Profits of professional firms

13 Mar 2025 12:00PM – 1:15PM AEDT

$213.64 +GST

The ATO’s updated guidance on dealing with professional firm profits has caused many practitioners to reconsider how profits are allocated to themselves and their related parties. The Profits of Professional Services Firms Webinar explores the impact of the ATO’s guidance and how to determine the risk level that applies to practitioners.

The final guidelines applied for the first time in the year ending 30 June 2023 for many practitioners, although some practitioners have been able to take advantage of transitional arrangements. The transitional period ends on 30 June 2024 which means that many firms and their principal practitioners are still trying to determine what needs to be done to achieve a low-risk rating.

The ATO has signalled its clear intention to delve into arrangements and business structures commonly used by accountants, lawyers, medical practitioners and other professionals. The ATO is specifically concerned with professional practices operating through trusts, companies and partnerships of discretionary trusts and how the profits from these practices are being taxed.

Professional firms have clearly been put on notice that Part IVA could potentially apply depending on how profits of the firm are dealt with. Now is the time to act.

What we cover:

The Profits of Professional Services Firms Webinar explains what you can and can’t do if you want to stay under the ATO’s radar.

  • Determining whether income is derived from personal services or from a business structure
  • What can and can’t be done when the PSI tests are passed
  • Applying the gateway conditions in PCG 2021/4 to determine whether the guidelines can be applied
  • Working through each of the three risk assessment factors in practice
  • How to calculate your risk ‘score’ and determine whether you are in the green, amber or red zone
  • Understanding when the guidelines apply and how the ATO’s transitional arrangements work
  • Other areas of ATO focus when it comes to professional firms, including service entity arrangements
 

Registration to this event includes:

  • 1.25 hour (est.) webinar
  • 3 month access to Q&A embedded webinar recording
  • Reference notes

 

 

Michael Carruthers round

Presented by

Michael Carruthers
Tax Director
Knowledge Shop

This webinar is presented by our partners at Knowledge Shop.

Terms and Conditions
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