<
https://theconversation.com/what-are-we-teaching-our-children-when-we-use-them-as-taxpayers-of-convenience-206987>
"The start of the Australian tax year is an opportunity to reflect on the way
in which children - some of them very young - are being used to minimise their
parents and grandparents’ tax, and the message that will send them.
Children are mainly used as taxpayers of convenience by controllers of
discretionary trusts (often called “family trusts”), although there are other
means as well.
The way in which it is done is to take advantage of childrens’ tax-free
thresholds.
Each Australian resident gets a tax-free threshold of A$18,200 meaning the
first $18,200 earned is untaxed. The Low Income Tax Offset boosts this
threshold further for low income earners ensuring some can earn up to $21,884
tax-free.
Unused tax-free thresholds are valuable for taxpayers who want to avoid tax.
They can divert income to the holder of an unused threshold thereby turning
what would otherwise be a high marginal tax rate into a marginal tax rate of
zero."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
