Critically, the start date has been deferred to 1 July 2022, and there is now a 2 year transitional period to 1 July 2024 for arrangements that were low risk under the Suspended Guidelines.
Otherwise, the final PCG is substantially the same as the draft, albeit with more examples as to how the ATO would apply the guidelines, and with some concessions around the risk factors.
The deferred start date provides professional services businesses (management and partners) appropriate time to consider the impact of the PCG on their business structures, remuneration and compliance obligations. We will be publishing information on next steps as developments emerge.
We have significant expertise in the structuring of professional services practices generally and on this specific matter, having authored or contributed to submissions on the draft PCG to the ATO on behalf of clients, professional bodies and on our own behalf.
Please contact us to discuss how we can support your business, including assessing key areas of exposure, implications for existing arrangements, forecast income.