AUSTRALIA Law and Practice Contributed by: William Moore, Frank Hinoporos, Emma Woolley and Todd Bromwich, Hall & Wilcox
for high net worth individuals and families. Given the potentially significant federal and state tax implica - tions of any restructuring, including income tax, CGT, stamp duty and land tax consequences, tax advice should be sought to ensure any restructuring is under - taken in a tax-efficient and compliant manner. More broadly, Australia’s tax laws are subject to regu - lar legislative change in areas such as superannuation, property and international tax. There have been pro - posed changes to residency rules (not yet enacted), increased scrutiny of trust distributions, and tighten - ing of CGT and superannuation concessions. It is nec - essary to monitor legislative developments and seek regular advice. 1.7 Transparency and Increased Global Reporting Australia participates in international tax transparency initiatives. It is a signatory to the Common Report - ing Standard (CRS) and implements the US Foreign Account Tax Compliance Act (FATCA), allowing the ATO to share financial account information of foreign tax residents with tax authorities in other countries. Australia is also moving towards greater transpar - ency, with the government announcing in 2025 it will establish a public Commonwealth-operated register of company beneficial ownership, with implementa - tion currently proposed for 2027/2028. There are also rules requiring the disclosure of certain tax arrange - ments, and the tax system contains anti-avoidance provisions to address cross-border and other arrange - ments that may otherwise result in unintended tax out - comes. 2. Succession 2.1 Cultural Considerations in Succession Planning Australia is culturally diverse, which means that peo - ple approach succession planning with a wide range of motivations and expectations. Many families share common goals of preserving wealth, reducing tax exposure and minimising dispute risks. Increasing rates of divorce and remarriage are leading to more complex family structures.
Housing affordability remains a major challenge, and financial assistance from parents (the “Bank of Mum and Dad”) is increasingly common. Recognition of risks, particularly in relationship breakdowns, has seen growing reliance on family trusts, binding finan - cial agreements and loan agreements to safeguard family wealth. 2.2 International Planning Cross-border families and businesses must navigate a complex and evolving network of tax and regulatory frameworks. This leads to challenges when transfer - ring wealth to family members who may be affected by tax laws, rules of inheritance and treaties in mul - tiple jurisdictions, or when assets are accumulated globally. Collaborative cross-border advice is essential to ensure that tax and succession planning strategies are aligned across multiple jurisdictions, taking into account: • compliance with Australian and foreign tax and succession laws; • potential conflict-of-laws issues; • compliance and reporting requirements in different jurisdictions; • the recognition and treatment of Australian docu - ments and structures in other jurisdictions, includ - ing testamentary trusts and powers of attorneys; • local probate processes; and • applicable double taxation and information-sharing agreements. A tailored succession planning strategy is crucial and needs to consider the type, location and governing laws of assets held overseas and the residency of beneficiaries. Best practice approach is generally to have separate Wills in each relevant jurisdiction to streamline local probate processes and ensure com - pliance with local tax and succession laws. Similarly, it is important to have the equivalent of an enduring power of attorney (which deals with financial decisions in cases of mental incapacity) in each rel - evant jurisdiction, as state-based enduring powers of attorney in Australia will not be recognised overseas.
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