NEWS

You are now likely aware that the Trust tax rate is increasing from 33% to 39% from April 2024. Over the coming months, we will be reaching out to all our clients that will be impacted by this shift to discuss the effect on you and what your options are.

If your Trust currently has Term Deposit Investments, you may like to discuss with your Financial Advisor about shifting these to PIE investments as the highest prescribed investor rate (PIR) is 28%.  This tax is the ‘final’ tax and no further tax is required to be paid, so there is the potential tax savings of 11%.

Depending on your circumstances, we may recommend paying beneficiary distributions (if we haven’t previously done so) to take advantage of their lower tax rates. If you have a Company with the Trust as a majority shareholder, we will look at distributing retained earnings (if any) by way of a dividend in the current financial year prior to the Trust tax rate increasing.

If you have any questions, please do not hesitate to reach out to your Client Manager.

 

Disclaimer

This information is intended to provide general advice only.  We recommend you discuss your specific situation with your Accountant.