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In this question: - The effective useful live of all assets is 4 years where relevant - The taxpayers adopt the diminishing value method to calculate decline in value where relevant - The taxpayers elect to take the biggest capital allowances as early as possible where relevant.

Cameron Gallan is a professional rugby league player with the Brisbane Broncos. He is 30 years of age. Cameron is married to Marguerite. Marguerite is 34 years of age. The couple has four children who are all under the age of 6. Cameron and Marguerite are astute investors. They have arranged their financial affairs in a manner that protects their assets and which is structured in an income tax efficient manner.

Future business opportunity: Cameron and Marguerite are considering whether they should start up a new business together. The main purpose of the business would be to manage professional rugby league players. The business would negotiate player contracts when these come up for renewal, seek out endorsement deals for players, and secure player appearance contracts for them to attend social functions at a fee. If they go ahead with the new venture, they are unsure whether they should use the legal structure of a private company or a discretionary trust set up for their family, to do so.

a. Advise Cameron and Marguerite on the income tax advantages of using a private company, compared to the income tax advantages of using a discretionary family trust, if they decide to start up the new business together.

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