20 April 2026 to 24 April 2026
Weekly Bulletin Contents
TAX
monday 20 APRIL 2026
Exposure draft legislation – $1,000 standard tax deduction
The Government has released exposure draft legislation and explanatory materials to introduce the instant tax deduction. The draft Bill proposes to amend the tax law to:
- introduce a standard deduction of up to $1,000 for Australian tax residents who earn income from work, starting 1 July 2026;
- keep current arrangements for people who: have more than $1,000 in work-related expenses, or earn only business or investment income;
- allow some deductions to be claimed in addition to the instant tax deduction (including investment expenses, charitable donations, union and professional association membership fees);
- prevent people from receiving a double benefit by salary packaging expenses covered by the instant tax deduction; and
- update substantiation and capital allowance rules to support the new standard deduction.
Submissions are due by 1 May 2026.
ATO: Key super rates and thresholds
The ATO has released key super rates and thresholds that apply to contributions, employment termination payments, super guarantee and co-contributions. These include rates and thresholds for: contributions caps; Div 293 tax; payments from super; super income stream tax tables; employment termination payments; super guarantee; and government co-contributions.
ATO: Employment termination payments
The ATO has issued information and on employment termination payment (ETP) is and what the cap amounts are. The information includes: About employment termination payments; ETP cap amount; ETP cap for life benefit termination payments; ETP cap for death benefit termination payments; Transitional ETP cap (up to 30 June 2012); and Tax-free part of genuine redundancy and early retirement scheme payments.
tuesday 21 april 2026
SIS Regulations made re Paid Parental Superannuation Contributions etc
The Treasury Laws Amendment (Minor and Technical Amendments No. 1) Regulations 2026 have been made: It amends the Regulations to: update the reference to the MSCI Australia Quarterly Private Infrastructure Fund Index in the SIS Reg 1994 (to reflect that the Index was frozen in September 2024); correct a typographical error in RSA Regulation 1997 so that the provision cross-references to the correct provision; amend the SIS Regulations to allow the regulated superannuation fund to accept Paid Parental Superannuation Contributions payments even if the member’s TFN has not been quoted for superannuation purposes to the trustee of the fund; and fixed an incorrect cross-referencing in Corporations Regulations 2001.
ATO: Increased visibility for trust elections
The ATO has advised that it has enhanced the Online services for agents, family trust election (FTE) and interposed entity election (IEE) report to provide more information from elections lodged with it. The ATO said that these enhancements finalise its plans to provide agents with more information to help manage clients’ elections with greater confidence.
wednesday 22 april 2026
ATO information on proposed foreign resident CGT regime measures
The ATO has released information on the exposure draft legislation released on Monday 13 April 2026 to implement changes to the foreign resident CGT regime. The ATO explained that as part of the 2024–25 Budget, the Government announced it will strengthen the integrity of the foreign resident CGT regime and that it also announced the amendments will apply to CGT events commencing on or after 1 January, 1 April, 1 July or 1 October after the act receives royal assent. Specifically, the proposed amendments will: clarify and broaden the types of assets on which foreign residents are subject to CGT; amend the point-in-time principal asset test to a 365-day testing period; require foreign residents disposing of shares and other membership interests exceeding $50m in value to notify the ATO, prior to the transaction being executed; and provide a limited time 50% CGT discount for certain Australian renewable energy assets, or eligible indirect interests in such assets, held by certain foreign residents.
ABS: Total taxation revenue rose by 4.7% in 2024-25
The ABS has released statistics about taxation revenue collected by the various levels of government in Australia. It said all Australia total taxation revenue continued to grow, reaching $839.0b in 2024-25 (up 4.7% from 2023-24), while taxation revenue as a percentage of GDP was 30.2%. It also said “positive annual growth was recorded for all levels of government”.
Div 7A applies to payment following restructure
The ART has ruled that the deemed dividend provisions in Div 7A of the ITAA 1936 applied to amounts of $1m credited to the loan account of the main shareholder and director of a hydraulic company. The taxpayer was unsuccessful in arguing that the loan agreement provisions in the Constitution of the company satisfied the requirements for a written loan agreement between the parties (per s 109N). The taxpayer was also unsuccessful in arguing that its liability for defect claims was a “presently existing obligations” that should be taken into account in determining if there was a “distributable surplus” for Div 7A purposes. However, the taxpayer was successful in arguing that unpaid payroll tax were liabilities that could be taken into account. The ART also found that the dividend stripping provisions in s 177E of the ITAA 1936 and s 207-155 of the ITAA 1997 applied to the corporate restructure which gave rise to the payments to the taxpayer. This was despite his claim that the restructure was undertaken for commercial reasons of asset protection and for the obtaining loan funds on more favourable terms. (Botella and FCT [2026] ARTA 604, 16 April 2026)
thusday 23 APRIL 2026
No deduction for travel between places of work
A self-represented taxpayer who was employed in two places of work in regional Queensland as a pharmacist, but lived in Brisbane, has been unsuccessful before the ART in his claims for travel, car, accommodation and meal expenses. The deductions were denied on the basis that his record keeping was inadequate (where the expenses were potentially allowable) or on the basis that he was not “travelling on work” between his two places of employment, but rather was travelling to “get to work”. However, the ART allowed deduction for a percentage of mobile phone expenses which were found to be incurred in gaining his assessable income in respect of apps he used in carrying out his job. (Hui v FCT [2026] ARTA 570, 24 March 2026)
Updated PCG 2019/1: Transfer pricing – inbound distribution arrangements
The ATO has updated Practical Compliance Guideline PCG 2019/1 Transfer pricing issues related to inbound distribution arrangements. It provides guidance on the ATO’s transfer pricing risk-assessment framework for inbound distribution arrangements since its initial publishing in 2019. Review of the use and application of this Guideline since then has resulted in this update, which aligns the guidance with recent market performance, industry observations and ATO administrative practices. The update also clarifies the scope of the application of the Guideline.
ATO: SMSF auditors – beware of disqualified trustees
The ATO has advised that its reviews continue to identify cases where auditors miss disqualified trustees during SMSF audits. The ATO said that if you identify a disqualified person, you need to qualify Part B of the independent auditor’s report and lodge an Auditor Contravention Report (ACR). It also said the common mistakes it sees include relying only on the trustee representation letter or a tax agent, not checking the relevant registers, assuming we already know, or deciding not to report because the trustee has lodged an appeal or the fund is winding up.
friday 24 APRIL 2026
No deduction for travel between places of work
A self-represented taxpayer who was employed in two places of work in regional Queensland as a pharmacist, but lived in Brisbane, has been unsuccessful before the ART in his claims for travel, car, accommodation and meal expenses. The deductions were denied on the basis that his record keeping was inadequate (where the expenses were potentially allowable) or on the basis that he was not “travelling on work” between his two places of employment, but rather was travelling to “get to work”. However, the ART allowed deduction for a percentage of mobile phone expenses which were found to be incurred in gaining his assessable income in respect of apps he used in carrying out his job. (Hui v FCT [2026] ARTA 570, 24 March 2026)
Updated PCG 2019/1: Transfer pricing – inbound distribution arrangements
The ATO has updated Practical Compliance Guideline PCG 2019/1 Transfer pricing issues related to inbound distribution arrangements. It provides guidance on the ATO’s transfer pricing risk-assessment framework for inbound distribution arrangements since its initial publishing in 2019. Review of the use and application of this Guideline since then has resulted in this update, which aligns the guidance with recent market performance, industry observations and ATO administrative practices. The update also clarifies the scope of the application of the Guideline.
ATO: SMSF auditors – beware of disqualified trustees
The ATO has advised that its reviews continue to identify cases where auditors miss disqualified trustees during SMSF audits. The ATO said that if you identify a disqualified person, you need to qualify Part B of the independent auditor’s report and lodge an Auditor Contravention Report (ACR). It also said the common mistakes it sees include relying only on the trustee representation letter or a tax agent, not checking the relevant registers, assuming we already know, or deciding not to report because the trustee has lodged an appeal or the fund is winding up.
SUPER & FINANCIAL SERVICES
Exposure draft: $1,000 standard deduction for work-related expenses (from 2026–27)
The Government has released exposure draft legislation and explanatory materials to introduce an instant tax deduction of up to $1,000. The deduction will apply from the 2026-27 income year to Australian tax residents who earn assessable labour income. In addition, the proposals seeks to
- preserve existing arrangements for taxpayers who have more than $1,000 in work-related expenses (who may continue to itemise and substantiate their claims) and for those who earn only business or investment income;
- allow certain deductions to be claimed in addition to the standard deduction, including investment-related expenses, charitable gifts, costs of managing tax affairs, income protection, personal sickness and accident insurance premiums, and union, trade, business or professional association membership fees;
- cap the deduction at the taxpayer’s total assessable labour income where that income is less than $1,000;
- introduce integrity measures under the Fringe Benefits Tax Assessment Act 1986 to prevent a double benefit from salary packaging expenses covered by the standard deduction; and
- update substantiation, capital allowance and related rules, including repealing the $300 small-expenses and $150 laundry substantiation exceptions, repealing the award transport payments rules, and restricting allocation of certain depreciating assets to low-value pools to align with the new standard deduction.
AustralianSuper announces significant insurance premium increases from 30 May
AustralianSuper has notified members of substantial increases to insurance premiums within its superannuation plans, driven by a rise in claims paid over the past year.
The increases, effective 30 May 2026, apply to members in the AustralianSuper plan, Super Options and the Personal Plan. Average premium increases are 20% for death cover, 40% for TPD cover, and 38% for income protection with a benefit payment period of up to two years. Income protection with a benefit period to age 65 is unchanged.
AustralianSuper attributed the increases to higher death, TPD and income protection claims over the past year.
Institute of Financial Professionals Australia (IFPA)
The increases are a timely prompt for advisers to review clients’ insurance arrangements within super. With premium increases of this magnitude, it’s worth checking whether the level of cover remains appropriate and whether members are paying for cover they don’t need or could obtain more cost-effectively elsewhere.
FSCP issues sanctions in fee-for-no-service matters
Four FSCP decisions in April 2026 offer a timely prompt for advisers to check their systems around ongoing fee arrangements, with all four involving allegations of failing to deliver on agreed services. The matters involved advisers charging ongoing fees without providing the services agreed to, failing to conduct annual advice reviews within the agreed timeframes, and continuing to charge fees after service agreements had expired. The Panel issued reprimands and written directions in three of the four matters, finding breaches of the Code of Ethics values of trustworthiness and diligence, and of the obligations to act with integrity and in clients’ best interests (Standard 2) and to ensure fees are fair, reasonable and represent value for money (Standard 7). In one matter, the Panel decided no action was warranted.
Government to scrap higher private health insurance rebate for over 65s
The Government will remove the higher private health insurance rebate for Australians aged 65 and over, aligning it with the standard income-tested rebate available to all age groups.
Currently, the rebate at the base income tier is approximately 24% for under 65s, 28% for those aged 65 to 69, and 32% for over 70s. Under the change, older Australians will no longer receive a higher age-based rebate, with everyone receiving the same base rate for their income tier. The result is that older Australians will see their private health insurance costs increase
The savings will be redirected into aged care, including around $1 billion to remove co-payments for services such as showering and personal care under the Support at Home program. Butler described the policy as no longer fair between generations.
IFPA comment
Some clients may look to downgrade or drop cover in response to higher out-of-pocket costs. However, advisers should flag the Medicare Levy Surcharge implications for clients with income above the relevant thresholds.
12-month 50% CGT Discount expected to be modified in May Budget
Multiple media reports suggest Treasury is considering cutting the CGT discount from 50 per cent to 33 per cent for residential investment properties.
IFPA comment
If accurate, this would align the CGT discount on residential investment properties with the 33 per cent discount that already applies to assets held longer than 12 months within superannuation. At the time of writing, there have been no reports suggesting the CGT discount rate within super will change.