Professional firms

Our team has significant experience in the professional services industry so we understand the unique business, financial and tax-related challenges faced by professionals such as lawyers, engineers, architects, IT consultants, recruitment consultants, real estate agents, buyers agents, software developers and similar professionals.

Our approach is tailored to meet the specific needs of your practice, ensuring that you can focus on what you do best – caring for your patients – while we handle your financial and tax obligations.

From simple to complex matters, we can tailor our business services to suit your professional firm’s requirements.

Whether you run a busy engineering firm, a real estate agency or manage a legal practice, we are experienced in your industry and are ready to assist.

We’ll handle all of your tax compliance needs relevant to your practice’s firm’s business structure (sole trader, company, partnership, trust).

We also manage BAS returns, Payroll Tax returns, Fringe Benefits Tax returns and ATO audits.

Our comprehensive suite of tax and accounting services are tailored to meet your needs, from income tax returns and tax planning and advice to financial reports, business structures, family trusts and self-managed super funds. We have a wealth of knowledge and experience in tax and accounting to optimise tax positions and minimise tax.

Our clients consistently benefit from our proactive approach, industry experience and commitment to delivering results. We pride ourselves on building long-term relationships based on trust, integrity and a deep commitment to your success.

Everett assignments

The ATO is now targeting the use of Everett assignments among smaller firms.

An Everett assignment is a kind of legal income-splitting in which a partner in a firm assigns part of their stake in the firm to a third party, usually a spouse or family member, to save on taxes. Everett assignments are a way for professionals to take advantage of the low marginal tax rates of other family members.

The problem is that Everett assignments are “high risk” and in most cases poorly executed.

Personal Services Income & Personal Services Business

The Australian Taxation Office (ATO) is tightening its focus on professional firms under the current Personal Services Income (PSI) rules. Professional firms such as law practices, engineering consultancies, and architectural firms are being scrutinized to ensure compliance with these rules, which are designed to prevent income splitting and tax avoidance.

The ATO is examining business structures and practices closely, particularly where there are arrangements that appear to divert income away from the individual providing the services to reduce tax liabilities. This includes arrangements such as service agreements, trusts, or companies that seem to be set up primarily for tax minimization rather than legitimate business purposes.

Red Flags for the ATO: The ATO is especially alert to situations where:

• The firm has complex structures involving multiple entities or service arrangements.
• Income is split between family members or associates who are not actively involved in the business.
• The majority of the income is derived from one individual’s personal services rather than from a diversified team or other business assets.

Why you need to speak with your Accountant

Navigating the PSI rules and ensuring compliance can be complex. Professional firms should seek advice from a qualified tax accountant to:

• Assess whether the PSI rules apply to their income.
• Understand how to correctly structure their firm to minimize the risk of non-compliance.
• Ensure they are claiming legitimate deductions and meeting all ATO requirements.

Given the ATO’s intensified scrutiny, now is the time for professional firms to review their current tax strategies and ensure they are compliant with PSI rules. A consultation with an experienced tax accountant can help you avoid costly penalties and ATO scrutiny.

Contact us

Get in touch with us to discuss how the PSI rules and other intricate tax rules applying to professional firms impact your business and the best strategies to manage your tax obligations effectively.