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I currently earn $70,000 per annum. I am looking at setting up a small business with my partner (who earns similar).
We are interested to know how this will affect our current taxable income. I am an individual tax payer/he earns his money as a sole trader.
We are going to set up an ABN for this new business and estimate that we will definitely trade well under $75,000.
What is the best way to set up this structure so that tax liabilities are shared equally between the two of us?
And lastly, would income earned in this small business be "added" on to our current incomes or will it be treated seperately?
Thanks for any information
You should go to a professional to set it up properly. Your best bet may be a corporate entity/trust structure - but nothing posted here is advice.
Any distributed profits to each of you is added to the total income you're earning.
Australian Taxation Office
Working for all Australians