14 September 2026 to 18 September 2026
Weekly Bulletin Contents
TAX
MONDAY 14 september 2026
Exposure draft legislation for 2026-27 Budget announcements
The Government has released the following pieces of exposure draft legislation to give effect to various 2026-27 Budget (and subsequent Budget-related) announcements:
- Innovative Business CGT Concession – to provide an Innovative Business CGT Concession (IBCC) by way of a 50% discount on capital gains from early-stage investments in innovative start-ups. The proposed measures will: extend the 15-year eligibility period to all firms; lower the minimum holding period to 3 years; and removing the lifetime cap. At the same time, the measures will help companies incorporated before 1 July 2027 to self-assess whether they meet the innovation requirement for the IBCC. (The Government will consult separately on a similar legislative instrument for start-ups incorporating on or after 1 July 2027.)
- Targeted R&D Tax Incentive – to simplify the Research and Development Tax Incentive, encourage additional business investment in R&D by way of: increasing offsets for eligible core R&D activities and removing the eligibility of supporting R&D activities; reducing the intensity threshold for the non-refundable offset to 1.5%; increasing the turnover threshold for the refundable offset to $50m; increasing the minimum expenditure threshold to $50,000; increasing the maximum expenditure threshold to $200m; and limit refundability to firms up to 10 years of age, with an extension for up to 15 years for eligible firms undertaking R&D activities related to therapeutic goods.
- Expansion of tax incentives for venture capital schemes – to help unlock patient capital for young, expanding firms. The measures will, from 1 July 2027: increase the asset value thresholds for eligible investee entities from $250m to $480m for Venture Capital Limited Partnerships; increase the asset value thresholds for eligible investee entities from $50m to $80m for Early Stage Venture Capital Limited Partnerships; increase the maximum fund size of an Early Stage Venture Capital Limited Partnerships from $200m to $270m, and increase the threshold at which certain Early Stage Venture Capital Limited Partnership investment returns can be fully tax exempt from $250m to $420m. The changes will also close the Eligible Venture Capital Investor program to new applications from 12 May 2026.
- New FBT treatment of electric cars – to transition to a 25% FBT discount for: eligible EVs valued over $75,000 from 1 April 2027; and all eligible EVs from 1 April 2029. Eligible EVs valued at $75,000 or less will still get a 100% FBT exemption where the commitment to provide a vehicle is made before 1 April 2029.
- Monthly PAYG instalments – to allow more taxpayers to report and pay PAYG instalment amounts monthly. The proposed amendments would: allow taxpayers required to report and pay PAYG instalments to do so on a monthly basis from 1 July 2027; and require taxpayers with a demonstrated history of non-compliance with their tax obligations to report and pay their PAYG instalments monthly.
Comments on all the proposed measures are due by 28 September 2026.
See Treasurer’s accompanying media release, here.
Insurance payment assessable as compensation for lost earnings
A taxpayer has been unsuccessful before the ART in claiming that an insurance payment was not assessable income. Instead, the ART was satisfied that the insurance payment was compensation for his lost earnings resulting from the injuries he suffered in a car accident. The ART concluded that as the lost earnings would have been ordinary income to him, the insurance payments he received compensating him for such lost earnings also have the character of ordinary income, and as such are assessable as income to him. (Sebastian and FCT [2026] ARTA 1981, 9 September 2026)
GST: Waiver of tax invoice requirement – reimbursement of acquisitions
The A New Tax System (Goods and Services Tax) (Waiver of Tax Invoice Requirement – Reimbursement of Acquisitions Made Using an Assumed Name) Determination 2026 has been made. It waives the requirement for a government law enforcement agency to hold a tax invoice to attribute input tax credits for a creditable acquisition where the acquisition relates to the reimbursement of certain expenses incurred by an employee or agent of theirs when using an assumed name.
tuesday 15 september 2026
Tax Practitioners Board Sanctions Determination made
The Tax Agent Services (Code of Professional Conduct) Amendment (Enhancing Tax Practitioners Board Sanctions) Determination 2026 has been made. It will amend the Determination to support amendments made by the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026. This Act introduced new and expanded sanctions including new offences, civil penalties and powers to suspend the registration of tax practitioners, as well as giving the Board a suite of other enforcement powers.
ATO: PAYG withholding annual report (interest, dividend etc paid to non-residents)
The ATO has released information on how to prepare and lodge a PAYG withholding annual report for interest, dividend and royalty payments to non-residents. The information includes: who should use this form; when to lodge this form; and how to complete the form. It also includes a link to the latest version of the template report.
No reinstatement of previously dismissed application
The ART has dismissed a taxpayer’s application for reinstatement of a matter that had previously been dismissed on basis that there was no reviewable decision made in relation to the PAYG matter that the taxpayer had disputed. In ruling that there had been no error in the original dismissal, the ART said his original request was not a valid objection and it conferred no right of review. However, the ART observed that it remained open to the taxpayer (following his bankruptcy and other matters) to lodge a fresh valid objection that could produce a reviewable decision. (Johns and FCT (Practice and procedure) [2026] ARTA 2003, 10 September 2026)
wednesday 16 september 2026
Strengthening Accountability for Tax Adviser Misconduct Bill receives assent
The Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026 received assent on 15 September 2026 as Act No 86 of 2026. Among other things, it will expand the Tax Practitioners Board’s regulatory penalty powers; amend the foreign resident CGT regime by clarifying and broadening the foreign resident CGT tax base by introducing a definition of ‘real property’; provide a transitional 50% CGT discount for certain foreign residents who dispose of Australian renewable energy assets; and rename public and private ancillary funds as public and private giving funds.
ATO: Downsizer contributions offer a valuable boost to retirement savings
The ATO has issued a reminder that “downsizer” super contributions can help eligible Australians boost their super using proceeds from the sale of their home. It said that eligible individuals aged 55 years old or over can contribute up to $300,000 from the sale of their home into their SMSF. Couples may be able to contribute up to $600,000 combined – and downsizer contributions do not count towards concessional or non-concessional contribution caps.
ASIC – qualified accountants under Corps law
The ASIC Corporations (Qualified Accountant) Instrument 2026/734 has been made. It declares that persons in specified classes of members of specified professional bodies are qualified accountants for the purposes of the Corporations Act 2001.
thusday 17 september 2026
Div 7A applies to substantial payments made to taxpayers
The ART has found that the taxpayers had failed to discharge the onus of showing that substantial payments from a related company over 4 income years were not subject to Div 7A. The payment mechanism involved the taxpayers drawing down funds against the financial facilities established for working capital and purchases of the business. The taxpayers argued that there was an intermingling of relevant funds and that the Commissioner should have exercised his discretion under s109RB to disregard the treatment of the payments as dividends, as they were caused by an honest mistake or inadvertent omission. However, the ART agreed with the Commissioner that the payments met the conditions in s109D(1) to treat the payments as dividends, and that none of the exclusions applied. The ART also found that there were no grounds to remit 25% shortfall penalties imposed for failing to take reasonable care. (Traynor and FCT (Taxation and business) [2026] ARTA 2024, 15 September 2026)
Foreign Resident Capital Gains Withholding Payments instrument made
The Variation for Foreign Resident Capital Gains Withholding Payments) Legislative Instrument 2026 has been made. It varies the amount that an entity that acquires certain CGT assets from a relevant foreign resident must pay to the Commissioner under the foreign resident capital gains withholding (FRCGW) regime. The variations ensure that FRCGW appropriately reflects expected income tax liabilities relating to the change in ownership of the CGT asset and resolve practical difficulties that may arise in certain situations. Note this Instrument consolidate 5 earlier class variation legislative instruments into a single instrument.
Court finds contravention of Foreign Acquisitions and Takeovers Act
The Federal Court has found that a person, an Indonesian national, contravened s 96(1) of the Foreign Acquisitions and Takeovers Act 1975 in that he failed to construct one or more dwellings on land he acquired in Victorias within the 4 years of the date of the “no objection notification”. Accordingly, the Court ruled that the person pay to the Commonwealth a pecuniary penalty in the sum of $370,000 for his contraventions. The Court also ordered that prior freezing orders be varied such that the order has effect up to and including the day that is 28 days after the date of this decision. (FCT v Handojo (No 2) [2026] FCA 1363, 15 September 2026)
friday 18 september 2026
ATO: An 80% jump in non-lodgment prosecutions!
The ATO has announced an 80% jump in non-lodgment prosecutions over the past 2 years from dodgy shadow economy operators, leading to more than $2.7m in fines. The ATO said that the shadow economy undermines legitimate businesses and reduces revenue that would otherwise fund essential public services – and that “it doesn’t matter what profession you’re in, if you’re a tradie, hairdresser or café owner, and you deliberately avoid paying the right amount of tax, you risk more than financial penalties.” The ATO also said that a criminal conviction can have significant impact on reputation, business viability and ability to travel overseas, as well as make it harder to borrow money or obtain insurance.
ATO cracking down on “land banking” by foreign investors
The ATO has advised that is cracking down on foreign investors who break Australia’s strict foreign investment rules by ‘land banking’ vacant land. It noted that the Federal Court in FCT v Handojo (No 2) [2026] FCA 1363 recently found that a foreign investor breached the development conditions attached to their foreign investment approval after failing to construct a residential dwelling on vacant land within the required timeframe of 4 years, and ordered a penalty of $370,000. The ATO welcomed the outcome and said that its action demonstrates the ATO’s commitment to ensure compliance by foreign investors who “need to understand that buying residential land in Australia comes with clear and enforceable obligations”. The ATO also said that where foreign investors do not comply, it will take firm action, including court proceedings, to uphold the law and protect Australia’s national interests.
ATO: New foreign resident CGT measure starts 1 October
The ATO has issued a reminder that the Strengthening the Foreign Resident Capital Gains Tax regime measures has received royal assent and the measures will come into effect from 1 October 2026. The changes will apply to disposals of Australian real property and Australian real property interests (through shares, trust units or other membership interests). In particular, the ATO said that foreign resident clients may now be subject to CGT, especially in relation to: water entitlements; investments where state or territory severance provisions may have applied; and investments in Australian companies and other entities.
Amending Child Support and Family Assistance Bill introduced
The Child Support and Family Assistance Legislation Amendment (Ending Financial Abuse in the Child Support Scheme) Bill 2026 was introduced into Parliament on 17 September 2026. Among other things, it will: make debt recovery fairer by supporting families to recover unpaid child support debts when they move into Agency Collect arrangements; end the current legal requirement that any information provided by one parent during an application be shared with the other parent; and provide new pathways to remove the harm that can arise from Family Tax Benefit (FTB) debts caused by child support payers against their former partners. See also accompanying media release, here.
SUPER & FINANCIAL SERVICES
ATO reminder on September quarter TBARs
The ATO has published a reminder that SMSFs with transfer balance account events in the September quarter must lodge a transfer balance account report (TBAR) by 28 October 2026.
Reporting is quarterly for every SMSF, regardless of the member’s total superannuation balance. There is no need to lodge anything if there has been no event during the quarter. The ATO also notes that the deadline is not always 28 October. Where a member has exceeded their personal transfer balance cap, an earlier reporting obligation can apply.
ART affirms decision to ban financial adviser for 5 years
The ART has affirmed a decision of ASIC to ban a financial adviser for 5 years for participation in an “advice giving model” in contravention of his best interests duty. Unlicensed telemarketers ran the fact-find and paraplanners drafted the statement of advice (SOA) before the adviser had spoken to the client. In some cases, the adviser saw the SOA only minutes before meeting the client. The adviser also made misleading statements by presenting 5-year rolling returns for a fund that had been operating for about 4 years.
The ART agreed that the adviser’s activity involved misleading and deceptive conduct and that a banning order of 5 years was the correct and preferable decision. (Hanley and ASIC (Taxation and business) [2026] ARTA 1928, 7 September 2026)
ATO: SMSF quarterly statistical report June 2026
The ATO has released the June 2026 quarterly SMSF statistics. Some key figures are listed in the table below.
As at 30 June 2026
Measure | Figure |
Number of SMSFs | 680,301 |
SMSF members | 1,246,552 |
Total estimated SMSF assets | $1.107 trillion |
Largest asset type by value | Listed shares, 26% |
Second largest asset type by value | Cash and term deposits, 16% |
Members aged 50 or over | 74% |
Withdrawal request paid after death treated as a death benefit
In a recent private ruling the ATO treated a super benefit paid after a member’s death as a death benefit, even though the withdrawal had been requested before death. The member was over 65 and had no death benefits dependants. Their attorneys, acting under an enduring POA, requested payment of the full balance to fund a refundable accommodation deposit. The paper work was incomplete and the fund declined the withdrawal. The withdrawal was not actioned until after the member’s death.
The taxed element of the taxable component is taxed at 15% plus Medicare levy when paid to a non-dependant beneficiary. The same amount paid as a member benefit to a member over 60 would have been tax free.
Insurance payment assessable as compensation for lost earnings
A taxpayer has been unsuccessful before the ART in claiming that an insurance payment was not assessable income. Instead, the ART was satisfied that the insurance payment was compensation for his lost earnings resulting from the injuries he suffered in a car accident. The ART concluded that as the lost earnings would have been ordinary income to him, the insurance payment he received compensating him for those lost earnings also had the character of ordinary income and was assessable income. (Sebastian and FCT [2026] ARTA 1981, 9 September 2026)
ATO: Data quality matters for Payday Super
In relation to the new Payday Super obligations, the ATO has advised employers to keep payroll data up to date to reduce errors, prevent delays and support timely super payments. The ATO says employers should keep employee details up to date, including names, dates of birth, TFNs and super account details, check employee information is accurate before processing payroll, work with their payroll or super service provider to resolve data issues promptly, and review payroll processes regularly to reduce errors.