The slide features the main title "Structure Your Wealth," presented as a title slide. Below it, the subtitle "RC Tax Partners" identifies the presenting entity.

Structure Your Wealth

RC Tax Partners

The slide recommends starting a business as a sole trader due to its simplicity and flexibility, illustrated by an example where $131,600 in profit incurs an effective tax rate of about 25%. However, it highlights a key challenge: effective tax rates increase as income grows.

Sole Trader – The Default Start-Up Structure

• Start as sole trader for simplicity and flexibility
• Example: $131,600 profit at ~25% effective tax rate
• Challenge: Rising effective tax rates with income growth

Switching from a sole trader to a base rate company structure caps taxes at a flat 25%, offering tax certainty, protection from progressive rates on higher profits, and predictable liabilities to support business growth. A comparison for $500,000 in profit shows sole trader taxation at about $200,000 (40% effective rate, leaving $300,000 after tax) versus $125,000 in company tax (25% flat, leaving $375,000 after tax), yielding $75,000 in annual savings.

Company – Capping the Rate at 25%

| Switch from sole trader to a base rate company to cap your tax at a flat 25%. This structure provides tax certainty, shields higher profits from progressive rates, and supports business growth with predictable liabilities. | Profit: $500,000

Before (Sole Trader): Tax: ~$200,000 (40% effective) After Tax: $300,000

After (Company): Tax: $125,000 (25% flat) After Tax: $375,000

Annual Savings: $75,000

Gold highlight on savings figure. |

Source: RC Tax Partners*

Using a family trust to own company shares allows for flexible income distribution among beneficiaries, seamless succession planning across generations, and enhanced tax efficiency through income splitting strategies. Additionally, it isolates ownership from business operations to improve risk management while preserving and controlling long-term family wealth.

Family Trust – Who Should Own the Company?

• Own company shares via family trust for flexible income distribution
• Enable succession planning to pass wealth across generations seamlessly
• Enhance risk management by isolating ownership from business operations
• Provide tax efficiency through beneficiary income splitting strategies
• Support long-term family wealth preservation and control

Source: RC Tax Partners

The slide advocates establishing a distinct investment trust to hold passive assets and wealth, separate from an active trading company, thereby isolating business risks from personal investments to safeguard long-term holdings. This separation offers key benefits, including enhanced protection against business liabilities, greater tax flexibility for income distribution, and streamlined planning for succession, growth, and family legacy.

Investment Trust – Separating Business from Wealth

Source: RC Tax Partners

Superannuation and Self-Managed Super Funds (SMSF) serve as a tax-efficient "retirement bucket," where concessional contributions are taxed at 15% during the accumulation phase, but earnings become tax-free in the pension phase. The slide emphasizes strategic integration into wealth planning for personalized control and long-term security, visualized with retirement icons.

Superannuation / SMSF – The Tax-Free Retirement Bucket

• Concessional contributions taxed at 15% in accumulation phase
• Zero tax on earnings during pension phase
• Integrate strategically into overall wealth planning
• Self-Managed Super Funds enable personalized control
• Visualized with retirement icons for long-term security

Source: RC Tax Partners

The slide on Eligible Life Assurance Policy under Section 26AH highlights key benefits that emerge after a 10-year holding period, including tax advantages and asset protection to preserve family legacies. It supports estate planning, simplifies long-term wealth management, and is particularly ideal for high-net-worth individuals pursuing tax efficiency.

Eligible Life Assurance Policy – Section 26AH

• Tax advantages unlock after 10-year holding period
• Supports estate planning with seamless inheritance benefits
• Simplifies long-term wealth strategies and management
• Offers asset protection for family legacy preservation
• Ideal for high-net-worth individuals seeking tax efficiency

Private Placement Life Insurance (PPLI) is designed for high-net-worth individuals, offering advanced tax-deferred growth on investments held within the policy while ensuring strong privacy for asset ownership and transactions. It also provides robust protection against creditors and risks, seamlessly integrating with diverse global investment portfolios.

PPLI – Private Placement Life Insurance

• Tailored for high-net-worth clients seeking advanced solutions
• Provides tax deferral on investment growth within policy
• Ensures superior privacy for asset ownership and transactions
• Offers robust asset protection against creditors and risks
• Aligns seamlessly with diverse global investment portfolios

Source: RC Tax Partners

The slide highlights key tax benefits of institutional-level structuring using VCC, PPLI, and Section 128F, including 0% interest withholding tax for non-residents via Section 128F exemption. It also features 100% tax-deferred growth within the PPLI wrapper and up to 40% effective tax reduction through global optimization for ultra-high-net-worth individuals.

VCC + PPLI + Section 128F – Institutional-Level Structuring

• 0%: Interest Withholding Tax

Exempt via Section 128F for non-residents

• 100%: Tax-Deferred Growth

Accumulation within PPLI wrapper

• Up to 40%: Effective Tax Reduction

Global structuring optimization for UHNW Source: RC Tax Partners

The Wealth Structure Ladder timeline outlines a progressive five-level framework for optimizing tax efficiency and wealth protection, starting with a simple sole trader setup at Level 1 that faces progressive taxes up to 45%. It advances through company and family trust structures at Level 2 for capped 25% taxes, investment trust separation at Level 3 for long-term planning, superannuation and SMSF at Level 4 for concessional 15% taxes and tax-free retirement, and culminates in advanced life policies and VCC at Level 5 for tax deferral, privacy, and global asset protection.

The Wealth Structure Ladder

Level 1: Sole Trader Structure Start with simple sole trader setup for flexibility and ease, facing progressive tax rates up to 45%. Level 2: Company and Family Trust Transition to company owned by family trust to cap tax at 25% and enable flexible income distribution. Level 3: Investment Trust Separation Separate trading company from investment trust for enhanced wealth protection and long-term tax planning. Level 4: Superannuation and SMSF Leverage super funds for 15% concessional tax and 0% pension phase to build tax-free retirement wealth. Level 5: Life Policy PPLI VCC Advanced life policies and VCC provide tax deferral, privacy, and global asset protection for high-net-worth individuals.

Source: RC Tax Partners