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“What You Need to Know with Dr Mark” – October 2025 Edition

Written by Dr. Mark Pizzacalla | Oct 27, 2025 4:23:21 AM

ATO to review professionals including lawyers and tradies splitting income using trusts!

In this October 2025 Legalwise edition of “What you Need to Know with Dr Mark”, Dr Mark Pizzacalla discusses the ATO’s cracking down on professionals and tradies who use family trusts as an income splitting structure. Professionals including lawyers will need to explain their tax approach. Mark discusses the implications arising from this new ATO approach. 

 

Dr Mark Pizzacalla is a Senior Partner of global accounting firm, BDO.  Mark is a recognised industry leader, and expert commentator and presenter on business and tax issues, having contributed significant tax commentary through media and publications, including Lateline Business, The Australian Financial Review and The Tax Institute Journal.

Mark has over 30 years of tax experience, including being appointed by the Federal Government to Australia’s Board of Taxation. Mark’s business experience, including as Director for various companies, gives him strong insights into both the strategic and operational business issues facing his clients. Mark’s specialisations include:

  • Taxation audits, rulings & litigation
  • Business advisory
  • Structuring for acquisitions & disposals
  • Corporate tax governance and risk management
  • Inbound & outbound investments
  • Succession planning

Mark completed his PhD in relation to the taxation of small businesses in Australia and is one of the few tax practitioners whose work has been cited in Australia’s Parliament. A number of Mark’s SME tax policy recommendations have been adopted by the Federal Government.

Should you wish to contact Dr Mark, he is available on email mark.pizzacalla@bdo.com.au or mobile 0413048440.

Transcript:

What You Need to Know with Dr Mark – October 2025 Edition

In this episode, Dr Mark Pizzacalla discusses the ATO’s renewed focus on professionals using family trusts to split income. The ATO is applying its anti-avoidance laws to ensure personal income isn’t diverted through family entities or trusts for tax benefits.

Dr Mark explains that the crackdown affects a wide range of professionals — from lawyers and doctors to tradies and consultants — and includes tighter oversight of Family Trust Elections (FTEs) where distributions are made outside the 'family group' and related service entities. He notes the importance of keeping all structures commercial and compliant to avoid scrutiny.

He closes by urging professionals to review their arrangements and stay across the ATO’s evolving approach to family trust income splitting.