Restructuring Your Business - When and How to Make the Change

As your business grows, what once worked might no longer serve your financial goals, tax strategy, or legal protection. That’s where business restructuring comes in—a powerful tool that can align your business structure with its current operations and future plans.

At Streamlined Accountants, we specialise in helping clients transition smoothly from one business structure to another—maximising tax savings, protecting assets, and ensuring compliance along the way.

Why Restructuring Matters

Many business owners start out as sole traders for simplicity. Others set up companies or trusts based on initial advise or assumptions. But as your business evolves, so should your structure.

Here are a few common triggers for restructuring:

• Your income has significantly increased, and you're now paying more tax than necessary.

• You're hiring staff and need better compliance systems (e.g. payroll, STP, super).

• You’re taking on partners, investors or planning succession.

• You want to protect your personal assets or limit liability.

• You’re preparing to exit or sell your business.

The wrong structure can hold back growth, limit funding options, and expose your personal wealth to unnecessary risk.

Key Structure Types (and When to Switch)

1. Sole Trader → Company

Ideal when you're growing fast and need better tax planning, asset protection, or legitimacy for contracts and funding.

Benefits:

• Flat tax rate (25% for base rate entities).

• Personal asset protection.

• Ability to retain earnings within the business.

2. Company → Trust (or vice versa)

Sometimes restructuring into or out of a trust allows more flexibility with income distribution, or aligns better with succession or investment goals.

Benefits:

• Flexibility in distributing profits to beneficiaries.

• Strong asset protection in some trust structures.

• May reduce overall tax burden through income splitting.

Case Study: From Stress to Structure

One of our clients—a Sydney-based eCommerce retailer—started as a sole trader. As sales surged beyond $250K, they were hit with higher marginal tax rates, had no employee protections, and couldn’t secure a business loan.

We helped them restructure into a company with an attached family trust:

• Tax savings of over $18,000 in the first year.

• Streamlined payroll and super compliance via Xero and STP.

• Enabled income distribution across family members.

The result? More time, less stress, and better cash flow.

What to Consider Before Restructuring

Restructuring isn’t something you DIY from a template. There are ATO rules and capital gains tax (CGT) rollover relief provisions that need to be carefully navigated to avoid unintended tax consequences.

Key factors to review:

• Tax implications and eligibility for rollovers.

• Asset protection needs.

• Compliance obligations for new entities (ASIC, ATO, Fair Work).

• Whether your accounting systems and tools support the change.

• Alignment with your business goals (growth, sale, succession, etc.)

This is where Streamlined Accountants provide essential advisory value—tailoring the restructure to your goals while managing every compliance angle.

How We Help at Streamlined Accountants

When you work with us, we:

• Review your current structure and performance.

• Map out a clear restructure plan that’s tax-effective and legally sound.

• Prepare and lodge all required documentation with ASIC and the ATO.

• Set you up with streamlined accounting systems for the new entity.

• Guide you through ongoing compliance so nothing slips through the cracks.

Let’s Talk About the Future of Your Business

If you’re unsure whether your current structure is helping or hindering your success, it’s time for a confidential consultation with our team. You don’t have to make this complex decision alone—and you shouldn’t.

📞 Call us today on 0451 040 656

📧 email info@streamlinedaccountants.com.au

Let’s make sure your business structure supports your vision—not works against it.