Ralph is the main game for advisers
The main focus for advisers over the coming months should not be the GST but rather the changes which will come into effect as part of the Ralph Review.
The main focus for advisers over the coming months should not be the GST but rather the changes which will come into effect as part of the Ralph Review.
At least that is the opinion of AMP technical services manager John Ciaciarelli who told conference delegates yesterday that the big changes are those surrounding capital gains tax (CGT), the drop in company tax rates and the removal of flow-through status for some trust structures.
"The GST is important, there is no doubt about that, but the core principals which put money in the pocket is what will change under Ralph," Ciaciarelli says.
Added to this, says Ciaciarelli, is the need to remember that taxation is not the driver for a financial planner. Rather, he says it is important to see that financial planning techniques, such as salary splitting and negative gearing, come from having a graduated, marginal tax rate system.
"Ralph is not about tinkering with the processes involved but with the underlying fundamentals of financial planning, some which may need to change, or even to be ditched,” Ciaciarelli says.
These changes will also alter the people's attitudes to investing as well as providing new opportunities for planners.
"Every high net client will need a review to be notified of tax, DSS changes and the relation between CGT and trusts. However, ultimately any tax cuts are a bonus for us, as people will have more money to invest."
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