Wealth strategies for high income earners
Wealth Strategies Built Around Your Tax Position
At 45 cents in every dollar, a tax return is more than a wealth strategy; it’s a report. If your taxable income sits above $190,000, the decisions you make about structure, timing, and ownership matter far more than the deductions you claim.
Impact Taxation & Financial Services helps doctors, lawyers, business owners, and other high-income professionals implement tax-effective wealth strategies that build and protect wealth over the long term.
- CPA-certified tax accountants
- Bankstown, Sydney
- Online consultations Australia-wide
The difference
What Makes a Wealth Strategy Different From Tax Compliance?
A wealth strategy is a structured, forward-looking approach to how you hold assets, distribute income, and time financial decisions to reduce tax over the long term. It is distinct from tax compliance, which addresses what already happened, not what should happen next.
Most accountants help you lodge accurately. A tax-led wealth strategy goes further: it asks how your income should flow, which entity should own which asset, when to realise a capital gain, and how to maximise what accumulates inside superannuation at concessional rates. For high income earners, these decisions compound significantly over time.
At Impact TFS, we approach wealth strategy through the tax lens first. That means the structure we recommend is designed to be tax-effective from the outset, not patched later. The tools vary: family trusts, SMSFs, company structures, investment entities, CGT timing, and income distribution. The starting point is always your current tax position and your goals.
Eight strategies
Wealth Strategies We Help High Income Earners Implement
Depending on your income level, existing structures, and goals, one or more of the following tax-effective wealth strategies may apply to your situation. These are general in nature — the right combination depends on your specific circumstances.
-
Trust Structuring and Income Distribution
A discretionary (family) trust allows you to distribute income to beneficiaries in lower tax brackets, reducing your overall tax liability. It also provides asset protection and flexibility as your financial position evolves.
Tax benefitIncome taxed at beneficiary rates, not your marginal rate.
-
SMSF Establishment and Tax Planning
A self-managed super fund gives you direct control over investment decisions, with fund earnings taxed at 15% in accumulation phase. For high income earners, this is often one of the most cost-effective long-term accumulation structures available. Note: Division 296 applies from 1 July 2026 on SMSF balances above $3 million.
Tax benefitConcessional tax on fund earnings and contributions.
-
CGT Planning and Timing
When you sell an asset matters as much as what you sell it for. Strategic timing of capital gains events, including the use of the 50% CGT discount for assets held over 12 months, can significantly reduce your tax exposure. Note: the 50% CGT discount is being reformed from 1 July 2027 — structures put in place now need to account for this.
Tax benefitReduced capital gains tax through deliberate timing.
-
Debt Recycling
Debt recycling converts non-deductible personal debt (such as a home loan) into deductible investment debt over time. Done correctly, it accelerates wealth accumulation while reducing your after-tax cost of borrowing. This strategy requires careful sequencing and depends on your existing debt position.
Tax benefitIncreases deductible debt, reduces taxable income.
-
Investment Entity Setup
Holding investments through a company structure can lock in earnings at the 25% or 30% corporate tax rate, deferring higher personal tax until distribution. This suits high income earners whose marginal rate is significantly above the corporate rate and who don’t need immediate access to investment income.
Tax benefitEarnings taxed at corporate rate, not marginal rate.
-
Superannuation Maximisation
Concessional contributions are capped at $32,500 per year from 1 July 2026 and are taxed at 15% inside the fund instead of your marginal rate. Carry-forward provisions allow you to use unused caps from prior years (where your total super balance is below $500,000), which can create a significant one-off tax reduction for those who haven’t maximised in recent years.
Tax benefitContributions taxed at 15% vs up to 47%.
-
Income Splitting and Marginal Tax Minimisation
Where legally available, distributing income between spouses or across a structure reduces the concentration of income at the top marginal rate. This is most effective when there is a meaningful difference in the marginal rates of the individuals involved, and depends on the nature of the income and how it is derived.
Tax benefitIncome distributed at lower marginal rates overall.
-
Depreciation and Rental Deductions
For income-producing properties, depreciation schedules on plant and equipment and the building itself generate legitimate deductions that reduce taxable income without a cash outlay. The timing of these deductions, and how the property is held, directly affects their value. For a full breakdown of property-specific tax strategies, see the section below.
Tax benefitNon-cash deductions reduce taxable income annually.
Not sure which of these wealth strategies applies to your situation?
Let’s look at your numbersProperty
Where Property Investment Fits Into Your Wealth Strategy
Property is one of the most common wealth-building tools for high income earners in Australia. But the tax implications of how you buy, hold, and eventually sell a property are significant. Getting the structure right before you purchase is far more effective than restructuring after the fact.
For a full breakdown of property investment tax structuring, including loan structure, offset account strategy, and the timing of capital works deductions, visit our Wealth Planning Services page.
Wealth Planning ServicesKey considerations that intersect with your broader tax position include:
- Loan structure Whether to hold debt in an offset account or reduce the loan balance directly, and the long-term deductibility implications of each.
- Ownership split decisions Individual ownership, joint ownership, or holding through a trust or company, each with different tax and asset protection outcomes.
- Renovation timing Deductions available for genuine repairs differ significantly depending on whether work is done before or after the property becomes income-producing.
- Depreciation The structure of a depreciation schedule and when it is obtained affects how much you can claim and over what period.
By profession
Your Income Is Specific to Your Profession. Your Strategy Should Be Too.
High income looks different depending on how you earn it. A surgeon’s income flows differently from a partner-level lawyer’s or a business owner’s distribution. The most effective wealth strategies account for those differences from the start.
-
Medical professionals
Doctors and Specialists
Medical professionals often have high and variable income, limited time to manage financial complexity, and structuring opportunities that are specific to how practice income is derived.
- Practice income structuring: company or trust distribution vs personal income
- Contractor and locum arrangements that create entity setup opportunities
- SMSF as a long-term accumulation vehicle alongside or instead of industry super
- Superannuation maximisation including carry-forward caps for those who have had variable contribution years
-
Legal professionals
Lawyers and Partners
Legal professionals at partnership or senior level face high marginal rates combined with income that can be structured, particularly where partnership profit distributions are involved.
- Income received through a firm vs income received personally: structuring implications
- Timing of profit distributions relative to financial year-end for tax optimisation
- Trust or investment entity setup to accumulate wealth at corporate rates
- CGT planning for future equity events or practice transitions
-
Business owners
Directors and Founders
Business owners have the broadest range of structuring options, but also the most complexity. The interaction between business income, personal income, and long-term wealth accumulation needs deliberate management.
- Salary vs dividend vs trust distribution: optimising how income flows from the business
- Using company retained earnings to accumulate at the corporate tax rate before distribution
- Asset protection through separate holding structures
- Small business CGT concessions for those approaching a business sale or transition
Talk to a specialist who understands how your profession earns and how that shapes the right strategy.
Book a ConsultationWhy Impact TFS
Tax and Wealth Structuring in One Conversation, Not Two
Most high income earners work with an accountant who handles compliance and a separate person who handles wealth. The result is advice that doesn’t fully account for the tax implications of every decision. At Impact TFS, tax strategy and wealth structuring sit in the same conversation, with the same team.
We are CPA-certified accountants based in Bankstown, Sydney, with a practice focused on tax planning for high income earners, business owners, and professionals. We hold up-to-date knowledge of current legislation including Division 296 (effective 1 July 2026), the proposed CGT discount reform from July 2027, and the negative gearing changes that emerged from the May 2026 Federal Budget. That matters because the structures we recommend today need to be sound under the rules that apply tomorrow.
Online consultations are available Australia-wide. Whether you’re in Sydney, Melbourne, Brisbane, or anywhere else, the quality of advice and the depth of the work is the same. We’re not a franchise or a volume tax practice. We work with a select group of clients where the complexity justifies a specialist approach.
- Tax and wealth structuring in a single integrated conversation, not siloed advice
- CPA-certified specialists with a focus on high income earners, professionals, and business owners
- Current on 2026 and 2027 legislative changes: Division 296, CGT reform, negative gearing
- Online consultations available for clients across Australia, not just Sydney and Bankstown
FAQs
Questions High Income Earners Ask Before Booking
Have a question we haven’t covered? Book a free 15-minute call.
Get in touchHow can a tax accountant help with wealth planning, and how is that different from a financial planner?
A tax accountant who specialises in wealth structuring focuses on the tax implications of every decision: which entity holds an asset, how income flows, when to realise gains. A licensed financial planner focuses on portfolio allocation and retirement income. The two are complementary. Impact TFS covers the tax structuring layer. Book a consultation to see whether your arrangements are optimised.
Can I use a family trust for wealth planning in Australia?
Yes. A discretionary (family) trust is one of the most widely used structures for tax-effective wealth strategies in Australia. It distributes income to beneficiaries in lower tax brackets, provides asset protection, and adapts as your position changes. Whether it suits your situation depends on income level, family structure, and the assets involved.
What impact does Division 296 have on SMSF planning from July 2026?
Division 296 introduces an additional 15% tax on super earnings attributable to balances above $3 million, effective 1 July 2026. It affects a minority of members. For most high income earners well below that threshold, the 15% earnings rate in accumulation phase remains intact. If your balance is approaching $3 million, a review before financial year-end is worthwhile.
At what income level does it make sense to think about wealth structuring?
The most common trigger is taxable income above $120,000, where the gap between your marginal rate and concessional rates (super, corporate) becomes significant. But the right time is always before you need it. A trust or SMSF established ahead of an income increase is far more effective than one set up after the income has already been taxed at the top marginal rate.
How does CGT reform from July 2027 affect wealth strategies put in place now?
The proposed reform to the 50% CGT discount, scheduled from 1 July 2027, will change how capital gains are taxed for individuals, trusts, and partnerships. Any wealth strategy involving long-term asset accumulation or a planned sale should account for the post-2027 environment. A review is recommended if you hold appreciating assets in your own name or in a trust.
What is the difference between this page and the Wealth Planning Services page?
This page covers tax-effective wealth strategies for high income earners: trusts, SMSFs, CGT planning, income splitting, debt recycling, and super maximisation. Our Wealth Planning Services page covers property investment structuring in depth: loan setup, offset accounts, renovation timing, and ownership decisions. If property is your primary focus, start there.
Do you work with clients outside of Sydney?
Yes. Based in Bankstown, Sydney, we work with clients across Australia via online consultations. The depth of engagement is the same regardless of location. If you’re a doctor in Melbourne, a lawyer in Brisbane, or a business owner in Perth looking for specialist tax planning and wealth structuring, you need a specialist firm, not necessarily a local one.
What does a first consultation typically involve?
A first consultation covers your current tax position: how income flows, what structures exist, what assets are held and where, and your goals over the next three to five years. From there, we identify gaps and which wealth strategies are worth pursuing. Most clients leave with a clear picture of what’s working and what isn’t.
Wealth strategy consultation
Your Tax Position Is the Starting Point
A 30-minute consultation is enough to identify whether your current structure has gaps and which wealth strategies are worth pursuing given your income, goals, and timeline.
CPA-certified tax accountants. Bankstown, Sydney. Online consultations available Australia-wide.
General Advice Disclaimer: The information on this page is general in nature and does not constitute personal financial, tax, or investment advice. Wealth structuring decisions depend on individual circumstances. You should seek advice from a qualified professional before acting on any of the information provided here.
