ATO’s Focus on Baby Boomer Wealth: What You Need to Know

The ATO is closely watching succession planning among wealthy baby boomers. If you’re part of Australia’s Top 500 or Next 5,000 wealth groups, expect increased scrutiny on how assets are transferred. Learn about key areas of concern and how to structure your wealth without triggering tax risks.

The Australian Taxation Office (ATO) has identified succession planning and tax risks as a major focus in 2025. According to the ATO’s Areas of Focus 2024-25, intergenerational wealth transfers and structuring arrangements are key areas under scrutiny. Baby boomers with significant assets and family-controlled businesses are being closely examined to ensure compliance with tax laws.

Key Areas of Concern

  • Division 7A loans being settled quickly.
  • Asset transfers within family groups.
  • Changes to trust deeds and family structures.
  • Late lodgments citing restructuring as a reason.

Trusts remain a hot topic, with the ATO enforcing strict rules on family trust distributions. Incorrect structuring can lead to a 47% tax on distributions outside the family group.

Reducing Risk

If you or your family control multiple entities, ensuring proper tax planning is essential. Transferring control of businesses involves legal and tax implications that must be carefully considered.

If you or your family control multiple entities, ensuring proper tax planning is essential. Transferring control of businesses involves legal and tax implications that must be carefully considered.

📞 Need help with tax-efficient succession planning? Contact us today to ensure compliance and maximize benefits.

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