Seven Tax Effective Remuneration Strategies for Business Owners

Relevant For:

Business owners seeking tax-effective remuneration strategies.

Key Points:

• Prefer fully franked dividends over cash salary for tax efficiency and reduced employment costs.
• Utilise fringe benefits like vehicles, home computers, and mobile phones for tax relief.
• Opt for superannuation contributions over salary to reduce tax liability and protect assets.
• Legitimately employ family members and provide them with salary and superannuation benefits.
• Distribute income to family members via trusts or dividends to defer or reduce tax liability.
• Consider lending business funds to family members for asset acquisition outside the business.
• Purchase business premises personally or through a family structure to gain tax benefits.

Full Article:

Maximising income from a business, effectively, remains a challenge for many business owners.

Here are seven practical strategies to help optimise remuneration: