(03) 9720 2922

Jansen Walsh & Grace

Business structures to help your business or practice grow
We provide the full range of advice on business structures and structures for medical practitioners, dentists and vets:

  • Partnership;
  • Joint venture;
  • Company
  • Trading Trust;
  • Shareholders' agreement.

Company.  You may wish to use a company.  Companies pay a lower rate of income tax than the top marginal rate of income tax for an individual.

If, however, you use a company, the landlord will require you to guarantee the lease.

In addition, companies are excluded from the 50% CGT discount.

Family Trust. Do you wish the company to be the Trustee of a Family Trust for you and your children?

This is good for minimising your income tax and for asset protection.

A trust, like an individual, can access the 50% CGT discount.

Easier lending for small business
The federal Treasurer has announced that he will introduce legislation to make it easier for the majority of small businesses to access credit.  This includes allowing lenders to rely on the information provided by borrowers, replacing the current practice of ‘lender beware’ with a ‘borrower responsibility’ principle, and removing the ambiguity regarding the application of consumer lending laws to small business lending.

Currently, debt management firms prey on consumers while representing them in disputes with banks and other lenders. The federal Treasurer has introduced legislation to protecting consumers from the predatory practices of these debt management firms by requiring them to hold an Australian credit licence.

Loan guarantee

The federal government is guaranteeing 50% of new unsecured and secured loans issued by the major and smaller banks and other eligible lenders to small and medium sized businesses, including sole traders.  The purpose is to permit you to get access to the funding you need to adapt and innovate during the coronavirus crisis until 30 June 2021.

The scheme has been expanded by:

   extending the purpose of loans able to be provided beyond working capital, so that a wider range of investment can be funded;

   permitting secured lending (excluding commercial or residential property);

   increasing the maximum loan size to $1 million (from $250,000) per borrower;

   increasing the maximum loan term to five years (from three years); and

   allowing lenders the discretion to offer a repayment holiday period.

The Scheme is available until 30 June 2021.  For more information, visit the website.

Illegal phoenixing involves the deliberate misuse of the corporate form. It affects all working Australians, including: customers who get scammed by not receiving their paid goods or services; small business and sole-trader creditors through lost payments; employees through lost wages and superannuation entitlements; and ultimately all Australian taxpayers through lost tax revenue. In addition, illegal phoenix operators gain an unfair advantage over their honest competitor businesses, which has a broader economic impact.
In fiscal balance terms, the cost to the budget of

The federal Government announced on 8 May 2018 that it will amend the Corporations Act and tax laws and provide the ASIC and the ATO with additional tools to assist them to deter and disrupt illegal phoenix activity. The package includes reforms to:
• introduce new phoenix offences to target those who conduct or facilitate illegal phoenixing;
• prevent directors improperly backdating resignations to avoid liability or prosecution;
• limit the ability of directors to resign when this would leave the company with no directors;
• restrict the ability of related creditors to vote on the appointment, removal or replacement of an external administrator;
• extend the Director Penalty Regime to GST, luxury car tax and wine equalisation tax, making directors personally liable for the company’s debts; and
• expand the ATO’s power to retain refunds where there are outstanding tax lodgements.