9 February 2026 to 13 February 2026
Weekly Bulletin Contents
TAX
Monday 9 February 2026
ATO: Payday Super and “Qualifying Earnings”
The ATO has advised that employers who currently calculate and pay super on your employees’ ordinary time earnings will, from 1 July, need to calculate it on their qualifying earnings (“’QE”). It also said that for many employers, this won’t change how much super is currently paid to employees, but that they will have to report QE and super liability in Single Touch Payroll. For further information, see ATO website here.
ATO: Misreporting FBT on personal use of work vehicles
The ATO has issued a reminder that it uses sophisticated data and analytics to identify businesses that aren’t meeting their FBT obligations in relation to providing work vehicles for private use. It also said that its compliance teams are actively contacting employers who fail to comply or deliberately avoid FBT. Accordingly, the ATO emphasised to stay on top of FBT obligations and keep accurate records to avoid penalties or reputational damage.
Tuesday 10 February 2026
ATO warning to businesses using cash to dodge obligations
The ATO has advised that it is cracking down on businesses that use cash to avoid meeting their tax, employer and business obligations. The ATO said it is focused on businesses that are operating outside the system by not reporting or by under-reporting cash income, paying for goods purchased by the business using cash or paying cash wages. The ATO also said that keeping such transactions ‘off the books’ is not a mistake – it’s a deliberate action that affects everyone and that it creates an unfair playing field for those businesses doing the right thing.
ATO: Growing businesses not accurately reporting income, deductions
The ATO has advised that it wants to ensure that growing small businesses with a turnover of between $1m to $10m clearly understand their responsibilities, particularly when it comes to accurately reporting all income, deductions and offsets. The ATO said its focus is on smaller businesses in the property and construction industry (including builders, contractors and tradies) and the professional, scientific and technical services sector. Common errors include: incorrect claims for the R&D tax incentive (R&DTI), especially for activities that don’t meet the eligibility criteria; omitting sales and income in the BAS and tax returns, including income from related entities; and over claiming expenses and GST credits.
Wednesday 11 February 2026
Bill introducing Div 296 and other super measures introduced
The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 was introduced into Parliament this morning for the proposed Division 296 tax. It implements the Government’s proposed changes to the taxation of superannuation balances to reduce the tax concessions available to individuals with Total Superannuation Balances (TSBs) exceeding $3m. Specifically, from the 2026-27 income year onwards, the concessional tax rates applying to superannuation earnings will be:
- for superannuation balances up to the $3m large superannuation balance threshold—up to 15% on earnings (unchanged from current tax arrangements);
- for superannuation balances between the $3m ‘large superannuation balance threshold’ and the $10m ‘very large superannuation balance threshold’—up to an overall 30% on a percentage of earnings; and
- for superannuation balances above the $10m ‘very large superannuation balance threshold’ – up to an overall 40% of earnings for TSBs above $10m
Note: These thresholds will be indexed to the Consumer Price Index each year.
Date of effect: Applicable from 1 July 2026
The Bill will also align the current low income superannuation tax offset (LISTO) with broader income tax and superannuation settings by amending the eligibility threshold to remove the specific reference to $37,000 and instead refer to the lowest income tax threshold for the relevant income year. As at 1 July 2027, the relevant personal income tax threshold will be $45,000. Also, the current maximum LISTO amount of $500 will be replaced by an amount calculated by reference to the LISTO eligibility threshold amount, the charge percentage, and the standard 15% tax rate for concessional contributions. Date of effect: From 1 July 2027
For Treasurer’s accompanying media release, see here.
Consultation papers: Enhancing governance of managed investment schemes
The Government has advised that it is releasing the first of a number of consultation papers to improve consumer protections in the wake of the collapse of the Shield and First Guardian Master Funds. In releasing the papers, the Assistant Treasurer, Daniel Mulino, said that there needs to be change to prevent this happening in the future and that high-profile collapses erode confidence, making Australians understandably nervous about investing and reducing participation in legitimate, well-regulated products. This consultation paper set out various options for enhancing oversight and governance of managed investment schemes. These options aim to improve how managed investment schemes are run and improve oversight of these schemes, including better tracking of superannuation switching.
Thursday 12 February 2026
Cost of constructing display model homes deductible to building company
The ART has ruled that the costs of constructing temporary display model homes (which were intended to be demolished) to a custom home building company were a revenue or operating expense and therefore were deductible under s 8-1 of the ITAA 1997. Specifically, the ART found that expenditure was not of a capital nature in the circumstances, but were a deductible marketing expense. Accordingly, the ART set aside the ATO’s objection decision set aside and allowed the taxpayer’s application. Masterton Corporation Holding Company Pty Ltd and FCT (Taxation) [2026] ARTA 160, 9 February 2026
Taxpayer denied deduction for $50,000 for work related expense
A taxpayer who claimed over $50,000 in work-related car, work-related travel, work-related clothing, self- education and interest expenses in the 2023 income year, and who had them essentially reduced to nil on audit, has been unsuccessful before the ART in seeking review of his disallowed objection. In arriving at its decision, the ART found that the taxpayer failed to show that the relevant assessment was excessive and said that this was mainly because he was unable to provide accurate, reliable and contemporaneous documents to substantiate his claims. (Afshari and FCT (Taxation) [2026] ARTA 159, 8 February 2026)
Update to ruling on Private Rulings
The ATO has issued a draft update to Taxation Ruling TR 2006/11: Private Rulings to address recent developments in case law, and the promoter penalty laws in the Taxation Administration Act 1953. Comments due: 27 March 2026.
PBO analysis of revenue foregone from operation of CGT discount
The Parliamentary Budget Office has published the response to a request for budget analysis provided to the Senate Select Committee on the Operation of the Capital Gains Tax Discount in relation to the amount of revenue foregone by the application of the discount. It is available on the PBO website, here.
Friday 13 february 2026
Cost base of land does not include rates and taxes
A taxpayer who made a capital gain on land that he subdivided into 2 blocks in 2019, and later sold, has been unsuccessful before the ART in claiming that he was entitled to include in their cost base the rates and land taxes he incurred during the course of his ownership of the land. The taxpayer sought to include them as “third element cost base expenditure” (ie cost of owning) under s110-25(4) of the ITAA 1997. However, the ART found that as the property was acquired on 20 October 1989, he was not entitled to include these expenses in the cost base as s 110-25(4) clearly stated that it only applied to CGT assets acquired after 20 August 1991. The ART also noted that the subdivision of the land did not change the time that he acquired the land. (Halse and FCT (Taxation) [2026] ARTA 156, 9 February 2026)
Administrative Review Tribunal Amendment Bill passed
The Administrative Review Tribunal and Other Legislation Amendment Bill 2025 has been passed by Parliament and received assent on 9 February 2026. Among other things, it sets out additional circumstance in which the Tribunal may make its decision without holding the hearing of the proceeding – namely: if the issues for determination in the proceeding can be adequately determined in the absence of the parties to the proceeding; if it is reasonable in the circumstances to make its decision in the proceeding without holding the hearing of the proceeding; and the Tribunal has given the parties to the proceeding a reasonable opportunity to make submissions to the Tribunal, and the Tribunal has taken into account their submissions.
ATO: Apportioning GST claims re private use – NFPs
The ATO has issued a reminder that if your not-for-profit (NFP) organisation is registered for GST), you can claim GST credits for the GST included in the price of goods and services you buy for your organisation’s activities. However, it emphasised that if you buy something for use both by your organisation and for private use, you need to apportion your GST credit to only claim the portion used for your organisation’s activities. For example, if your NFP organisation pays for travel, you can only claim GST credits for the portion related to your organisation’s activities.
SUPER & FINANCIAL SERVICES
$3m Division 296 Tax Introduced into Parliament
The Bill proposing the $3m Division 296 tax was introduced into Parliament this week. The Bill proposes to introduce an additional tax on earnings attributable to Total Superannuation Balances (TSBs) exceeding $3m. Specifically, from the 2026-27 income year onwards, the tax rates applying to superannuation earnings will be:
- for superannuation balances up to the $3m large superannuation balance threshold – up to 15% on earnings (unchanged from current tax arrangements);
- for superannuation balances between the $3m ‘large superannuation balance threshold’ and the $10m ‘very large superannuation balance threshold’ – up to an overall 30% on a percentage of earnings; and
- for superannuation balances above the $10m ‘very large superannuation balance threshold’ – up to an overall 40% of earnings for TSBs above $10m
These thresholds will be indexed to the Consumer Price Index.
Institute of Financial Professionals Australia (IFPA) comment
The Division 296 in-scope test, which determines whether a member may be subject to a Division 296 assessment, is triggered where a member’s TSB is above the $3m threshold. The trigger is proposed to be based on the greater of the member’s balance at the start or end of the financial year. In our recent submission, we recommended that a modified closing TSB should be used for Division 296 purposes. The “higher of two balances” approach produces unfair outcomes by taxing notional balances rather than actual circumstance and must be adjusted to account for losses, insurance proceeds, excess contributions and other events outside a member’s control.
It is also concerning that several industry recommendations raised during the consultation process were not adopted, including:
- Excluding members from taxation in the year of their death
- Addressing flaws in the cost base reset mechanism, including:
- The all-or-nothing nature of the cost base reset election
- The lack of portability of the cost base adjustment (remaining within the fund)
- The exclusion of indirect assets (ie, the reset does not apply at the level of the underlying asset)
Much of the detail regarding the operation of Division 296 is expected to be set out in the Regulations, which have not yet been released. We will continue to keep you informed of any further developments as they emerge.
LISTO Boost: Higher cap and Expanded Eligibility
The Bill introducing the Division 296 tax also proposes to increase the low income superannuation tax offset (LISTO) from $500 to $810. The eligibility threshold will also increase from $37,000 to $45,000. This means concessional super contributions made by or on behalf of a taxpayer earning less $45,000 will not be subject to 15% contributions tax on the first $5,400 contributed.
For Treasurer’s accompanying media release, see here.
Consultation papers: Enhancing governance of managed investment schemes
Treasury has released a consultation paper proposing measures to strengthen consumer protections in the financial sector, following the collapses of the Shield and First Guardian Master Funds. These events led to significant losses of superannuation savings for thousands of Australians.
High-profile fund collapses can reduce investor confidence and participation in regulated investment products. Inadequate governance and transparency in managed investment schemes may result in capital not being directed toward productive economic activities.
The consultation paper outlines proposals to improve governance and oversight of Managed Investment Schemes (MIS) by the Australian Securities and Investments Commission (ASIC), as well as enhancements to ASIC’s monitoring of superannuation switching.
This is the initial phase of a series of consultations on consumer protections in superannuation and financial services. Future consultations will cover:
- Addressing inappropriate lead generation practices.
- Establishing a framework for superannuation switching.
- Updating superannuation trustee governance standards.
- Supporting the sustainability of the Compensation Scheme of Last Resort (CSLR).
TAX
Monday 9 February 2026
ATO: Payday Super and “Qualifying Earnings”
The ATO has advised that employers who currently calculate and pay super on your employees’ ordinary time earnings will, from 1 July, need to calculate it on their qualifying earnings (“’QE”). It also said that for many employers, this won’t change how much super is currently paid to employees, but that they will have to report QE and super liability in Single Touch Payroll. For further information, see ATO website here.
ATO: Misreporting FBT on personal use of work vehicles
The ATO has issued a reminder that it uses sophisticated data and analytics to identify businesses that aren’t meeting their FBT obligations in relation to providing work vehicles for private use. It also said that its compliance teams are actively contacting employers who fail to comply or deliberately avoid FBT. Accordingly, the ATO emphasised to stay on top of FBT obligations and keep accurate records to avoid penalties or reputational damage.
Tuesday 10 February 2026
ATO warning to businesses using cash to dodge obligations
The ATO has advised that it is cracking down on businesses that use cash to avoid meeting their tax, employer and business obligations. The ATO said it is focused on businesses that are operating outside the system by not reporting or by under-reporting cash income, paying for goods purchased by the business using cash or paying cash wages. The ATO also said that keeping such transactions ‘off the books’ is not a mistake – it’s a deliberate action that affects everyone and that it creates an unfair playing field for those businesses doing the right thing.
ATO: Growing businesses not accurately reporting income, deductions
The ATO has advised that it wants to ensure that growing small businesses with a turnover of between $1m to $10m clearly understand their responsibilities, particularly when it comes to accurately reporting all income, deductions and offsets. The ATO said its focus is on smaller businesses in the property and construction industry (including builders, contractors and tradies) and the professional, scientific and technical services sector. Common errors include: incorrect claims for the R&D tax incentive (R&DTI), especially for activities that don’t meet the eligibility criteria; omitting sales and income in the BAS and tax returns, including income from related entities; and over claiming expenses and GST credits.
Wednesday 11 February 2026
Bill introducing Div 296 and other super measures introduced
The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 was introduced into Parliament this morning for the proposed Division 296 tax. It implements the Government’s proposed changes to the taxation of superannuation balances to reduce the tax concessions available to individuals with Total Superannuation Balances (TSBs) exceeding $3m. Specifically, from the 2026-27 income year onwards, the concessional tax rates applying to superannuation earnings will be:
- for superannuation balances up to the $3m large superannuation balance threshold—up to 15% on earnings (unchanged from current tax arrangements);
- for superannuation balances between the $3m ‘large superannuation balance threshold’ and the $10m ‘very large superannuation balance threshold’—up to an overall 30% on a percentage of earnings; and
- for superannuation balances above the $10m ‘very large superannuation balance threshold’ – up to an overall 40% of earnings for TSBs above $10m
Note: These thresholds will be indexed to the Consumer Price Index each year.
Date of effect: Applicable from 1 July 2026
The Bill will also align the current low income superannuation tax offset (LISTO) with broader income tax and superannuation settings by amending the eligibility threshold to remove the specific reference to $37,000 and instead refer to the lowest income tax threshold for the relevant income year. As at 1 July 2027, the relevant personal income tax threshold will be $45,000. Also, the current maximum LISTO amount of $500 will be replaced by an amount calculated by reference to the LISTO eligibility threshold amount, the charge percentage, and the standard 15% tax rate for concessional contributions. Date of effect: From 1 July 2027
For Treasurer’s accompanying media release, see here.
Consultation papers: Enhancing governance of managed investment schemes
The Government has advised that it is releasing the first of a number of consultation papers to improve consumer protections in the wake of the collapse of the Shield and First Guardian Master Funds. In releasing the papers, the Assistant Treasurer, Daniel Mulino, said that there needs to be change to prevent this happening in the future and that high-profile collapses erode confidence, making Australians understandably nervous about investing and reducing participation in legitimate, well-regulated products. This consultation paper set out various options for enhancing oversight and governance of managed investment schemes. These options aim to improve how managed investment schemes are run and improve oversight of these schemes, including better tracking of superannuation switching.
Thursday 12 February 2026
Cost of constructing display model homes deductible to building company
The ART has ruled that the costs of constructing temporary display model homes (which were intended to be demolished) to a custom home building company were a revenue or operating expense and therefore were deductible under s 8-1 of the ITAA 1997. Specifically, the ART found that expenditure was not of a capital nature in the circumstances, but were a deductible marketing expense. Accordingly, the ART set aside the ATO’s objection decision set aside and allowed the taxpayer’s application. Masterton Corporation Holding Company Pty Ltd and FCT (Taxation) [2026] ARTA 160, 9 February 2026
Taxpayer denied deduction for $50,000 for work related expense
A taxpayer who claimed over $50,000 in work-related car, work-related travel, work-related clothing, self- education and interest expenses in the 2023 income year, and who had them essentially reduced to nil on audit, has been unsuccessful before the ART in seeking review of his disallowed objection. In arriving at its decision, the ART found that the taxpayer failed to show that the relevant assessment was excessive and said that this was mainly because he was unable to provide accurate, reliable and contemporaneous documents to substantiate his claims. (Afshari and FCT (Taxation) [2026] ARTA 159, 8 February 2026)
Update to ruling on Private Rulings
The ATO has issued a draft update to Taxation Ruling TR 2006/11: Private Rulings to address recent developments in case law, and the promoter penalty laws in the Taxation Administration Act 1953. Comments due: 27 March 2026.
PBO analysis of revenue foregone from operation of CGT discount
The Parliamentary Budget Office has published the response to a request for budget analysis provided to the Senate Select Committee on the Operation of the Capital Gains Tax Discount in relation to the amount of revenue foregone by the application of the discount. It is available on the PBO website, here.
Friday 13 february 2026
Cost base of land does not include rates and taxes
A taxpayer who made a capital gain on land that he subdivided into 2 blocks in 2019, and later sold, has been unsuccessful before the ART in claiming that he was entitled to include in their cost base the rates and land taxes he incurred during the course of his ownership of the land. The taxpayer sought to include them as “third element cost base expenditure” (ie cost of owning) under s110-25(4) of the ITAA 1997. However, the ART found that as the property was acquired on 20 October 1989, he was not entitled to include these expenses in the cost base as s 110-25(4) clearly stated that it only applied to CGT assets acquired after 20 August 1991. The ART also noted that the subdivision of the land did not change the time that he acquired the land. (Halse and FCT (Taxation) [2026] ARTA 156, 9 February 2026)
Administrative Review Tribunal Amendment Bill passed
The Administrative Review Tribunal and Other Legislation Amendment Bill 2025 has been passed by Parliament and received assent on 9 February 2026. Among other things, it sets out additional circumstance in which the Tribunal may make its decision without holding the hearing of the proceeding – namely: if the issues for determination in the proceeding can be adequately determined in the absence of the parties to the proceeding; if it is reasonable in the circumstances to make its decision in the proceeding without holding the hearing of the proceeding; and the Tribunal has given the parties to the proceeding a reasonable opportunity to make submissions to the Tribunal, and the Tribunal has taken into account their submissions.
ATO: Apportioning GST claims re private use – NFPs
The ATO has issued a reminder that if your not-for-profit (NFP) organisation is registered for GST), you can claim GST credits for the GST included in the price of goods and services you buy for your organisation’s activities. However, it emphasised that if you buy something for use both by your organisation and for private use, you need to apportion your GST credit to only claim the portion used for your organisation’s activities. For example, if your NFP organisation pays for travel, you can only claim GST credits for the portion related to your organisation’s activities.
SUPER & FINANCIAL SERVICES
Super Trustees Must Upgrade Governance as Assets Reach $6 Trillion by 2030
In a recent keynote address ASIC Commissioner Simone Constant noted that super Trustees will increasingly act as stewards not only of members’ retirement savings but of Australia’s broader economic future. The super sector currently stands at around $4.5 trillion and is expected to grow to $6 trillion by 2030.
Constant emphasised the urgent need for trustees to scale governance, capability, skills, systems and operations to match this expanded role.
She pointed to several immediate priorities:
- Recent cyber attacks on super funds
- Inadequate analysis of complaints data (some large trustees identified zero systemic issues despite thousands of complaints)
- Super funds lagging significantly behind the major banks in scam awareness messaging and member reporting channels on their websites
Additional priorities include follow-up on death benefits, ensuring the Retirement Income Covenant moves from implementation to meaningful delivery, greater transparency in public and private markets, financial reporting surveillance, and strengthened enforcement action on member service failures and poor private credit practices.
CGT discount – Senate Committee enquiry
The “Select Committee on the Operation of the Capital Gains Tax Discount” was established on 4 November 2025 and submissions closed on 19 December 2025. It was set up to inquire into and report on, among other things, the contribution of the CGT discount to inequality in Australia, particularly in relation to housing; the role of the CGT discount in suppressing Australia’s productivity potential by funnelling investment into existing housing assets; and how the CGT discount influences the types of assets purchased and whether these classes of investments are productive or speculative. The Committee is due to report on 17 March 2026.
Consultation on Super and Victims of Crime legislation
The Government has released exposure draft legislation for a proposed framework that would allow victims and survivors of child sexual abuse (and similar offences) to seek limited visibility of a perpetrator’s superannuation and, in certain circumstances, pursue a court-ordered release of amounts from the perpetrator’s super to satisfy unpaid compensation.
How it would work (in brief)
- Where a compensation order has remained unpaid for 12 months or more, an eligible victim could apply to the ATO Commissioner for limited information about the perpetrator’s super.
- With that information, the victim could apply to the court for a “perpetrator contributions release order”, enabling the Commissioner to issue release authorities to relevant super providers and remit released amounts to the victim.
- The proposed release is targeted at additional (non-mandated) contributions, like personal contributions or salary sacrifice, made during an “eligible period”, rather than ordinary employer-mandated contributions.
Notably, the draft materials indicate compensation debts of this kind would survive bankruptcy, improving the prospects of recovery over time.
TAX
Monday 9 February 2026
ATO: Payday Super and “Qualifying Earnings”
The ATO has advised that employers who currently calculate and pay super on your employees’ ordinary time earnings will, from 1 July, need to calculate it on their qualifying earnings (“’QE”). It also said that for many employers, this won’t change how much super is currently paid to employees, but that they will have to report QE and super liability in Single Touch Payroll. For further information, see ATO website here.
ATO: Misreporting FBT on personal use of work vehicles
The ATO has issued a reminder that it uses sophisticated data and analytics to identify businesses that aren’t meeting their FBT obligations in relation to providing work vehicles for private use. It also said that its compliance teams are actively contacting employers who fail to comply or deliberately avoid FBT. Accordingly, the ATO emphasised to stay on top of FBT obligations and keep accurate records to avoid penalties or reputational damage.
Tuesday 10 February 2026
ATO warning to businesses using cash to dodge obligations
The ATO has advised that it is cracking down on businesses that use cash to avoid meeting their tax, employer and business obligations. The ATO said it is focused on businesses that are operating outside the system by not reporting or by under-reporting cash income, paying for goods purchased by the business using cash or paying cash wages. The ATO also said that keeping such transactions ‘off the books’ is not a mistake – it’s a deliberate action that affects everyone and that it creates an unfair playing field for those businesses doing the right thing.
ATO: Growing businesses not accurately reporting income, deductions
The ATO has advised that it wants to ensure that growing small businesses with a turnover of between $1m to $10m clearly understand their responsibilities, particularly when it comes to accurately reporting all income, deductions and offsets. The ATO said its focus is on smaller businesses in the property and construction industry (including builders, contractors and tradies) and the professional, scientific and technical services sector. Common errors include: incorrect claims for the R&D tax incentive (R&DTI), especially for activities that don’t meet the eligibility criteria; omitting sales and income in the BAS and tax returns, including income from related entities; and over claiming expenses and GST credits.
Wednesday 11 February 2026
Bill introducing Div 296 and other super measures introduced
The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026 was introduced into Parliament this morning for the proposed Division 296 tax. It implements the Government’s proposed changes to the taxation of superannuation balances to reduce the tax concessions available to individuals with Total Superannuation Balances (TSBs) exceeding $3m. Specifically, from the 2026-27 income year onwards, the concessional tax rates applying to superannuation earnings will be:
- for superannuation balances up to the $3m large superannuation balance threshold—up to 15% on earnings (unchanged from current tax arrangements);
- for superannuation balances between the $3m ‘large superannuation balance threshold’ and the $10m ‘very large superannuation balance threshold’—up to an overall 30% on a percentage of earnings; and
- for superannuation balances above the $10m ‘very large superannuation balance threshold’ – up to an overall 40% of earnings for TSBs above $10m
Note: These thresholds will be indexed to the Consumer Price Index each year.
Date of effect: Applicable from 1 July 2026
The Bill will also align the current low income superannuation tax offset (LISTO) with broader income tax and superannuation settings by amending the eligibility threshold to remove the specific reference to $37,000 and instead refer to the lowest income tax threshold for the relevant income year. As at 1 July 2027, the relevant personal income tax threshold will be $45,000. Also, the current maximum LISTO amount of $500 will be replaced by an amount calculated by reference to the LISTO eligibility threshold amount, the charge percentage, and the standard 15% tax rate for concessional contributions. Date of effect: From 1 July 2027
For Treasurer’s accompanying media release, see here.
Consultation papers: Enhancing governance of managed investment schemes
The Government has advised that it is releasing the first of a number of consultation papers to improve consumer protections in the wake of the collapse of the Shield and First Guardian Master Funds. In releasing the papers, the Assistant Treasurer, Daniel Mulino, said that there needs to be change to prevent this happening in the future and that high-profile collapses erode confidence, making Australians understandably nervous about investing and reducing participation in legitimate, well-regulated products. This consultation paper set out various options for enhancing oversight and governance of managed investment schemes. These options aim to improve how managed investment schemes are run and improve oversight of these schemes, including better tracking of superannuation switching.
Thursday 12 February 2026
Cost of constructing display model homes deductible to building company
The ART has ruled that the costs of constructing temporary display model homes (which were intended to be demolished) to a custom home building company were a revenue or operating expense and therefore were deductible under s 8-1 of the ITAA 1997. Specifically, the ART found that expenditure was not of a capital nature in the circumstances, but were a deductible marketing expense. Accordingly, the ART set aside the ATO’s objection decision set aside and allowed the taxpayer’s application. Masterton Corporation Holding Company Pty Ltd and FCT (Taxation) [2026] ARTA 160, 9 February 2026
Taxpayer denied deduction for $50,000 for work related expense
A taxpayer who claimed over $50,000 in work-related car, work-related travel, work-related clothing, self- education and interest expenses in the 2023 income year, and who had them essentially reduced to nil on audit, has been unsuccessful before the ART in seeking review of his disallowed objection. In arriving at its decision, the ART found that the taxpayer failed to show that the relevant assessment was excessive and said that this was mainly because he was unable to provide accurate, reliable and contemporaneous documents to substantiate his claims. (Afshari and FCT (Taxation) [2026] ARTA 159, 8 February 2026)
Update to ruling on Private Rulings
The ATO has issued a draft update to Taxation Ruling TR 2006/11: Private Rulings to address recent developments in case law, and the promoter penalty laws in the Taxation Administration Act 1953. Comments due: 27 March 2026.
PBO analysis of revenue foregone from operation of CGT discount
The Parliamentary Budget Office has published the response to a request for budget analysis provided to the Senate Select Committee on the Operation of the Capital Gains Tax Discount in relation to the amount of revenue foregone by the application of the discount. It is available on the PBO website, here.
Friday 6 february 2026
ATO: Help clients navigate government payments
The ATO has advised that if it will be contacting tax-agents and their clients in early February by email to ensure that income received from government agencies is reported correctly in their tax returns. The ATO said that if your clients receive government payments for delivering services such as healthcare, disability support or childcare under a Commonwealth program, they have an obligation to: keep accurate records; and report the income they receive in their tax return. It also emphasised that it is important that providers under programs such as the National Disability Insurance Scheme and the Aged Care Subsidy who receive government payments to deliver these services meet their tax obligations.
CGT discount – Senate Committee enquiry
The “Select Committee on the Operation of the Capital Gains Tax Discount” was established on 4 November 2025 and submissions closed on 19 December 2025. It was set up to inquire into and report on, among other things, the contribution of the CGT discount to inequality in Australia, particularly in relation to housing; the role of the CGT discount in suppressing Australia’s productivity potential by funnelling investment into existing housing assets; and how the CGT discount influences the types of assets purchased and whether these classes of investments are productive or speculative. The Committee is due to report on 17 March 2026.
SUPER & FINANCIAL SERVICES
Super Trustees Must Upgrade Governance as Assets Reach $6 Trillion by 2030
In a recent keynote address ASIC Commissioner Simone Constant noted that super Trustees will increasingly act as stewards not only of members’ retirement savings but of Australia’s broader economic future. The super sector currently stands at around $4.5 trillion and is expected to grow to $6 trillion by 2030.
Constant emphasised the urgent need for trustees to scale governance, capability, skills, systems and operations to match this expanded role.
She pointed to several immediate priorities:
- Recent cyber attacks on super funds
- Inadequate analysis of complaints data (some large trustees identified zero systemic issues despite thousands of complaints)
- Super funds lagging significantly behind the major banks in scam awareness messaging and member reporting channels on their websites
Additional priorities include follow-up on death benefits, ensuring the Retirement Income Covenant moves from implementation to meaningful delivery, greater transparency in public and private markets, financial reporting surveillance, and strengthened enforcement action on member service failures and poor private credit practices.
CGT discount – Senate Committee enquiry
The “Select Committee on the Operation of the Capital Gains Tax Discount” was established on 4 November 2025 and submissions closed on 19 December 2025. It was set up to inquire into and report on, among other things, the contribution of the CGT discount to inequality in Australia, particularly in relation to housing; the role of the CGT discount in suppressing Australia’s productivity potential by funnelling investment into existing housing assets; and how the CGT discount influences the types of assets purchased and whether these classes of investments are productive or speculative. The Committee is due to report on 17 March 2026.
Consultation on Super and Victims of Crime legislation
The Government has released exposure draft legislation for a proposed framework that would allow victims and survivors of child sexual abuse (and similar offences) to seek limited visibility of a perpetrator’s superannuation and, in certain circumstances, pursue a court-ordered release of amounts from the perpetrator’s super to satisfy unpaid compensation.
How it would work (in brief)
- Where a compensation order has remained unpaid for 12 months or more, an eligible victim could apply to the ATO Commissioner for limited information about the perpetrator’s super.
- With that information, the victim could apply to the court for a “perpetrator contributions release order”, enabling the Commissioner to issue release authorities to relevant super providers and remit released amounts to the victim.
- The proposed release is targeted at additional (non-mandated) contributions, like personal contributions or salary sacrifice, made during an “eligible period”, rather than ordinary employer-mandated contributions.
Notably, the draft materials indicate compensation debts of this kind would survive bankruptcy, improving the prospects of recovery over time.