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Trusts

November

The Australian Taxaxtion Office is cracking down on income splitting in family trusts.

Worried by the ATO’s new trust crackdown? Here’s what you can do

Despite the practice being banned 25 years ago, the Australian Taxation Office says people are misusing the personal services income rules to avoid tax.

The Tax Office is concerned some professionals are incorrectly splitting income they earn with family members to reduce tax.

ATO targets high earners over use of trusts to evade tax

The ATO has spelled out exactly what it will allow as it launches a compliance campaign targeting white-collar professionals and tradies who use family trusts and other entities to aggressively reduce tax.

Family trusts have a little over a year to find and report errors that could date back as far as 1999,

ATO warns family trusts to confess to past errors

Families with trusts have a year to declare errors dating back to last century if they want to avoid big interest bills. Tax experts say the ATO is at fault.

The court has intervened to stop an ATO investigation into a medical researcher.

The $100m tax trap that could force family businesses into bankruptcy

Family trust compliance has become forensic genealogy, as tax laws threaten to destroy family wealth and small business viability in one fell swoop.

October

Chris, Chloe and Darren Thomas of the family behind Thomas Foods, one of Australia’s largest private businesses.

Rich Lister’s multimillion-dollar family trust mistake hits court

A simple name error cost this Rich List family $13 million in family trust tax. The court action to fix it could have implications for other family trusts.

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Family trust structures are riddled with complexities, but mistakes can be costly.

How a mistake led to one family’s $13m trust tax bill

A Rich Lister’s multi-million-dollar family trust tax court battle is symptomatic of a wider problem.

People with super balances above $10 million are set to pay an additional 25 per cent tax on a proportion of realised earnings (up to a potential total 40 per cent).

Super, trust or company: where to keep your wealth now?

With the impending increase in tax for high-balance super accounts, we consider the pros and cons of different vehicles for holding wealth.

HIgh Court of Australia.

Australia’s ‘most watched’ trust tax case reaches crucial stage

The Melbourne accountant – who is embroiled in a seven-year battle over tax avoidance – had his day in the nation’s highest court.

The ATO is concerned that a growing number of trusts are incorrectly splitting income that should be attributed to the person that earned it.

ATO to crack down on professionals splitting income in family trusts

The Tax Office believes a growing number of lawyers, doctors and accountants may be using trusts in breach of anti-avoidance rules.

September

Kelly Bayer Rosmarin appeared before a Senate hearing in Canberra in 2023, while she was CEO at Optus.

Former Optus CEO lands top role at Australian Unity

Kelly Bayer Rosmarin resigned as Optus chief executive in 2023 after the telco was hit by a cyberattack and a nationwide outage.

The Murdoch siblings

7 lessons wealthy families can learn from the Murdochs

The fight for control of the family’s trust and fortune illustrates how not to do intergenerational wealth transfer.

August

While Australia taxes workers less than most other developed economies, Grattan Institute CEO Aruna Sathanapally said the way in which revenue was collected was imbalanced.

Tax retirees and the rich, Chalmers’ roundtable told

In a speech on tax reform, Grattan Institute boss Aruna Sathanapally says Labor should tax superannuation and raise more revenue from the wealthy.

Discussions about wealth taxes are on the agenda for Jim Chalmers’ economic roundtable.

Affluent families unprepared for change risk wealth destruction

With wealth taxes on the agenda, the government’s economic roundtable should serve as a governance wake-up call for families that want to retain control.

Chiodo Corporation’s planned resort in Port Douglas, which failed to get approval.

BDO gave Shield clean bill of health in years before $1.2b collapse

The two superannuation investment schemes have since collapsed, leaving 12,000 customers out of pocket and triggering a blame game over a lack of warnings.

The prospect of one sibling inheriting more than the others is a major flashpoint for families.

5 inheritance blunders that worry wealthy families most

Fights over money can quickly hijack harmony. Don’t leave hard decisions until after you’re gone – or for the courts to resolve.

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July

Hit capital gains and trusts to cut income tax, experts tell Chalmers

Economists at a roundtable at Parliament have urged the government to reduce its dependence on wage taxes and rebalance the system to help younger people.

June

Family trust tax changes are on the agenda for Treasurer Jim Chalmers.

Family trust tax changes come with one huge risk

The case for changes to family trust taxes is strong, especially if they result in simplifying things. But there’s a big catch.

Superannuation has long been a favoured structure for wealth accumulation. But the erosion of benefits – via reduced caps, tighter rules, and now the threat of tax on unrealised gains – is prompting a rethink.

Worried about Labor’s $3m super tax? The case for discretionary trusts

Super funds and discretionary trusts, when used correctly, remain powerful tools for long-term wealth creation and intergenerational planning.

Economists are as confused as Trump about taxing the rich

Forget technocracy. The top rate is set by gut instinct. Economists are more comfortable talking about efficiency than redistribution.

May

Arnold Bloch Leibler is being sued over legal advice it provided to the son of an Indonesian businessman.

Indonesian lawyer accuses Arnold Bloch Leibler of tax advice fail

Benny Tabalujan is suing the well-connected firm and says he would have relocated to Singapore if it had not been for its “wrong and incorrect” advice.

Original URL: https://www.afr.com/topic/trusts-hvu