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David Hansen

Mar 21, 2024

RITC's and IDPS

in SMSF Technical Forum

The ATO has recently released a practice statement on the GST not being able to be claimed on investor directed portfolio services. There seem to be three points that are necessary for the fund to be caught by this statement.

An individual (or other entity) engages an adviser to provide them with personal finance advice about the individual’s interest (current or prospective) in the fund.
The fund is authorised to pay the fees, by deducting the amount from the individual’s interest held for them in the fund.
If the fund does not pay the fees, the individual remains liable to pay the adviser.

My question is have any auditors looked at IDPS, MDS, Wraps etc to see if they are caught by this new ATO approach? Given these platforms will all have the same fee agreements for all users we may be well served as an organisation to keep a register of these platforms that we can refer where the GST RITC's are not able to be claimed.

1 comment

Comments (1)

THE AUDITORS INSTITUTE

Mar 25, 2024

Hi David

With SMSF's my view is that it is rare that we see adviser fees being deducted from an individual's interest held for them in the Fund. As a result I question whether this change is of more relevance to non self-managed superannuation funds.

Thanks

The Auditors Institute