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James Millar
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Just some other comments to those above.

1. Avoid unit trusts (they are less flexible than alternatives – sorry Ian I don’t know who advised you to the contrary).

2. Corporate trustee sounds unnecessary in these circumstances (no asset protection issues – although I question that in a trading business). Cost for trust with individual trustees is around $700 including $200 stamp duty, tfn, abn reg. Add around $500 for corporate trustee if required.

3. Bank lvr’s for franchises vary depending on the franchise brand. Many of the big franchises have pre approved lending facilities with a major bank. I think for example boost and salsa have a 50 or 60% lvr and tailored package all ready to go with NAB. If it’s a small or developing franchise then they may not have such an arrangement.

A Disc trust is actually pretty simple and cost effective. For a retail business with no PSI issues it is perfect for income splitting and tax optimization.

Best of luck with it.

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