29 September 2025 to 3 October 2025
Weekly Bulletin Contents
TAX
Monday 6 October 2025
Draft Ruling: SMSF – education directions for contraventions of SIS Act
The ATO has released Draft PS LA 2025/D2 Self-managed superannuation funds – education directions for contraventions of the Superannuation Industry (Supervision) Act 1993. It provides guidance to ATO staff about whether to give a trustee or a director of a body corporate that is a trustee of a self-managed super fund an education direction under s 160 of the SIS Act 1993. Multiple sanctions for trustees who contravene the SIS Act are available to the Commissioner to apply, ranging from straightforward options like issuing an education direction to more serious consequences such as trustee disqualification and making a fund non-compliant. This draft Practice Statement enables staff to understand how to make the right decision with respect of issuing an education direction. When finalised, it will apply from the date of issue.
ATO: Corporate tax transparency report
The ATO has published its annual Corporate Tax Transparency Report revealing large corporates paid a combined $95.7 billion in income tax in 2023–24, marking the second-highest total ever recorded. When combined with the results from our compliance programs for large business (which includes both public and private corporate groups), it is the second year in a row that large business has paid in excess of $100 billion in tax. The ATO said the data continues to demonstrate the high levels of compliance amongst our largest corporates.
Updated PCG: Restructures and the thin capitalisation
The ATO has updated PCG 2025/2 Restructures and the thin capitalisation and debt deduction creation rules – ATO compliance approach. It explains the compliance approach in relation to the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share-Integrity and Transparency) Act 2024. This Guideline was published on 20 August 2025, with Schedules 1,2 and 4. This update amends the Guideline to include Schedule 3. Schedule 3 outlines our targeted compliance approach in relation to certain matters arising under the third party debt test. This Schedule should be read in conjunction with TR 2025/2.
ATO: Excise guidelines for the tobacco industry
The ATO has released excise guidelines for the tobacco industry. It provides a broad outline of the excise laws and compliance obligations for producers, dealers, manufacturers and distributors of excisable tobacco in Australia. The Guidelines are intended to be a reference tool for the tobacco industry to assist its members to meet their excise obligations. It contains information about the excise system and how it applies to tobacco manufactured in Australia. The Guidelines have been updated to reflect the legislative changes that were part of a package of measures to streamline excise administration.
ATO: Excise guidelines for duty free shops
The ATO has released excise guidelines for duty-free shops. It provides a broad outline of the excise laws and compliance obligations for proprietors of duty-free stores in Australia. The Guidelines are intended to be a reference tool for duty-free shops to assist operators to meet their excise obligations. It contains information about the excise system and how it applies to duty-free shops. The Guidelines have been updated to reflect the legislative changes that were part of a package of measures to streamline excise administration.
APRA Annual Report for 2024-25
APRA has published its Annual Report for the 2024-25 financial year. It states among other things that while heightened political uncertainty in major economies and geopolitical tensions were features of the past year, public confidence in the Australian financial system remained strong. It also said that on the whole, Australia’s financial system remains well placed to support the long-term growth of the economy. The Report also sets out APRA’s performance in achieving its strategic priorities, consistent with the 2024-25 Corporate Plan.
Tuesday 7 october 2025
ATO: Next BAS due soon
The ATO has issued a reminder that the next BAS is due on 28 October for quarterly reporters. It also said if you pay your quarter 1 BAS late, you’ll incur general interest charge, which can’t be claimed as an income tax deduction. It also issued some tips to businesses to help make BAS time easier including: keeping the GST they collect from customers separate from cash flow, so they’re ready to pass it on and to consider switching from quarterly to monthly BAS lodgment (reporting GST monthly can help you improve cash flow and keep record keeping up to date).
Determination: GST-free Supply Medicinal Preparations
The ATO has released Legislative Instrument GST-free Supply (Drugs and Medicinal Preparations) Determination 2025. It provides that for the purposes of s 38-50(5)(b) of the GST Act 1999, the supply of a drug or medicinal preparation is GST-free if the drug or medicinal preparation: (a) is required, under the Therapeutic Goods Act 1989, to be registered or listed, or is included in a class of goods required to be registered or listed; (b) contains aspirin, paracetamol or ibuprofen; and (c) is intended to be taken by mouth.
Wednesday 8 October 2025
Bill to cut red tape and provide easier access to govt services
The Regulatory Reform Omnibus Bill 2025 has been introduced into Parliament. It is intended to improve and reduce regulation, while making it easier to access government services. Among other things, introduce amendments to support a ‘tell us once’ approach within Services Australia, reducing the number of times Australians must provide the same information when accessing everyday services like Medicare rebates, Centrelink, and Child Support. It will also make amendments to: improve or maintain access to government services; reduce regulatory burden; increase government efficiency; and improve productivity. It also contains measures to facilitate better information sharing between government agencies and regulators (eg information sharing between healthcare providers).
Super: APRA calls for stronger action by “platform” trustees
APRA has called on superannuation trustees to accelerate and escalate efforts to safeguard members’ investments held in platform products. This follows APRA’s publication of a letter sent to platform trustees which sets out APRA’s key findings and required actions following its thematic review of platforms. It also follows ASIC’s investigation and enforcement action relating to the collapse of a major managed investment scheme.
Business’ trading names to be continued to be displayed on ABR
The A New Tax System (Australian Business Number) Amendment (Display of Trading Names) Regulations 2025 has been registered. It provides that the Australian Business Register (ABR) is to continue displaying business’ trading names, which are historic business registration identifiers, on the Register from 1 November 2025.
Thursday 9 October 2025
ATO: Partnerships can now lodge SODs digitally
The ATO has issued a reminder that partnerships of all sizes, even those with more than 160 partners, can now lodge Statement of Distributions digitally using either their standard business reporting (SBR) enabled software or, if you’re a registered agent, the ATO’s practitioner lodgment service (PLS). The ATO says that when you lodge your SOD, it’s critical to make sure all the information is complete and correct. It also said to avoid the common errors that can lead to penalties and costs by completing all required information for each partner in the SOD labels, including: name of each individual or entity, tax file numbers and date of birth for individuals.
Withdrawals – ESS Rulings
The ATO has withdrawn the following rulings with effect from 9 October 2025:
- TD 93/60 Income tax: employee share acquisition schemes: can a resident taxpayer participating in a foreign employee share acquisition scheme take advantage of a reduction in discount under subsection 26AAC(4F) of the ITAA 1936?
IT 2516 Income tax: exclusion from tax for discounts provided under employee share acquisition schemes.
ATO: Time to lodge NFP returns looming
The ATO has advised that time is running out for self-assessing not-for-profit (NFP) organisations with an ABN to lodge their NFP self-review return. The deadline is 31 October, and failure to lodge on time may result in penalties. The ATO says that lodging your self-review return helps confirm your organisation’s eligibility for income tax exemption.
Friday 10 October 2025
Payday superannuation Bills introduced
The Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025 were introduced into Parliament yesterday [Fri 9 October 2025]. The measures contained in the Bills will create an incentive for employers to make superannuation contributions for their employees at the same time as they pay the employee’s qualifying earnings. The key features of the proposed “payday SG framework” are:
- employers that make SG contributions so that they are received by the employee’s superannuation fund within a specified period (usually 7 business days) after the employer has paid qualifying earnings will be able to reduce their liability to pay the Super Guarantee (SG) charge to nil;
- for SG contributions that are received after the specified period, or are not made at all, the employer will have an SG shortfall and will be liable for the SG charge;
- employers can reduce the amount of SG charge that they will be liable for by making late SG contributions and submitting a voluntary disclosure statement to the ATO; and
- new administrative penalties for employers who do not pay their SG charge.
Date of effect: The Bills commence on 1 July 2026. The Bills apply to SG contributions in respect of qualifying earnings days on or after 1 July 2026.
See Treasurer’s accompanying media release, here.
ATO Draft Guideline
See also Draft Practical Compliance Guideline PCG 2025/D5 Payday Super – first year ATO compliance approach. It sets out the ATO’s proposed compliance approach for the first year of operation of Payday Super in respect of investigating a SG shortfall for a QE day (as defined) that occurs from 1 July 2026 to 30 June 2027 inclusive.
Taxpayer unsuccessful in setting aside garnishee notice
The Federal Court has dismissed a taxpayer’s application to set aside a garnishee notice which resulted in the transfer of $391,000 from his bank to the Commissioner. The taxpayer was issued with amended assessments for the 2003 to 2007 years which increased his tax liability by $3.3m and imposed a penalty of $1.6m. Before the Court, the taxpayer argued that the Commissioner was attempt to “re-raise the non-pursuit of a tax debt” and that his actions were statute barred under the 6 year rule for debts in NSW and that they breached the rules of natural justice. However, the Court dismissed the taxpayer’s application noting, among other things, that he was attempting to re-litigate the validity of his assessments, notwithstanding an adverse AAT decision against him which was not challenged on appeal. (Zhang v FCT [2025] FCA 1230)
ATO: September 2025 foreign exchange rates
The ATO has released average foreign exchange rates for September 2025 for the following countries (equivalent to $A1): Canadian dollar – 0.9116; Chinese renminbi – 4.6972; European euro – 0.5619; Hong Kong dollar – 5.1324; Indian rupee – 58.2214; Japanese yen – 97.4768; Malaysian ringgit – 2.7780; New Zealand dollar – 1.1202; Singapore dollar – 0.8471; South Korean won – 918.2918; Thai baht -21.1027; UK pound sterling – 0.4882; United States dollar – 0.6593.
SUPER & FINANCIAL SERVICES
Payday super reforms introduced into parliament
Payday Super reforms have been introduced to Parliament. The Bills propose to change the superannuation guarantee (SG) payment frequency from quarterly to payday-based contributions from 1 July 2026.
Employers will need to pay SG in line with each pay run, with contributions required to be received by the member’s fund within 7 business days (extended to 20 business days in limited cases). The package also replaces SG statements with voluntary disclosure statements and introduces a new late-payment administrative penalty of 25% (50% for certain repeat cases).
Institute of Financial Professionals (IFPA) comment
We support the change requiring employers to pay SG at the same time as salary and wages. However, clear safe-harbours for third-party delays and tailored relief for micro-businesses are needed to make implementation practical and fair. Our submission on the payday super exposure draft legislation can be found here.
APRA calls on platform trustees to lift standards following review
APRA has told superannuation platform trustees to act to protect members, with tougher supervision and potential enforcement on the way. The move follows ASIC action around the collapse of the Shield and First Guardian schemes, Macquarie Investment Management’s compensation commitment, and APRA’s thematic review covering trustees responsible for about 95% of platform assets.
In its letter to platform trustees, APRA has set out expectations, next steps and concrete examples of weaker versus better practice across onboarding, ongoing monitoring, and remedial action/member transfers. Trustees are reminded they cannot outsource accountability for what sits on the platform investment menu.
ATO consults on new SMSF education directions practice statement
The ATO has opened consultation on draft Practice Statement LA 2025/D2 setting out how it will use education directions to lift SMSF trustee compliance. By way of background, an education direction is a written notice requiring an individual trustee or a director of a corporate trustee to complete an approved SMSF education course where there has been a breach. Feedback is due by 31 October 2025.