24 August 2026 to 28 August 2026
Weekly Bulletin Contents
TAX
tuesday 25 august 2026
ATO data matching: Passenger movements
The ATO has advised that it will acquire passenger movements data for selected taxpayers, from the Department of Home Affairs for 2026–27 through to 2028–29. The data accessed will be electronically matched with certain sections of ATO data holdings to identify taxpayers that can be provided with tailored information to help them meet their tax and superannuation obligations, or to ensure compliance with taxation and superannuation laws.
No basis to remit Div 293 tax for lump sum arrears payment
The Tribunal has refused to exercise the discretion to remit Div 293 tax imposed on a lump sum payment in arrears of $96,000 received by the taxpayer. In doing so the ART dismissed the taxpayer’s claim that the income and superannuation paid should be allocated the respective income years in which the income would otherwise have been earned, and not the income year in which it was received. However, the ART dismissed the claim on the basis that employment income is derived in the year in which it is received regardless of whether it is clearly related to services provided in the earlier income years. Accordingly, it found that there were no grounds to remit the Div 293 tax in this case. (Munro and FCT (Taxation and business) [2026] ARTA 1653, 16 June 2026)
ATO: Registration of religious institutions for GST
The ATO has issued a reminder that being income tax exempt does not automatically make a religious institution exempt from other tax obligations, such as GST. the ATO said that like all not-for-profit (NFP) organisations, a religious institution must register for GST if its GST turnover is $150,000 or more. The ATO further said that if the projected GST turnover is $150,000 or more, the institution you must register for GST within 21 days.
wednesday 26 august 2026
ATO: Calculating the 3 business day timeframe for Payday super
The ATO has issued a reminder that under Payday Super, you must now allocate or return super contributions within 3 business days. The ATO emphasised that this timeframe does not include the day the contribution is received. For example, if a super contribution is received on a Monday, the fund has until Thursday to allocate or return it. The ATO also said to note that there has been no change for self-managed super funds (SMSFs). They still have 28 calendar days after the end of the month in which the contribution is received to allocate or return it.
ATO: Real property transactions data-matching program amended
The ATO has advised that the real property transactions data-matching program has been amended from the version published in 2017 to align with existing business practices, including the impact the revocation of GDA 24 has on our ability to retain this data beyond the stated retention periods, where a business need exists. [Note: GDA 24 was issued by the National Archives of Australia under the Archives Act 1983 that authorized the disposal and destruction of certain Commonwealth government records.] The ATO said it is not continuing to acquire details of real property transactions under this program under which data was acquired for the period 20 September 1985 to 30 June 2017 from state and territory revenue and land title agencies. During the relevant period, data was collected on approximately 2 million individuals each financial year for the program.
Institute of Financial Professionals Australia comment: Presumably, this all means that the ATO can still use the collected data for relevant purposes.
thusday 27 august 2026
Tax Reform No 2 Bill receives Assent – loss carry back; instant asset write off etc
The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 received Royal Assent on 26 August 2026 (as Act No 71). The Bill will: enable corporate tax entities that are not significant global entities to carry back a tax loss in an income year and apply it against tax paid in either or both of the previous two income years to receive a tax offset (with effect for income years commencing on or after 1 July 2026); permanently extend the $20,000 instant asset write-off from 1 July 2026; and provide an income tax exemption for income derived in respect of employment with the PNG Chiefs Limited.
ATO: Protect your practice from cyber threats
The ATO has warned that tax professionals are being targeted by cyber criminals, primarily via malicious links in emails, attachments and other communications. The ATO also said that it is currently providing support to a small number of impacted Tax professionals. It also said ATO systems remain secure and resilient, but as cyber criminals adapt and refine their tactics to target businesses, it’s critical you remain vigilant and exercise good cyber security practices. The ATO said that these include: installing anti-virus software on your system and making sure you keep it up to date; being cautious when opening links or attachments, or downloading files from unknown sources; and independently verifying suspicious communications.
friday 28 august 2026
Draft Ruling: Standard deduction for work-related expenses
The ATO has released Draft LCR 2026/D5:The standard deduction for work-related expenses. It explains how the ‘standard deduction for work-related expenses’ under s 25-130 of the ITAA 1997 operates. It explains: who is eligible to receive the standard deduction; how the amount of the standard deduction is worked out; which specific deductions reduce the standard deduction; which deductions can still be claimed separately; and how it interacts with the capital allowance rules and FBT. Comments due 9 October 2026.
Decision Impact Statement in Alcoa of Australia Ltd – transfer pricing
The ATO has delivered Decision Impact Statement on the ART decision in Alcoa of Australia Ltd and FCT [2025] ARTA 482. The case concerned the transfer pricing consequences under former Div 13 of the ITAA 1936 of corrupt dealing that had infected a commercial transaction. The ATO said it agrees that the concept of ‘dealing at arm’s length’ does not require there to be common control or other association. This is regardless of whether it can be identified that some other entity within a group of entities associated through shareholding or directorship received the ‘shifted’ profits.. The ATO also said that it agrees with the Tribunal’s view that parties to an arrangement designed to facilitate bribery and corruption are not dealing at arm’s length.
ATO: Tax crime prosecution case studies
The ATO has released tax crime prosecution case studies to show that people who deliberately cheat the tax system will be held accountable. The include the following cases: bond breach leads to prison term; mining mogul unearths big jail time; fake documents, real consequences; trustee digs up a (w)hole lot of trouble; breach of bond leads to jail time; swan jailed for fraud; capone jailed for dodging lodgments; lawyer fails to lodge; former tax agent found guilty; brothers busted for fake document scheme; and former tax agent jailed
SUPER & FINANCIAL SERVICES
Government announces super, advice and CSLR reform package
The Government has announced reforms aimed at improving consumer protection, easing access to advice and putting the Compensation Scheme of Last Resort (CSLR) on a sustainable footing. Notable changes include:
Additional SMSF obligations
- Introducing mandatory trustee education before SMSF registration
- Requiring SMSFs to hold uniquely identifiable bank accounts
- Requiring SMSFs to have a written investment strategy upfront, with consultation to follow on changes to investment strategies
- Requiring SMSFs to tell the ATO who was involved in setting the fund up, and to separately report advice fees deducted from the fund each year
- Increasing the SMSF supervisory levy from $259 to $295
Financial advice
- Introducing a New Class of Adviser regime for APRA-regulated superannuation and life insurance entities
- Changing the Best Interests Duty to complement scaled advice
- Changing the Financial Planner and Adviser Code of Ethics 2019 so it supports the safe provision of scaled advice
- Amending education requirements to create a new entry pathway into the profession
- Allowing collective charging
Changes to the CSLR
- Limiting CSLR payments to actual losses for applications made to AFCA after 30 June 2027
- Creating a predictable funding method for exceptional losses
Including SMSFs in funding special levies
Payment in arrears can trigger Division 293 tax
A recent Administrative Review Tribunal case held that where an employer underpays an employee in an earlier income year and settles it in another year, the whole amount is assessed in the year it is received. That additional income may result in Division 293 tax, an extra 15 per cent on concessional contributions for individuals with income above $250,000.
In this case an employer underpaid an employee between October 2015 and September 2022. The back payment took the employee’s 2023-24 taxable income to $284,993 and produced a Division 293 assessment of $4,230.85. Had the employer paid correctly at the time, the employee would not have crossed the $250,000 threshold in any year. There is no discretion to disregard the income or reallocate it to another year.
ATO confirms how to pay SMSF establishment costs
The ATO has provided an update confirming the process of paying SMSF establishment costs. In the update the ATO confirms
- how to pay establishment costs
- when costs are and are not contributions
- which establishment costs an SMSF can charge against a member’s benefits
- the tax treatment of establishment costs
APRA to consult on investment governance
In a recent media release APRA confirmed that it will consult next month on reforms to lift investment governance standards in superannuation (excluding SMSFs), covering eight areas of the investment management lifecycle from investment capability and material conflicts through to member-level diversification and trustee accountability. All trustees are in scope, platform trustees most of all. APRA has paired this with the Government’s proposed compensation scheme, which would give members a clearer path to compensation where significant losses arise because a trustee failed to meet its obligations.