ATO Urges Super Funds to Review RITCs for Member Advice Services in Light of GST

• The Australian Taxation Office (ATO) has published a notice urging superannuation funds and investor-directed portfolio services (IDPS) investment platforms to review their claims for GST reduced input tax credits (RITCs) for adviser services fees.
• The ATO states that funds are not eligible to claim RITCs for adviser services fees under certain tripartite arrangements.
• The ATO acknowledges that past private rulings may have led some funds to believe they were entitled to claim RITCs.
• The ATO has improved its understanding of contractual arrangements where a fund member obtains personal advice services from a financial adviser and authorizes the fund to pay the adviser’s fee on their behalf.
• The ATO’s position is that these arrangements involve a supply of financial advice to the member and do not result in a second supply to the fund.
• Funds should review their specific circumstances and contractual arrangements to determine if they are entitled to claim RITCs.
• Deloitte Australia suggests that there may be circumstances that are not affected by the ATO’s notice.

Source: taxathand.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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