One of the most common questions investors ask is whether they should invest in their personal name, through a family trust, a company, or a self-managed super fund (SMSF).
The answer depends on your goals, income levels, asset protection requirements, and long-term plans. The right structure can help minimise tax, protect assets, and provide flexibility as your wealth grows. On the other hand, choosing the wrong structure can be costly to unwind later.
Below is a comparison of the most common investment structures used by Australian investors.
Investing in your Personal name
Investing personally is the simplest and most common structure used by Australians.
| Benefits | Drawbacks |
| Simple and inexpensive to establish | Limited asset protection |
| Access to current CGT concessions | Income taxed at marginal tax rates |
| Potential access to negative gearing benefits | No income splitting flexibility |
| Easier lending and borrowing | Wealth tied to individual ownership |
| Minimal administration requirements | Less estate planning flexibility |
Investing through a Family Trust
A family trust is commonly used by investors seeking flexibility, asset protection and long-term wealth accumulation.
Trusts can hold investment properties, shares and other assets while allowing income to be distributed between beneficiaries.
| Benefits | Drawbacks |
| Flexible distribution of income | Higher setup and ongoing costs |
| Improved asset protection | More complex administration |
| Estate planning advantages | Trust losses generally remain trapped |
| Access to current CGT concessions | Financing can be more restrictive |
| Suitable for family wealth accumulation | Proposed tax changes may reduce benefits |
The 2026 Federal Budget proposed significant changes to the taxation of capital gains and discretionary trusts.
Under the proposal:
- The current 50% CGT discount would be replaced with an inflation-based indexation method.
- Existing gains accrued before 1 July 2027 would generally be protected by transitional rules.
- Additional reforms to discretionary trust taxation are proposed from 1 July 2028
If enacted, these changes may reduce some of the traditional tax advantages that have historically made family trusts attractive for investment purposes.
Importantly, these measures remain proposals only and have not yet been passed into law at the time of writing. The final legislation may differ from the current proposals.
Investing through a Company
Companies are often used where investors wish to retain profits and reinvest earnings over the long term.
| Benefits | Drawbacks |
| Ability to retain profits | No 50% CGT discount or future indexation on cost bases |
| Lower tax rates than top personal rates | Additional tax when profits are distributed |
| Strong asset separation | ASIC and compliance obligations |
| Suitable for reinvestment strategies | Less flexibility than a trust |
| Effective for long-term accumulation | More administration than personal ownership |
Companies can be attractive for investors focused on growth and wealth accumulation rather than annual distributions.
Investing through an SMSF
A Self-Managed Super Fund allows investments to be held within the superannuation system.
SMSFs can invest in property, shares, managed funds and a range of other investments, subject to superannuation rules.
| Benefits | Drawbacks |
| Concessional tax environment with earnings generally taxed at 15% | Funds generally inaccessible until retirement |
| Potentially tax-free earnings and capital gains in retirement phase | Significant compliance obligations |
| Access to favourable capital gains tax treatment | Higher setup and administration costs |
| Greater control over superannuation investments | Not suitable for short-term goals |
| Ability to invest in a wide range of assets | Strict superannuation rules apply |
SMSFs are generally most appropriate for investors focused on building wealth for retirement.
Which structure is best?
There is no single structure that is right for everyone.
Generally speaking:
| Structure | May Suit |
| Personal Name | • First-time investors • Lower income earners • Investors seeking simplicity |
| Family Trust | • Families with multiple income earners • Property investors • Investors seeking asset protection • Long-term wealth accumulation strategies |
| Company | • Business owners • Investors looking to reinvest profits • Long-term wealth accumulation strategies |
| SMSF | • Retirement-focused investors • Investors with larger superannuation balances • Long-term investment strategies |
What to consider before investing
Before choosing a structure, consider:
- Your current and future income levels.
- Whether asset protection is important.
- Your estate planning objectives.
- Whether you intend to hold property, shares or other investments.
- Your borrowing requirements.
- Whether you may need access to funds in the future.
Changing structures after purchasing investments can trigger capital gains tax, stamp duty and other transaction costs, making it important to get the structure right from the beginning.
Final Throughts
Historically, family trusts have often been one of the most tax-effective and flexible investment structures available to Australian investors. However, the proposed 2026 Federal Budget reforms may significantly change the taxation of trusts and capital gains from 1 July 2028 onwards.
As the proposed measures have not yet been legislated, investors should avoid making decisions solely based on the announcements and instead seek advice based on both current law and potential future changes.
The best investment structure is ultimately the one that aligns with your financial goals, tax position and long-term wealth strategy.