9 June 2026 to 12 June 2026
Weekly Bulletin Contents
TAX
tuesday 9 june 2026
Taxpayer resident of Singapore under tax treaty tie-breaker rules
A taxpayer has been successful in arguing that he was a resident of Singapore for tax purposes under the tie breaker provisions of the Australian-Singapore double tax treaty. The ART first acknowledged that the taxpayer was a resident of both countries under the domestic tax law of each country (including on the basis that he had a permanent home and habitual abode in both Australia and Singapore). However, in then applying the tie-breaker rules, the ART found that his strongest “personal and economic relations” during the period in question – when considered holistically – were with Singapore. In doing so, the ART considered that the most important factor was the earning of employment income in Singapore – in circumstances where the taxpayer had a history of making decisions to live overseas away from his family in order to best exploit his skills in earning his income. (Bulie and FCT (Taxation) [2026] ARTA 1003, 4 June 2026)
DIS on Morton re profit from subdivision and sale of farmland
The Commissioner has issued a Decision Impact Statement on the Full Federal Court decision in FCT v Morton [2026] FCAFC 31. In that case the Full Court confirmed that a taxpayer, whose pre-CGT farm was subdivided and sold as residential lots, was not carrying on a business of property development or carrying out a profit making undertaking, and that the sale proceeds were capital receipts from the mere realisation of a (pre-CGT) asset. The ATO said that the Full Federal Court’s decision was an application of the existing case law and does not change the relevant legal principles concerning whether a taxpayer is carrying on a business and undertaking a profit-making undertaking or plan – and that the decision does not represent any departure from our long-standing approach to property development issues.
wednesday 10 june 2026
GIC and SIC rates rise for the September 2026 quarter
The ATO has confirmed an increase in both the general interest charge (GIC) and shortfall interest charge (SIC) rates for the quarter running from 1 July 2026 to 30 September 2026. The GIC annual rate climbs to 11.43% (a daily compounding rate of 0.03131507%), up from 10.96% in the April–June 2026 quarter, while the SIC annual rate rises to 7.43% (0.02035616% daily compounding). Interest payable on overpayments, early payments and delayed refunds is set at 4.43%.
ART refuses application for summons for ATO Officer to appear
The ART has refused an application of a taxpayer to issue a summons to an ATO audit officer to give evidence at the Tribunal review of an objection decision. The ART did so essentially on the grounds that there was no reasonable and objective basis to suggest anything the ATO Officer might say that would be relevant to the Tribunal’s task when hearing the substantive case. (Jawad and FCT (Practice and procedure) [2026] ARTA 1001, 3 June 2026)
Data matching program: Medicare entitlement
The Commissioner has issued notice of a Medicare entitlement statement data matching program. The data collected under this program will be used to identify taxpayers who are correctly claiming exemption from payment of the Medicare levy and Medicare levy surcharge and to exclude those taxpayers from unnecessary compliance activity.
Data matching program: Paid parental leave superannuation contribution
The Commissioner has issued notice of a paid parental leave superannuation contribution data-matching program. Under this program the ATO will acquire personal identifying data from Services Australia for 2025-26 through to 2027-28. For this data-matching program, the ATO will match data provided by Services Australia against ATO records. The data collected under this program will be used by to: calculate the Paid Parental Leave Super Contribution (PPLSC); make the payments on an annual basis, including an interest component, from July 2026; and recalculate PPLSC payments based on updated data.
thusday 11 june 2026
High Court finds UPEs not loans for Div 7A purposes
The long-awaited decision of the High Court in Bendel about whether Div 7A of the ITAA 1936 applies to unpaid present entitlements (UPE) has been handed down. The High Court, in a majority decision (5-2), dismissed the Commissioner’s appeal from the decision of the Full Federal Court in FCT v Bendel [2025] FCAFC 15 and ruled that the UPEs in question did not fall within the expanded definition of “loan” in s 109D(3) of ITAA 1936 and therefore Div 7A did not apply. In particular, the majority found that by not calling for payment of the UPE set aside for it, the company beneficiary did not provide any “financial accommodation” under s 109D(3)(b), nor did it “in substance” effect a “loan of money” under s 109D(3)(d), to the trust. The majority also held that the resolutions to set aside the amounts for the company beneficiary did not relevantly effect the distribution of those UPEs, nor did there arise a relationship of debtor and creditor between the trust and the company. Rather, by the resolutions, the majority said the UPEs were held on separate trust for the company. (FCT v Bendel [2026] HCA 18, 10 June 2026)
ATO response: The ATO said it welcomes the decisions and that it is currently considering the implications of this adverse decision and will update its views in an Interim Decision Impact Statement as soon as possible to provide practical guidance to impacted taxpayers.
Comment: In so finding, the High Court has now overturned many years of accepted ATO administrative practice – and the ATO may now receive a truckload of requests for amended assessments! So where to from here? Well, one thing: the decision will be meaningless if the Budget proposals to tax trust income at 30% minimum tax rate gets up. It will make resolutions to distribute trust income to a company that is taxed at 30% nugatory as it is proposed that corporate beneficiaries will not be eligible to receive credits for tax paid by the trustee.
Determination: When does a private or public ancillary fund ‘provide’ a ‘benefit’
The ATO has issued TD 2026/3 Income tax: when does a private or public ancillary fund ‘provide’ a ‘benefit’? It explains the Commissioner’s view on when a public or private ancillary fund provides a benefit under the Taxation Administration (Private Ancillary Fund) Guidelines 2019 and the Taxation Administration (Public Ancillary Fund) Guidelines 2022. It clarifies the meaning of ‘provision of … benefits’ in s 15(4) and ‘provide any benefit, directly or indirectly’ in s 22(3). It will assist trustees of ancillary funds to understand how benefits to deductible gift recipients may satisfy minimum annual distribution requirements and when transactions may contravene the prohibition on providing benefits to related entities. Applying both before and after issue, this Determination promotes consistent compliance and protects the integrity of concessional treatment for deductible gifts, ensuring ancillary funds operate exclusively in support of philanthropic purposes.
Draft update ruling: Temporary absences from foreign service
The ATO has issued a draft update to TD 2012/8DC Income tax: what types of temporary absences from foreign service form part of a continuous period of foreign service under s 23AG of the ITAA 1936? It clarifies that only short unexpected work-related absences from the foreign country for reasons related to that foreign service are able to be accepted as part of the person’s continuous foreign service by the Commissioner.
Draft GSTR: Determining if you are making cross-border supplies
The ATO has issued draft GSTR 2026/D1 Goods and services tax: determining if you are making cross-border supplies to an Australian consumer. It explains when supplies of things other than goods or real property are treated as being made to Australian consumers and therefore connected with the indirect tax zone under s 9-25(5)(d) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). When finalised, the Ruling will replace GST Ruling GSTR 2017/1 Goods and services tax: making cross-border supplies to Australian consumers. While GSTR 2017/1 focused mainly on the residency requirement in paragraph 9-25(7)(a) of the definition of an Australian consumer of the GST Act, this draft Ruling also includes further guidance on the consumer requirement in s 9-25(7)(b) of the GST Act. The existing approach to residency is unchanged.
ACT 2026–27 Budget handed down
The ACT 2026–27 Budget was handed down on Wed 10 June 2026. The main revenue measures are: Stamp Duty Abolition for first Home Buyers, effective from 1 July 2026, the ACT will abolish stamp duty for all first home buyers. Further, the relief will now also covers pensioners, eligible NDIS participants, and those who have not owned a property in the past five years. In addition, stamp duty is removed on all new unit-titled homes purchased by owner-occupiers, while stamp duty concessions for off-the-plan units are expanded to all turn-key new units, alongside a 50% reduction in the Lease Variation Charge for missing-middle developments.
friday 12 june 2026
Depreciation car limit for 2026-27
The car limit for capital allowance purposes for 2026–27 has been increased to $69,883 (up from $69,674 for 2025–26). This is the maximum value you can use to calculate depreciation on a vehicle where you:
- – use the vehicle for business purposes
– first use or lease the vehicle in the 2026–27 income year.
ART dismisses application for non-attendance
The ART has dismissed a taxpayer’s application before the ART under s 100 of the ART Act 2024 for failing to attend. The taxpayer was given multiple directions to file statement of facts, issues and contentions and further evidence over the course of 18 months. He also repeatedly failed to meet Tribunal directions within a reasonable time. The taxpayer also failed to appear for a non-compliance directions hearing. The taxpayer had previously argued that he was also defending proceedings brought by the Deputy Commissioner which sought judgment in an amount of $2.2m and that the conduct of concurrent proceedings was placing immeasurable stress upon him which had led to a serious deterioration of his health and a depletion of his financial resources. (Issa and FCT (Practice and procedure) [2026] ARTA 1026, 10 June 2026)
Waiver of GST adjustment note requirement for reverse charged supplies
Draft LI 2026/D15 A New Tax System (Goods and Services Tax) (Waiver of Adjustment Note Requirement – Reverse Charged Supplies) Determination 2026 has been issued. The effect of the determination is that at the time of lodging a GST return a recipient, who has a decreasing adjustment relating to a taxable supply that is reversed, is not required to hold an adjustment note. The Determination will replace the Goods and Services Tax: Waiver of Adjustment Note Determination (No 39) 2016 – Reverse Charged Supplies. Comments are due by10 July 2026.
SUPER & FINANCIAL SERVICES
ATO updates Payday Super compliance guidance.
- The ATO has updated its guidance on how it will approach compliance in the first year of Payday Super. From 1 July 2026 employers are required to pay SG each payday rather than quarterly. The ATO confirm that employers who genuinely try to do the right thing won’t face compliance action in the first year.
Employers must report qualifying earnings through Single Touch Payroll (STP) under the new rules. Normally, an employer not ready to report on time would need to apply for a deferral. The ATO confirmed that it is not required under the first-year approach if reporting is started at some point during the 2026–27 year.
ASIC approach to super advertising ban during onboarding.
ASIC has outlined how it will enforce a new ban on advertising superannuation funds during the employee onboarding process, commencing 1 July 2026. ASIC says the ban aims to protect employees from being influenced into uninformed decisions, such as opening inappropriate products or creating duplicate accounts. It notes the ban doesn’t apply to general advertising to the public, and that MySuper products meeting the legislated criteria, employer default funds, and an employee’s stapled fund are exempt. ASIC said that for 12 months from 1 July 2026 it will take a balanced approach to enforcement. It says enforcement will likely only target serious or reckless misconduct.
ASIC warns laggard super trustees on death benefit delays.
ASIC has reported that they have reviewed 45 trustees on death benefit claims handling. Internal complaints about delays fell 53% from early 2024 to late 2025, yet claims volumes rose 10% in the year to October 2025 and will keep climbing as the population ages. Commissioner Simone Constant called it a wake-up call ahead of the Government’s proposed mandatory member service standards, and confirmed ASIC will use its full enforcement toolkit where trustees fall short.