Thanks for the additional info. I’m sure it will help others who stumble across this article in their web searches. :)

Unfortunately, there’s not much more I can add to the article to help with your specific, individual circumstances. Definitely best to have another chat with your accountant.

It really hinges on being a “gift deductible recipient” i.e. allowed to take donations and for those donation to be tax deductible under the Income Tax Act. An application needs to be made to the ATO for that status, not simple but not particularly difficult.Then a separate “donations” bank account would need to be set and then based on a set of transparent rules and policy, funds are only transferred out once a student meets those criteria of the policy.The bank account, applications by students and the process of awarding a student a scholarship would need to be audited.

I have, with the help of my accountant, set up a discretionary trust with a pty ltd company as trustee. I am an IT consultant, mainly doing short term contracts for various clients.

My accountant explained all the asset protection and income distribution stuff to me, but has not mentioned putting any of my assets into the trust. Should I look into something like that in my situation?

Also, I am looking at getting a vehicle for the business, how can the corporate trustee/discretionary trust be used to advantage with this?

I am definitely going to talk to my accountant about this stuff, but I would like to have an idea before I go in… so far your article is the only source that has made much sense to me :)

Cheers,
Pete.

I am looking for ways to have a Scholarship fund finnaced by public donations/bequests within our Pty business and how to set that up – trust funds came to mind and your article has been very helpful.
Not sure if its the way to go, yet. Needs more research.

Thanks again

Thanks for reading.

Unfortunately, I don’t know where you can find the examples you mention. Those would be pretty specialised – and, as you say, it’s probably best to visit an accountant/lawyer for examples like that.

As for the company structure article, it has yet to be written, hence no link at present.

You mention setting up these trusts for tax advantages. Do you know where i can find some good examples to get an idea of what trust provides what advantage and how. I am pretty sure i will visit and accountant but being the more knowledgable the better.

Also could you elaborate on how a trust protects assets from a PTY LTD company? An example would be nice to see the relationship involved.

Where is the link for Company structure (“PTY LTD”). I cannot find it.

Thanks and regards

Peter

Your situation sounds complex. Since my articles are primarily aimed at giving readers a general overview of business structures, I’m not able to give more specific advice that would help in your case. I would recommend discussing your options with a lawyer as soon as possible.

Sorry I can’t provide much more help than that.