TAX STRUCTURES 101 • STEP 1 OF 4
Get Ready: Understanding Tax Structures
The hardest thing in the world to understand is income tax.
Albert Einstein
Your Learning Journey
Your Learning Journey
This Step Takes: 20 minutes
Interactive activities to prepare you for learning about tax structures.
Why This Matters
Most Australians overpay tax because they don't know the right structures exist. On $150k income, the difference between a sole trader and optimal structure is $24,000/year every year!
Learn how to save $24,000/year using structures the ATO designed for you.
Choose Your Avatar
Select the situation that best matches you. This personalizes your learning experience.
Tax Myth Poker
Let's bust some common tax myths before we go deeper. Drag each statement into the correct box.
How to Play
Drag each card into either the "MYTH" or "FACT" box. Once all cards are placed, click "Check Answers" to see how you did!
💡 You can re-arrange cards anytime before checking answers!
Drag these cards:
Higher turnover always means more tax
SMSFs offer asset protection
Trusts are only for the wealthy
Companies pay a flat 25-30% tax
You must pay yourself a market salary from your company
Negative gearing only works in property
MYTH
FACT
Your Tax Mate
See how different structures change how much tax you pay. Think of it like feeding a koala. Some structures keep 'em happy with less!
Hungry Koala 🐨
"Fair dinkum, that's a lot!"
Sole Trader
💡 What This Shows
Your tax koala gets hungrier (or more chilled) based on your structure. A Sole Trader feeds it 31.3% of their income. But with the right combination of Trust, Company, and Super contributions, you can keep it happy with just 15%. That's $24,397/year more in your pocket (on $150k income)!
Key Takeaways
Structure Matters More Than You Think
It's Legal and Designed For You
One Size Doesn't Fit All
- Tax structure matters more than you think. Same income can result in vastly different tax bills
- These structures aren't loopholes. They're legal tools designed by the ATO for business owners
- On $150k income, the right structure saves $24,000/year compared to sole trader
Homework
If you selected a persona, what was their main goal? How might tax structures help achieve that goal?
List your current annual income and business/investment structure. Calculate your current marginal tax rate to understand your baseline.
What's Next?
20 minutes