Investing using Holding/Bucket companies vs Personal Income

I'm trying to understand how one goes about deciding which assets to invest through bucket companies and holding companies vs which assets to invest with using post-tax personal income.

Say for example you are a business owner, looking at structuring to minimise tax and have two personal investment goals

• You have a PPOR but want to move into a larger PPOR in 5-6 years time. You currently do not have enough personal wealth to buy now, but likely you'll need some sort of investment vehicle to get yourself into a position to be able to buy in the next few years.
• You also want to play the long game and develop longer term wealth in terms of a property portfolio by deferring tax in the holding company/bucket company and compounding its growth via investing

Is it best to invest funds from the holding/bucket company to generate the wealth quicker (larger funds pool compared to if all funds were passed to your personal income due to not needing to pay top-up tax) and then absorb top-up tax when filtering that wealth down to your personal income, or should different assets be invested in different ways to achieve the above goals?

e.g. Should Buy-hold assets be kept within the holding/bucket company to maximise tax-deferral and buy-sell assets intended on being sold in the short-medium term be kept under personal names to maximise capital gains for future PPOR servicing?

 

It might be good to get some modelling done with an accountant. Holding money on a company means tax at 25% whereas an individual at up to 47% or even 57% with hecs. That allows more compounding so you end up with more capital. Then when you buy your main residence you need to decide whether to pay a off off top up tax to save 20+ years of non deductible interest or to save tax and pay a bit more interest

have a read of my series of posts on bucket companies