Thousands of Australians Face ATO Action Over Income-Splitting Schemes

We are seeing a major change in how the ATO is dealing with income‑splitting in Australia. Recently, the ATO announced a crackdown on schemes where people split their income with family members to pay less tax. For years, many professionals and small‑business owners, from lawyers and accountants to tradies, used family trusts, companies, or partnerships to divert income to spouses or children with lower tax rates.  Now, the ATO says such practices often count as tax avoidance, not legitimate planning.