ATO urged to include SMSFs in vulnerability regime

The Australian Taxation Office has been urged to provide self-managed superannuation fund (SMSF) trustees with the same access to its proposed Vulnerability Framework as ordinary taxpayers.

Major accounting group Chartered Accountants ANZ (CA-ANZ) has used a submission to the ATO’’s consultation around its proposed Vulnerability Framework to argue in favour of the inclusion of both SMSF trustees and small business owners.

As well, it calls for recognition of tax agents and professional advisers.

The ATO opened consultation around its proposed Vulnerability Framework in June stating that it is part of its “commitment to supporting people experiencing vulnerability”.

The ATO consultation paper says that “a person experiencing vulnerability is an individual who faces an increased risk of harm, exploitation, exclusion, or isolation. This can be due to various factors including, but not limited to, social, economic, physical or mental health conditions, disability, age, lack of access to essential services, or other personal circumstances. Those experiencing vulnerability may require additional support and resources to ensure their wellbeing, safety, and ability to fully participate in society”

Responding to the consultation, CA-ANZ called for “express recognition of tax agents as partners”.

“While the Framework refers to ‘partners’ and ‘non-government partners’, we recommend that it expressly acknowledges the role of tax agents and professional advisers in supporting vulnerable taxpayers,” the CA-ANZ response said.

“Tax agents are often the first point of contact for individuals and small businesses navigating complex tax obligations, and their role in identifying and assisting vulnerable clients should be clearly recognised.”

The response also urged a broader definition of vulnerable taxpayers and specifically noted SMSF trustees.

“We recommend that the Framework clarifies that vulnerable taxpayers, includes not only individual taxpayers but also small businesses and self-managed superannuation funds (SMSFs),” it said.

“The Framework should acknowledge that small business owners and SMSF trustees can also experience vulnerabilities and be able to rely on this Framework.”