ATO Income‑Splitting Crackdown: How PCG 2025/5 Puts Personal Services Income Structures Under the Microscope
The Australian Taxation Office has finalized Practical Compliance Guideline PCG 2025/5, targeting income-splitting and profit retention by professionals using companies, trusts, or partnerships. The new rules clarify when the ATO will apply anti-avoidance provisions to personal services income arrangements. The crackdown is now in effect as of December 8, 2025.