Eligible businesses with a turnover of between $75,000 and $50 million that experienced a minimum 40% decline in turnover in January 2022 – and the first fortnight of February 2022 – can apply for support through this program.
Employing businesses will be eligible to receive 20% of weekly payroll as a lump sum for the month of February, with a minimum payment of $750 per week and a maximum payment of $5000 per week.
Non-employing businesses will receive $500 per week, paid as a lump sum of $2000.
Eligible businesses will receive one payment covering the 4-week period of February 2022. Applications close on 29 April 2022.
A family trust is a discretionary trust used to hold the wealth and assets of a family and is commonly used in Australia as an important part of the structure of a family business.
In a family trust, the beneficiaries are usually members of the same family or their company and trust, and then the family-controlled company acts as the trustee/company. The trustee has broad discretion, including discretion over the distribution of trust income to different beneficiaries. As a result, family trusts become a useful tool to reduce taxes paid, protect assets and limit risk exposure.
Advantage 1: Tax planning
Advantage 2: protect assets
Advantage 3: Passing on the family business
Despite the benefits of family trusts, there are also some drawbacks. Whether or not to establish a family trust will depend on your personal circumstances. Please contact Andrews’ tax team for independent advice on whether a family trust structure could benefit you and your family.