The full and final rate of company tax earned by shareholders on the apparent property benefits hasn't truly been factored into anything. Your strategy is a deferral strategy. The final tax hasn't been factored in. Tax is paid to 30% BUT full and final tax would impact shareholders. No CGT discounts but potentially franked income - That doesn't limit the tax rate to 30%. It just part pays it in the shareholder hands. The full and final tax rate can exceed 57%. ie 30% company + 27% personal. So you pay more tax to defer tax.
Paul,
I can remember your post and where these % come from. But question, does deferring tax always results in paying more tax in the end? The final tax could be a lot less than 30% too could it not?