17 August 2026 to 21 August 2026
Weekly Bulletin Contents
TAX
monday 17 August 2026
No reviewable objection decision made re re-raising of debt
The ART has ruled that it had no jurisdiction to hear a taxpayer’s application in relation to the Commissioner’s decision to re-raise a tax debt of some $44,000 (and to thereby withhold tax refunds she was otherwise entitled to). The ART ruled that no “reviewable objection” decision had been made by the Commissioner in refusing her challenge to the re-raising of the debt and the withholding of refunds. Therefore, her application for review by the ART was dismissed. (Yelda and FCT (Practice and procedure) [2026] ARTA 1605, 12 August 2026)
GST: Waiver of Adjustment Note Requirement
The A New Tax System (Goods and Services Tax) (Waiver of Adjustment Note Requirement – Reverse Charged Supplies) Determination 2026 has been made. For GST purposes, it waives the requirement for a recipient to hold an adjustment note for a decreasing adjustment where the adjustment relates to a reverse charged supply to which section 83-5 of the Act applies.
Productivity Commission’s interim report re 2018 GST distribution
The Productivity Commission (PC) has released its interim report on its analysis, findings and recommendations in relation to the Governments request to inquire into the 2018 GST distribution reforms and whether current arrangements for distributing GST revenue are effective, and whether changes to distribution arrangements would deliver better outcomes. The PC is seeking feedback on its interim report.
tuesday 18 august 2026
Court finds Tribunal erred in only issuing caution to tax-agent
The Federal Court has found that the ART erred in law in finding that a tax agent was a “fit and proper person” in terms of the Tax Agent Services Act 2009 – in the circumstances where the Tax Practitioners Board (TPB) had originally terminated the agent’s registration for not disclosing matters that may affect his good fame, integrity and character and his eligibility for registration. These were: not disclosing that his SMSF’s outstanding tax lodgement obligations; and adverse finding against him made by a court in relation to a prior unfair dismissal matter. At first instance, in Free and Tax Practitioners Board [2026] ARTA 319 the ART found that in the circumstances it was appropriate to just issue a caution and to order the agent to undertake remedial education. However, on appeal the Federal Court held that the ART erred in law by, among other things, failing to properly apply the correct legal test for determining whether the tax agent was a “fit and proper” person by relying on irrelevant considerations. Accordingly, it set aside the ART’s decision and remitted the mater to a differently constituted Tribunal to be determined according to law. (Tax Practitioners Board v Free [2026] FCA 1155 (17 August 2026)
ATO: Average foreign exchange rates for July 2026
The ATO has released the average foreign exchange rates for July 2026 for selected countries ($A1), as follows: Canadian dollar – 0.9829; Chinese renminbi – 4.7189; European euro – 0.6096; Hong Kong dollar – 5.4600; Indian rupee – 66.7178; Indonesian rupiah – 12543.4348; Japanese yen – 113.1609; Malaysian ringgit – 2.8429; New Zealand dollar – 1.2054; Singapore dollar – 0.8992; South Korean won – 1037.9535; Thai baht – 23.3335; UK pound sterling – 0.5206; United States dollar – 0.6963.
ATO: Four people sentenced over $10.7m tax fraud
The ATO has advised that 4 people have been sentenced by the District Court of NSW for their roles in a 2-year, $10.7m fraud that used labour hire and payroll companies linked to the building and construction industry. The ATO said that a joint AFP and ATO investigation, known as ‘Operation Bordelon’, began in December 2018, following intelligence identified in multiple criminal investigations. The court heard that 4 individuals were part of a sophisticated money laundering and tax evasion scheme, which ran from July 2018 to July 2020 and diverted $10.7m in PAYG withholding from labour hire services. These funds were siphoned to companies directed by other syndicate members, their relatives and associates, and offshore.
wednesday 19 august 2026
ATO: $21 billion in lost super – find yours
The ATO is urging the community to check for any super they may have lost track of, with new data showing over $21 billion is waiting to be claimed. The ATO said super can become lost for a variety of reasons, mostly when an account is inactive from no contributions, and your contact details are not up to date. When a super fund is unable to contact an individual to reunite them with their super, it may be transferred to the ATO to hold and attempt to reunite. The ATO also said that by updating your contact details with your super fund and the ATO, or letting them know your nominated super account, you may be reunited with money you had long forgotten about.
ATO to focus on alcohol remission scheme rorts
The ATO has advised that it is ramping up compliance action to protect the integrity of the excise remission scheme for alcohol manufacturers. The scheme allows eligible domestic alcohol manufacturers to automatically claim a remission for the first $400,000 of excisable alcohol they manufacture each financial year, making those goods free of excise duty. However, the ATO said that where it identifies businesses claiming concessions they are not entitled to, it will take swift action to recover unpaid excise and ensure the correct treatment is applied. The ATO also emphasised that businesses must be able to clearly demonstrate their eligibility and maintain robust records to support their claims.
thusday 20 august 2026
Tax Reform No 2 Bill awaits Royal assent – loss carry back, instant asset write off etc
The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 passed the Senate yesterday [19 August 2026] and now awaits Royal assent. The measures contained in the Bill will: enable corporate tax entities that are not significant global entities to carry back a tax loss in an income year and apply it against tax paid in either or both of the previous two income years to receive a tax offset; permanently extend the $20,000 instant asset write-off from 1 July 2026; provide an income tax exemption for income derived in respect of employment with the PNG Chiefs Limited; and ensure that where, due to inheritance or relationship breakdown, a person acquires an ownership interest in a residential dwelling from their spouse (or former spouse) or a co-owner, and that ownership interest was capable of being negatively geared, the person is entitled to the same treatment for the new ownership interest.
Draft Ruling: Receipt and disposal of crypto assets by an airdrop
The ATO has released two draft ruling dealing with CGT and crypto assets, as follows:
- TR 2026/D1: Income tax: receipt and disposal of crypto assets by an airdrop – which addresses the income tax and CGT consequences for an Australian resident taxpayer of issuing or receiving crypto assets as the result of an airdrop. Specifically, the draft deals with the consequences for both the issuer and the recipient where a person is carrying on a business of crypto asset trading or where a person is dealing with crypto on a capital account.
Comments due: 18 September 2026.
TD 2026/D2: Income tax: capital gains tax consequences of using a smart contract to wrap and unwrap crypto assets– which addresses the CGT consequences that arise when you interact with a wrapping contract. Wrapping contracts are a type of smart contract that exchange a crypto asset for its wrapped equivalent, often to enable compatibility with particular protocols or platforms. This TD also applies if you subsequently unwrap your crypto asset by swapping the wrapped version for the same type of crypto asset that was originally wrapped.
Comments due: 18 September 2026.
Proposed reforms: consumer protections and superannuation
The Government has announced a package of reforms aimed at strengthening consumer protections and ensuring that the superannuation system delivers on its purpose. The reforms in this package will: make the financial system safer by strengthening protections across the superannuation, advice and investment ecosystem; Improve access to safe, secure financial advice and guidance so Australians can navigate an increasingly complex retirement system with greater confidence; and place the Compensation Scheme of Last Resort on a firmer and fairer footing so it can continue to provide meaningful protection when all other safeguards have failed. For full details of the measures, see here.
Excise: Concessional Spirit Approvals Guidelines
The Excise (Concessional Spirit Approvals) Guidelines 2026 has been made. It sets out the matters that the CEO must consider when deciding whether or not to grant an approval under the Excise Act 1901 to use spirit for a specified industrial, manufacturing, scientific, medical, veterinary or educational purpose. Spirit delivered under an approval is classified to subitem 3.7 of the Schedule to the Excise Tariff Act 1921and does not attract excise duty.
friday 21 august 2026
Tax Advisor Bill: CGT discount for investment in renewables extended to 2040
The Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026 was passed by the House of Reps on 20 August 2026 with one major amendment. This amendment extends the application of the transitional 50% CGT discount for certain foreign residents who dispose of Australian renewable energy assets from 2030 to 2040. In addition, the Bill: expands the Tax Practitioners Board’s regulatory penalty powers; broadens the foreign resident CGT tax base by introducing a definition of ‘real property’; updates the list of deductible gift recipients; amends the operation of the mandatory and suspensory merger control regime; and updates the list of deductible gift recipients.
Tax Ombudsman report on review into ATO online services
The Tax Ombudsman has released a report following its review of the ATO’s Online Services for Agents (Online Services for Agents (OSfA). The Ombudsman said that feedback from recent consultation with the agent community as part of its Review of the Registered Agent Phone Line highlighted several issues and concerns with OSfA. The review found ATO Online Services for Agents is not keeping pace with tax agents’ needs. Accordingly, the Ombudsman made several recommendations to the ATO to help modernise its digital services, cut admin burden and make it easier for agents to support their clients and the ATO has advised that it has accepted the recommendations and we will monitor its progress on implementation.
APRA’s Corporate Plan for 2026-27
APRA has published its Corporate Plan for 2026-27. It focuses on ensuring the risk management practices of banks, insurers and superannuation trustees keep pace with a rapidly moving threat environment. The Plan is built around three strategic priorities: maintaining financial system safety and stability so that the system can absorb shocks and continue to provide critical services to households and businesses; getting the balance right so APRA delivers its primary financial safety and stability objectives without undue cost for industry; and improving APRA’s organisational effectiveness so APRA’s people can continue to act quickly and decisively in an increasingly uncertain world
SUPER & FINANCIAL SERVICES
ATO confirms SMSF set up costs can be reimbursed if paid personally.
The ATO has recently updated its guidance on the trustee structure of an SMSF. In the update the ATO confirms that establishment costs paid by the member can be repaid to the member from super benefits. If a member pays an establishment cost before the SMSF is established the payment is not a contribution. If a member pays an establishment cost after the SMSF is established and is not reimbursed then the payment is treated as a contribution. However, if the member is reimbursed the payment is not a contribution.
In addition, the ATO confirm trustee requirements.
If the fund has individual trustees- each member must be a trustee, and each trustee must be a member
- a single-member fund must have 2 trustees, only one of whom is a member
If the fund has a corporate trustee
- each member must be a director of the corporate trustee
- a single-member fund can have the member as sole director, or as one of 2 directors, provided the member and the other director are relatives or the member is not an employee of the other director
- each director must hold a director ID before the fund is registered
An SMSF can have up to 6 members under either structure. However, some state and territory laws restrict the number of trustees a trust can have to fewer than 6, which can affect funds with individual trustees. Also, a member cannot be an employee of another member unless they are relatives.
CGT and negative gearing changes Tranche 2: Submissions close Friday 21 August:
Treasury is consulting on the second stage of the negative gearing and capital gains tax reforms. Submissions close on Friday 21 August 2026.
Treasury is seeking feedback on how the reforms should apply in specific situations, including:
- keeping current tax treatment where property transfers because of death or relationship breakdown.
- defining a “new residential dwelling”, which allows owners to offset net rental losses against other income and access the 50 per cent CGT discount.
- exempting some affordable and social housing, NDIS housing, public housing and build-to-rent developments from the negative gearing changes.
- keeping existing negative gearing and CGT treatment when an eligible main residence is first used to produce assessable income under s 118-192.
- excluding capital gains from certain trusts and deceased estates from the minimum tax on capital gains.
- how to calculate capital gains made before and after 1 July 2027.
- how the CGT changes apply to trusts, including attribution managed investment trusts
- applying the changes correctly to people who are Australian residents for only part of the ownership period.
ensuring certain CGT events do not trigger tax earlier than intended for deferred capital gains.
ATO: SGC statement due 28 August for missed June quarter super
The ATO has issued a reminder that employers who did not pay their June quarter super on time should act now to meet their obligations.
Where an employee’s super fund did not receive contributions in full for the June quarter by 28 July, the ATO says employers should not pay the fund directly. Instead, for the final quarterly payment, employers must lodge a super guarantee charge (SGC) statement and pay the SGC to the ATO by 28 August to remain compliant.
The ATO also notes that any payments received on or after 29 July will be automatically allocated to Payday Super amounts.