TFN withholding arrangements open to consultation
The Treasury has released the exposure draft regulations for extending tax file number (TFN) withholding arrangements to closely held trusts, which include family trusts.
The Government announced its intention to extend TFN withholding arrangements to closely held trusts as part of the 2009-2010 Budget. The proposal is now open to public consultation.
The draft regulations propose amendments to the TFN withholding arrangements by providing the withholding rate and the threshold for payments to which TFN withholding will apply. The regulations also exclude a number of classes of trusts from the operation of the measure, including discretionary mutual funds, employee share trusts and solicitor trusts.
“These exclusions arose directly from consultation previously undertaken with stakeholders and trustees,” Federal Assistant Treasurer Nick Sherry said.
The changes commence on 1 July, 2010, and submissions close on 10 June, 2010.
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
