The imminent end to the financial year is serving as a stark reminder for taxpayers to ensure they visit a registered tax agent if they need help in managing their tax compliance obligations.

The introduction of the national Tax Agent Services Regime in 2010 brought with it a new consumer protection mechanism which taxpayers can access in avoiding penalties imposed by the Australian Tax Office for errors.

The Institute’s tax counsel, Yasser El-Ansary, says given the consumer protection mechanism is only available to those who use a registered tax agent, taxpayers should only seek advice from a qualified independent advisor who is acting in their best interests.

“30 June is fast approaching and it’s vital that taxpayers are made aware of recent changes to the tax law and any impact on their financial affairs. Registered tax agents are highly experienced professionals who can work with their clients to put in place effective tax planning strategies and identify the intricacies of navigating our complex tax system,” he says.

Mr El-Ansary says there are a number of significant changes for SMEs in relation to how the law applies to trusts that stream dividends to beneficiaries. There are also changes to the way tax law applies to unpaid present entitlements owing to corporate beneficiaries.

For individual taxpayers, Mr El-Ansary says home office expenses are often calculated incorrectly and overstated, and says care should be exercised when determining the amount that is deductible for tax purposes. Those in contracting arrangements will also need to review whether they are complying with the personal services income rules, particularly with the government’s proposed new reporting obligations on businesses that make payments to contractors.