23 February 2026 to 27 February 2026
Weekly Bulletin Contents
TAX
Monday 23 February 2026
Full Court confirms genuine redundancy – significant reduction in working hours
The Full Federal Court has unanimously dismissed the Commissioner’s appeal from the decision in Baya Casal v DCT [2025] FCA 87. In that case, the Court ruled that an early learning assistant had been made genuinely redundant on the basis that while she was offered alternative employment in a similar position, it was offered on the basis of, among other things, significantly reduced hours and this meant that her position had become genuinely redundant. In upholding this decision, the Full Court found that having regard to the nature of her employment, her total hours of work had diminished to a point where for practical purposes the reason for her dismissal was because her position had become redundant. (FCT v Baya Casal [2026] FCAFC 11, 20 February 2026)
ART refuses tax-agent’s application for stay of de-registration
The ART has refused a tax-agent’s application to stay a decision of the Tax Practitioners Board (TPB) to terminate his registration and impose a 5-year ban. The TPB’s decision was made for failure to meet the requirements of being a “fit and proper” person including in relation to failing to: act honestly and with integrity, comply with the taxation laws in the conduct of personal affairs, and maintain knowledge and skills relevant to tax agent services. In refusing to grant the application for a stay, the ART found (among other things) that his prospects of success in the substantive matter and public interest matters weighed heavily against him. (Kumar and Tax Practitioners Board (Practice and procedure) [2026] ARTA 232, 18 February 2026)
ATO: Top tips to prepare for upcoming lodgments
The ATO has advised that a common reason agents cite for not meeting lodgment due dates is that they are waiting for their clients to provide information. It therefore said its top tip is to engage your clients as early as possible to obtain the information you need to prepare and lodge their obligations by the due date. It also recommended that you: lodge progressively to keep your practice on track; update your client list by adding new clients and removing those who no longer use your services; check your clients’ lodgment due dates as they may change if your clients’ circumstances change; and notify the ATO if lodgment is not required or if further returns are not necessary.
Tuesday 24 February 2026
Payday Superannuation Regulations made
The Treasury Laws Amendment (Payday Superannuation) Regulations 2026 have been made. They provide the details that support elements of the new Payday legislation and how it operates. This includes confirming kinds of payments that do not attract super, and the consequences of an employer voluntarily disclosing any missed payments. The Regulations also provide the reduced 3 day timeframe for superannuation funds to approve or reject contributions. This will ensure contributions are allocated to a member correctly in a shorter timeframe, including resolving any errors, benefiting employees through contributions landing in accounts earlier. See also Assistant Treasurer’s media release here.
Super Guarantee: Late payment offset will no longer be available
The ATO has advised that currently employers who make a late super guarantee (SG) payment can lodge a super guarantee charge (SGC) statement and use the Late Payment Offset (LPO) to reduce their SGC liability by amounts paid late to a fund. However, it said that with Payday Super being introduced, this will no longer be available. Accordingly, it said the last time your employer clients can use LPO is for the quarter ending 31 March 2026. Super for this quarter is due 28 April 2026 and they can claim LPO when lodging an SGC statement for any late payments made up to and including 30 June 2026.
Wednesday 25 February 2026
Government Seeks to Enhance Superannuation’s Retirement Phase
Treasury has released its Retirement Reporting Framework and Best Practice Principles for Superannuation Retirement Income Solutions. These initiatives seek to enhance the retirement phase of Australia’s superannuation system, with over 2.5 million Australians projected to retire in the next decade. The reforms aim to ensure a balanced focus on both accumulation and retirement phases, providing members with improved access to suitable products, information, and strategies for better retirement outcomes. The Best Practice Principles offer voluntary guidance to trustees on understanding members’ needs, designing effective retirement income solutions such as lifetime income products. The Retirement Reporting Framework, to be implemented by APRA, will publish data on fund offerings and member outcomes to support industry improvements.
No need for ATO to make finding of fraud or evasion for each income year
A taxpayer has been unsuccessful in interlocutory proceedings in relation to whether the Commissioner had the power to issue amended assessments out of time on the basis of fraud or evasion. The taxpayer argued that the Commissioner had to apply the procedures in Practice Statement PS LA 2008/6 which required that a separate opinion of fraud or evasion be formed for each relevant year or income – and that the Commissioner had not done so. However, the Tribunal found that a Practice Statement does not have statutory force and cannot constrain the Commissioner’s administration of the tax law. In any event, it found that a separate opinion was in fact formed in relation to each relevant income year. (Yadav v FCT [2026] FCA 140, 24 February 2026)
ACCC: Businesses reminded to review card surcharges and pricing information
The Australian Competition and Consumer Commission (ACCC) has written to the Institute of Financial Professionals Australia (and other professional bodies) to seek their assistance in disseminating information to their members (and clients of their members) to help them comply with their obligations under consumer protection legislation in relation to card payment surcharges. The ACCC emphasised that businesses are prohibited from charging a payment surcharge that is excessive and from engaging in misleading or deceptive conduct with respect to the price of goods or services (and that penalties can apply). As result, the ACCC said that it has updated its guidance material for businesses regarding card payment surcharges (see here) and updated the information regarding price displays and card surcharges on its website. For further, information see ACCC’s media release, here.
Thursday 26 February 2026
GST Ruling: Supplies of formula products
The ATO has released GSTD 2026/1 GST: supplies of formula products. It explains the ATO’s view on when the supply of a formula product is GST-free. It explains the meaning of the term ‘infants’ in table item 13 of Sch 2 to the A New Tax System (Goods and Services Tax) Act 1999 (GST Act). Table item 13 provides that ‘beverages, and ingredients for beverages, of a kind marketed principally as food for infants…’ are GST-free. This Determination also explains whether supplies of formula products are GST-free under table item 1 or table item 2 in clause 1 of Schedule 2 to the GST Act. At the same time, the ATO has issued an addendum to GSTII FL1 Detailed Food List. It amends the Detailed Food List to ensure consistency with GSTD 2026/1 GST: supplies of formula products and to make updates to communicate views provided in private advice and compliance engagements.
Addenda to Ruling re promoter penalty laws
The ATO has issued an addenda to TR 2006/10: Public Rulings. Among other things, it has added the statement: “Under the promoter penalty laws, the Commissioner may apply to the Federal Court for sanctions, remedies (or both) to address conduct concerning the promotion of schemes on the basis of conformity with a public ruling if the scheme is materially different from that described in the ruling”.
Friday 27 february 2026
Community Charity Trusts declaration – minimum distribution rate
The Taxation Administration (Community Charity Trusts and Corporations) Amendment (2026 Measures No 1) Declaration 2026 has been made. Its purpose is to amend the Taxation Administration (Community Charity Trusts and Corporations) Declaration 2025 to specify another 34 community charity entities for the purposes of Div 426 in Sch1 to the Act. The entities specified must meet the other requirements for deductible gift recipient endorsement under the Act, including being registered as a charity by the Australian Charities and Not-for-profit Commission, and complying with the Taxation Administration (Community Charity) Guidelines 2025. Specifically, the Declaration will (a) expand the number of organisations that can seek endorsement under the community charities deductible gift recipient category, and (b) set the minimum annual distribution rate for both private and public giving funds at 6% of net assets. See accompanying Assistant Treasurer media release, here.
APRA: Quarterly superannuation statistics
APRA has released its Quarterly Superannuation Performance publication report for the December 2025 quarter. Key statistics include: total superannuation assets increased by 0.8% over the quarter to $4.5 trillion as at December 2025, of which $3.2 trillion was in APRA-regulated funds; total contributions increased by 11.5% to $220.8 billion in the year ending in December 2025; employer contributions increased by 8.6% over the year to $156.3 billion; and member contributions increased by 19.2% over the year to $64.5 billion.
SUPER & FINANCIAL SERVICES
ASFA Retirement Standard: Comfortable retirement target hits record high
ASFA’s latest Retirement Standard shows the super balance needed at age 67 for homeowners to fund a “comfortable” retirement has reached a record high of $630,000 for singles and $730,000 for couples. The annual comfortable budget is now $54,840 (single) and $77,375 (couple), reflecting higher living costs.
| Comfortable lifestyle | Modest lifestyle | Modest lifestyle renters |
Single | $54,840 | $35,503 | $50,055 |
Couple | $77,375 | $51,299 | $67,639 |
Social security deeming rates increasing from 20 March 2026
The Minister for Social Services has announced that deeming rates will increase on 20 March 2026. The deeming rates that will apply from 20 March 2026 are as follows:
Family situation | Value of financial investments | Deeming rate |
Single | First $64,200 | 1.25% |
Excess | 3.25% | |
Pensioner couple | First $106,200 | 1.25% |
Excess | 3.25% |
Institute of Financial Professionals Australia (IFPA) comment
As background, deeming rules are used to assess income from financial investments for the purpose of calculating eligibility for benefits, such as the Age Pension and for people with an account-based pension the Commonwealth Seniors Health Card.
Rather than using the actual income earned from investments like savings accounts, shares, or managed funds, the government “deems” a certain rate of return based on the total value of these assets.
Government seeks to enhance superannuation’s retirement phase
Treasury has released its Retirement Reporting Framework and Best Practice Principles for Superannuation Retirement Income Solutions. These initiatives seek to enhance the retirement phase of Australia’s superannuation system, with over 2.5 million Australians projected to retire in the next decade. The reforms aim to ensure a balanced focus on both accumulation and retirement phases, providing members with improved access to suitable products, information, and strategies for better retirement outcomes.
The Best Practice Principles offer voluntary guidance to trustees on understanding members’ needs, designing effective retirement income solutions such as lifetime income products and promoting engagement through tools like income projections and budgeting calculators.
The Retirement Reporting Framework, to be implemented by APRA, will publish data on fund offerings and member outcomes to support industry improvements.
APRA quarterly superannuation statistics: December 2025 quarter
APRA has released its quarterly superannuation performance publication for the December 2025 quarter.
Key highlights include:
- Total superannuation assets increased by 0.8% over the quarter to $4.5 trillion as at December 2025, of which $3.2 trillion was in APRA-regulated funds.
- Total contributions increased by 11.5% to $220.8 billion in the year ending in December 2025.
- Employer contributions increased by 8.6% over the year to $156.3 billion.
Member contributions increased by 19.2% over the year to $64.5 billion.
Payday superannuation regulations made
The Treasury Laws Amendment (Payday Superannuation) Regulations 2026 have been made. They provide the details that support elements of the new Payday legislation and how it operates. This includes confirming kinds of payments that do not attract super, and the consequences of an employer voluntarily disclosing any missed payments. The Regulations also provide the reduced 3 day timeframe for superannuation funds to approve or reject contributions. This will ensure contributions are allocated to a member correctly in a shorter timeframe, including resolving any errors, benefiting employees through contributions landing in accounts earlier. See also Assistant Treasurer’s media release here.