Mortgage Brokers

Trail commissions are recurring payments that grow as your book builds. We set up your chart of accounts to track trail income separately from upfront commissions so you can see the value of your recurring revenue clearly. This is also important for tax planning, as the timing and structure of how you receive trail income can affect your tax position.

Many brokers start as sole traders, which is simple but offers no asset protection and means all profit is taxed at your personal rate. As income grows, a company or trust structure becomes increasingly attractive. We model the tax and structural options for your specific situation and provide a clear recommendation on the best path forward.

A clawback occurs when a lender recovers previously paid commission, typically because a loan was discharged early. In your accounts, this needs to be recorded as a reduction in income rather than an expense. We set up a clear process for recording clawbacks in Xero so your income figures always reflect your true net position.

This depends on the nature of your services. Financial supply services are generally input-taxed rather than subject to GST, but fee-for-service arrangements may be taxable. The rules can be complex, and we review your specific income streams to ensure you are applying the correct GST treatment to each one.

Variable income is common in the broker industry, particularly in the early years. We use tax planning strategies including income smoothing, superannuation contributions, and timing of deductible expenses to manage your tax liability across years and avoid large unexpected bills at the end of the financial year.