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The family-owned business faced high workers' compensation premiums approx $21,500, despite the family members rarely utilising these benefits. This led them to question the necessity of paying for coverage they didn't need. They were required to pay payroll tax of $49,250 per annum for employees combined.
Compulsory superannuation contributions of 9.5% pre 2020 on their salaries, while understood as important for retirement, tied up funds they preferred to reinvest directly back into the business for growth.
Recognising the need for a restructure, Oyster Hub recommended dividing the business into two separate entities.
1. Manages all sales and revenue generation. 2. Operates as a partnership between the father and three sons. 3. Receives a management fee from the service company. 4. Distributes net profits to the family members.
1. Employs staff and covers operational costs, including rent. 2. Handles manufacturing and installation of joinery products. 3. Pays a management fee to the family partnership. 4. Operates in compliance with ATO service company guidelines.
Oyster Hub provided advice on setting up the organisation as an Aboriginal Controlled Community Organisation (ACCO), including board setup and constitution development.
By restructuring the business, Oyster Hub successfully eliminated unnecessary workers' compensation premiums for family members, resulting in annual savings of over £21,500. This strategic move reduced costs without compromising employee protection or compliance.
The new business structure reduced total payroll below the threshold of $32,700 for family wage distribution per year, excluding other employee wages, effectively eliminating payroll tax obligations and creating immediate cost savings.
Oyster Hub restructured the arrangement for compulsory superannuation contributions on family members' partnership distributions, freeing up over $57,000 annually for reinvestment or personal contributions, giving the family greater control over their capital allocation.
The strategic restructuring delivered a combined saving of over $111,200 per year, significantly improving the business's financial efficiency and creating substantial additional cashflow for growth and reinvestment.
The restructuring provided newfound financial flexibility, allowing the family to reinvest in the business, pursue growth opportunities, or make personal financial decisions with greater freedom. The family was extremely satisfied with the outcome and recognized the value of proactive financial advice, leading to an ongoing relationship with Oyster Hub.
Director, Marshall Plumbing and Roofing
Oyster Tribe, led by CEO Sheena Olsen, overcame initial setup and strategic planning hurdles to establish vital community programs in Dubbo, NSW. Their success empowers Aboriginal self-determination and highlights the resilience of Indigenous-led initiatives.
Oyster Tribe, led by CEO Sheena Olsen, overcame initial setup and strategic planning hurdles to establish vital community programs in Dubbo, NSW. Their success empowers Aboriginal self-determination and highlights the resilience of Indigenous-led initiatives.
Jarred is self-employed and operates a computer repair and sales business. He previously defaulted on a $250,000 tax debt, for which he had a monthly payment plan of $10,500. To try and pay off the debt, he intended to sell his home and downsize. However, his house requires approximately $200,000 in renovations to reach its market value of $1050,000; currently, it’s valued at around $650,000 with an existing mortgage of $300,000.