Tax

National law firm Holding Redlich has made two senior hires as it moves to strengthen capability in tax advisory, tax controversy and dispute resolution.

The practical operation of Australia’s thin capitalisation reforms has proven to be “materially more complex and disruptive“ than policy intended, CPA Australia says.

Internet memes depicting Prime Minister Anthony Albanese as a “business partner” with a 47 per cent stake in businesses are spreading misinformation, the IPA has warned.

Families facing structural change are emerging as losers in the government’s minimum discretionary trust tax, with one lawyer emphasising the importance of compliance to avoid further losses.

Labor plans to to have legislation for the reforms to capital gains tax and negative gearing ready in around two weeks but will develop the legislation for the trust tax changes later this year.

One accountant says that with Division 7A in place, the budget’s 30 per cent minimum tax on discretionary trusts is not needed, as most people are not “bad eggs”.

Beyond raising expenditure benefits, the proposed changes will isolate Australia from other OECD countries and may complicate compliance, according to one advisory firm.

Employees wishing to take advantage of tax concessions withs EVs and salary packaging should focus on lower value vehicles and act soon, says BDO.

The Tax Office has outlined the areas currently on its radar with research and development tax incentive claims and encouraged tax professionals to report any dodgy R&DTI advice being promoted.

Practitioners must watch closely for policy changes regarding the taxation of trusts, as any changes are likely to add further administrative burden for clients, the law firm says.