In an article for the SMSF Adviser, Katarina Taurian sheds light on the withdrawal of ATO’s product ruling system. The system was a boon for trustees as it allowed product providers to get their products’ legislative merit tested by the ATO. The ATO then had to make a ruling as to whether the product passed when seen through the legislative perspective.
Non-binding nature of the ruling
The service, however, never got used. This can perhaps be put down to the non-binding nature of the ruling. After all, the commissioner could “retrospectively withdraw a favourable ruling” at any given time.
Bureaucrats to be blamed
The bureaucrats are largely to be blamed for bringing in something that sounds Utopian and very well-meaning but has no practical application whatsoever. Only the very daring product providers would go the whole way for something that could be revoked so easily.
You can read the original article here.
Professional advice now becomes crucial in the given aspect
I think we would have gladly taken home an element of certainty, something which is so completely lacking in the aforementioned service. In the event of the five-year old service turning out redundant, trustees must look for ‘certainty’ in terms of the product they are being handed out by the providers. I think that this is where the right kind of professional advice becomes so crucial. If you have concerns regarding the same, please feel free to get in touch with me.
