Trust resettlements and CGT

Capital Gains Tax and resettling trusts deeds

The ATO has effectively confirmed that a trust deed can be varied without the trust being ‘resettled’ and causing Capital Gains Tax (CGT) problems.

More specifically, they state that there should be no CGT consequences if the trustee validly exercises a power contained within the trust deed to change the terms of the trust (or the deed is varied with the approval of a relevant court), unless:

  • the change causes the existing trust to terminate and a new trust to arise for trust law purposes; or
  • the effect of the change leads to a particular trust asset being subject to separate rights and obligations, giving rise to the conclusion that the relevant asset has been settled on terms of a different trust.

Benefits of networking for businesses (part 2)

Networking for small business

In my previous article, I shared some of my thoughts on the power of word of mouth marketing and personal referrals for businesses. As I’ve said, I’m not an expert in business networking, but I’ve experienced what it’s done for my business and I’ve witnessed how it’s benefited other businesses too. If anything, I hope that this series of article swill shed light on some of those experiences to give you something to think about in terms of whether it can benefit your business as well.

Small business is unique

Big brand businesses allocate a lot of resources into their marketing and public relations to ensure that you (the consumer) is aware of their brand. For big brands, brand awareness means being front of mind all the time. You’ll see them on television, on the radio, in newspapers and magazines, on billboards and of course, over the internet. They’ll be sponsoring sporting teams, community activities, and major events. Big brands are everywhere and in every aspect of our lives.

If you’re a small business, then (like me) you probably wouldn’t have the resources to maintain the same level of marketing as big brand businesses. So what can you do as a small business? Even without exploring any other part of your business, I already know you’ve got something that the big brands. You’ve got something that’s unique to your business and it’s something that will give you an edge over those larger competitors. That something unique is YOU!

Business networking requires you

We’ve all got social networks of some sort or other. These various networks exist through family or friends at all different levels and through different forms of association. You might know people from school, from university, through work, through church, over the internet, or even through whatever your normal daily activity might be (ie, your local postman, the checkout girl at the supermarket, your favourite barista etc). Regardless of the network that you may belong to or how it came into existence, the next question is whether that network adds value into your business.

Sometimes some networks are totally distinct and separate from business and sometimes other networks are fully integrated into business. Understanding the dynamics of each network will allow you to navigate them successfully, and more importantly, appropriately. Have you even been invited by a ‘friend’ to a multilevel marketing seminar? I’m sure they probably told you that it was about something other than multilevel marketing and they never asked whether you’re actually interested (assuming correctly that you’re not)? You’ll know what I mean, it’s not just what you do, but how you do it – especially if you value and want to maintain the relationships with those people in your networks.

Formal Business Networking

Aside from the various social networks that we all belong to, there are other networking groups that are focused purely on business networking, or networking for business. When joining this kind of group, there’s no question or uncertainty about what the main goal is – it’s all about business.

You’ll find that there are many different networking groups for businesses and they all go about their networking in different ways. Some groups are very structured while others might be more casual. Some meet weekly while other meet less frequently. Some meet in specific venues while others may meet online only. At the end of the day, you should find a business networking group that suits you and meets your needs because that’s where you’ll be at your best and be able to do your best.

I started formal business networking several years ago, and my first experience was a real eye-opener. I had been invited by a business associate and didn’t know what to expect. While the returns were not immediate, with commitment and dedication I found the rewards to be much more than just the immediate network.

Up next…

In the next part in this series of articles, I will be sharing some of what my team of lawyers and I have done in terms of formal business networking and what it has meant for us.