30 March 2026 to 2 April 2026
Weekly Bulletin Contents
TAX
Monday 30 March 2026
ATO: Modernising trust tax administration
The ATO has advised that as part of the Modernisation of Tax Administration Systems (MTAS) program, it is focused on trusts, with the aim of delivering 3 key objectives: streamlining the lodgment experience; improving the quality, accuracy and integrity of trust and beneficiary reporting; and better targeting of compliance and assurance activities. In particular, the ATO said that from 1 July 2026, it will use trust statement of distribution data to pre-fill income tax returns for individual beneficiaries. It also said that tax agents will benefit from improved data quality that will support greater visibility of trust distributions for their clients and improved validations for digitally-lodged trust tax returns that will reduce errors and processing delays.
Draft Regulations: Superannuation advertising ban
Treasury has released draft regulations to support new laws that limit the types of superannuation products employers can show to new employees during onboarding (ie the “superannuation advertising ban”). Comments are due by 17 April 2026.
Full Court confirms no deduction for apparent $1.49 billion loss
The Full Federal Court has unanimously dismissed the taxpayer’s appeal from the decision in Tabcorp Maxgaming Holdings Limited v FCT [2025] FCA 115. In that case, the Federal Court found that the taxpayer was not entitled to a deductible loss of $1,491,309,000 from what the taxpayer claimed was a “financial arrangement” under Div 230 of the ITAA 1997. Instead, the Court found that no such “financial arrangement” existed at any relevant time and that, in any event, the taxpayer had already been allowed a deduction under s 8‑1 for the amount in question in prior financial years. In dismissing the taxpayer’s appeal, the Full Court confirmed that the taxpayer did not have a “financial arrangement” at the relevant time ie upon the expiry of the gaming operator’s licence. (Tabcorp Maxgaming Holdings Limited v FCT [2026] FCAFC30).
Appointments to Board of Taxation and TPB
The Government has announced that it has appointed the Hon. David Bradbury as the part-time Chair and member of the Board of Taxation, and reappointed Mr Peter de Cure AM as the part-time Chair and member of the Tax Practitioners Board.
Tuesday 31 march 2026
Temporary fuel excise cut
The Government has announced that it will halve the fuel excise on petrol and diesel for three months. The halving of the fuel excise will reduce the cost of fuel by 26.3 cents per litre. The halving of the fuel excise will commence from April 1 and run to 30 June. The Government will also reduce the Heavy Vehicle Road User Charge to zero for three months and will defer the next scheduled increase in the Heavy Vehicle Road User Charge by six months.
Full Court confirms gain from sale of farmland not ordinary income
The Full Federal Court has unanimously dismissed the Commissioner’s appeal from the decision in Morton v FCT [2025] FCA 336. In that case, the Court held that proceeds from the sales of the farmland owned by the taxpayer (which had been held and farmed by the taxpayer’s family since the 1950s) were capital receipts derived upon the realisation of an asset. It further found that the relevant sales activities constituted no more than an enterprising means of achieving the best price when realising the capital asset and that the taxpayer at no stage embarked on a business of developing land, nor did he venture it into a profit-making scheme. In upholding this decision, the Full Court said that the Court at first instance was correct in finding that the taxpayer merely realised a capital asset for the reasons it gave in its carefully considered and detailed decision. (FCT v Morton [2026] FCAFC 31, 27 March 2026)
Tax agent registration terminated – and stay application fails
The Tax Practitioners Board (TPB) has advised that it has terminated the tax agent registration of a tax agent after finding him not to be a fit and proper person, imposing a 4-year ban prohibiting him from re-applying for registration. The TPB’s decision related to the obligations to act with honesty and integrity, and to comply with taxation laws in the conduct of personal affairs, including: failing to notify the TPB of a judgment of the Federal Court that he had breached the Fair Work Act; making false and misleading statements to the ATO; and being found to have engaged in tax evasion by incorrectly reporting figures in several income tax returns. Also, the ART refused to stay the termination decisions. The matter will now proceed to final hearing.
AFP: Donations in disguise – avoid unwittingly financing terrorism
The AFP-led Joint Threat Financing Group (JTFG) has warned of terrorist organisations exploiting the Australian public’s goodwill by disguising themselves as charities to solicit donations to fund terror activities. It said it is aware terrorist actors and terrorist organisations may use the tactic of falsifying credentials to deceive vulnerable donors into sending funds offshore.
Wednesday 1 April 2026
Measures to help business in light of Middle East conflict
The Government has this morning [Wed 1 April 2026] announced new measures in the tax system to give people more flexibility as a result of the conflict in the Middle East. It said that the ATO will provide temporary relief for businesses unable to meet their tax obligations due to fuel supply issues, where appropriate. This will include more generous payment plans, remission of interest and penalties, and support in varying PAYG instalments where there has been a downturn in taxable income. The Government also said that it will help small businesses access easier and faster credit by extending the Small Business Responsible Lending Obligation exemption for a further 10 years. The Government also noted that Australian banks and non-bank lenders have put in place specialist teams to support small businesses, farmers and communities struggling with cost pressures and supply chain disruptions.
Full Court: Taxpayer wins appeal – FBT does not applies to car benefits
The Full Federal Court has unanimously allowed the taxpayers’ appeal from the decision in FCT v SEPL Pty Ltd as trustee of the SFT Trust [2025] FCA 581. In that case, the Federal Court allowed the Commissioner’s appeal from the original decision of the AAT in which the AAT ruled that the two directors of the taxpayer company (brothers) were neither employees of the company nor received car benefits in respect of their employment – and that therefore there was no liability for FBT. However, on appeal the Federal Court at first instance held that as a question of “mixed fact and law” the exclusive use of the cars by the directors were provided to them “in respect of” their employment and that therefore FBT applied. However, the Full Court has now held that it was open to the AAT to conclude that the brothers were not employees of the taxpayer and that the provision of the vehicles was not in respect of any hypothetical employment of them. (SEPL Pty Ltd as trustee of the SFT Trust v FCT [2026] FCAFC 36, 27 March 2026)
Fuel Excise Relief Bill introduced
The Treasury Laws Amendment (Fuel Excise Relief) Bill 2026 was introduced into Parliament, and passed, on 30 March. It amends the Excise Tariff Act 1921 and the Customs Tariff Act 1995 to temporarily reduce the excise and excise-equivalent customs duty rates applying to fuels, including petrol and diesel and similar petroleum-based products, as follows:
- From 1 April 2026, the excise and excise-equivalent customs duty rates on fuels, including petrol and diesel and similar petroleum-based products manufactured or produced in Australia or imported into Australia is reduced by 50% for a period of 3 months until 30 June 2026. [This will mean that the fuel excise will be reduced by 26.3 cents per litre.]
- From 1 July 2026, the excise and excise-equivalent customs duty rates for these goods automatically return to the rates that would otherwise have applied on this date as if there had not been a temporary reduction in fuel excise and excise-equivalent customs duty rates.
- To provide that the temporary reduction in CPI indexed fuel rates is 50% during the rate reduction period unless the Treasurer has determined a lower percentage applies. A lower percentage benefits the users of fuel products (from date of Royal Assent).
The Bill also amends the Fuel Tax Act 2006 to provide the Transport Minister with the power to determine an increase to the rate of the road user charge for the period 1 July 2025 to 30 June 2027 during the period 1 April 2026 to 30 June 2027 (inclusive) without the restrictions on that power provided in the Act. Among other things, these amendments allow the Transport Minister to decrease the road user charge without engaging in public consultation and make more than one determination per financial year.
Thursday 26 March 2026
FBT Determinations – car rates and reasonable food amounts
The ATO has issued the following FBT related tax determinations:
- TD 2026/1 Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing 1 April 2026. It sets the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing 1 April 2026.
TD 2026/2 Fringe benefits tax: reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the fringe benefits tax year commencing 1 April 2026. It sets out the amounts that the Commissioner considers reasonable, under s 31G of the Fringe Benefits Tax Assessment Act 1986, for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the fringe benefits tax year commencing 1 April 2026.
Draft ruling update: Super – transfer balance cap
The ATO has issued a draft update to LCR 2016/9DC Superannuation reform: transfer balance cap. This draft ruling explains proportional indexation of the transfer balance cap to clarify the status of superannuation income streams subject to a commutation authority. It also clarifies how the general principles in this Ruling apply in the context of successor fund transfers and reflects the increase in the maximum allowable members made under the Treasury Law Amendment (Self-Managed Superannuation Funds) Act 2021. Comments due: 8 May 2026.
Guideline update: Electric vehicle home charging rate
The ATO has issued an update to PCG 2024/2 Electric vehicle home charging rate – calculating electricity costs when a vehicle is charged at an employee’s or individual’s home. The Guideline sets out the methodology that has been developed to calculate the cost of electricity when an electric car is charged at an employee’s or an individual’s home. It has been updated for the EV home charging rate in Table 2 of the Guideline to include a revised cents per kilometre rate for the FBT year or income year commencing on and after 1 April 2026.
ATO: Letter to RSE licensees for Payday Super implementation
APRA and the ATO have issued a letter to RSE licensees regarding the commencement of Payday Super on 1 July 2026. The letter sets out the ATO’s and APRA’s roles in the implementation of Payday Super, the relevant regulations and standards to support Payday Super, and next steps to support RSE licensee implementation readiness by 1 July 2026.
SUPER & FINANCIAL SERVICES
Genetic testing discrimination ban passes Parliament
Legislation has passed Parliament to ban life insurers from using adverse genetic testing results to deny cover or impose limits, aiming to ensure Australians aren’t discouraged from genetic testing due to insurance concerns. The new rules will apply to life insurance contract decisions made on or after six months following Royal Assent, with ASIC responsible for enforcement (including civil penalties and criminal offences for non-compliance). The ban won’t stop individuals from volunteering genetic test results with written consent where this would not adversely affect an offer, and it doesn’t limit insurers’ ability to consider signs, symptoms or diagnosed diseases in underwriting. The reforms will be reviewed every five years and disputes can be taken to AFCA.
Draft regulations: superannuation advertising ban
Treasury has released draft regulations to support new laws that limit the types of superannuation products employers can show to new employees during onboarding (ie, the “superannuation advertising ban”). Comments are due by 17 April 2026.
Commentary
Division 296 draft regulations: fixes needed before finalisation
Several design issues in the draft Division 296 regulations could increase complexity and create unintended outcomes unless addressed before finalisation. A key concern is the treatment of death benefits, with the draft rules indicating earnings may continue to be attributed to a member after death until the death benefit is finalised. This can potentially pull multiple years of post-death earnings back into the member’s final assessment and creating uncertainty for trustees, advisers and executors. The draft approach may also create a mismatch where the tax liability sits with the deceased’s estate but the benefit is paid directly to a beneficiary, leaving legal personal representatives exposed to liabilities without access to funds. Other issues include a lack of clarity around actuarial certification requirements and potential distortions in small fund attribution formulas, particularly where reserves exist. The consultation process provides an opportunity to refine these settings so the regime is workable and does not delay estate administration or add unnecessary compliance costs.