Tower reveals GST commission plans
Tower Trust has sent a letter to advisers confirming that up-front and trailing commis-sions will be increased by up to 10 per cent after the introduction of the GST.
Tower Trust has sent a letter to advisers confirming that up-front and trailing commis-sions will be increased by up to 10 per cent after the introduction of the GST.
The letter also promises the provision of recipient created tax invoices for future commission payments. As a result, advisers will not be required to submit individual tax invoices.
Tower Trust managing director Brenton Wood says Tower is striving to minimise the impact on advisers of the upcoming GST.
“For instance, Tower Trust intends to apply for an Australian Business Number (ABN) for all private superannuation funds, to ensure there is no risk of having in-come tax withheld on any payments at the highest marginal tax rate,” he says.
“We are also currently assessing the optimum GST registration strategy for investors’ funds, having regard to the likely ongoing cost of preparing Business Activity State-ments to claim input credits for each fund.
“Soon we will be letting advisers know of our view on this aspect, together with our comments on the implications of the Pay-As-You-Go system for their clients’ super-annuation funds.”
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