Thinking about entering the management rights industry? A free upcoming Brisbane event is set to provide valuable insights for both first-time buyers and experienced operators looking to better understand the current market.

Discover Management Rights Brisbane: 360° Insights for Every Buyer

This free industry event brings together some of Queensland’s most respected management rights specialists for an informative morning session covering finance, legal considerations, compliance, valuations, market conditions and buyer expectations.

Holmans is proud to be part of the expert panel, with Chantel Duplessis presenting on accounting and taxation considerations within the management rights industry. Chantel will provide practical insights into financial structures, taxation obligations and key accounting factors buyers should understand before purchasing a management rights business.

What Attendees Will Learn

• Current management rights market conditions and buyer expectations
• Finance, accounting and taxation considerations
• Legal, compliance and valuation insights
• How to better understand management rights business structures
• Key considerations when assessing opportunities
• Exclusive Brisbane listings presented publicly for the first time

Expert Industry Panel

• Trent Pevy – Pevy Lawyers
• Chantel Duplessis – Holmans Accountants
• Cameron Wicking – Mike Phipps Finance
• Mike O’Farrell – MLR Services
• Trevor Rawnsley – ARAMA
• Victor James – Validum

Prize Draw

Every registered attendee will go into the draw to win 2 x MRITP Course places with ARAMA, providing valuable industry training for those considering a future in management rights.

Event Details

• Date: Saturday 30 May 2026
• Time: 9:00 AM – 11:30 AM AEST
• Venue: Full Moon Hotel Sandgate
• Address: 118 Eagle Terrace, Sandgate QLD 4017
• Cost: Completely Free
• Refreshments: Morning Tea Provided
• Parking: Ample Parking Available

Whether you are just beginning to explore management rights or actively searching for the right opportunity, this event offers valuable insights from some of the industry’s leading professionals.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Thinking about entering the management rights industry?

The upcoming Management Rights Made Easy Seminar on the Gold Coast is designed to provide an expert introduction to one of Australia’s most established accommodation and property investment sectors.

Hosted by ResortBrokers, the seminar will bring together leading specialists across sales, finance, accounting, legal, and training to help prospective buyers better understand how management rights businesses work and what to consider before entering the industry.

Seminar details:

• Date: Saturday 6 June 2026
• Time: 9:00am – 12:00pm
• Location: RACV Royal Pines, Gold Coast
• Address: Ross Street, Benowa QLD 4217

Fully catered morning tea will be provided, with limited spaces available.

Why management rights continue to attract buyers

Management rights businesses continue to attract strong interest from Australians looking for a combination of business ownership, lifestyle flexibility, and investment potential.

These businesses can provide:

• Strong recurring income streams
• Long-term agreements
• The opportunity to live onsite
• Lifestyle benefits in desirable locations
• Established operational systems
• Potential for long-term growth

For many buyers, management rights offer an appealing pathway into business ownership while living in sought-after regions such as the Gold Coast.

What attendees will learn

The seminar is designed to provide practical insights into the management rights industry, including:

• What management rights are and how they operate
• Why they are often considered secure, low-risk businesses
• The differences between holiday and permanent complexes
• Current opportunities in the Gold Coast market
• Finance structures and lending considerations
• Business structuring and taxation considerations
• Legal due diligence and contract pitfalls
• Training and licensing requirements

Meet the expert panel

ResortBrokers

Todd Warner, Clint Amos, and Nathan Bock are ResortBrokers’ Gold Coast management rights sales specialists. As market leaders in management rights sales, the team has handled numerous transactions across both holiday and permanent complexes.

The ResortBrokers team will provide current market insights and discuss where they believe the strongest investment opportunities currently exist.

Mike Phipps Finance

With more than 30 years of experience in accommodation industry finance, Mike Phipps Finance is recognised as one of Australia’s leading finance specialists in the sector.

Paul Grant will discuss the current state of the management rights industry, available finance options, and insights into lending considerations specific to management rights businesses.

Holmans Accountants

Holmans has conducted income verification reports for buyers on hundreds of management rights businesses across Australia.

Lel Parnis will provide practical insights into analysing profit and loss statements, understanding business performance, and structuring a management rights business effectively from an accounting and taxation perspective.

Pevy Lawyers

Pevy Lawyers acts for a significant number of new entrants into the management rights industry.

Amy McKee will discuss the importance of specialist due diligence when purchasing a management rights business, along with key pitfalls buyers should avoid throughout the contract and settlement process.

Validum Group

Victor James Pisanos from Validum Institute will provide information around training and licensing pathways within the real estate and property management industry.

Established in 2016, Validum Institute delivers online and blended learning courses across property services, sales, and property management.

An opportunity to learn from industry specialists

For anyone considering entering the management rights industry, seminars such as this can provide valuable real-world insights before making a major financial commitment.

Understanding the financial, legal, operational, and market aspects of management rights is an important part of making informed business decisions.

At Holmans, we continue to work closely with management rights buyers and operators across Australia, helping clients better understand financial performance, taxation considerations, and business structuring opportunities within the industry.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Ready to take the next step in your accounting career?

Holmans is looking for an experienced and driven Senior Accountant / Client Manager to join our growing team on the stunning Sunshine Coast.

This is a work-from-home role for candidates based in Brisbane or the Gold Coast, with regular connection to our Sunshine Coast team as needed.

This is more than a job — it’s an opportunity to thrive in a values-driven firm that believes in genuine client care, collaboration, and having a little fun along the way.

About Holmans

We’re a long-established, 4-partner firm with offices in Noosa and Maroochydore. Holmans is proud to deliver exceptional service and strategic advice, with deep expertise in the accommodation and tourism sectors, particularly Management Rights businesses.

Our Accommodation Team works closely with clients across the full lifecycle of their business, from acquisition and growth through to optimisation and exit planning.

We’ve built a culture around support, professional growth, and genuine care for each other and our clients. If you’re seeking variety, flexibility, and real career progression this is the place.

Your Role

As a Senior Accountant / Client Manager – Accommodation Team (Management Rights Focus), you will:

• Building lasting relationships with clients, particularly in the accommodation industry
• Delivering tax, accounting, and business advisory services
• Providing strategic guidance in areas such as forecasting, cashflow, and growth planning
• Preparing financial statements, tax returns, BAS and payroll tax obligations
• Being a trusted advisor and part of the client’s success journey
• Prepare Adjusted Profit & Loss for Sale Reports and Financial Verification Reports
• Contribute to the development of systems, workflows, and best-practice processes within the Accommodation Team
• Mentor and support junior team members as the team continues to grow

What We Offer

• A welcoming, supportive team culture
• Quarterly tax updates, specialist training, and structured career progression
• A variety of interesting work — no two days are the same
• Leading systems, templates and workflows to make your job easier
• Work-from-home role for candidates based in Brisbane or the Gold Coast, with periodic travel to the Sunshine Coast for team connection and training
• Regular team events and social catch-ups

About You

• Ideally you’re based in Brisbane or the Gold Coast and comfortable working remotely with a Sunshine-Coast and Brisbane based team
• You’re a confident communicator and relationship-builder
• You take ownership of your workload and enjoy managing a diverse client portfolio
• You have a minimum of 5 years’ experience in public practice
• You’re CA or CPA qualified (or close to completion)
• Experience with Management Rights businesses or accommodation clients is highly regarded
• You’re professional, but don’t take yourself too seriously and you love being part of a positive, motivated team

Let’s Talk

This is a rare chance to join a leading Sunshine Coast firm with a loyal client base and an exceptional internal culture. If this sounds like you, we’d love to hear from you.

To apply, email your resume and cover letter to accom@holmans.com.au or visit our Careers Page and submit your information via our careers form.

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We are thrilled to share that Holmans Accounting & Taxation has been recognised as a finalist in the 2025 ARAMA Management Rights Industry TOP Awards, in the category People’s Choice Service Provider of the Year.

This recognition comes from the Australian Resident Accommodation Managers Association (ARAMA) and reflects the trust and support of clients and peers across the management rights and accommodation industry.

“These awards are designed to Target Outstanding Performers and this is acknowledgement that you certainly are one of these… We hope that you display this recognition certificate in a prominent location so that your clients, and fellow team members can recognise your achievement as well.”

The winners will be announced at the ARAMA TOP Awards dinner at The Star, Brisbane on Friday 12 September 2025.

What this means for our clients

At Holmans, we’re committed to delivering practical advice, proactive communication, and exceptional service. Being named a finalist is a proud moment for our team and a reflection of the strong relationships we’ve built within the industry.

Thank you to our clients and the ARAMA community for your ongoing support. We look forward to celebrating this achievement and continuing to deliver the high standards you expect from Holmans.

Learn more about ARAMA  |  Contact Holmans

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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A Significant Tax Change Ahead

From 1 July 2025, interest charges on unpaid tax debts — including the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) — will no longer be tax deductible.

This marks a major shift for both individuals and businesses who have previously been able to claim these interest charges as tax deductions, effectively reducing the cost of late tax payments. The change is being implemented under the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share) Act 2023.

Read the ATO’s official announcement

Who Does This Affect?

Individuals

• Interest charges on unpaid personal tax will no longer be deductible.
• Loans used to pay off personal tax debts remain non-deductible, as always.

Businesses (Companies, Trusts, Sole Traders)

• ATO interest on unpaid business tax will also lose deductibility from 1 July 2025.
• Interest on commercial loans used to repay business tax debts will remain deductible, provided the loan is directly connected to income-producing activities.

What’s the Financial Impact?

The ATO’s interest rates are not trivial — the current GIC is over 11% per annum, and it compounds daily.

For example, a business with a $60,000 tax debt accruing $6,600 in GIC annually would previously have reduced its taxable income by claiming the interest. From 1 July 2025, this is no longer an option. That $6,600 becomes a direct, non-deductible hit to the bottom line.

ATO Interest Rates (Current GIC and SIC)

Strategic Steps You Can Take Now

This change is an opportunity to get ahead of your tax obligations. Here are three practical strategies:

1. Clear or Reduce Existing ATO Debts

Pay down tax debts before 1 July 2025 to retain the deductibility of any interest incurred before the rule change.

2. Consider Refinancing Through Commercial Lenders

For businesses, replacing ATO debt with a bank loan may allow the interest to remain deductible — but only if the purpose of the debt is clearly linked to business income production.

3. Review Cash Flow and Payment Arrangements

Speak with your accountant to revise existing ATO payment plans, ensure timely lodgement of BAS and tax returns, and assess the tax efficiency of how you’re managing liabilities.

What’s the Purpose of This Policy?

The government’s goal is to discourage reliance on the ATO as a source of informal financing. By removing deductibility, they’re encouraging more timely tax payments — and aiming to level the playing field between taxpayers who meet obligations on time and those who delay.

Further information on policy intent (ATO)

Final Thoughts

This is more than just a legislative tweak — it’s a fundamental change to the way tax debt is treated from a financial planning perspective.

At Holmans, we’re already working with clients to assess the impact and adjust their strategies accordingly. If you carry ATO debt or expect to, this is the time to act.

Contact your Holmans advisor as early as possible to review your options and avoid unnecessary tax costs in the new financial year.

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Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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As the 2025 End of Financial Year (EOFY) approaches, Holmans has prepared a comprehensive tax planning guide to help both business owners and individuals take proactive steps to improve their tax outcomes. From optimising deductions to ensuring compliance with ATO expectations, the time to act is now.

Whether you’re looking to manage business obligations or maximise personal tax efficiency, the following insights can help you prepare effectively before 30 June.

Business Tax Minimisation Strategies

• Finalise Trust Distribution Resolutions: Ensure your Trust Distribution Resolution (if applicable) is reviewed and signed before 30 June 2025. Your Holmans advisor will have already prepared this document for review.
• Pay Employee Superannuation Early: Superannuation must be paid and cleared before 30 June to be deductible this financial year. Payments made after this date are deferred to FY2026.
• Bring Forward Consumable Purchases: Stock up on consumables (e.g. stationery, office supplies) in June rather than July/August to claim the expense this year.
• Defer Income Where Appropriate: Consider delaying invoices or income where practical. If work hasn’t been completed until after 30 June, issuing invoices in July may defer taxable income to FY2026.
• Write-Off Bad Debts: Review outstanding receivables and write off any unrecoverable debts prior to 30 June.
• Prepay Business Expenses: Small business entities can prepay eligible expenses up to 12 months ahead (e.g. insurance, subscriptions) and claim them this year.
• Instant Asset Write-Off: Small businesses (with aggregated turnover < $10M) can claim an immediate deduction for eligible assets under $20,000 if the asset is installed and ready for use by 30 June 2025.
• Depreciating Assets: Ensure any larger capital purchases are functional by year-end to commence depreciation claims in FY2025.

ATO Target Areas for 2025

The ATO continues to increase data matching and expects proper substantiation of claims. Key areas of focus include:

• Motor vehicle logbooks distinguishing business vs private use
• Receipts and supporting documentation for all deductible items
• Proof of travel and meal expenses (even if receiving allowances)
• Diaries for home office and mobile phone usage

Other Business Considerations

• Interest on ATO Debts: From 1 July 2025, interest on ATO debts will no longer be tax deductible. Consider addressing these balances now.
• Payroll Increases: Effective 1 July 2025:
  • Minimum wage increases by 3.5%
  • Super Guarantee rises to 12%

  Ensure your payroll systems and cashflow projections reflect this.

• Electric Vehicle Tax Benefits: Eligible EVs provided to employees can be exempt from Fringe Benefits Tax (FBT). This offers significant savings for businesses.
• Temporary Full Expensing (TFE) Transition: Previously fully expensed assets will now generate assessable income when sold. Plan replacement purchases and tax exposure accordingly.
• Stocktake and Obsolete Inventory: Complete a detailed stocktake by 30 June. Write off any obsolete or worthless items to claim a deduction.

Personal Tax Tips for 2025

• Home Office Deductions:
  • Revised fixed rate: $0.70/hr (covers electricity, internet, phone)
  • Actual cost method: requires full receipts and diary of usage
• Motor Vehicle Deductions:
  • Logbook method (12-week logbook + receipts)
  • Cents-per-kilometre (up to 5,000km at $0.88/km with a reasonable basis)
• Work-Related Expenses: Keep receipts for uniforms, tools, training, union fees, and memberships. These may be deductible.
• Income Protection Insurance: Premiums on income protection policies held in your name may be deductible.

Investment Property Strategies

• Prepay Investment Expenses: Consider prepaying up to 12 months of:
  • Interest (if allowed by lender)
  • Insurance
  • Maintenance
  • Management fees
• Delay Income or Asset Sales: Where possible, consider deferring income or capital gains events until after 30 June.
• Depreciation Reports: A Quantity Surveyor report can unlock significant depreciation claims, especially for newly acquired or improved properties.

Superannuation Opportunities

• Personal Contributions: The concessional contributions cap for FY2025 is $30,000. Review your total employer and personal contributions, and consider topping up before 30 June if you’re under the cap.
• Spouse Contributions: Claim a tax offset of up to $540 by contributing to your spouse’s super (eligibility applies if their income is below $40,000).
• Government Co-Contribution: If your income is under $60,400 and you make a non-concessional contribution of $1,000, you may receive a government contribution of up to $500.
• Carried Forward Contributions: If your super balance is under $500,000, you may carry forward unused concessional cap amounts from the past five years. The unused 2019-20 cap expires 30 June 2025.
• Division 293 Tax for High-Income Earners: Earnings over $250,000 may attract an additional 15% tax on concessional contributions.

Final Word

The lead-up to 30 June presents important opportunities to optimise your financial position. Holmans is here to support both business clients and individuals with proactive advice and tailored tax strategies.

Download the 2025 Personal Tax Tips PDF and contact your Holmans advisor early to implement any changes before the deadline.

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Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Insights from Leading Female Professionals

The management rights sector, once largely dominated by men, is undergoing a noticeable transformation as more women bring their unique perspectives to the forefront. From balancing work and family to building strong client relationships and driving business success, these women are reshaping the industry’s landscape.

Experienced operator Georgina Bishop highlights the flexibility the industry offers, enabling her to run a business while raising her children. This adaptability, she says, is a major factor in attracting more women to management rights. Similarly, senior lawyer Amy O’Donnell points to the nurturing qualities of her role, using her instincts to support clients through complex transactions, especially when guiding families through life-altering decisions.

Professionals such as Sharon Flood and Kelley Rigby stress the importance of communication and relationship building. Sharon, a legal expert, focuses on mediation, striving to resolve disputes before they escalate into litigation. Kelley, a business consultant, credits much of her success to the personal connections she fosters, particularly with other working mothers, which has helped grow her client base.

In the financial sector, Tayla Phipps and Simone Kennedy from Mike Phipps Finance play a key role in helping couples realise their aspirations of owning a management rights business. They offer support and reassurance throughout the financing process, understanding the emotional significance of these decisions.

As someone closely observing the industry’s evolution, I’ve noticed that many women are now stepping into primary leadership roles in management rights businesses, with gender becoming less of a defining factor. This growing confidence among women is at the heart of this positive shift.

For further insights into the experiences of these trailblazing women, click here to read the full story or download the complete PDF.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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ATO scammers are targeting hard-working Australians via emails, phone calls and SMS. Here’s how to protect yourself.

ATO tax scams have soared in recent years, targeting hard-working Australians via emails, phone calls and SMS.

Here’s how to spot ATO refund scams and what you need to do if you think you might have fallen victim to scammers.

Tax Scam 1: Refund Hoax

Scammers have been sending unsuspecting Australians ATO-branded emails urging them to click a link in order to receive a tax refund.

In one particular scam, members of the public were sent phishing emails with the phrase “You are due to receive an ATO Direct refund”.

The ATO issued a reminder to the public that it would never send an SMS or email with a link to access online services.

These services should instead be accessed directly by going to ato.gov.au

Tax Scam 2: Fake myGov emails

A scam targeting myGov users has been doing the rounds, prompting a warning from the ATO and Services Australia for the public to be aware of scammers impersonating government agencies.

Scammers sent ATO-branded emails to users telling them: “You have a new message in your myGov inbox – click here to view”.

Tax Scam 3: Multi Factor Authentication email Scam

The ATO has also reported an increase in reports of scammers impersonating the ATO and emailing the public to falsely advise them of security updates that require an update to the multifactor authentication on a person’s ATO account.

The scam email includes a QR code which takes the user to a fake myGov sign in page, designed to steal their myGov sign in details.

The ATO issued a reminder that it would never send an email with a QR code or a link to log in to online services.

Tax Scam 4: Tax Time SMS and email Scams

The ATO has previously warned taxpayers to look out for tax time ATO SMS and email scams. Scammers use different phrases to try and trick recipients into opening the dodgy links, such as:

• “You are due to receive an ATO Direct refund”
• “You have an ATO notification”
• “You need to update your details to allow your Tax return to be processed”
• “We need to verify your incoming tax deposit”
• “ATO Refund failed due to incorrect BSB/Account number”
• “Due to receive a refund, click here to receive a rebate”

Tax Scam 5: Social Media Accounts Scam

Scammers have also created fake social media accounts impersonating the ATO across Facebook, Twitter, TikTok, Instagram and other platforms.

The ATO has previously warned the public about these fake accounts, which ask users to send them a direct message so they can help with their ATO query in a bid to steal personal details including phone numbers, email addresses and bank account information.

The ATO reminded users that its only official accounts are on Facebook, X and LinkedIn. It urged the public to only follow their verified accounts and to make sure any email addresses provided end with ‘.gov.au’.

What To Do About Tax Scams

The ATO urges members of the public to always be aware of what information they share. Scammers can use personal identifying information to steal money from bank accounts and commit fraud in an unsuspecting person’s name.

The ATO advises that people should never share personal information such as myGov details, Tax File Numbers or bank account information.

What Should You Do If You Get Scammed?

If you suspect that your personal information, such as your tax file number, has been stolen, misused or compromised, the ATO advises you to phone 1800 467 033. The ATO will then investigate and place extra protection on your ATO account.

For privacy reasons, the ATO may not leave a message unless your voicemail clearly identifies who you are.

How Does the ATO Contact You?

The ATO will NEVER send texts or emails with links to services.

It will also NEVER ask you for your tax file number or bank details via return email, SMS, or on social media.

If you’re uncertain about any communication regarding myGov or the ATO, check with your accountant. Better safe than sorry.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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An aggressive new ATO approach to discretionary trust distributions has been announced and may have significant tax impacts moving forward if you have a trust in your group structure.

Many family groups face paying higher amounts in tax now (and potentially retrospectively) as a result of this new approach.

There is an integrity provision in the tax legislation, contained in section 100A, which looks at situations where income from a trust is distributed, on paper, to a beneficiary but the economic benefit of the distribution is provided to a different individual or entity. If s.100A is deemed to apply, the ATO will tax the trustee at the high penalty rates rather than the intended beneficiary paying tax at their own lower marginal tax rates.

Previously accepted tax planning strategies are at risk

Latest guidance suggests the ATO’s focus is honing in on previously accepted, commonly utilised tax planning strategies for family groups, including distribution to family members and ‘bucket companies’.

The legislation is not new but previously has only been invoked by the ATO where there was obvious tax mischief at play and there are some important exceptions to s.100A including where the arrangement is part of an ordinary family or commercial dealing. The majority of the new guidance and change in approach relates to what is accepted as ‘ordinary family or commercial dealings’, noting that arrangements will not be excluded simply because they are commonplace or involve members of the same family group.

Distributions to adult children are high on the ATO’s list of potential s.100A arrangements, where previously it may have been accepted to treat the distribution as a repayment to the parents for costs involved with raising the child prior to them turning 18.

Where distributions are being made to adult children, or other adults in your family group but the cash hasn’t flowed to those individuals, and the ATO deem s.100A to apply, tax will be applied at the top marginal tax rate and penalties may be imposed.

Circular arrangements

Where a trust distributes to a company in which it owns shares, there is a high risk the ATO would apply s.100A. If a trust is distributing income to a company which it receives dividend income from, there is a circular, recycling of income and tax is essentially avoided or at least delayed during the period the circular distributions and dividends are continued. This is less of a revelation and something accountants have long been cautious of but important to note.

Distributions to soak up tax losses may be subject to s.100A penalty tax if the economic benefit of the distribution does not flow to the beneficiary with the losses. Careful planning needs to be employed for groups with tax losses.

Companies entitled to trust income will come under further scrutiny and the ATO have released an additional draft determination dealing specifically with unpaid distributions owed by trusts to corporate beneficiaries. If amounts owed by trusts are deemed to be loans they may fall within the scope of Division 7A, another integrity provision in the tax law. Again, this is not new but the ATO have made clear these arrangements may be subject to review.

What is new is the removal of the 1-year grace period for trusts to make payment of distributions to companies before the ‘unpaid present entitlement’ (UPE) is potentially caught within Division 7A. Where previously an unpaid distribution wouldn’t be deemed a ‘Div7A loan’ until the year after the distribution is recorded, the new ATO guidance suggests the UPE may be treated as a loan from the point of distribution. This is relevant in determining when a complying loan agreement needs to be put in place to prevent the full unpaid distribution amount being treated as a deemed dividend and as taxable income in the shareholder(s) returns.

Further, the ATO are suggesting that ‘sub-trust arrangements’ will no longer be effective, which could result in simplification of your group structure if this strategy has previously been employed.

The new guidance represents a significant change in the ATO’s position on the use of trusts within family and business groups and management of unpaid present entitlements to trust income. For many, changes will need to be made.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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