ATO Targeted Review of Medium and Emerging Private Groups (Dec 24 Tax Update)

Relevant For:

Australian business owners with annual turnover of greater than $10million or control of wealth between $5million and $50million.

Key Points:

• The ATO's “Medium and Emerging Private Groups Tax Performance Program” targets businesses with turnover >$10M or wealth $5M–$50M.
• The ATO focuses on trust governance, Division 7A compliance, CGT concessions and income accuracy.
• Munro’s ongoing professional management of clients tax affairs legally mitigates taxes, and in the event of review or audit, Munro’s strategic approach aims to achieve a relatively painless experience and outcome.

Full Article:

The ATO is increasingly focused on businesses classified under its “Medium and Emerging Private Groups Tax Performance Program”.

Businesses with annual turnover exceeding $10 million or those controlling wealth between $5 million and $50 million may soon hear from the ATO.

If your business falls into these categories, preparation is critical to ensure compliance and avoid unnecessary complications.

Understand the ATO’s Focus Areas

ATO reviews often hone in on:

• Trust governance: Ensuring deeds and resolutions comply with legislative requirements.
• Division 7A compliance: Verifying the legitimacy of loan arrangements.
• Capital Gains Tax (CGT) concessions: Correct application of tax concessions.
• Income accuracy: Detecting omitted or inaccurately reported income.

A Strategic Approach