08 Feb 2019 Regarding TaxVine article ‘The washup from the Banking Royal Commission’
Editor’s note: Senior Tax Counsel Bob Deutsch’s article can be found in TaxVine 2, 25 January 2019.
As Bob Deutsch’s TaxVine article ‘The washup from the Banking Royal Commission’ identifies, the tax consequences of compensation payments can be complex, particularly where they relate to amounts held in superannuation. In October, the ATO published guidance on ato.gov.au on the tax treatment of compensation paid to individuals for advice from financial institutions (see https://www.ato.gov.au/individuals/income-and-deductions/in-detail/compensation-paid-from-financial-institutions/). We are working on developing further guidance on other issues, including advice for individuals where there are superannuation implications, as a matter of priority.
We are engaging with industry representatives to understand the nature of remediation payments likely to be made, and will take into account any relevant findings by the Royal Commission when the final report is published.