Welcome back to another episode of the 360 Money Matters Podcast!
In this episode, Billy and Andrew demystify one of the most talked-about — and most misunderstood — tax strategies in the business owner playbook: the bucket company.
Billy and Andrew cut through the jargon and explain exactly how a bucket company fits into a discretionary trust structure, why it’s a tax-deferral strategy (not a tax-avoidance one), and the specific circumstances where it can be genuinely powerful — including when you retire, when your spouse steps back from work, or when your adult children enter the picture.
If you’re a business owner, self-employed, or running a family trust at high income levels, this episode could reshape how you think about structuring your tax.
This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of Akumin Financial Planning – AFSL 232706
Episode Highlights:
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What a discretionary trust is and why it’s the foundation of the strategy
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How a bucket company becomes a third beneficiary and why that matters
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Paying 25% company tax today vs. 47% personal tax — the numbers explained
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Why this is a deferral strategy, not a dodge and when the “top-up tax” kicks in
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The retirement play: drawing down at 0% tax with franking credit refunds
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The compounding advantage of investing 75 cents in the dollar instead of 53
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Division 7A — the compliance trap that catches people out
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Who this strategy is actually suited for and who it isn’t
