• Latest Weekly Updates

15 May 2026

  • May 15, 2026

11 May 2026 to 15 May 2026

Weekly Bulletin Contents

TAX

monday 11 May 2026

ATO: Act now to transition from SBSCH before Payday Super

The ATO has issued a reminder that the Small Business Superannuation Clearing House (SBSCH) permanently closes on 1 July 2026. If you still use it, you have less than 7 weeks left to transition to an alternative service provider, test your new arrangements and resolve any issues before Payday Super begins. So, the ATO said don’t delay and act now to download all your SBSCH records as after 11:59 PM AEST on 30 June user access will be closed and you won’t be able to view or retrieve any records, so make sure you get everything you need before this time.

Taxpayer assessable on distributions from a foreign trust

The ART has partly affirmed and partly set aside the Commissioner’s objection decision in respect of a taxpayer being assessable on distributions from a foreign trust under s 99B(1) of the ITAA 1936. It ruled that the taxpayer was assessable on only one half of one distribution (some $39,000) and assessable on the whole of another distribution (some $58,000). But it ruled that it was not assessable on any of another distribution (some $20,000). In doing so, the ART had to consider the following issues: the meaning of phrase ‘applied for the benefit’ of a beneficiary in s 99C(1); the corpus exemption in s 99B(2)(a); the hypothetical resident taxpayer test in s 99B(2)(a); and the chain of trusts and the hypothetical resident taxpayer test in s 102AAM. (Frizelle and FCT (Taxation and business) [2026] ARTA 752, 8 May 2026)

Government to strengthen annual superannuation performance test

The Government has announced that it is acting to strengthen the annual superannuation performance test. It said this is all about better aligning and unlocking investment that also boosts productivity, while keeping member interests front and centre. The Government said that while the performance test has played an important role in improving outcomes for members, aspects of the current design may be discouraging investment in some sectors that could deliver strong, long term returns. As a result, the Government is releasing a consultation paper to ensure any changes are well designed, evidence‑based, and aligned with the long‑term interests of superannuation members. Comments due by 19 June 2026.

Back to Table of Contents

tuesday 12 May 2026

Budget: Making $20,000 instant asset write-off permanent?

Institute of Financial Professionals Australia comment: Lots of people have been lining up to thank the Government for something that hasn’t been announced yet – that is, making the $20k Instant Asset Write-off permanent. As it currently applies, it is to end on 30 June 2026. But if these rumours are true, and it’s announced in tonight’s Budget, it will make little practical difference, as the government has been extending the current limit on a year by year basis anyway.

ATO: Super guarantee opt out for high-income earners with multiple employers

The ATO has advised that you can apply for a certificate to opt out of receiving some super guarantee contributions under the Payday Super rules if you meet both of the following conditions: (a) you have more than one employer in a financial year – this includes being employed by more than one employer at the same time or switching your employment from one employer to another in a financial year; and (b) you expect the compulsory super guarantee contributions from these employers to exceed your concessional contributions cap for the one financial year you are applying for. The ATO said that the super guarantee employer shortfall exemption certificate releases one or more of your employers from their super guarantee obligations for a specified period. The ATO also said that it must receive your application by 30 May 2026 if you nominate 1 July 2026 as the starting date.

Former s 160ZZS: $99 million in tax at stake – taxpayer wins

The Federal Court has ruled on a matter involving former s 160ZZS of the ITAA 1936 – which applies where pre-CGT assets held by an entity (eg a company) are converted to post-CGT assets because of a post-CGT change in the majority underlying interests in the entity (eg shareholding). As a result, the pre-CGT assets are taken to have been acquired post-CGT for their market value at that time. In this case, the pre-CGT assets were shares that the taxpayer owned in Woodside Petroleum Limited which were subject to s 160ZZS in 1997 (as it applied to public companies per s 160ZZSC and s 149-5(2)(a) of the TP Act). The taxpayer determined the shares had a market value at that time which reflected a “premium” to its listed price.

The Commissioner did not accept this and issued amended assessments whereby it increased the taxpayer’s net capital gain resulting in a reduction in the taxpayer’s carried forward tax losses and the earlier utilisation of non-refundable R&D tax offsets. This in turn led to an increase in overall tax payable of some $99 million. However, the Court has now allowed the taxpayer’s appeal and held that the taxpayer had discharged the onus of proving (by way of expert evidence) that the market value of the shares at the time did reflect a premium to its listed price. (Shell Energy Holdings Australia Limited v FCT [2026] FCA 577, 11 May 2026)

ATO: Joint operation takes aim at international scam syndicate

The ATO has reported that a major international scam syndicate linked to a sophisticated offshore criminal network has been hit by enforcement action, as authorities close in on the fraudsters accused of siphoning taxpayer funds overseas. Officers from the ATO and Services Australia, with assistance of the Australian Federal Police, recently executed a search warrant at a property in Western Sydney as part of Operation Falcata, a Serious Financial Crime Taskforce investigation into identity takeover being used to commit tax and welfare fraud. The ATO-led operation has identified an alleged recruiter of the syndicate, suspected of recruiting money mules to help launder the proceeds of tax and welfare fraud.

Back to Table of Contents

wednesday 13 may 2026

2026-27 Federal Budget: Summary

The 2026-27 Federal Budget was handed down on 12 May 2026. The key tax measures are:

  • CGT discount replaced — from 1 July 2027, the 50% CGT discount is replaced with cost base indexation plus a 30% minimum tax on real gains. Applies to all CGT assets including pre-1985 assets, with gains accrued before 1 July 2027 grandfathered. Investors in eligible new builds can elect either system, and income support recipients are exempt from the 30% minimum tax.
     
  • Negative gearing limited to new builds — from 1 July 2027, losses on established residential property acquired after 7:30pm AEST 12 May 2026 can only be deducted against rental or residential property capital gains income. Properties held (or under contract) before that time are grandfathered.
     
  • 30% minimum tax on discretionary trusts — from 1 July 2028, with exemptions for unit and widely-held trusts, complying super funds, special disability trusts, deceased estates and charitable trusts. Primary production income, certain vulnerable minor income, and income from existing testamentary trust assets are also excluded. Three-year rollover relief from 1 July 2027 to assist restructuring.
     
  • $20,000 instant asset write-off made permanent — for small businesses with turnover up to $10 million, from 1 July 2026.
     
  • Loss carry-back reinstated — companies with global turnover under $1 billion can carry losses back two years, from 1 July 2026. Separately, loss refundability for start-ups (turnover under $10 million, first two years of operation) from 1 July 2028.
     
  • $1,000 instant tax deduction — from the 2026–27 income year, individuals can claim a flat $1,000 for work-related expenses without itemising (charitable donations and professional memberships still claimable on top).
     
  • Working Australians Tax Offset — a new $250 permanent tax offset for income from work, from the 2027–28 income year, lifting the effective tax-free threshold to $19,985 (or $24,985 with LITO).

For further details see our full Budget report.

Note: The Parliamentary Budget Office has published the  2026-27 Guide to the Budget. This publication is a quick guide for how to navigate the budget papers, where to look to find new measures, what has changed since MYEFO and more.

ATO: Super funds and fees where no service is provided

The ATO has released information of the tax consequences where a super fund is paid compensation from a financial services provider that reflects any of the following: the adviser fees paid; an amount corresponding to the loss of value of the investment as a result of paying the fees; and interest. Among other things, the ATO said that if the adviser fees were an allowable deduction to the super fund when originally paid, the compensation amount reflecting the fees will be an assessable recoupment under s 20-20 of the ITAA 1997.

Back to Table of Contents

thusday 14 may 2026

Taxpayer unsuccessful in demonstrating default assessments excessive

A self-represented taxpayer has been mainly unsuccessful in attempting to demonstrate that default assessments in respect of unexplained deposits of over $1m in bank and other accounts were excessive. The taxpayer argued that the amounts, which were held in the name of other entities, had not been beneficially derived by him –  nor had the Commissioner provided a reliable basis for allocating any proportion of the amounts to him. He also claimed that as a “foundational matter” it had not been established that he was a resident of Australia in any of the relevant years. In the alternative he argued that the Commissioner was wrong on  the “quantum” issue. However, the ART ruled that he had not demonstrated on the balance of probabilities that any of the default assessments were excessive and what they should have been. (Palmer and FCT (Taxation and business) [2026] ARTA 780, 12 May 2026)

PBO Budget guide and Snapshot released

The Parliamentary Budget Office has released the 2026-27 Budget Snapshot and Budget Guide. It provides a graphical summary of information contained in the 2026-27 Budget. Find the 2026 27 Budget Snapshot on our website. This dataset provides a range of historical time-series for budget aggregates, heads of revenue and expenses in a single location.

Determination for GST sharing between states

The Federal Financial Relations (GST Revenue Sharing Relativities for 2026-27) Determination 2026  has been made. Its purpose is to specify the factors that will be the GST revenue sharing relativities for each State, the Australian Capital Territory and Northern Territory for the 2026-27 payment year.

Back to Table of Contents

friday 15 may 2026

Super Survivors Bill passed

The Treasury Laws Amendment (The Survivors Law) Bill 2026 has been passed by Parliament. It provides that perpetrators of child sexual abuse cannot hide behind financial structures to avoid accountability. Under the Bill, victims and survivors of child sexual abuse can apply for a court order to access additional personal or salary sacrifice superannuation contributions made by the offender where a related court order for compensation remains unpaid after 12 months. Victim survivors will also be able to apply to the ATO, with appropriate safeguards, to identify any potential eligible superannuation of the offender prior to seeking access.

ATO: How to report a breach of Australian foreign investment rules

The ATO has advised that you can confidentially report a breach of the foreign investment rules. This includes whether you suspect or know of a breach. The ATO says it welcomes information from anyone in the community with concerns about suspected illegal activities by a foreign person owning Australian residential property. The ATO also said if you have breached your foreign investment obligations, contact them as soon as you can. They  will prioritise your issue and help you to comply with the rules.

Transitional rules to support anti-money laundering reform

The Anti-Money Laundering and Counter-Terrorism Financing Transitional Rules 2026 instrument has been made. It is intended to support implementation of the reforms introduced under the AML/CTF Amendment Act. These rules will allow periods of time for reporting entities to adjust their business and processes to comply with certain obligations, while still managing their money laundering (ML) and terrorism financing (TF) risk.

Back to Table of Contents

SUPER & FINANCIAL SERVICES​

This week the Government handed down their 2026-27 Federal Budget. Key measures included
  • CGT discount replaced with indexation – from 1 July 2027, the 50% CGT discount is replaced with cost base indexation plus a 30% minimum tax on real gains. Applies to all assets including pre-1985 assets, with gains accrued before 1 July 2027 grandfathered. New housing investors can elect either system.
     
  • No negative gearing on established residential property – from 1 July 2027, losses on established residential property acquired after Budget night (12 May 2026) can only be deducted against rental or residential property capital gains income. Properties held before Budget night are grandfathered.
     
  • 30% minimum tax on discretionary trusts – from 1 July 2028, with exemptions for fixed and widely-held trusts, super funds, deceased estates, charitable trusts, primary production income and certain other categories. Three-year rollover relief from 1 July 2027 to assist restructuring.
     
  • $20,000 instant asset write-off made permanent – for small businesses with turnover up to $10 million, from 1 July 2026.
     
  • Loss carry-back reinstated – companies with turnover up to $1 billion can carry losses back two years from 2026–27. Loss refundability for start-ups in their first two years from 2028–29.
     
  • $1,000 instant tax deduction – from 2026–27, individuals can claim a flat $1,000 for work-related expenses without itemising (charitable donations and professional memberships still claimable on top).
     
  • Working Australians Tax Offset – a new $250 permanent tax offset for income from work, from the 2027–28 income year.

The 2026-27 Federal Budget can be found here.

Coalition Budget Reply

Opposition Leader Angus Taylor delivered his Budget in Reply speech on 14 May.
 
Two notable proposals include:

  • Tax Back Guarantee – indexing the bottom two income tax thresholds to inflation from 2028-29, extending to all four thresholds from 2031-32.
     
  • Permanent instant asset write-off – businesses with turnover under $10 million could immediately deduct assets up to $50,000 on an ongoing basis. 

A transcript of the speech can be found here.