23 March 2026 to 27 March 2026
Weekly Bulletin Contents
TAX
Monday 23 March 2026
ATO: Decision impact Statement on High Court decision in PepsiCo
The ATO has released its Decision Impact Statement (DIS) on the High Court’s decision in FCT v PepsiCo Inc & Anor [2025] HCA 30. In that case, in a majority decision, the High Court confirmed that no part of payments made by the taxpayer under exclusive bottling agreements were of a royalty nature and were in fact only for the concentrate. Accordingly, the Court found that the arrangements did not attract the diverted profits tax (DPT) provisions. Among other things, the ATO said that the Court endorsed the broader approach to the meaning of ‘consideration for’ in the royalty definition and that the ATO will continue to apply that principle in determining whether or not there is a royalty in an arrangement. The ATO also said that the decision does not disturb its view that, depending on the relevant facts and circumstances, a royalty may be found notwithstanding rights to use IP have been ’embedded’ into amounts labelled as consideration for something that is not IP, such as a good or a service.
ATO inspects Gold Coast food outlets
The ATO has advised that Gold Coast fast food outlets, restaurants and cafés have received surprise visits from the Fair Work Ombudsman (FWO) and the ATO. The operation (“Operation Crimson”) involved the two regulators inspecting about 25 eateries to check they are paying employees correctly, and complying with record-keeping, tax and super laws. The targeted inspections were based on factors such as anonymous reports to the FWO from employees, a history of non-compliance, or employment of vulnerable workers such as visa holders.
Multinational Global and Domestic Minimum Tax determination
The Taxation (Multinational—Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Amendment (Measures No. 1) Determination 2026 has been made. Its purpose is to specify that a jurisdiction has a Qualified IIR tax, a Qualified DMTT or that the Minister is satisfied a jurisdiction has QDMTT Safe Harbour status for a Fiscal Year. In August 2025 and January 2026 the OECD released further jurisdictions that have implemented IIR and DMTT legislation with transitional qualifying status. Transitional qualified status is obtained where OECD Inclusive Framework members determine whether the legislation of an implementing jurisdiction is sufficiently consistent with the OECD GloBE Rules, via a common peer review process.
Tuesday 24 march 2026
ATO: Decision impact Statement on High Court decision in PepsiCo
The ATO has released its Decision Impact Statement (DIS) on the High Court’s decision in FCT v PepsiCo Inc & Anor [2025] HCA 30. In that case, in a majority decision, the High Court confirmed that no part of payments made by the taxpayer under exclusive bottling agreements were of a royalty nature and were in fact only for the concentrate. Accordingly, the Court found that the arrangements did not attract the diverted profits tax (DPT) provisions. Among other things, the ATO said that the Court endorsed the broader approach to the meaning of ‘consideration for’ in the royalty definition and that the ATO will continue to apply that principle in determining whether or not there is a royalty in an arrangement. The ATO also said that the decision does not disturb its view that, depending on the relevant facts and circumstances, a royalty may be found notwithstanding rights to use IP have been ’embedded’ into amounts labelled as consideration for something that is not IP, such as a good or a service.
APRA consults on implementation of Retirement Reporting Framework
APRA has advised that it has begun consulting with industry on the implementation of the Retirement Reporting Framework. The framework is a Federal Government initiative to uplift the retirement phase of superannuation. Following Treasury-led consultation through 2025, the Government announced the final high-level design of the framework on 23 February 2026. APRA is to collect and publish the data required to give effect to the framework. APRA welcomes feedback from industry and broader stakeholders – and will be seeking feedback via industry roundtables as well as written submissions which are requested by 3 June 2026.
Wednesday 25 March 2026
Bill: Reporting obligations for closely held trusts – and other measures
The Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026 was introduced into Parliament today [Wed 25 March 2026]. It makes the following amendments:
- Reporting obligations of trustees of closely held trusts – the Bill will streamline how trustees of closely held trusts report beneficiary TFNs to the Commissioner. Beneficiary TFNs will be required to be reported at the same time as the trust tax return is lodged for income years that the beneficiary is presently entitled to a share of income of the trust. This requirement replaces the obligation for trustees of closely held trusts to lodge a TFN report for the quarter in which a beneficiary quotes their TFN to the trustee. The amendments also support pre‑filling beneficiary income tax returns, helping to ensure the right amount of tax is being paid by trustees and beneficiaries. Date of effect: Broadly, to income years starting on or after 1 July 2026.
- Exclusion of tobacco and gambling activities from the R&D Tax Incentive – the Bill amends the ITAA 1997 to exclude R&D activities related to tobacco and gambling from the R&D Tax Incentive for income years starting on or after 1 July 2025, with the exception of activities conducted for the sole purpose of harm minimisation. Date of effect: Income years from 1 July 2025.
- Removing the $2 threshold for deductions for gifts or contributions – the Bill will amend the ITAA 1997 to allow donors to claim a tax deduction on donations to Deductible Gift Recipients (DGRs) even if they are valued less than two dollars. Date of effect: from the first 1 January, 1 April, 1 July or 1 April to occur after the day the Bill receives Royal Assent.
Minor and technical amendments – the Bill makes minor and technical amendments to Treasury portfolio legislation. These amendments reflect the Government’s ongoing commitment to the care and maintenance of Treasury laws. Date of effect: Day after Royal Assent.
Bill preventing child sexual abusers from hiding assets in super
The Treasury Laws Amendment (The Survivors Law) Bill 2026 was introduced into Parliament today [Wed 25 March 2026]. It will prevent convicted child sexual abusers from hiding their assets in superannuation to avoid paying compensation to their victims. The Bill will enable victims and survivors of child sexual abuse to apply for a court order to access additional personal or salary sacrifice superannuation contributions made by the offender where a related court order for compensation remains unpaid after 12 months. In addition, victim-survivors will be able to apply to the ATO, with appropriate safeguards, to identify any potential eligible superannuation prior to seeking access.
Date of effect: The day after Royal Assent. Note: Unfulfilled historical compensation orders brought into existence before the measure’s commencement will be eligible if they remain legally enforceable and were awarded in relation to a criminal conviction or finding of guilt for child sexual abuse.
TPB consultation on guidance for the use of AI by practitioners
The Tax Practitioners Board (TPB) has advised that it has released draft guidance on the use of artificial intelligence (AI) and the Code of Professional Conduct (Code) for public consultation. It said that consistent with the TPB’s 2026 policy guidance priorities, the Exposure Draft Information Sheet provides practical guidance to support tax practitioners in understanding their obligations under the Code and the Tax Agent Services (Code of Professional Conduct) Determination 2024, when using AI in the delivery of tax agent services. The TPB said its aim is to help tax practitioners embrace the benefits of AI with confidence; while continuing to meet the high professional and ethical standards set out in the Code. The draft guidance is open for consultation until 21 April 2026. Submissions can be emailed to [email protected] or by mail to Tax Practitioners Board, GPO Box 1620, Sydney NSW 2001.
Thursday 26 March 2026
FBT Determinations – car rates and reasonable food amounts
The ATO has issued the following FBT related tax determinations:
- TD 2026/1 Fringe benefits tax: what are the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing 1 April 2026. It sets the rates to be applied on a cents per kilometre basis for calculating the taxable value of a fringe benefit arising from the private use of a motor vehicle other than a car for the fringe benefits tax year commencing 1 April 2026.
TD 2026/2 Fringe benefits tax: reasonable amounts under section 31G of the Fringe Benefits Tax Assessment Act 1986 for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the fringe benefits tax year commencing 1 April 2026. It sets out the amounts that the Commissioner considers reasonable, under s 31G of the Fringe Benefits Tax Assessment Act 1986, for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the fringe benefits tax year commencing 1 April 2026.
Draft ruling update: Super – transfer balance cap
The ATO has issued a draft update to LCR 2016/9DC Superannuation reform: transfer balance cap. This draft ruling explains proportional indexation of the transfer balance cap to clarify the status of superannuation income streams subject to a commutation authority. It also clarifies how the general principles in this Ruling apply in the context of successor fund transfers and reflects the increase in the maximum allowable members made under the Treasury Law Amendment (Self-Managed Superannuation Funds) Act 2021. Comments due: 8 May 2026.
Guideline update: Electric vehicle home charging rate
The ATO has issued an update to PCG 2024/2 Electric vehicle home charging rate – calculating electricity costs when a vehicle is charged at an employee’s or individual’s home. The Guideline sets out the methodology that has been developed to calculate the cost of electricity when an electric car is charged at an employee’s or an individual’s home. It has been updated for the EV home charging rate in Table 2 of the Guideline to include a revised cents per kilometre rate for the FBT year or income year commencing on and after 1 April 2026.
ATO: Letter to RSE licensees for Payday Super implementation
APRA and the ATO have issued a letter to RSE licensees regarding the commencement of Payday Super on 1 July 2026. The letter sets out the ATO’s and APRA’s roles in the implementation of Payday Super, the relevant regulations and standards to support Payday Super, and next steps to support RSE licensee implementation readiness by 1 July 2026.
Friday 27 March 2026
SMSFs: TBAR lodgement reminder for April 2026
The ATO has issued a reminder that all SMSFs must report transfer balance account (TBA) events on quarterly basis by lodging a transfer balance account report (TBAR). These events must be reported irrespective of the member’s total superannuation balance. TBARs for the March quarter are due on 28 April 2026. However, if no TBA event has occurred during the quarter, then no lodgement is required. The ATO also said that you may need to lodge a TBAR sooner where your member has exceed their personal transfer balance cap.
Draft Guideline: Thin capitalisation and Aust branches of foreign banks
The ATO has issued draft PCG 2026/D1 Thin capitalisation and the attribution of risk-weighted assets to Australian branches of foreign banks – ATO compliance approach. It affects foreign banks who conduct their banking business in Australia through a branch. The draft Guideline outlines our compliance approach to determining the risk-weighted assets (RWA) attributable to a branch for the purposes of the thin capitalisation rules for inbound banks in s 820-405 of the ITAA 1997. The ATO had not historically issued any guidance on our expectations under tax law on this issue. This draft Guideline has been informed by consultation on the ATO’s published discussion paper Thin capitalisation – attribution of risk weighted assets to Australian branches of foreign banks, which closed on 31 May 2024. This draft Guideline is unrelated to the suite of public advice and guidance arising from the amendments to the thin capitalisation rules which were enacted on 8 April 2024 per Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Act 2024. Comments due: 8 May 2026.
SUPER & FINANCIAL SERVICES
SMSFs: TBAR lodgment reminder for April 2026
The ATO has issued a reminder that all SMSFs must report transfer balance account (TBA) events on quarterly basis by lodging a transfer balance account report (TBAR). These events must be reported irrespective of the member’s total superannuation balance. TBARs for the March quarter are due on 28 April 2026. However, if no TBA event has occurred during the quarter, then no lodgement is required. The ATO also said that trustees may need to lodge a TBAR sooner where their member has exceeded their personal transfer balance cap.
Retirement reporting framework to increase scrutiny of retirement offerings
Treasury’s design for the Retirement Reporting Framework shows APRA will publish annual data from 2028 on super funds’ retirement products, services and member outcomes, with first data collection expected in 2027.
The framework will compare funds on things like whether they offer drawdown options beyond the minimum, whether they offer lifetime income products, whether members have access to personal advice services, how many members actually use retirement income products, how much they draw down, and how balances are used through retirement. That means more visibility over which funds are genuinely building retirement solutions versus which are still weak in decumulation.
ATO: Letter to RSE licensees for Payday Super implementation
APRA and the ATO have put RSE licensees on notice ahead of the 1 July 2026 start of Payday Super, warning that contributions will generally need to be allocated or returned within three business days of receipt. Regulators also say some licensees are not yet on track to deliver all SuperStream 3.0 changes, particularly the Member Verification Request service. This is a new pre-check designed to confirm an employee’s super fund details before contributions are made, helping reduce errors and delays in allocation.
Draft ruling update: Super – transfer balance cap
The ATO has issued a draft update to LCR 2016/9DC Superannuation reform: transfer balance cap. This draft ruling explains proportional indexation of the transfer balance cap to clarify the status of superannuation income streams subject to a commutation authority. It also clarifies how the general principles in this Ruling apply in the context of successor fund transfers.
Date of death counts for downsizer 10-year ownership test
In a recent ruling, the ATO accepted that beneficiaries of a deceased estate could count the deceased’s date of death as the relevant acquisition date for the downsizer 10-year ownership test. In this case, the beneficiaries inherited rural land, later subdivided it, built their main residence on part of the land and then sold the property. The ATO said the subdivision did not restart the ownership period, and that the beneficiaries’ ownership interest could be traced back to the date of death.