McCullough Robertson advised on a significant and highly complex restructuring of a family group’s wealth, centred on a substantial shareholding in a profitable enterprise and associated investment assets. The mandate focused on implementing a long-term succession and asset protection strategy, involving the transfer of more than $1.5 billion in franked dividends into a newly established foundation designed to preserve and grow wealth for future generations.
The client, a senior member of the family group, sought to reduce exposure to operational and market risks associated within the sector while establishing a secure and independent investment vehicle for their descendants. Achieving this outcome required the design of a bespoke structure to facilitate the efficient extraction of retained earnings from an existing corporate vehicle, while managing significant tax, governance and risk considerations.
A central feature of the engagement was the development and implementation of an innovative dividend access arrangement. Given heightened regulatory scrutiny in this area, our team worked closely with the Australian Taxation Office over an extended period to address technical concerns and secure a favourable private ruling, an uncommon outcome in the context of existing Taxpayer Alerts. This process required careful alignment of legal, tax and commercial objectives to ensure the structure was both compliant and robust.
The restructure also involved the transfer and securitisation of substantial loan assets linked to a portfolio of commercial properties, together with the implementation of new leasing and operational arrangements. This work drew on the integrated expertise of our Tax, Estates, and Real Estate teams, who collaborated closely with the client’s internal and external advisers to deliver a seamless and practical outcome.
Beyond the transaction itself, McCullough Robertson has continued to play a strategic advisory role within the family group, including supporting governance arrangements for the foundation and assisting with broader succession planning objectives. This matter highlights the firm’s capability in delivering sophisticated, multi-disciplinary solutions for high-net-worth clients, combining technical excellence with a deep understanding of family enterprise dynamics and long-term wealth preservation.
