting the cents-per-kilometre claim.
Self-education: must relate to your current job or business, not one you’d like to have.
ATO interest charges: no longer deductible from 1 July 2025 — another reason to lodge and pay on time.
3. Records, records, records
A bank statement line is not a receipt. For most claims over $300 in total you need written evidence showing the supplier, amount, date and what was bought. Depreciating assets need a schedule, and rental properties need loan statements and agent summaries.
4. Don’t take tax advice from social media
The ATO has flagged a rise in incorrect deduction “hacks” circulating online, and in impersonation scams. If a claim sounds too good to be true, ask us before you lodge.
Lodging yourself? Remember 31 October.
Self-lodgers must lodge by 31 October 2026. Engage a registered tax agent before then and you’ll generally have until May 2027, with someone checking you haven’t missed anything.
