10 November 2025 to 14 November 2025
Weekly Bulletin Contents
TAX
Monday 24 November 2025
Red Tape Reduction Review
The Board of Taxation has launched a Red Tape Reduction Review to find ways to reduce unnecessary compliance burdens in the tax system without affecting its integrity, fairness, efficiency, or revenue.
While broader tax policy reforms are excluded, the review will consider:
- Tax processes, registrations, or requirements that could be simplified or automated to reduce compliance costs
- Outdated or duplicative processes across agencies
- Excessive reporting or lodgement obligations on businesses
- Legislative changes needed to meaningfully reduce red tape
- International best practices in tax administration
- Industry, sector, or community-specific compliance challenges
- Groups disproportionately affected by tax-related red tape
- Options to ease compliance while maintaining revenue collection
The Institute of Financial Professionals Australia will be lodging a submission and welcomes your feedback. Submissions are open until 15 December. Please send comments to [email protected]
No grounds for stay of termination of tax-agent’s registration
A tax agent and his company have been unsuccessful in seeking a stay of the decision of the Tax Practitioner Board’s (TPB) to terminate their registration for 3 years for various breaches of the TASA Act (including the failure to act honestly and the failure to comply with his own personal tax affairs, including dealing with their tax debts). The tax-agent sought the stay pending the outcome of his application to challenge the TPB’s decision. In refusing the application for the stay, the ART found that there were strong public interest factors operating against a stay which it considered outweighed any countervailing factors (eg adversity to his business). The ART also said that it was not persuaded that that tax-agent’s challenge to the deregistration decision had good prospects for success. At the same time, the ART dismissed the tax-agents application for confidentiality orders as it found that there was “little practical advantage to the [key matter of] the viability of the business from the proceedings being conducted in private”.(Zartaloudis and Tax Practitioners Board (Practice and procedure) [2025] ARTA 2477,17 November 2025)
No grounds to further remit GIC
The Federal Court has dismissed a taxpayer’s application for review of the ATO’s decision to refuse to remit GIC imposed on its income tax liability that accrued in relation to the one-month late lodgment of its 2015 return which originally disclosed nil tax payable, but on audit some 4 years later was adjusted to tax payable of $9m. The ATO refused to fully remit the GIC imposed as it said that there was no good reason for the taxpayer’s failure to lodge the return by the due date and that it had not made any application for an extension of time and because there was no basis, otherwise, to fully remit the GIC (the ATO having already remitted it by $4.4m). In dismissing the taxpayer’s application, the Federal Court found that the ATO had not erred in identifying the time at which taxpayer’s income tax for the 2015 year was due and payable nor when GIC began to accrue upon its unpaid income tax liability. Furthermore, it found that the taxpayer had not provided sufficient reasons to show that the delay in paying the tax was not caused by its own acts or omissions, nor that that it had taken reasonable steps to mitigate that delay. (EMH IV Pty Ltd as trustee for the EMH IV Family Trust v FCT [2025] FCA 1429)
Tuesday 25 November 2025
ART refuses application for dispute to be determined without a hearing
The ART has refused a taxpayer’s application for her dispute before it to be determined without a hearing and to instead be determined “on the papers”. The taxpayer sought the order pursuant to s 106(2)-(5) of the ART Act as she was no longer represented. However, the ART determined that the issues in question could not be adequately determined in the absence of the parties – especially as the taxpayer had originally proposed to lead evidence from 7 lay witnesses (including herself) and 2 expert witnesses, and because of the Commissioner’s need to be able to cross-examine them. (PJFX and FCT (Practice and procedure) [2025] ARTA 2471, 12 November 2025)
Lodgment deferral – Country-by-Country reporting statements
The ATO has advised that it is providing Country-by-Country (CBC) reporting entities with a lodgment deferral until Friday, 30 January 2026. This is for reporting periods that ended on 31 December 2024 and had a due date of 31 December 2025. The ATO said that If you’re one of these entities, and have CBC reporting obligations, you’ll need to lodge each of the respective statements for this period – Local file, Master file and CBC report – by 30 January 2026. The ATO also said this due date also applies to statements with a replacement reporting period that ended on 31 December 2024, and that it will apply this deferral automatically.
Compensation Scheme of Last Resort Levy – initial estimate
The Financial Services Compensation Scheme of Last Resort Levy (Collection) (Initial Cost Estimates for 2026-27 Levy Period) Determination 2025 has been made. Its purpose is to establish the initial cost estimates for the 2026–27 levy period, thus allowing the ASIC to impose and collect the annual levy from relevant sub-sectors in accordance with the CSLR Collection Act and the CSLR Regulations. The relevant estimate is $2,155,918.
Double Tax Treaty with Croatia
The Government has advised that it has signed a double tax treaty with Croatia. Once in force, the agreement will create a more predictable and transparent tax environment. The treaty lowers certain withholding tax rates, cutting costs for Australians investing in Croatia and opening up new avenues to access Croatian capital and technology. It will also simplify compliance and give businesses and investors greater certainty about their tax obligations.
Wednesday 26 November 2025
No grounds to reinstate previously dismissed matter
The ART has refused to grant a taxpayer’s application under s 102(1) of the ART Act to reinstate proceedings dealing with decision not to remit a GIC that was previously dismissed by the ART. In doing so, the ART agreed with the Commissioner the application had not been dismissed in error because a decision not to remit a GIC is not one the ART has jurisdiction to review – and that therefore reinstatement of the matter was not possible. However, it was noted that the available course of external review in this case is an application under the ADJR Act. (McEwen and FCT (Practice and procedure) [2025] ARTA 2503, 19 November 2025)
ATO warning against tax schemes
The ATO has warned about tax and super schemes that may be promoted by advisers. The ATO said they range from mass-marketed schemes advertised to the public, to boutique or specialised schemes tailored for specific taxpayer circumstances. They include tax avoidance, tax evasion and super schemes, and typically involve one or more of the following: reducing a participant’s taxable income; increasing their deductions; against their income; increasing offsets; inflating refunds; avoiding tax and other obligations entirely; and accessing super benefits before meeting a condition of release. The ATO said tax and super schemes may include complex transactions or may distort the way funds are used to avoid tax.
Large super fund required to pay $23.5m penalty
ASIC has advised that one of Australia’s largest superannuation fund trustees has been ordered by the Federal Court to pay a penalty of $23.5m for unreasonable delays experienced by thousands of members and claimants arising from serious failures to handle insurance claims in a timely manner. The penalty has been imposed against United Super Pty Ltd, the trustee of the Construction and Building Unions Superannuation Fund (Cbus), following admissions by Cbus that serious failures caused delays in processing death benefits and total and permanent disability insurance claims and impacted more than 7,000 Australians in distressing situations. See ASIC v United Super Pty Ltd [2025] FCA 1453.
Thursday 27 November 2025
Supporting Choice in Superannuation Bill introduced
The Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Bill 2025 was introduced into Parliament yesterday [Wed 26 Nov 2025]. It contains the following measures:
Superannuation choice: “onboarding”
The Bill amends the Superannuation Guarantee (Administration) Act 1992 Act to support employers to streamline the choice of fund process during employee onboarding. The amendments provide greater flexibility for when an employer, or their agent, may request details of an employee’s stapled superannuation fund from the Commissioner, so the employer, or their agent, can provide those details to the employee during onboarding to inform the employee’s choice of fund.
The Bill also amends the Corporations Act to ban advertising of certain superannuation products to new employees as part of the onboarding process. The ban will reduce the risk that employees are induced or influenced to choose a superannuation product that is not appropriate to their needs or results in opening of unnecessary multiple superannuation accounts during the onboarding process.
Date of effect: The measures commence the day after the Act receives Royal Assent, and the Corporation Act amendments commence on 1 July 2026.
Tax exemptions for Rugby World Cups
The Bill amends the ITAA 1997 and the ITAA 1936 to provide income tax and withholding tax exemptions for World Rugby and its wholly-owned subsidiaries Rugbypass Limited, RWC2003 Limited, World Rugby Events Designated Activity Company, World Rugby Limited, and World Rugby Tournaments Limited as well as Rugby Australia Ltd and Rugby World Cup (Australia) Pty Ltd. The exemptions are for income derived from activities relating to the men’s Rugby World Cup 2027 and the women’s Rugby World Cup 2029. Date of effect: The measures commence after the day the Bill receives Royal Assent.
Portuguese convention
The Bill amends the Agreements Act to give force of law to the Convention, which was signed in Lisbon, Portugal on 30 November 2023. Date of effect: The measures commence on the day after Royal Assent. However, the Convention itself must first enter into force before it can take effect. For entry into force, Australia and Portugal must notify each other in writing of the completion of their domestic implementation requirements.
Deductible gift recipients
The Bill amends the ITAA 1997 to add six new deductible gift recipients (DGRs) as follows: Coaxial Foundation Ltd; Community Foundations Australia Ltd; Equality Australia Ltd; Partnerships for Local Action and Community Empowerment Ltd; Social Enterprise Australia Ltd; and The Parenthood Project Limited.
The Bill also extends the period of DGR status for the following funds: Foundation Broken Hill Limited; Paul Ramsay Foundation Limited; St Patrick’s Cathedral Melbourne Restoration Fund; Sydney Chevra Kadisha; and The Great Synagogue Foundation.
The Bill also removes the following funds from DGR status: Clontarf Foundation; Roberta Sykes Indigenous Education Foundation; Sydney Talmudical College Association Refugees Overseas Aid Fund; The Australian Future Leaders Foundation Limited; The Bradman Memorial Fund; The National Safety Council of Australia Limited; The Ranfurly Library Service Incorporated; and The Western Australian National Parks and Reserves Association Incorporated.
Date of effect: Broadly, after the day the Bill receives Royal Assent.
Increased wine equalisation tax producer rebate
The Bill increases the maximum amount of WET producer rebate claimable by eligible wine producers, or a group of associated wine producers, from $350,000 to $400,000 per financial year, from 1 July 2026. Date of effect: To assessable dealings made on or after 1 July 2026.
ATO guidance: Global and domestic minimum tax lodgment obligations
The ATO has released PCG 2025/4 Global and domestic minimum tax lodgment obligations – transitional approach. The Guideline sets out the ATO’s transitional approach to penalties and expectations in relation to the 4 new lodgment obligations introduced for Pillar Two for applicable multinational enterprise groups. The Guideline complements existing ATO guidance relating to administration of lodgment obligations and penalties. It provides tailored advice to assist taxpayers to meet their new obligations and provides certainty to taxpayers during the transition period (being any fiscal year beginning on or before 31 December 2026 but not ending after 30 June 2028). This includes the ATO taking a ‘soft-landing’ approach during the transition period where taxpayers take reasonable measures to understand and comply with their lodgment obligations. This approach is consistent with the OECD transitional penalty relief.
APRA releases super statistics for September quarter
APRA has released its quarterly superannuation performance publication for the September 2025 quarter. Total superannuation assets increased by 3% over the quarter to $4.5 trillion as at September 2025, of which $3.2 trillion was in APRA-regulated funds. Total contributions increased by 12.7% to $215.6 billion in the year ending in September 2025. Employer contributions increased by 8.8% over the year to $153.2bn. Member contributions increased by 23.6% over the year to $62.4 billion. Benefit payments increased by 12.7% to $136.2 billion in the year ending in September 2025. This increase was the result of lump sum payments rising by 13.8% to $75.3 billion and pension payments increasing by 11.3% to $60.9 billion.
Institute of Financial Professionals Australia comment (IFPA): It would be interesting to know how much of the increase in lump sum payments went into housing in some way – whether paying off a home or buying a new one, or helping adult children get into the housing market.
Friday 28 November 2025
Taxpayers taxed on wrongfully withdrawn super
In a case involving a couple who rolled their superannuation into an SMSF and then withdrew the funds to deal with personal financial difficulties (after reading an article and receiving advice from a promoter), the ART has agreed with the Commissioner’s decision to treat the withdrawals as assessable income under s 304-10 of the ITAA 1997. The ART found that it was not “unreasonable” for the withdrawn superannuation benefits to be taxed at marginal rates. The members remained responsible for understanding the superannuation and SIS rules and could not avoid tax simply because they relied on incorrect or incomplete advice. However, the ART remitted all penalties in full. It accepted that the taxpayers were under significant financial stress and had genuinely, although mistakenly, believed they were acting within the law based on the advice and material they were given. (Santavas and FCT (Taxation) [2025] ARTA 2515 (25 November 2025)
Institute of Financial Professionals Australia (IFPA) comment:
This decision reinforces that unlawful early access to super will usually remain fully taxable and in the absence of compelling circumstances, substantial penalties may apply.
Addenda to ATO rulings for promoter penalty regime changes
Addenda have been made to the following Rulings dealing with the Rulings system to reflect legislative changes to promoter penalty laws in Div 290 of Sch 1 to the Taxation Administration Act 1953: TR 2006/10 Public Rulings; and CR 2001/1 Class rulings system; and PR 2007/71 The Product Rulings system.
Old Rulings withdrawn
The ATO has withdrawn the following rulings with effect from 27 November 2025:
- Income tax Ruling IT 235W Timber industry workers – contract tree fellers. It concerned the treatment to be given to the remuneration of workers in the timber felling industry. The ATO says the content in this Ruling is now outdated and more current information is available in other rulings, such as TR 97/11 Income tax: am I carrying on a business of primary production? and TR 2023/4 Income tax and superannuation guarantee: who is an employee?
Superannuation Guarantee Determination SGD 94/6W: What is the effect on the SGA Act 1992 of the High Court decision in Re Finance Sector Union of Australia; ex parte Financial Clinic (Vic.) Pty. Ltd. (1993) 67 ALJR 687? It set out the ATO’s view on the implications of the decision of the High Court in Re Finance Sector Union of Australia; ex parte Financial Clinic (Vic.) Pty. Ltd. (1993) 67 ALJR 687 for the operation of the Superannuation Guarantee (Administration) Act 1992 (SGAA). The provisions considered by the High Court in this case and addressed by SGD 94/6 were repealed with effect from 1 July 2008. Therefore, the issue addressed by the Determination has no relevance to the current operation of the SGAA.
IAWO extended after Senate passes new laws
Legislation to extend the $20,000 instant asset write-off (IAWO) for small businesses until 30 June 2026 has passed the Senate.
Under the change, small businesses with annual turnover of less than $10 million will be able to immediately deduct the cost of eligible assets costing up to $20,000, rather than claiming the deduction over several years. This is intended to make it easier for small operators to upgrade tools, machinery, vehicles or technology that support their day-to-day operations.
SUPER & FINANCIAL SERVICES
Supporting choice in superannuation bill introduced
A Bill seeking to streamline the choice of fund process during employee onboarding has been introduced into Parliament. The amendments allow employers to request details of an employee’s stapled superannuation fund from the ATO. The employer may then provide these details to the employee during onboarding to inform the employee’s choice of fund.
The Bill also amends the Corporations Act to ban advertising of certain superannuation products to new employees as part of the onboarding process.
Taxpayers taxed on wrongfully withdrawn super
In a case involving a couple who rolled their superannuation into an SMSF and then withdrew the funds to deal with personal financial difficulties, the Administrative Review Tribunal (ART) has agreed with the Commissioner’s decision to treat the withdrawals as assessable income under s304-10 of the ITAA 1997. The ART found that it was not “unreasonable” for the withdrawn superannuation benefits to be taxed at marginal rates. The members remained responsible for understanding the superannuation rules and were not exempt from paying tax simply because they relied on incorrect information from an article. However, the ART remitted all penalties in full. It accepted that the taxpayers were under significant financial stress and had genuinely, although mistakenly, believed they were acting within the law based on the advice and material they were given.
Institute of Financial Professionals Australia (IFPA) comment: This decision reinforces that unlawful early access to super will usually remain fully taxable and in the absence of compelling circumstances, substantial penalties may apply.
APRA releases super statistics for September quarter
APRA has released its quarterly superannuation performance publication for the September 2025 quarter.
Key highlights include:
- Total superannuation assets increased by 3% over the quarter to $4.5 trillion as at September 2025, of which $3.2 trillion was in APRA-regulated funds.
- Total contributions increased by 12.7% to $215.6 billion in the year ending in September 2025.
- Employer contributions increased by 8.8% over the year to $153.2billion.
- Member contributions increased by 23.6% over the year to $62.4 billion.
Benefit payments increased by 12.7% to $136.2 billion in the year ending in September 2025. This increase was the result of lump sum payments rising by 13.8% to $75.3 billion and pension payments increasing by 11.3% to $60.9 billion.
IAWO extended after Senate passes new laws
Legislation to extend the $20,000 instant asset write-off (IAWO) for small businesses until 30 June 2026 has passed the Senate.
Under the change, small businesses with annual turnover of less than $10 million will be able to immediately deduct the cost of eligible assets costing up to $20,000, rather than claiming the deduction over several years. This is intended to make it easier for small operators to upgrade tools, machinery, vehicles or technology that support their day-to-day operations.
Inflation edges up to 3.8% as housing and power bills bite
Australia’s annual inflation rate rose to 3.8% in the 12 months to October 2025, up from 3.6% in September, according to the latest Consumer Price Index (CPI) from the Australian Bureau of Statistics.
Housing costs remain the biggest driver of price rises, up 5.9% over the year. Within this, electricity prices jumped 37.1% as earlier state and federal bill relief rebates were used up or wound back, revealing higher underlying power costs. Rents rose 4.2% over the year, with government rent assistance only partly offsetting ongoing tight rental markets. Water and sewerage charges also increased, reflecting recent price reviews in several states.
IFPA comment
This lift in inflation will increase pressure on the RBA with some economists now warning the RBA may need to raise rates in 2026.