You are a health practice owner, having spent the last two years operating under extremely demanding circumstances during the COVID-19 pandemic.
It is nearing the end of the 22 FY, and you turn up to meet with your accountant. The agenda this year looks a bit different.
⏺ Industry-wide payroll tax audit activity in medical and health
➡️ there is work on legal documentation, structure, and operational conduct.
⏺ Trust distributions and common tax plan strategies under attack
➡️ Potential changes to overall group tax liability, reconsideration of beneficiaries, and a careful look at overall structure (see TR 2022/D1)
⏺ A risk matrix will now apply to your practice profit allocation to assess your ATO audit risk
➡️ Pass the gateway tests, apply the risk matrix and be careful on profit allocation choices (see PCG 2021/4)
Sound a little bit overwhelming?
Unfortunately, this IS the current playing field.
My advice is to reach out to your tax agent early this year.
Ensure they have great knowledge and practical experience toward the issues that impact your health business.
A great accountant will calmly and methodically navigate the above compliance storm by your side.