25 August 2025 to 29 August 2025
Weekly Bulletin Contents
TAX
Monday 25 August 2025
Unlegislated measures tracker released
The Parliamentary Budget Office has released an update to its unlegislated measures tracker. The publication provides estimates of the impact on the Commonwealth budget of measures with significant financial implications that have been announced but are yet to be implemented as at 30 June 2025. (For tax-related measures, see “Treasury portfolio”).
Ombudsman review: ATO’s management of a complex, long-running case
The Tax Ombudsman has advised that it has commenced an independent investigation into the ATO’s management of a complex and long-running case. The review will examine allegations of maladministration raised by a taxpayer and recently reported in the media. The Tax Ombudsman also said it will explore whether there are any underlying systemic issues and opportunities for improvement. It also advised that it will not be releasing further information or making public comment until the investigation is complete.
APRA 2025-26 Corporate Plan
APRA has released its 2025-26 Corporate Plan. It sets out its strategic objectives over the next four years and outlines our planned activities for delivering on those objectives. The Plan is focused on promoting the safety and stability of the system in a balanced and efficient way and will prioritise initiatives to maintain resilience as new risks emerge. APRA also said that in the current environment, it is particularly focused on potential risks from geopolitical tensions, cyber-attacks, interconnections, an ageing population, and climate change. At the same time, we are progressing a range of initiatives to minimise regulatory burden for industry.
Tuesday 26 August 2025
ATO: Updated information on ordinary time earnings for SG purposes
The ATO has released updated information on ordinary time earnings (OTE) for employers – being the amount that the super guarantee (SG) is calculated on. However, the ATO says not all amounts you pay an employees are OTE – and that it is important to understand which amounts are OTE for SG purposes. Accordingly, the ATO has released additional details and examples to help employers work out how much SG they must pay and what is considered OTE.
APRA: Proposed amendments to reporting framework
APRA is seeking feedback on proposed minor amendments to the prudential and reporting framework for authorised deposit taking institutions, insurers and registrable superannuation entity licensees. Submissions are requested to be provided no later than 22 September 2025.
ATO: Leaving a professional services partnership
The ATO has warned that it is continuing to see a significant number of individuals retiring, or otherwise exiting from their partnerships and neglecting their tax obligations. Accordingly, the ATO said that if you’re an individual professional practitioner (IPP), you must record, as assessable income in your individual tax return, any assessable distributions derived during an income year that are related to the net income of your partnership.
Wednesday 27 August 2025
ATO warning on accessing super early!
The ATO is warning against the risks of accessing super early to pay for non-critical medical procedures or lifestyle expenses. The ATO cautions those who are considering accessing their super to carefully consider their circumstances and the impacts it can have both short and long term. The ATO also said that access to super on compassionate grounds is available in very limited circumstances for critical medical procedures and should only be considered as a last resort where all other options of paying for the eligible expenses have been exhausted.
The ATO has also released information on the consequences for individuals who inappropriately access super on compassionate grounds. The information includes: legal requirements for access; consequences of inappropriate access; and voluntary disclosure.
The ATO has also released information for health practitioners and tax agents who are assisting their patients/clients to apply for early access to super on compassionate grounds.
Global and Domestic Minimum Tax Determination made
The Taxation (Multinational-Global and Domestic Minimum Tax) (Qualified GloBE Taxes) Determination 2025 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. By way of background, in March 2025 the OECD released a central record that lists jurisdictions that have implemented IIR and DMTT legislation with transitional qualified 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.
Social Security: Deeming Threshold Rates Determination made
The Social Security (Deeming Threshold Rates) Determination 2025 has been made. It sets out the “below threshold” and “above threshold” rates determined by the Minister for the purpose of calculating income from financial assets under section 1082 of the Social Security Act 1991 (the Act). The effect of the Determination is to determine the below threshold rate as 0.75 per cent, and the above threshold rate as 2.75 per cent, for the purpose of calculating income from financial assets under Division 1B of Part 3.10 of the Act.
ASIC: Hardship Determination temporarily remade
The ASIC Corporations (Amendment) Instrument 2025/548 has been made to extend the relief set out in the principal instrument (‘hardship relief’) for 18 months. The purpose of extending the hardship relief is to maintain the status quo while ASIC considers whether it will re-make the principal instrument to maintain the hardship relief, with amendments to support responsible entities of registered managed investment schemes (‘schemes’) seeking to rely on hardship relief. The principal instrument was made to facilitate withdrawals from schemes where the responsible entity has suspended withdrawals and ceased to allow the issue of new interests in the ‘frozen schemes’ for members facing financial hardship during the COVID-19 pandemic.
Thursday 28 August 2025
ATO fact sheet on denying deductions for ATO interest.
The ATO has released a Fact Sheet on Denying deductions for ATO interest. It explains the law change that denies tax deductions for ATO interest (ie GIC and shortfall interest charge). It applies for most taxpayers to interest they incurred on or after 1 July 2025. It clarifies when the GIC charge and shortfall interest charge are ‘incurred’ with reference to common scenarios (eg amended assessments, late lodgment and RBA deficit debts), and outlines the effect of the law for taxpayers with substituted accounting periods, the assessability of remitted amounts, and the deductibility of interest on borrowings used to pay tax debts.
APRA: Super statistics released
APRA has released its Quarterly Superannuation Performance publication for the June 2025 quarter. The key statistics are as follows: total superannuation assets increased by 4.8% over the quarter to $4.3 trillion as at June 2025; total contributions increased by 14.1% to billion in the year ending in June 2025; employer contributions increased by 10.1% over the year to $151.1 billion; and member contributions increased by 25.8% over the year to $59.1 billion.
Institute of Financial Professionals Australia comment: With $4.3 trillion in assets (and climbing) the super industry is becoming increasingly significant in this country – in every way!
Addenda to GST determination re telecommunication supplies
The ATO has issued addenda to the following GST determinations relating to telecommunication supplies. Broadly, the addenda deal with miscellaneous matters, including new “global roaming” examples and references to other related GST Determinations.
- GSTD 2012/10: GST when are telecommunication supplies made under arrangements for global roaming in Australia by an Australian resident telecommunication supplier GST-free under s 38-570(1) and s 38-570(3) of the GST Act 1999?
- GSTD 2012/8: GST: when are telecommunication supplies made under arrangements for global roaming outside Australia by an Australian resident telecommunication supplier GST-free under item 3 in the table in s 38-190(1) of the GST Act 1999?
Consultation open for Pillar Two draft legislative instrument
The ATO has advised that consultation is now open on the draft Legislative Instrument LI 2025/D17 Taxation Administration (Exemptions from Requirement to Lodge Australian IIR/UTPR tax return and Australian DMT tax return) Determination 2025 and Explanatory Statement. The ATO is seeking comment from multinational enterprise (MNE) groups in Australia, as well as tax and legal professionals, advisors and consultants of MNE clients.
FRIDAY 29 August 2025
ATO: Transactions reportable by EDP operators
The ATO has released information about the requirements for electronic distribution platform (EDP) operators to report payments made for supplies that are connected to Australia through their platform. The ATO states that EDP operators must report transactions related to the supply of: ride-sourcing, taxi travel and transport; accommodation and fixed location assets; hiring assets; services; intangible goods – this includes tips and gratuities provided through a digital platform in connection with the supply. The information also sets out supplies made by EDP operators that don’t need to be reported.
TPB: How to manage and store client’s documents efficiently
The Tax Practitioners Board (TPB) has released information about “how to manage and store client’s documents efficiently and completely”. The TPB also said proper recordkeeping is vital for maintaining the integrity of your practice and helps clarify disputes regarding tax services provided. The TPB also said that tax practitioners should have a clear understanding with clients on what records each will keep to comply with new Code obligations and avoid duplication.
GST determination: Simplified accounting method for prison food supplies
The A New Tax System (Goods and Services Tax) (Simplified Accounting Methods – Government Entities Selling Food in Prisons and Detention Institutions) Determination 2025 has been made. It will allow eligible government entities that sell food in prisons and detention institutions through a sub-entity to adopt a Simplified Accounting Method (SAM) to calculate their net amounts, which will reduce their costs to comply with the GST legislation.
SUPER & FINANCIAL SERVICES
Super member benefit: Better returns and better tax outcome!
The ATO has confirmed in a recent private ruling that a super lump sum, requested before a member’s death but paid after, qualifies as a tax-free super member benefit.
The member, over 65, had their child (with Power of Attorney) request a full withdrawal from their account-based pension, aiming for “better investment returns” elsewhere.
The super fund, unaware of the member’s death the day after confirming the request, deposited the funds four days later. As the payment followed the member’s valid request and the fund’s rules, it’s treated as a member benefit, not a death benefit. For those over 60, such benefits are typically tax-free.
The maximum Age Pension (including supplements) will increase from $1,149.00 (single) to $1,178.70 per fortnight and from $866.10 (each member of a couple) to $888.50 per fortnight. This will lead to a change in the asset and income test thresholds cut-off thresholds as follows.
Dentists providing (poor) super advice
The ATO has issued a warning about the risks of accessing superannuation early for non-critical medical procedures or lifestyle expenses, highlighting concerns about dentists and other health practitioners giving incorrect advice.
The ATO cautions against relying on misleading advice, particularly from health practitioners who may encourage accessing super for ineligible purposes, such as cosmetic veneers.
Super can only be accessed early on compassionate grounds for critical medical needs, like treating life-threatening conditions or alleviating severe pain or mental illness, and only as a last resort.
The ATO is aware of unethical practices, including:
- Preparing inaccurate medical reports to support ineligible super access.
- Advising on super access without an Australian Financial Services license.
- Charging fees to prepare applications without being a registered tax agent.
Institute of Financial Professionals Australia (IFPA) comment
Applications to withdraw under compassionate grounds are administered through the ATO. For information on eligibility and process see the ATO’s page Access on compassionate grounds
APRA: Super statistics released for June 2025
APRA has released its Quarterly Superannuation Performance publication for the June 2025 quarter. The key statistics are as follows:
- Total superannuation assets increased by 4.8% over the quarter to $4.3 trillion as at June 2025
- Total contributions increased by 14.1% to billion in the year ending in June 2025
- Employer contributions increased by 10.1% over the year to $151.1 billion, and
- Member contributions increased by 25.8% over the year to $59.1 billion.
| June 2024 | June 2025 | Change | |
| Total superannuation assets | $3,943.0 billion | $4,330.1 billion | 9.8% |
| Total APRA-regulated assets | $2,721.4 billion | $3,039.5 billion | 11.7% |
| Total self-managed super fund assets | $997.0 billion | $1,051.8 billion | 5.5% |
| Exempt public sector super schemes | 167.3 billion | $178.8 billion | 6.9% |
IFPA comment
Increasing net super contributions together with strong performance has increased the pool of superannuation assets to over $4.3 trillion dollars as at June 2025 (up from $3.9 trillion at June 2024).
SMSF auditor guidance on ownership
The ATO has published guidance reminding SMSF auditors to verify asset ownership. Auditors must:
- Verify Ownership: Auditors must confirm the fund owns all reported assets (Part A, SMSF Independent Auditor’s Report).
- Asset Separation: Trustees must comply with Regulation 4.09A, keeping fund assets separate from personal or related-party assets to protect against creditor disputes.
Failure to verify material asset ownership or breaches of separation, like mixing SMSF and business funds in one account, requires modified audit opinions and may trigger an Auditor/Actuary Contravention Report (ACR).