How to Minimise Tax and Protect Assets Through Smart Structure Choices 

When it comes to investing, most of us focus on what to invest in—shares, property, or superannuation. But there’s another decision that’s just as important: where you hold those investments. The structure you choose can influence how much tax you pay, how easily you can access your money, and even how protected your assets are from risks like litigation. 

This isn’t a one-size-fits-all decision. It depends on your goals, your income, and your stage of life. Let’s break it down so you can make a choice that works for you. 

1. Superannuation: A Long-Term Wealth Builder 

If you’re thinking long term, superannuation is one of the best tools out there. It’s incredibly tax-efficient: 

• While your money is growing (the accumulation phase), you only pay 15% tax on income and 10% on capital gains. (if the asset is held for month than 12 months) 

• Once you hit retirement age, things get even better. Up to $1.9 million in super can be moved into the pension phase, where your earnings and withdrawals are tax-free. 

The catch? You can’t access your super until you reach preservation age, so it’s not ideal for younger investors who need flexibility. But for anyone getting closer to retirement, super is hard to beat. 

2. Family Trusts: Flexibility for Families 

Family trusts are a fantastic option for families who want flexibility. They allow you to split income or capital gains among family members—like a lower-income spouse or kids who are over 18 but still studying. 

For example, if you have one partner earning significantly less, a trust lets you direct more of the income to them, lowering your overall tax bill. 

However, trusts aren’t for everyone. They come with setup costs, annual admin requirements, and more complexity than simply investing in your own name. 

3. Investing in Your Own Name: Simple and Straightforward 

This is the easiest and most common approach—investing as an individual or jointly with your spouse. The main thing to consider here is tax. 

• If you’re earning under $45,000 a year, your tax rate is relatively low, so this structure can work well. 

• But if you’re earning over $180,000, you’ll pay the top tax rate of 47%, which makes other options like trusts or super much more appealing. 

For couples, joint accounts can help split the income and potentially lower the tax burden if one person earns less. 

4. Companies: When Flat Tax Rates Work 

Companies can be useful for people with very high incomes because they offer a flat tax rate of 25%-30%. But unlike super or personal investments, companies don’t get capital gains tax discounts. 

5. Protecting Assets and Reducing Risk 

If you’re in a high-risk profession—like a doctor or business owner—asset protection becomes a big consideration. Superannuation and family trusts can offer some protection against litigation or bankruptcy, giving you peace of mind. 

For example, if you’re a high-earning doctor, holding investments in your name might expose them to litigation risks. In this case, a family trust or superannuation could provide a safer alternative. 

Case Study: A High-Income Family 

Let’s take an example to put this into perspective: 

• The wife is a lawyer earning $350,000 a year. 

• The husband works part-time, earning $40,000. 

If the wife invests in her name, she’ll face the highest tax bracket and risk exposure due to her profession. Instead, they could: 

• Invest in the husband’s name to take advantage of his lower tax rate. 

• Contribute to superannuation to benefit from the 15% tax rate while building wealth for retirement. 

By tailoring their investment structure to their unique situation, they reduce taxes and protect their assets. 

Final Thoughts 

The right investment structure isn’t just about saving tax—it’s about aligning your financial plan with your life goals. 

For some, simplicity wins, and investing in their own name works best. Others may need the flexibility of a trust or the tax advantages of superannuation. Whatever your situation, it’s worth sitting down with a financial adviser to find the structure that fits your goals, income, and risk profile. 

It’s not about picking one structure for life—it’s about adapting as your circumstances change. 

The information provided in this article is general in nature only and does not constitute personal financial advice.