22 September 2025 to 25 September 2025
Weekly Bulletin Contents
TAX
Monday 22 September 2025
ATO: Lodge overdue prior year returns
The ATO has advised that all taxpayers operating on a standard year with one or more prior year tax returns overdue as at 30 June 2025 must lodge their 2025 tax return by 31 October 2025. It also said that if you lodge your clients’ overdue prior year tax returns by 31 October, their 2025 tax return will receive your lodgment program due date. The ATO also said that it can take up to 3 weeks for due dates to update on our systems after you’ve lodged overdue tax returns. In this case you don’t need to request lodgment deferrals in the meantime. The ATO also said that you need to add new clients to your client list by 31 October to ensure they receive your lodgment program due dates.
TPB takes action against unregistered agent
The Tax Practitioners Board (TPB) has advised that it has commenced court proceedings in the Federal Court against a person, seeking civil penalties and a court order to stop her from providing tax agent services while not a registered tax practitioner. The TPB filed its application with the Court after investigating allegations that the person, whose previous tax agent registration ended on 20 November 2017, continued to offer tax agent services. This included preparing and lodging tax returns for the 2021 to 2024 income years. The TPB alleges the person provided these services to multiple taxpayers in exchange for payment, despite not holding a current registration, as required by law.
ASIC bans solicitor from providing financial services
ASIC has advised that it has banned a NSW solicitor and accountant from providing financial services for 10 years and from controlling an entity that carries on a financial services business or from performing any functions involved in the carrying on of a financial services business over the same period. ASIC is concerned the solicitor carried on a financial services business without an Australian Financial Services (AFS) licence and arranged for his clients to set up SMSFs rollover funds into SMSFs, and/or invest these funds in debentures issued by companies controlled by him.
Tuesday 23 September 2025
ATO: Areas of focus for privately owned and wealthy groups
The ATO has released details of the key risk areas it is focusing on for privately owned and wealthy groups in 2025–26. These include the following:
- Governance, internal controls and professional advice;
- Registration, lodgment, reporting and payment obligations;
- CGT – eg wrongly using rollovers and concessions (eg small business);
- Trusts – eg tax planning outside ordinary course of genuine business or family dealings;
- Div 7A (eg non-complying loans) and using business money for other purposes;
- Succession planning activities re private groups disposing of assets or transfer wealth;
- Cross-border transactions without reporting or understanding reporting obligations;
- Crypto assets investors omitting or incorrectly reporting capital gains or losses; and
- GST refund fraud (eg artificial and contrived transactions between related entities).
Vic: Temporary pause on livestock duty
The Victorian Government has announced as part of the $144 million Drought Support Package there will be a temporary pause on livestock duty, effective from 1 October 2025 to 30 September 2026. It applies to duty on cattle, sheep, goats and pigs and includes both the requirement to lodge returns and pay duty to the SRO during this period. However, the September 2025 return must still be lodged and paid by 21 October 2025 but vendors selling on their own behalf will not be required to lodge returns or pay duty for sales occurring between 1 October 2025 and 30 September 2026. Also, approved agents who collect duty from customers and remit it to the SRO must cease collecting duty on sales made during the pause period.
NSW Revenue: Protecting yourself from scams
Revenue NSW has advised that it will only reach out to taxpayers that have outstanding debts by the following methods: an SMS to your registered mobile number; phone calls during business hours; or email to your registered email address from official email addresses ending in @revenue.nsw.gov.au or @service.nsw.gov.au. Revenue NSW stressed that it will never ask for passwords, credit card details, or bank account information via email or SMS.
Wednesday 17 September 2025
GIC and SIC rates for October-December 2025
The ATO has issued the GIC rate for the period from 1 October 2025 to 31 December 2025: it is 10.61%. The ATO has also issued the Shortfall Interest Charge (SIC) rate for the same period: it is 6.61%. The ATO has also released the interest rate on overpayments and delayed refund interest: it is 3.61%.
ATO: Effective life of assets
The ATO has advised that it has published its final guidance for the effective life of depreciating assets for income tax purposes. It has finalised Income Tax (Effective Life of Depreciating Assets) Determination 2025 following consultation in June. This guidance replaces the previous legislative instrument from 2015, which sunsets on 1 October 2025.
NSW Revenue: Return unclaimed money by 31 October 2025
NSW Revenue has advised that if your business held unclaimed money on 30 June 2025, you must lodge it with Revenue NSW by 31 October 2025. NSW Revenue said it has made some changes to our Unclaimed Money Online Service, to streamline the process.
Thursday 25 September 2025
Board of Taxation: Review to reduce red tape in tax system
The Government has advised that it has tasked the Board of Taxation to identify ways to responsibly reduce unnecessary compliance burdens and red tape in the tax system. It said the review is all about reducing the regulatory and compliance burden across the economy to support productivity growth. As part of the review, the Board will consult with businesses and the broader community to identify areas of business tax law and administration where there are opportunities for red tape reduction. The Government said the Board will look for substantial, material and measurable areas of red tape reduction that directly support productivity.
TR 2025/1: Exempt income of international organisations
The ATO has released TR 2025/1 Income tax: exempt income of international organisations and persons connected with them. It finalises the ATO view regarding income of international organisations and persons connected with them that is exempt income.
Update: ATO access to advice for a corporate board on tax compliance risk
The ATO has updated PS LA 2004/14 ATO access to advice for a corporate board on tax compliance risk. It provides guidance to ATO staff on how the Commissioner administers the concession that applies to advice provided to a corporate board on tax compliance risk. It has been updated to clarify the governance evidence we look for in assessing concession eligibility.
Addenda LCR 2021/2: Expenditure incurred under a non-arm’s length arrangement
The ATO has released addenda to LCR 2021/2 Non-arm’s length income – expenditure incurred under a non-arm’s length arrangement. It is being amended to outline the ATO view as to how the amendments to s 295-550 of the ITAA 1997 operate in certain circumstances where the trustee of a small complying superannuation fund incurs non-arm’s length expenditure in gaining or producing ordinary or statutory income. This Ruling is relevant for trustees of small complying superannuation funds in determining the application of the non-arm’s length income provisions in circumstances where the trustee of the fund has incurred non-arm’s length expenditure in gaining or producing ordinary or statutory income.
Amended TR 2010/1: Superannuation contributions
The ATO has amended TR 2010/1 Income tax: superannuation contributions to outline the ATO view as to interaction between the non-arm’s length income provisions and the rules concerning superannuation contributions. It also confirms that the ATO will not have a compliance approach for value shifting arrangements that have occurred from 28 November 2024, though Appendix 2 to the Ruling outlines approaches for value shifting arrangements entered into before that date. Lastly, it contains changes to reflect minor updates and the removal of the maximum earnings test from 1 July 2017 for the purpose of deducting personal contributions. The ATO says that these updates are relevant for trustees of super funds in determining the application of the non-arm’s length income and contribution provisions.
PCG: Capital raised for the purpose of funding franked distributions
The ATO has released PCG 2025/3 Capital raised for the purpose of funding franked distributions – ATO compliance approach. It outlines the framework we use to assess risk in relation to the integrity measure in s 207-159 of the ITAA 1997 that prevents certain types of distributions from being frankable. The Guideline applies to corporate tax entities who make distributions that are funded by capital raisings. It sets out the relevant features and documentation for assessing the risk level of such arrangements and assists taxpayers to identify which types of arrangements the Commissioner would apply compliance resources to.
TD 2025/6: Section 109U and guarantee to another private company
The ATO has released TD 2025/6 Income tax: does s 109U of the ITAA 1936 only apply to arrangements where a private company gives a guarantee to another private company? It sets out the ATO view that s 109U in Div 7A of the ITAA 1936 may apply in cases where a guarantee is given to an entity that is not a private company (for example, a public company bank). It also documents the ATO’s compliance approach to section 109U.