The rent of $60,000 per annum is being taxed as per their individual tax brackets so total tax of $8,100. This meant that instead of receiving the full $60,000, they had to forgo some activities in their retirement.
I have worked with their accountant to recommend a strategy to restructure the ownership of the commercial shed into a self managed super fund. Now that the rental income is being received inside super, the clients are able to draw their full $60,000 in income without any tax.
To advise these clients that they can now earn $60,000 tax free in retirement has bought this couple such joy as they can now travel more often to see their grandkids.
It is times like this when I see the smiles on faces that I know I can make a difference and help achieve dreams.