20 July 2026 to 24 July 2026
Weekly Bulletin Contents
TAX
monday 20 july 2026
Draft instrument: PAYG variation for foreign resident CGT withholding
The ATO has released Draft Taxation Administration (PAYG Withholding Variation for Foreign Resident Capital Gains Withholding Payments) Legislative Instrument 2026.
The draft consolidates five existing instruments into one. It does not change the substance of the existing variations.
Where the relevant conditions are met, the amount to be withheld is varied to nil for:
- deceased estates and legal personal representatives
- marriage or relationship breakdowns
- income tax exempt entities
- sales where there is no residue after a mortgagee exercises a power of sale.
A separate rule applies to acquisitions from multiple entities. In broad terms, the amount to be withheld is worked out by reference to each entity’s interest in the CGT asset just before the acquisition, and to any amount stated in a notice of variation.
Loss transfer cancellation must be made in the joining year
In Evolution Mining Limited v FCT [2026] FCA 935, the Federal Court has held that a head company’s purported choice to cancel the transfer of some $31m of losses was ineffective under s 707-145 of the ITAA 1997.
The joining entity became a member of the consolidated group in the 2012 income year. No choice to cancel was made in the 2012 or 2013 returns. The head company recorded the cancellation in its 2014 return. The taxpayer argued that any choice to cancel the transfer must be made in relation to the joining year, being the income year in which the joining time occurred. The Commissioner argued that the choice can be made at any time in relation to any income year before the head company has utilised any of the transferred losses.
The Court agreed with the taxpayer. A choice must relate to the joining year, so the 2014 cancellation had no effect. The remaining issues return to court on 14 August 2026.
Trust reporting changes: new labels and TFN reporting
The ATO has published guidance on changes to trust reporting under its Modernising Tax Administration Systems program.
Three labels have been added to the statement of distribution in the 2025-26 trust tax return:
- B1 Non-primary production managed investment scheme amount
- U2 Franked distribution related to investments amount
- H1 Other assessable foreign source income from a financial investment amount
The ATO says the new labels will help trustees notify beneficiaries of their entitlement to income and support the calculation of net financial investment loss at IT5.
A legislated change to beneficiary TFN reporting for closely held trusts commenced on 1 July 2026. The separate TFN report is no longer required. The beneficiary TFN must instead be reported in the statement of distribution in the trust tax return. TFN withholding obligations where a beneficiary has not quoted a TFN are unchanged.
Further changes are flagged for the 2027 return, including reporting of unpaid present entitlements, reporting of rateable reductions, simpler reporting of non-resident beneficiary distributions, and the specified individual named in a family trust election or interposed entity election.
tuesday 21 july 2026
ATO Corporate plan 2026–27 – Commissioner’s address
The Commissioner of Taxation, Rob Heferen, has launched the ATO’s corporate plan for 2026–27 in a recent address to ATO employees. Among other things, the Commissioner said the corporate plan involves a strategy that outlines “5 shifts” that will move the ATO from reacting and correcting, to designing a system where more taxpayers comply “by default” from the start. He said the 5 shifts are: simplifying the tax experience; closing the payment gap; strengthening the system; partnering across the ecosystem; and equipping a future ready workforce.
Treasury review conditions on existing foreign investment
Treasury has advised that it will start the review of conditions on existing foreign investment approvals on 1 July 2026. The review follows reforms announced in the 2026–27 Budget. These reforms aim to further streamline and strengthen the foreign investment framework. Treasury will review conditions to make sure they are effective and enforceable in reducing national interest and national security risks. The review may: remove conditions that are ineffective; remove conditions that duplicate other obligations under other regulatory regimes; and, update conditions to better manage risk. Importantly, the review will first focus on tax conditions, with other conditions to be considered following consultation. Treasury expects to start public consultation through the Treasury Consultation Hub in August 2026.
wednesday 22 july 2026
ATO: Rental property returns – common issues
The ATO has issued information on common issues it sees in relation to income tax returns that include rental property income and deductions. These include: capital expenses (including initial repairs) being claimed as current-year deductions; expenses grouped broadly without sufficient detail to determine the appropriate tax treatment; discrepancies in accounting methods used when expenses are actually incurred versus when they are paid; and private expenses incorrectly included, such as costs relating to owners’ personal use of the property.
Extension of time granted for review of producer offset reduction
The Federal Court has granted a taxpayer an extension of time to apply for review of a decision of Screen Australia’s decision on a separate question to that originally applied for. The matter related to Screen Australia’s decision to only allow it a producer offset under Div 376 of the ITAA 1997 in relation to qualifying expenditure of some $1m when the taxpayer claimed that such expenditure was some $7m. The Court found that one matter on which it sought the application did not involve an appealable decision of the tribunal under s 172 of the ART Act 2024. (Little Monster Productions Pty Ltd v Screen Australia [2026] FCA 902,14 July 2026)
thusday 23 july 2026
TPB releases guidance on responsible AI use for tax practitioners
The Tax Practitioners Board (TPB) has released a new Guidance Statement to help registered tax practitioners understand how their existing obligations under the Code of Professional Conduct (Code) apply when using artificial intelligence (AI) in their practice. The Guidance Statement explains how existing professional obligations under the Code apply when AI tools are used, and highlights key considerations including competence, reasonable care, confidentiality, record-keeping, professional judgement, and appropriate supervision and control. The TPB said it recognises the growing role of AI in the tax profession and is committed to supporting its responsible adoption and its potential to increase productivity, drive efficiencies and enhance client service across the tax profession when used appropriately.
The TPB stressed that it wanted to support tax practitioners in embracing the benefits of AI with confidence, while continuing to meet the high professional and ethical standards set out in the Code. The Guidance Statement reinforces that AI is a tool to support, not replace, professional judgement and that tax practitioners remain accountable for the services they provide, including reviewing AI-generated outputs and exercising professional judgement to ensure they comply with their professional obligations
Regulation: Minister direction for valuing super interests
The Family Law (Superannuation) Amendment (2026 Measures No. 1) Regulations 2026 has been made. It reflects changes made by the Family Law Amendment Act 2024 that empower the Minister (the Attorney-General) to issue a written direction to a trustee of a superannuation plan if there is an approved methodology for valuing a superannuation interest in that plan. The Act provides for the Minister to make regulations prescribing the circumstances in which a direction may be issued, the content that must be included in a direction and what the direction may require the trustee to do. The existing Regulations do not currently prescribe these matters, and the Minister is therefore unable to issue a written direction if needed.
These amendments will allow the Minister to address the situation where a trustee has not engaged with the Attorney-General’s Department, following a request to review their approved methods or factors (which should be reviewed from time to time to ensure they are based on current economic assumptions relevant to the features and membership of the super plan).
Vic: Land transfer duty – assumed tax amounts
The Victorian Revenue office has issued the following duty rulings:
- DA-070: Land transfer duty – Assumed tax amounts. It explains when amounts paid by a purchaser towards certain vendor tax liabilities, such as land tax, are included in the dutiable value of a land transfer. It generally applies to contracts of sale entered into on or after 17 August 2026.
DA-020v2: Incorporated associations and amalgamations of incorporated associations. It provides guidance on a land transfer arising from incorporation of an association or amalgamation of incorporated associations under the Associations Incorporation Reform Act 2012. It also sets out examples illustrating the circumstances under which a duty exemption would be available.
friday 24 july 2026
ATO: Voluntarily changing your GST reporting
The ATO has issued information about voluntarily changing to monthly GST reporting – and how it could help your business. The ATO said that moving to monthly reporting could help you manage your businesses’ operations and cashflow. The ATO also said that many businesses that have voluntarily moved to monthly GST reporting have found that it aligns better with other business obligations that occur monthly and that smaller, more manageable payments help them understand their transaction history and how much GST to pay or put aside.
ATO: Early stage innovation company reports due 31 July
The ATO has advised that Early Stage Innovation Companies (ESICs) that issued new shares during 2025–26 must lodge their information report by 31 July through the ATO’s online services. The ATO said that companies are required to complete an early stage innovation company report if they issue new shares to one or more investors during a financial year that could lead to an investor being entitled to access the early stage investor tax incentives. The ATO also said that the information must be reported 31 days into the following financial year (this is generally 31 July). Therefore, the ATO said that new shares issued during 2025–26 must be reported by 31 July.
OECD releases Corporate Tax Statistics for 2026
The OECD has released Corporate Tax Statistics for 2026. The data also show continued stabilisation of statutory corporate income tax rates. The average statutory Company Income Tax rate across Inclusive framework jurisdictions has remained broadly unchanged at around 21.2% between 2020 and 2026, following a prolonged decline from significantly higher levels in the early 2000s. The publication also includes an expanded set of anonymised and aggregated Country-by-Country Reporting (CbCR) data statistics, covering the activities of nearly 9 400 Large Mulinational Enterprises (MNEs) groups headquartered in more than 60 jurisdictions.
SUPER & FINANCIAL SERVICES
2026 Draft National Platform: Super proposals
The ALP’s 2026 Draft National Platform, released for consultation ahead of the party’s national conference, includes several superannuation proposals. Draft platform positions are not government policy and would require legislation to take effect.
The draft proposes- a pathway to lifting the Superannuation Guarantee beyond its current 12% to 15%.
- extending the Superannuation Guarantee to workers aged under 18. Currently, employees under 18 are only entitled to super if they work more than 30 hours in a week for an employer. The draft proposes removing “any age discrimination” from the SG rules, which would mean under-18 workers receive super on every dollar earned, regardless of hours worked.
changing regulatory settings to encourage superannuation fund investment in areas including housing, infrastructure, energy, manufacturing and the care economy.
- a pathway to lifting the Superannuation Guarantee beyond its current 12% to 15%.
ATO to pay super on Government Paid Parental Leave
The ATO has confirmed it will now start paying superannuation on government-funded Parental Leave Pay, through a new measure called the Paid Parental Leave Superannuation Contribution (PPLSC).
The change applies to clients who care for a child born or adopted from 1 July 2025 and who receive Parental Leave Pay in 2025–26 and onwards. Claims for Parental Leave Pay continue to be made through Services Australia.
The PPLSC is calculated at the superannuation guarantee rate, includes an interest component, and is paid as a lump sum into super. The ATO pays it after the end of the financial year in which the Parental Leave Pay was received. The first contributions will be made in the 2026–27 year. Where Parental Leave Pay is shared, a contribution is made to each person’s fund based on their share.
Regulation: Minister direction for valuing super interests
The Family Law (Superannuation) Amendment (2026 Measures No. 1) Regulations 2026 has been made. It reflects changes made by the Family Law Amendment Act 2024 that empower the Minister (the Attorney-General) to issue a written direction to a trustee of a superannuation plan if there is an approved methodology for valuing a superannuation interest in that plan. The Act provides for the Minister to make regulations prescribing the circumstances in which a direction may be issued, the content that must be included in a direction and what the direction may require the trustee to do. The existing Regulations do not currently prescribe these matters, and the Minister is therefore unable to issue a written direction if needed.
These amendments will allow the Minister to address the situation where a trustee has not engaged with the Attorney-General’s Department, following a request to review their approved methods or factors (which should be reviewed from time to time to ensure they are based on current economic assumptions relevant to the features and membership of the super plan).
ATO clarifies process for deceased super enquiries made without probate
The ATO has updated its guidance on Lost Super Enquiry emails. The guidance covers what happens when a relative or executor asks about a deceased family member’s super but doesn’t hold a grant of probate or letters of administration. Without that authority, the ATO is limited in what it can say and instead follows a set process.
The ATO can’t share account details with the enquirer directly. Instead, it sends a Lost Super Enquiry email to the deceased person’s fund, passing on the enquirer’s contact details so the fund can consider getting in touch.