Accounting
Accounting and advising, it is a process that needs to be timely and accurate.
Accounting services play a vital role in managing personal wealth through comprehensive financial oversight and strategic planning.
Professional accountants provide expertise in tax planning and compliance, helping individuals minimise tax liabilities while ensuring adherence to regulatory requirements. They offer detailed analysis of income streams, investments, and assets to create structured financial reports that inform decision-making.
For high-net-worth individuals, accountants deliver specialised services including estate planning, trust management, and succession planning to preserve and transfer wealth effectively across generations. They work closely with financial advisors to optimise investment strategies and maintain detailed records of capital gains, losses, and portfolio performance.
Additionally, accounting professionals assist with retirement planning, considering both immediate financial impacts and long-term wealth preservation goals. Their expertise helps clients navigate complex landscapes while maintaining accurate documentation for audit purposes and financial reporting requirements.
Investment Entity Options
Your choice of investment entity should align with your personal circumstances and objectives:
Personal Ownership – Cost-effective for investors in low tax brackets, though this option carries higher personal liability risks.
Joint Ownership – Similarly cost-effective for low-tax bracket investors, but offers reduced flexibility for income and capital gains distribution.
Trust Structure – Involves setup and ongoing costs, but provides asset protection and maximum flexibility for distributing income and capital gains.
Company Structure – Requires establishment and maintenance costs, yet offers asset protection and caps tax rates at 25-30% (provided funds remain within the company).
Superannuation – Often the most tax-effective option with strong asset protection benefits. However, it involves complex regulations regarding eligible investments and fund access (typically restricted until age 65).
Each structure involves specific trade-offs between cost, flexibility, protection, and tax efficiency that should be evaluated based on your individual situation.
A Family Trust is a legal structure where assets are held by a trustee for the benefit of family members (beneficiaries). The trust is established by a settlor who transfers assets into the trust, which are then managed according to the trust deed’s terms. Family trusts offer several advantages including asset protection from creditors, potential tax benefits through income distribution among beneficiaries in lower tax brackets, succession planning for future generations, and flexibility in distributing income and capital. They’re commonly used for wealth preservation, estate planning, and protecting family assets while providing ongoing financial support to designated family members across multiple generations.
Start by gathering all tax-related documents including payment summaries and bank statements. Create separate digital folders for income, deductions, investment records, and related expenses. For investments the records will normally depend on the type of investment – rental property income and expenses, dividend statements, and managed fund distributions. Consider using accounting software to track income and expenses, this will be a must if investments are within an entity such as a Trust, a Company or a Self-Managed Superannuation Fund. Keep everything secure and accessible, and retain records for at least five years as required by the ATO.
