Welcomes you to

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Welcomes you to Contracting in Australia and
Abroad.
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AGENDA

• Protect your assets
• Plan for the future
• Tax in Aussie, NZ, UK, USA
• Tax in Hong Kong/Singapore
• Offshore structures
• Effective tax management
• Use of management companies

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Tax Planning more than meets the eye
cXc covers it all
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ANTS APSI 2000 New Tests

• Results Test (no longer 80/20)

2. Enterprise Test - Control Risk
3. APSI 2000 - Unrelated Clients Employment
Business Premises
4. APSI 2000 - Income Streaming Provisions,
Agencies Interposed Entities.
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Tax Systems
All have similar objectives
1. Australia A P S I
2. UK IR35
3. NZ Avoidance Legislation
4. IRS Special Projects
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STRUCTURE

• Employee
• Self Employed
• Business Owner
• Investor
• HAVE 2 PLANS

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Financial Priorities

• Employment Security
• Consumption for lifes comfort
• Savings
• Investment (if there is any change)
• M IDDLE CLASS

• Investment portfolio
• Professional satisfaction
• Savings
• Consumption for lifes comfort
• WEALTHY CLASS

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PLAN AHEAD

• Protect your assets
• Plan while you are solvent
• Consider capital gains/death duties
• Consider offshore income/investments
• Think globally, Invest Regularly
• You have a constitutional right to pay only as
  much tax as the law requires you to pay !

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The Objective
Taxation Offices are actively attempting to
reduce the number of individuals who earn the
bulk of their income through personal exertion
and minimise taxation or split their income
through a company, partnership or trust.
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Option 1 PAYG

• Benefits
• No Administration

• Disadvantages
• Maximum Tax paid
• Maximum Surcharges

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Option 2 Company (Pty Ltd) or Partnership

• Benefits
• Limited ability to Split Income
• Lower Administration Costs

• Disadvantages
• 48.5 Withholding tax
• No Sick leave
• Workers Compensation
• Public Liability Insur
• Statutory Reporting
• Penalties interest
• Tax Audit Risks
• Director Liability
• Onerous contracts
• Start Up Costs

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Option 3Management Company

• Disadvantages
• No paid sick days

• Benefits
• Salary Packaging
• More disposable cash
• Wholesale Super Fund Tax effective Invest
  options
• No Directors Liability
• All Regulatory Statutory returns done
• Workers Compensation Public
  Liability
• Extensive member benefits
• ACS membership trng disc
• Fee covered by tax savings

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Tax in Australia NZ

• Australia
• 47 top personal tax rate
• Superannuation 8/9
• 1.5-2.5 Medicare
• 15-30 Tax on Super
• GST 10
• New Zealand
• 39 top rate
• GST 12.5

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TAX in UK USA

• UK
• 40 top tax
• 10 10 NI
• 17.5 VAT
• USA
• 36-39.6 top personal tax
• 12.4 Social Security
• 2.9 Medicare State Taxes

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Tax Hong Kong Singapore

• Hong Kong
• Flat 15
• Singapore
• 2-28

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EFFECTIVE TAX MGT

• Start investment strategy
• Create savings plan
• Minimise tax on income
• Create passive income
• Arrange structures to facilitate
• Build and Protect assets

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OFFSHORE is BIG

• Asset protection
• Inheritance protection
• Understand your needs
• Select country to suit
• Isle of Mann, Channel Islands, Bermuda
• Luxembourg, Guernsey, Vanuatu, etc...
• AVOID THE OBVIOUS

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USE of MANAGEMENT Cos

• PLAN YOUR FUTURE
• Maximise Earnings
• Minimise Individual Tax
• International Tax Planning
• Salary Packaging
• Reduce Administration
• Global Movement
• Reduce Liabilities

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Benefits for the Contractor using cXc

• No start up costs

• Remove statutory requirements

• Reduced administration

• Tax returns completed

• Increase net income

• Insurances paid

• Superannuation

• ACS Membership

• Memberships benefits program

• Free Guidance

• Visa processing sponsorship

• One employer

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Summary

• Employee - No Risk / High Tax
• Own Company - High Risk, Administration
• Headaches, and possibly still high taxes.
• Management Company - Minimal Risk, Lower Taxes,
• No Hassles
• Agency Outsources packaging - expanded service
• Contractors have a choice !

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SUMMARY

• Plan ahead, create investments
• Minimise tax Package salary
• Use structures
• locally and globally
• Have 2 Plans
• earning investment
• Do it NOW !

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cXc Australasian Offices
www.cxcglobal.com
Brisbane
Sydney
Perth
Auckland
Canberra
Melbourne
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International Offices www.cxcglobal.com
Singapore
NZ

• affiliations in Holland, Ireland Canada

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Affiliated Services
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THANK-YOU for your time and attention
Now for QA time. Please feel free to ask any
questions.
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This concludes tonights presentation.
for further information please ask your cXc
representative Lesley Hugo lesley_at_cxc.com.au or
visit www.cxcglobal.com
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