One of the proposed changes that was announced in the 2018-19 Federal Budget night was the removal of access to the small business CGT concessions for partners who seek to alienate their share of partnership income by creating, assigning or otherwise dealing in rights to the future income of a partnership (often referred to as Everett assignments). The Government is proposing that this change would be effective from 7.30pm AEST on 8 May 2018.
In addition to the Government’s plans to remove access to the small business CGT concessions for these arrangements, it is important to note that the ATO has recently expressed some other concerns with Everett assignments. For example, the ATO had indicated that the general anti-avoidance rules could potentially apply to some arrangements involving partnership interests.
The ATO had previously published some guidelines dealing with both the allocation of profits from professional firms and Everett assignments but this guidance was suspended on 14 December 2017 due to the ATO’s concerns in this area. The ATO has indicated that it has been consulting with professionals since early 2018 with a view to publishing some updated guidance in this area prior to 30 June 2018.
To find out more about the information contained in the ATO Announcement on Everett Assignments, please contact Tax Ideas Accountants & Advisers…https://taxideas.com.au/booking/ Tel: (02) 8318 1545