In the midst of discussion of such significant reform, taxpayers and advisors continue to wrestle with the multiplicity of taxation and superannuation issues impacting the ‘hip pocket nerve’.
In the background sits the Abbott Government’s second effort at a Federal Budget (May) and any changes it may throw into the mix.
In the superannuation sphere, both the ATO and Government have started to agitate around limited recourse borrowing arrangements. On one front, certain related party loans are under fire from the ATO whilst on the other side, the Government has stated its intention to take a closer look at borrowing arrangements in superannuation funds.
With the Financial System Inquiry also recommending a total ban on borrowing by superannuation funds, its fair to say that the current borrowing arrangements are ‘on the table’.
A key looming income tax issue for advisors and one that directly impacts their hip pocket is the ATO’s review of professional practices. The review was discussed in a recent article published by For Accountants (click here).
The ATO continues to gear up to be ready to review 2015 tax returns lodged by professional practices. Accountants need to plan ahead if they wish to be viewed by the ATO as ‘low risk’ in relation to who is taxed on the profits, or if they are willing to accept higher scrutiny. As outlined in the article, there are tests the ATO will apply in determining whether a professional practice should be reviewed. Meeting these tests may involve a cost, so practices should do the work now in order to determine their best outcome.
Given the ever-changing nature of tax and superannuation it remains imperative for advisors to be across all developments, ground breaking or run of the mill. Quality professional development remains paramount to meet this challenge.
TaxBanter is widely recognised as the leading provider of taxation related professional development training in Australia. With a range of taxation and superannuation professional development training programs available we encourage you to review your approach to professional development and consider whether any of TaxBanter’s programs will help you meet this challenge.