Succession – Do you have a Five-Year-Plan and an Exit Strategy?

What are you doing to adequately prepare your business for its life beyond your management or ownership of it? Ideally, you will assess your business’s performance and its value and take steps to align those with your personal financial goals for your retirement.

Succession planning is a process best done in stages over a long period, usually five or more years. Many business owners look to their businesses to fund their retirement, so spending time to consider all aspects of an exit strategy is essential for a fruitful outcome for both the business and for you.

Why do you need a five-year-plan?

To improve the chance of success of your business as it is handed to the next generation in your family or to another person promoted to take on the business, a checklist of tasks undertaken over a period of years would constitute a holistic succession plan.

Here is a checklist of tasks. Though not an exhaustive list, these tasks are the main ones that would generally be handled in succession planning:

Furthermore, a comprehensive checklist would also encompass financial planning tasks:

Succession planning is a tool to help you identify the current value and future competencies of your business. Likewise, having a clearly defined exit strategy as part of succession planning can expose best financial scenarios when the time comes to leave your business.

How do you exit a business?

Owning a successful business in Australia gives you opportunities, including a good lifestyle, a regular income and, in due course, can lead to retirement income. To achieve the goal of leaving behind a healthy and mature business, you will need to consider how you want to leave or ‘exit’.

Exiting a business can be done in numerous ways. Two common ways are:

Selling a business to a third party (open market) or to a strategic buyer, such as a competitor

During succession planning, particulars like transparent financials, IP protection, business asset preservation, staff retention, premises and/or equipment leases and legal formalities would be addressed and secured prior to any sales process commencing through a qualified agent.

Deciding to pass a business on to a child or another suitable successor

Just like selling a business, the details to cover in the succession plan are the same, however there is an extra consideration of whether you would choose to ‘gift’ a business without compensation. In this non-compensation scenario, a business valuation would be wise for tax purposes and seeking independent accounting and financial counsel would, likewise, be prudent.

Ultimately, an exit strategy can reward you for your years of hard work building a prosperous business. As a new operator comes on board, both your five-year-plan and exit strategy will prove to keep the business moving forward and, ideally, without the wheels falling off. You can enter your retirement with peace of mind.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your succession planning. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Superannuation death benefits – review succession

First and foremost it is important to understand that the payment of your superannuation death benefits are covered by the rules of your SMSF trust deed and do not automatically form part of your Estate for distribution in accordance with the terms of your Will. As trustee of your SMSF, you will need to make sure that you have read and understood your SMSF’s trust deed and that you comply with it at all times.

On your death, one option is to rely on the SMSF trustee’s wide discretion to determine who, within the operation of the law, will receive your death benefit and how much each beneficiary will receive.

The alternative is to remove the trustee’s discretion which gives you greater control in deciding how your superannuation death benefits will be cashed. This may be relevant if:                                                          

Subject to the specific terms of your SMSF trust deed, ways in which you could consider removal of trustee discretion include:

To ensure that your death benefits are cashed in accordance with your wishes, it is critical to ensure that your estate plans are comprehensive and that you understand the ownership and control of your assets on your death. It is also important that any superannuation death benefit advice you receive is consistent and complimentary to your overall estate plans and is not in isolation to the other.

At a minimum, we recommend that trustees have their SMSF trust deed reviewed to ensure maximum flexibility when dealing with death benefit payments. It is also recommended this be done alongside a review of any BDBN(s) to ensure that they too are valid and provide certainty in how death benefits will be dealt with upon your death.

When considered in light of an ageing Australia, the value of assets invested in SMSFs and recent court cases, having the correct SMSF documentation and process is essential to minimise the risk of litigation from disappointed beneficiaries to allow a safe passage of death benefits to your intended beneficiaries.

So what should form part of a comprehensive SMSF estate plan? At a minimum it should contain:

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your estate plans. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Do you have yours by now? – Director Identification Number (DIN)

Enacted by the Australian Government as part of the 2020 Budget – Digital Business Plan, the mandatory registration of all Australian company directors is a new initiative to help:

• Prevent director involvement in unlawful activities
• Prevent fraudulent use of director identities
• Prevent false director identities from being created
• Authorities to trace – in real time – directors’ business relationships and their business activities within companies
• Create fairness in a more equitable business environment because wrongdoings by directors can be traced

What do you need to do?

Registration with the new Australian Business Registry Services (ABRS) maintained by the Australian Taxation Office (ATO) results in directors receiving a Director Identification Number or DIN. A DIN is a unique 15-digit numerical identifier. A director receives this DIN – a form of ID – once in a lifetime and it remains with a director even when changing companies.

Any director of a company or of a registered entity under the Corporations Act 2001 must acquire a DIN. It is free to apply.

How do you apply?

The ABRS directs you firstly to the myGovID app and then to apply through myGov. If you already have a myGovID, you can head straight to myGov. If you don’t have a myGovID, you can set one up. Use this link to learn how: How to apply for your Director ID (mcusercontent.com)

Another way to apply, if you live in Australia, is to call the ABRS and apply directly. You will be asked to verify your identity using your tax file number (TFN) and at least one identity document, as well as answer some questions. To call the ABRS, use this link: Contact us | Australian Business Registry Services (ABRS)

DEADLINE for Application for a DIN

Newly appointed directors within the past year will likely be aware of their requirement to register with the ABRS.

However, directors who have been in business for longer than the past 12 months must heed the deadline of 30 November 2022.

Note, even if you intend to retire soon, you will need to apply for a DIN and use it for the remainder of your directorship tenure.

Next Steps

YML Group has the expertise to determine your company position status and to assist you with your DIN application. You will be asked for your Tax File Number (TFN) to verify your identity as part of the application process. Penalties may be issued by the ATO for non-compliance with this new ‘Director ID’ law.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your Director ID. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Superannuation Guarantee Contribution – Reporting and Payments via STP

This year Australia’s Single Touch Payroll (STP) was streamlined under its first expansion, Phase 2. By now, employers mandatorily using STP to report their employees’ remuneration to multiple government agencies, including the Australian Taxation Office (ATO), are set to benefit from STP’s Phase 2 comprehensive and extensive bookkeeping capabilities.

Changes to Superannuation Guarantee Contribution

From 1 July 2022, changes to the superannuation guarantee contribution (SGC) commenced. These changes are applicable to employees who satisfy relevant superannuation guarantee eligibility criteria.

One amendment to the SGC is the removal of the $450 per month income threshold before SGC is payable. This amendment benefits casual and part-time workers who were exempt from receiving the SGC prior to this financial year.

With the removal of a cap, all employees over the age of 18 years, no matter how often they work in a month, are entitled to SGC. Also, any employee under the age of 18 years who works more than 30 hours per week is entitled to SGC. An employee’s earnings rate is no longer a barrier to receiving SGC.

Another amendment is the SGC amount payable by an employer has increased by 0.5% to 10.5% of an employee’s eligible earnings. This new percentage is applicable this financial year.

Legislation is in place that will require employers to add 0.5% each financial year until the SGC reaches 12% in the financial year 2025/26.

Setting aside additional remuneration funds will be necessary from now to meet new payment obligations.

The SGC changes will be required to be made through STP and businesses must be prepared to make their SGC payments. STP is the answer to accurately paying employees their due SGC with STP’s streamlined reporting pathways.

How to report via STP

STP Phase 2 is all about centralisation and the categorisation of more detailed information. After initial data entry, payment amounts are now individually classified. Previously, only total payment amounts were required to be reported.

Make sure that your employees’ correct superannuation information is on file. Note, you will need to add those employees who were not eligible for SGC prior to 1 July 2022. Remember to give your employees a choice of superannuation funds after first asking them if they have their own, preferred superannuation account.

It’s important to make sure that your STP software is connected to the ATO so that your reports are received accurately and timely by the ATO. If it has not already been done, your software service provider (SSP) can set up a direct link to the ATO for you.

Next, you will need to appoint someone in your organisation to authorise your STP reports. This might be you or a payroll manager or an external party such as a financial services provider. Once a STP report is authorised, you may send the report to the ATO yourself, or you might use a head office or external party to issue it. Ensuring any third parties are linked to your account and/or to the ATO is an important step in the STP process.

Finally, you can check that your report was received successfully at the ATO. Your SSP should be able to alert you to any reporting errors.

If you are late paying your SGC amount, then notify the ATO of any late SGC payments via the ATO’s process of lodging a Superannuation Guarantee Charge Statement within 28 days of the quarterly due date and pay the Superannuation Guarantee Charge which is made up of:

• SG shortfall amounts, plus
• Interest on SG shortfall amounts, plus
• Administration fee of $20 per employee per quarter.

Next Steps

The SGC changes will affect businesses differently, dependent upon the nature of the workforce within an organisation, so reach out to YML Group.

YML’s specialist Bookkeeping Service can help you with executing the 2022/23 SGC amendments.

We provide a high qualified, specially trained bookkeeper to partner with you and your business to help you manage both STP and your SGC obligations.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with STP and SGC. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

SMSF Withdrawal and Re-Contribution Strategy: Tax Benefits

By the time a self-managed superannuation fund (SMSF) member reaches age 60, it is prudent for them to have considered reducing or eliminating tax liabilities for when retirement commences. One way of doing this is to utilise a strategy of withdrawal and re-contribution.

In the past, the re-contribution strategy – used to reduce one’s retirement tax burden – was limited to SMSF members under 67 years of age. A legislative change effective from 1 July 2022 extends the re-contribution strategy to SMSF members beyond 67 years of age (and up to 75 years of age).

What is the re-contribution strategy and how does it work?

Upon retirement, the re-contribution strategy is a method of withdrawing a sum of your SMSF money and then contributing it back in to your SMSF as a non-concessional contribution, thus converting a previously taxable portion (or all, depending upon individual circumstances) of your SMSF holding to a tax-free component.

This re-contribution strategy would ideally constitute a part of your tax-and-pension retirement strategy. It will require you to have met full eligibility criteria around release of funds and around non-concessional contribution (NCC) caps.

A condition of release of funds after age 60 (and before age 75) is suitable for the re-contribution strategy because a lump sump withdrawal is received tax-free. When it is time to re-contribute your withdrawal, you will want the amount to fall within your NCC contribution cap limit. Your total superannuation balance contribution cap limit may be increased by using the bring-forward rule.

The bring-forward rule allows contributions limited to $110,000 or one year for those retirees with a total balance of $1.59 and $1.7 million in their superannuation fund; $220,000 for those retirees with a total balance of $1.48 and $1.59 million; and the maximum $330,000 for those retirees with a total balance below $1.48 million.

What are the benefits to you and your beneficiaries?

If you are under age 60, then the re-contribution strategy has the benefit of enabling you to get a better tax outcome on SMSF pensions when the time comes to draw upon your SMSF.

If you are over age 60, then the re-contribution strategy has the longer-term benefit of enabling you to reduce the tax on death benefit payouts to your adult children. Upon your death, your non-dependent children would be liable to pay tax on any taxable portion paid to them as your beneficiaries, such tax would be 15% plus Medicare Levy. Instead, with foresight to have created a tax-free SMSF holding, the tax payable would be 0%.

An additional benefit of the re-contribution strategy is that it might offer some protection in the event of future legislative changes to the way retirement funds are taxed, particularly where no tax concessions currently exist.

Factoring in the re-contribution strategy to your estate planning as part of an overall retirement plan might well be favourable, both in the foreseeable and long-term future, for you and your beneficiaries.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your retirement strategy. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

Australia’s Labour Shortage – Could Co-Sourcing be the answer for your business?

Although Australia’s unemployment rate is sitting at 3.5% (June 2022), there are workforce shortages in numerous industries. According to labour market economists, the current demand for workers to fill both existing and new jobs is high and labour supply is taking its time to catch up. In other words, as the economy reignites, sufficient skilled workers are not available. Not only have closed borders during the pandemic created a shortage of hospitality industry workers amongst others but also many people in the Over 55 age group have chosen to retire early due to the pandemic.

What is Co-Sourcing?

Co-sourcing is based on developing a dedicated partnership between a business’s internal operations and an external expert. Co-sourcing blends established internal resources of a business with partial outsourcing for specialised knowledge within a contracting arrangement. A business retains control over the operational process and there is an assumed shared responsibility for delivering the end service.

Unlike outsourcing where a business allocates entire internal processes to be performed by an external provider, co-sourcing is for businesses who want professionals to work alongside their employees, providing specific guidance and skills that might be lacking. Typically, co-sourcing is helpful when you do not want an additional employee within your staff structure.

What are the benefits of Co-Sourcing?

You can expand your expertise pool with access to the right person to assist on a project or with administrative functions when and how you need them.

You keep control and involvement in the process as an external expert works with your internal team to meet common objectives.

Your business’s own procedures and policies apply to a co-sourced professional, so quality control is maintained for best outcomes.

Co-sourced professionals retain the knowledge you share with them, such that a long-term working relationship ensures continuity for your business.

Co-sourcing can be cost-effective because back-of-house costs are taken out of the equation, yet quality remains high due to your retaining control.

Entrusting your co-sourced professional or team enables everyone working for you to maintain focus on their designated roles and responsibilities and on what each of them is best at doing.

Overall, co-sourcing offers valuable resources, new skill sets and support when your business needs a step-up to finish tasks that require assistance or to undertake internal processes that are outside of your employees’ scope of knowledge or time.

Leveraging external expertise and internal support to create an enhanced and shared working environment is the essence of co-sourcing in today’s modern office.

Where to from here?

YML Group provides co-sourcing services in administration disciplines, dedicated professionals who partner with businesses and who use cloud-based technology to work seamlessly with businesses’ internal management and staff.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with our co-sourcing service. For more information, view our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

Australia’s Holiday Maker Visa – Latest News

Hospitality and tourism are two sectors that have done it tough over the last two years of the COVID-19 pandemic, struggling to recover from disruptive border closures. To provide more support and employment in these areas, Australia’s Working Holiday Maker (WHM) visa program encourages young people from overseas who travel within Australia to take up the option of a second or third (year) WHM visa by taking on ‘specified work’.

A WHM visa (subclass 417) permits up a person to stay for up to 12 months and work on a temporary, a casual or voluntary basis. The main purpose of entering Australia on a subclass 417 visa is to holiday, to travel and to work as much or as little as a visa holder so chooses.

To qualify for a second year or a third year of travel and work in Australia, a visa holder must fulfil certain criteria. So long as a visa holder has met their visa conditions in the first year, including having worked in ‘specified work’ for a minimum period of three months (88 days) for a second visa and for a minimum period of six months (179 days) for a third visa, then an extended visa may be granted.

What is ‘specified subclass 417 work’?

Specified work is work in a primary role or function of certain industries to assist Australia with its economic recovery. Approved industries and geographic locations include:

• Tourism and hospitality in northern or remote or very remote Australia
• Plant and animal cultivation/tree farming and felling/fishing and pearling in regional Australia
• Mining in regional Australia
• Construction in regional Australia
• Bushfire recovery in declared bushfire areas
• Flood recovery in declared flood areas, must be undertaken on or after 1 January 2022(for applications lodged on or after 1 July 2022)

Greater flexibility for WHM visa holders

Same employer for up to 12 months

A visa holder may remain working for the same employer in any sector, anywhere in Australia, for longer than six months (up to 12 months) without requesting permission. This option is in place for the remainder of this calendar year (until 31 December 2022) when it will undergo governmental review.

Higher cap for 2022-23 WHM visa program year

From 1 July 2022 a once-off 30% higher cap will increase the number of places available to WHM visa holders – from countries with which Australia has a Work and Holiday (subclass 462) reciprocal arrangement. This cap will remain for the 2022-23 year only.

WHM Visa Application Charge Refund

People with WHM visas between 19 January 2022 and 19 April 2022 may request a refund of their Visa Application Charge (VAC) until 31 December 2022 by using this link: Visa Refund Portal - Visa Refund Portal (homeaffairs.gov.au), so long as the age criteria is met during this period. Please check visa holders meet visa requirements.

There is no VAC applicable on new WHM visa application from 1 July 2022 until 31 December 2022.

Tax and superannuation for WHM visa holders

Workers under the WHM (subclass 417) visa program must obtain a tax file number (TFN) before working in Australia. The same tax and superannuation rules apply for overseas workers as for Australian workers. Employers must meet their relevant workplace obligations under the WHM visa program.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your WHM visa applications. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website

Investors and SMSF Members: How to Spot an Investment Scam

Australians are not immune to the nefarious activities of scammers, especially in the investment and self-managed superannuation fund (SMSF) sector. An investment scam can be operated in a sophisticated realm of actual accounts set up in legitimate financial institutions, real people on the other end of a phone call and slick online advertisements that beckon victims.

Whether you’re in financial hardship or you’re just keen to move your savings in to another fund, if you provide your personal and financial information to a scammer, you risk losing your money and severely impacting your retirement savings. It is rare that money lost to scammers can be found and returned to the victims of this crime.

What to look out for – What to do

It is important to remember that legally accessing money from your own investment fund or SMSF can only be done by contacting the financial institution where your money is held and fulfilling a process that occurs between your financial advisor and you. Educate yourself about the rules for Australian superannuation.

You can be targeted by a scammer online, by phone or by email. Offers of managing your superannuation fund, investing your superannuation in other asset classes such as property and providing early access to superannuation savings are all the types of enticements used as ‘hooks’.

Sometimes fraudsters call and claim to be from your financial institution, especially if you’ve already mentioned it during the call, so firstly, hang up from anyone you don’t know and check their credentials. Do they genuinely work for the company?

Other times someone might claim to be an independent superannuation expert, offering you a new investment option or a higher return on your savings. Is this person accredited as a financial expert? Check if they are listed on ASIC’s professional registers: Professional registers | ASIC - Australian Securities and Investments Commission You might also check APRA’s disqualification register: Disqualification register | APRA

When dealing with a scammer, pay attention to:

• A caller having the same voice as in a previous call to you but using a different name – Hang up immediately, make no further contact and report the scam: Report a scam | Scamwatch
• Changing phone numbers or email addresses when you try to reach a caller – Check your SMSF and investment fund balances immediately and report the scam
• A website that suddenly disappears – Check your SMSF and investment fund balances immediately and report the scam
• Hot tips and links in emails – Do not click on links and install antivirus software

If you have provided enough information to a scammer, your funds might be moved without your knowledge. So, before providing ANY information to a third party, ALWAYS make your own independent enquiries. Ensure that anything you are offered is legitimate and mitigate your risk of falling victim to a fraudulent investment scheme.

How a scam can impact you

Your mental health is one aspect of your life a scammer might affect. If you need support, reach out to a trusted family member, a friend or call a support line for counsel.

Financial strain or hardship can be the result of losing part of or all your retirement savings and investments. When money is stolen from you, you might also suffer stolen identity.

You might be left with tax penalties for early release of funds from your SMSF. You might also incur greater financial losses due to not having access to the money that was stolen.

If an investment opportunity sounds or appears too good to be true, it probably is, so be cautious and make checking its legitimacy your priority.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with scam avoidance. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website

Australia’s Minimum Wage Increases effective 1 July 2022

The Fair Work Commission enacted a requirement in the Fair Work Act 2009 whereby each year the Commission reviews the National Minimum Wage (NMW) and modern award minimum wages. Thereafter, the Commission makes an order on any alterations to current award remuneration.

This year, announced by the Federal Government on 15 June 2022, the Commission decreed that there will be increases enacted from 1 July 2022. Those changes are:

• National Minimum Wage (up to $869.60 per week) will increase by $40 a week, equating to an increase of 5.2%
• Modern Award Minimum Wages (over $869.60 per week) will increase by 4.6%

The National Minimum Wage has been lifted in dollars from $20.33 per hour to $21.38 per hour or to $812.60 per week.

In his announcement, the Commission’s president, Justice Iain Ross, stated that the Commission’s decision rested on the increasingly high cost of living in Australia. “Given the sharp rise in the cost of living since last year’s review, the increases we awarded last year [NMW by 2.5%] have resulted in a fall in the real value of the national minimum wage and modern award minimum wages”, said Ross.

When do employers start paying more to their employees?

The changes apply from the first full pay period on or after 1 July 2022 for most industries (see below for industries identified for a second stage rollout). For example, if your organisation’s weekly remuneration period starts on a Monday, then the first application of the increases will occur from 4 July 2022.

The impact on businesses’ costs is relevant in the Commission’s decision and the Commission was “satisfied that exceptional circumstances exist” for certain industries.

Although the wage increases occur from 1 July 2022, a second stage means that for some industries – that have been slower to recover in the current economic climate – the modern award minimum wages’ increase will only commence from 1 October 2022. Those industries are Aviation, Hospitality – Hospitality Industry (General) Award, Registered and Licensed Clubs Award, Restaurant Industry Award – and Tourism.

What do employers need to do now?

It is important the employers ensure that ALL their employees whose remuneration is affected by the changes receive correct payroll outcomes. Updating your payroll systems is essential now and YML Group can assist you with your finance procedures for a smooth transition to the new wages protocol.

To read a summary of the Fair Work Commission’s decision, see decision summary. 

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your payroll. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website

Trust Distribution Minutes – SIGN before 30 June 2022

Legal ownership of assets in a discretionary (family) trust rests with a trustee of said trust fund. Income from the assets, however, calculated as distributable income, benefits the beneficiaries through trust distribution. See also Due Diligence – Section 100A

Signing your discretionary trust’s distribution resolution – in the form of a memorandum of minutes – is one of the essential tasks you or your trustee must undertake during June. These minutes are to protect your trust’s taxable income from being taxed at the highest marginal tax rate post 30 June.

The ATO’s legislation imposes the requirement that distributable income be calculated and resolved prior to 30 June – or by a date stipulated in your trust deed – and notification be given to the ATO via signed trust distribution minutes. Minutes of a resolution is the written advice used to inform the ATO of a trust’s allocation of its net income for the current financial year (2021/22).

By making a resolution a trustee is establishing which beneficiaries are ‘presently entitled’ and therefore assessed on a trust’s net income. Net income for tax purposes (distributable income) may be allocated to beneficiaries (person, company, another trust, charity) in accordance with the trust deed. This allocation of a trust’s net income must be determined prior to 30 June. Check your trust deed for specification of any alternate date.

Beneficiaries may only receive franked dividends or capital gains so long as such an entitlement is specified in a trust deed. Relying on a written record of an annual resolution of a trust’s allotment of its distributable income can help avoid conflict between a trust and its receiving beneficiaries.

When preparing trust distribution minutes, a clear methodology of the resolution must be described, so accurate recording and reference to a trust deed are necessary before trust distribution minutes can be signed. Evidence of a resolution and the distribution decisions made by a trustee might include diary entries, dated correspondence, meeting minutes and memoranda. Such documentation may be relied upon by the ATO to verify resolved and signed trust distribution minutes.

Due Diligence – Section 100A

It would be prudent during this process of resolving your trust distribution that the draft guidance on Section 100A (S 100A) of the Income Tax Assessment Act 1936 be strongly considered. It is anticipated that a ruling of S 100A would commence on 1 July 2022.

S 100A provides guidance to address ‘trust-stripping’ and other tax avoidance practices in the distribution of discretionary trust income. The ATO has concern for any trust entitlement allocation being distributed where there is no intention for beneficiaries to receive the benefit of any allocated trust entitlement.

The draft guidance includes:

Referencing TA 2022/1, the ATO is concerned about family trusts wherein arrangements are made to distribute trust income to adult children, or other lower-taxed family members, and parents benefit via repayments and reimbursements then made by the adult children back to the parents. Where it is not intended that the adult children retain any benefit of the distributed trust income, rather their acquisition of the income is purely based on tax avoidance, then the ATO will assert its concern and authority. (Note: Minors are not affected by S 100A)

How YML Group can assist you

YML works closely with our clients to ensure that trust distribution minutes comply with the ATO’s requirements. We can prepare draft interim financial statements for your trust to be used to calculate your trust distribution percentages (actual dollar amounts are not required to be defined nor mentioned prior to 1 July). We will draft your trust distribution minutes for you to sign by 30 June 2022 or prior as may be required by your trust deed.

Click the link below to tell us which option would you like us to process.

          https://app.hellosign.com/s/7BDscddY

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your trust distribution minutes. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.