1. if children are beneficiaries of the trust, they generally...

1. if children are beneficiaries of the trust, they generally won't receive tax-free threshold

2. corporate tax rate is irrelevant. the trust is not taxed, unless there is no beneficially presently entitled to the trust income. in other words, the trust income is generally taxed in the hands of the beneficiaries

3. you need to take care with trust losses, given this is a complex area, because trust losses generally cannot be distributed out of the trust. if the trust is a 'share trading business', any share trading losses can be offset against the other trust business income. otherwise, if the trust is shares investor & makes CGT losses, these probably get stuck in the trust (unless capital gains are made in future years). However, if you eventually sell your business for a capital gain, any old shares investing losses can be used to offset the capital gain

note: i haven't worked in tax for a few years now & have forgotten the trust loss rules, which are very complex

regards