6 July 2026 to 10 July 2026
Weekly Bulletin Contents
TAX
monday 6 july 2026
Directors liable for penalties for failing to remit SGC
The Federal Court has dismissed the applications of directors of a company made under the Administrative Decisions (Judicial Review) Act 1977 in relation to the Commissioner’s decision to impose director penalties for failing to remit superannuation guarantee charge payments. The directors argued that the Commissioner failed to take into account relevant considerations and took into account irrelevant considerations in arriving at his decision – and that therefore the Commissioner exercised a discretionary power in accordance with policy without regard to the merits of the particular case. However, the Court ruled that the applications of the directors were not “competent” as there were no decision to which the ADJR Act applied as no relevant “decision” had been made under s 269-35(4A)(b) of the ADJR Act because the 60-day period) was never triggered. The Court also said that even if the applications were competent, none of the errors which they complained of had occurred. (Ostwald v FCT [2026] FCA 868, 3 July 2026)
Trustee liable for failure to lodge SMSF return – not accountant
The South Australian Supreme Court has confirmed that the trustee of a SMSF was liable for a sentence comprised of a penalty of $3,800 for failing to submit the annual income tax return of a SMSF. In doing so, the Court dismissed the trustee’s argument that the failure was due to his longstanding account’s failure to do lodge the returns and that the sentence would serve no purpose with respect to either personal or general deterrence. (Schmidt v The King [2026] SASC 101, 1 July 2026)
CSLR revised levy estimate for FY27 – $198m
The Compensation Scheme of Last Resort (CSLR, the Scheme) has published its revised levy estimate for FY27. The revised estimate has been calculated to be $198.1m, an additional $60.7m more than the initial levy estimate of $137.5m. These funds will facilitate the CSLR processing of 1,567 claims, up from 912 in the initial levy estimate. The CSLR acknowledges that the increase in the estimate is significant and attributes the lift to the expected 71% increase in compensation claim payments in FY27. As the expected amount for the personal financial advice sub-sector exceeds the sub-sector cap of $20m, the CSLR is seeking a special levy for the FY27 period. See also Financial Services Compensation Scheme of Last Resort Levy (Collection) (Revised Cost Estimates for 2026-27 Levy Period) Determination 2026.
tuesday 7 july 2026
Redundant BAS services instrument repealed
The Tax Agent Services (Specified BAS Services No. 1) Repeal Instrument 2026 has been made. It clarifies the extent of the services that BAS agents can provide, including under the Superannuation Guarantee (Administration) Act 1992 and Superannuation Guarantee Charge Act 1992. The instrument arises from the passage of Treasury Laws Amendment (2023 Measures No.1) Bill 2023 which amends the Tax Agent Services Act 2009 (TASA) to expand the definition of a BAS service under the original 2020 Instrument into the meaning of a BAS service at s 90-10 of the TASA. As such, the original 2020 Instrument is no longer required. The Repeal Instrument repeals the 2020 Instrument, noting that s 90-10 of the TASA has been amended to include the services specified in the 2020 Instrument as BAS services.
Decision Impact Statement on Full Court FBT decision
The ATO has issued a Decision Impact Statement (DIS) on the decision of the Full Federal Court in SEPL Pty Ltd as trustee of the SFT Trust v FCT [2026] FCAFC 36. In that case the Court held that 3 brothers, who together comprised all of the directors of a corporate trustee of a discretionary trust, were not ’employees’ within the meaning of that term in s 136(1) of the FBTAA 1986, and that the car benefits provided to them were not provided “in respect of” their employment. Among other things, the DIS states that the ATO accepts that whether an individual is an employee depends upon the meaning of the terms: ’employee’ as it appears in the definition of ‘fringe benefit’; ‘current employee’ within the meaning of the definition of ’employee’; ‘salary or wages’; and the operation of section 12-35 of Schedule 1 to the TAA, through the definition of ‘salary or wages’. Comments due 31 July 2026.
PCG withdrawn: Timing of deductions for superannuation contributions
The ATO has withdrawn PCG 2020/6 Timing of income tax deductions for superannuation contributions made through the Small Business Superannuation Clearing House – ATO compliance approach. Following the introduction of the PayDay Super rules it is no longer relevant – but it will continue to apply in respect of periods ending on or before 30 June 2026.
wednesday 8 july 2026
ATO: Dynamic PAYG instalments are coming
The ATO has advised that from 1 July 2027, you’ll be able to adjust your instalments in line with your current, real-time business conditions through Dynamic PAYG instalments. It means you’ll be able to opt into an ATO-approved Dynamic PAYG instalment calculation built into accounting software you may already use. It also means that you can keep instalments aligned with how your business performs during the year. The ATO said that to support your confidence in using this method, we’ve published our draft practical compliance guideline PCG 2026/D3 Dynamic pay as you go instalments general interest charge on excessive variation. It confirms that we won’t allocate compliance resources to apply or collect General Interest Charge if you use the Dynamic PAYG calculation method as intended. Comments due 28 August 2026.
Vic: Growth areas infrastructure contributions for 2026-27
The Victorian State Revenue Office has advised that the growth areas infrastructure contribution rates for the 2026–27 financial year will be: $122,260 per hectare for type A land ($118,830 in 2025–26); and $145,220 per hectare for types B-1, B-2 and C land ($141,150 in 2025–26). Also, the growth areas infrastructure contribution threshold for excluded building will increase from $1,485,650 to $1,528,532. And interest payable on deferred growth areas infrastructure contribution will increase from 5.0871% to 5.6063%.
thusday 9 july 2026
Consultation paper on proposed 30% min tax on discretionary trusts
The Government has released a consultation paper on its proposed changes announced in the Budget to tax the income of discretionary trusts at a minimum 30% tax rate from 1 July 2028. The Government said it is seeking feedback on key aspects of the proposed changes, including: Implementation of the core arrangements; the treatment of distributions to income‑tax exempt entities like charities; expanded rollover relief to support restructuring; how excess franking credits should be treated; and ways to collect the minimum tax. The Government also noted that trusts which choose to restructure can access expanded rollover relief for 3 years from 1 July 2027. The consultation will also consider the High Court’s recent decision in FCT v Bendel regarding UPEs. Comments due 31 July 2026. See also Treasurers media release here.
ATO data matching: Australian Electoral Commission records
The ATO has announced that for data matching purposes it will acquire Australian electoral roll data from the Australian Electoral Commission (AEC) on an ongoing basis. The data items include: name of the registered voter; residential address of the registered voter; sex of the registered voter; date of birth of the registered voter; occupation of the registered voter. The ATO said that collected data may contain all, or a selection of these elements.
Updated Ruling – relief from the effects of failing to substantiate
The ATO has updated TR 97/24A2 Income tax: relief from the effects of failing to substantiate to among other things to accommodate taxpayers experiencing vulnerability and various currency and publishing compliance requirements.
friday 17 july 2026
Treasurer directs APRA and ASIC to sharpen focus on growth and productivity
The Treasurer has advised that he has released new Statements of Expectations for APRA and ASIC with a bigger emphasis on promoting growth. The Treasurer said that the statements are all about enabling financial regulators to unlock more productivity and more growth in the economy while preserving financial stability and market integrity and protecting consumers from harm. He said he is seeking to strike the right balance between supporting productivity and investment, reducing the regulatory burden on businesses, promoting stability, and safeguarding the financial system and markets.
Fuel Tax Determination: when blends do not constitute a taxable fuel
The Fuel Tax (Fuel Blends) Determination 2026 has been made. It specifies circumstances in which blends of a taxable fuel and other products do not constitute a fuel for the purposes of the fuel tax law. For blends covered by this instrument, the producer of the blend may be entitled to claim fuel tax credits on the taxable fuel used in producing the blend and, as these blends are taken not to be excisable under s 77G(1) of the Excise Act 1901, excise duty will not be payable.
SUPER & FINANCIAL SERVICES
Adviser levy rises to $3,037 per adviser
ASIC has released its 2025-26 Cost Recovery Implementation Statement (CRIS), and licensees providing personal advice to retail clients are again carrying the largest share of the financial advice sector’s regulatory costs.
The estimated levy for these licensees is a minimum of $1,500 plus $3,037 per adviser. That is up from $1,500 plus $2,314 last year, an increase of about 31 per cent per adviser. ASIC estimates it will recover $48.724 million from this subsector.
Across the financial advice sector as a whole, estimated costs have risen to $62.6 million, up from $46.1 million in 2024-25.
The increase sits within a broader lift in ASIC’s costs. Total estimated recoverable costs for 2025-26 are $400.5 million, up 19 per cent on the $337.6 million recovered in 2024-25. ASIC attributes the increase to additional funding for its regulatory, supervision and enforcement work, along with the timing of expenditure.
The figures are estimates only. Final levies will be published in December 2026 and invoiced between January and March 2027.
Treasurer directs APRA and ASIC to sharpen focus on growth and productivity
The Treasurer has advised that he has released new Statements of Expectations for APRA and ASIC with a bigger emphasis on promoting growth. The Treasurer said that the statements are all about enabling financial regulators to unlock more productivity and more growth in the economy while preserving financial stability and market integrity and protecting consumers from harm. He said he is seeking to strike the right balance between supporting productivity and investment, reducing the regulatory burden on businesses, promoting stability, and safeguarding the financial system and markets.
Super transfer balance cap ruling updated
The ATO has updated LCR 2016/9A5 – Addendum (Superannuation reform: transfer balance cap). The addendum:
- further explains proportional indexation of the transfer balance cap, and superannuation income streams that are subject to a commutation authority
- clarifies how the general principles apply in the context of successor fund transfers
reflects the increase in the maximum allowable number of members, made under the Treasury Laws Amendment (Self Managed Superannuation Funds) Act 2021.