29 June 2026 to 3 July 2026
Weekly Bulletin Contents
TAX
monday 29 June 2026
No reviewable decision made – application dismissed
A taxpayer who sought review in respect of an objection to ATO audits findings has had his application dismissed on the basis that no reviewable decision had been made. In doing so, the ART dismissed the taxpayer claim that there had been a deemed decision because of the lapse of time. However, the ART found that the requisite period of 120 days that must elapse before an objection decision can be “deemed to have been made and disallowed” had not yet passed. (Zervas and FCT (Practice and procedure) [2026] ARTA 1137, 25 June 2026)
Treasury: Foreign Investment Tax Checklist
Treasury’s Foreign Investment Portal has released a Foreign Investment Tax Checklist which outlines information required by the ATO in its role in reviewing foreign investment proposals. From 4 July 2026, the checklist will be mandatory for some submissions in the Foreign Investment Portal.
Clarification: Passage of Tax Reform Bill – neg gearing changes
On Friday 26 June 2026, we reported that the Treasury Laws Amendment (Tax Reform No 1) Bill 2026 (Reform No 1 Bill) and the Income Tax Rates Amendment (Tax Reform No 1) Bill 2026 were passed by Parliament. However, we need to clarify that the quarantining of negative geared losses applies to “residential property” acquired after 12 May 2026, with effect from the income year beginning 1 July 2027 (subject to an exclusion for “new builds” as defined).
tuesday 30 june 2026
Bendel: ATO releases DIS on High Court decision in re UPEs
The ATO has released a Decision Impact Statement in response to the High Court’s decision in FCT v Bendel [2026] HCA 18. The case concerned whether a private company’s failure to call for payment of entitlements to income of an associated trust was the provision of ‘financial accommodation’ or a transaction ‘which in substance effects a loan.’ If so, it would be a loan for the purposes of s 109D of the ITAA 1936. The ATO said the High Court’s reasoning makes clear that s 109D does not apply where a private company is entitled to a share of trust income that stays unpaid and the company takes no action to recover it. This contradicts the ATO’s position in TD 2022/11, which it will now withdraw, and other advice it will review.
However, the ATO also said that a private company beneficiary’s inaction in respect of an unpaid entitlement to trust income may be insufficient to spare potential implications under other taxation laws, including Subdiv EA and s 100A of the ITAA 1936. The ATO also said that the judgment suggests that Subdiv EA may apply where the funds to which a private company has been made presently entitled have been set aside on a separate trust and other relevant requirements are met.
Payday super reforms: Out-of-Cycle Qualifying Earnings
The Superannuation Guarantee (Administration)(Out-of-Cycle Qualifying Earnings) Determination 2026 has been made. It sets out the kinds of “out-of-cycle” qualifying earnings that can attract an extended period for making ‘on-time’ superannuation guarantee contributions. These include allowances, commissions, bonuses, payments in advance and back payments. It also sets out the circumstances that must exist for an employer to be eligible for that extended period. This applies under the new Payday Super reforms that start on 1 July 2026.
Regs: Exemption for Asian Football Confederation
The Income Tax Assessment (1997 Act) Amendment (Income Tax Exemption) Regulations 2026 have been made. They provide a time-limited income tax exemption for the Asian Football Confederation, the entity that was responsible for staging the AFC Women’s Asian Cup 2026 in Australia in March 2026.
wednesday 1 july 2026
Taxpayer assessable on “property syndicate” fees
The Federal Court has dismissed the appeal of a taxpayer in relation to the assessability of millions of dollars of fees, derived over 10 income years, associated with certain property syndicates. The ATO determined that the income from those syndicates was assessable as ordinary income or personal services income of the taxpayer. This additional income included management fees, brokerage fees, success fees and project management consultancy fees. The Court found that the taxpayer had not discharged his onus of showing that this property syndicate income was not ordinary income or was not personal services income. The Court also affirmed that the Commissioner had the power to amend assessments out of time on the basis of appropriately forming an opinion of “evasion”. (Larmar v FCT [2026] FCA 826, 26 June 2026)
Auditor report: ATO Management of Small Business Collectable Debt
The Auditor-General has issued its report on the “ATO Management of Small Business Collectable Debt”. The Auditor-General concluded that the ATO’s management of collectable small business debt is partly effective noting, among other things, that the small business collectable tax debt increased by $19.4bn (or 118%), between 2018–19 and 2024–25. The Auditor also noted that the ATO recognises that the risk of this debt rising to unacceptable levels is out of tolerance, but that the ATO does not use specific performance targets to reduce small business debt. The Auditor also said that a continued rise in debt volumes creates a number of risks, including that some taxpayers obtain an unfair financial advantage over others.
Withholding variation for laundry and award transport allowances
The Taxation Administration (Withholding Variation for Payment of Certain Allowances) Amendment Legislative Instrument 2026 has been made. It amends to nil the amount to be withheld from allowances for certain laundry expenses where the total amount of the allowance paid during a financial year does not exceed a specified limit. It also varies to nil the amount required to be withheld from award transport payments (as defined in s 900-220 of the ITAA 1997 as a transport payment covering particular travel that was paid under an industrial instrument that was in force on 29 October 1986).
APRA findings on inaugural System Risk Stress Test
APRA has published the findings of its inaugural System Risk Stress Test, which focused on links between the banking and superannuation systems. The exercise was conducted in 2025 with the four major banks and six large superannuation funds, and examined how a hypothetical “severe but plausible” shock might impact the financial system. For this test, APRA asked participating institutions to model a scenario involving liquidity pressures exceeding any experienced by large Australian banks over the past 50 years.
thusday 2 july 2026
Tougher penalties bill for tax agent misconduct introduced
The Government has introduced the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026, responding to the PwC tax leaks matter and the 2019 review of the Tax Practitioners Board (TPB).
Schedule 1 significantly expands the TPB’s sanctions powers under the Tax Agent Services Act 2009. Key changes include:
New criminal offences for unregistered preparers who charge a fee for tax agent or BAS services, advertise such services, or falsely represent themselves as registered. The maximum penalty is 40 months’ imprisonment, 200 penalty units, or both. Legal practitioners providing a legal service are excluded.
Higher civil penalties, rising from 250 to 2,500 penalty units for individuals and from 1,250 to 50,000 penalty units for bodies corporate and significant global entities (SGEs can be companies, partnerships or trusts).
Two new civil penalty provisions, covering false or misleading statements by unregistered preparers and breaches of the Code of Professional Conduct by registered practitioners.
New TPB powers, including infringement notices for specified Code breaches, enforceable undertakings, contingent suspension subject to conditions, and interim suspension for up to 90 days without a prior investigation where there is significant risk to a client or to Commonwealth revenue.
Longer bans, with the maximum prohibition period after termination doubling from five to 10 years.
The Bill also strengthens the foreign resident CGT regime (Schedules 2 and 3), estimated to raise $2,275 million over five years, refines the merger control regime, updates National Competition Policy references, adds new DGR listings, and renames ancillary funds as “giving funds”.
Division 7A benchmark rates set at 8.77% for 2026–27
The ATO has confirmed the Division 7A benchmark interest rate for the 2026–27 income year is 8.77% per annum.
The rate applies to private company loans made after 3 December 1997 and trustee loans made after 11 December 2002, where those loans were made before 1 July 2026.
Rulings withdrawn and updated for Payday super changes
Following the commencement of Payday super regime, the following Rulings and Practice Statements have been withdrawn or updated:
- SGD 2003/2W Superannuation guarantee: if the last day for making superannuation contributions, lodging a superannuation guarantee statement and paying the superannuation guarantee charge, or reporting to employees falls on a Saturday, Sunday, public holiday or bank holiday, can an employer make the contributions, lodge the statement and pay the charge, or report to employees on the next working day?
- SGR 2009/2W Superannuation guarantee: meaning of the terms ‘ordinary time earnings’ and ‘salary or wages’
- PS LA 2007/1 (GA) – Update Assessing superannuation guarantee charge where the employers have done what they could reasonably be expected to do to comply with the law by the due date, for periods ending before 1 July 2026
PS LA 2021/3 – Update Remission of additional superannuation guarantee charge for periods ending before 1 July 2026
ATO: Making a voluntary disclosure for Payday Super
The ATO has released information on about whether you should make a voluntary disclosure for Payday Super. The information includes: What the voluntary disclosure statement is for; Voluntary disclosure in the first year of Payday Super; How to lodge a voluntary disclosure statement; How voluntary disclosure and late contributions reduce the administrative uplift amount; and After you lodge a voluntary disclosure statement
SUPER & FINANCIAL SERVICES
CSLR revises FY27 levy estimate up to $198.1 million
The Compensation Scheme of Last Resort (CSLR) has released a revised levy estimate for FY27 of $198.1 million, an increase of over $60 million on the initial estimate of $137.5 million. The revised figure was published on 2 July 2026.
The higher estimate will fund 1,567 claims, up from 912 under the initial estimate. The CSLR attributes the lift to an expected 71 per cent increase in compensation claim payments in FY27.Sub-sector
FY2027 initial estimate
FY2027 revised estimate
Personal financial advice
$126.9m
$190.3m
Credit provision
$2.0m
$2.0m
Credit intermediation
$2.2m
$2.1m
Securities dealing
$6.5m
$3.7m
Total
$137.5m
$198.1m
What is driving the increase
The additional claims are largely due to the final cohort of claims relating to Dixon Advisory and Superannuation Services (DASS), following faster than expected complaint processing by AFCA, and the first tranche of claims linked to the Shield and First Guardian Master Fund product failures. The initial estimate, published in November 2025, excluded Shield and First Guardian because limited information was available at the time.
Special levy sought
The expected amount for the personal financial advice sub-sector exceeds its $20 million sub-sector cap. As a result, the CSLR is seeking a special levy for the FY27 period.
The CSLR reports it has now paid more than $200 million in compensation to over 1,600 people, the majority relating to losses from defective personal financial advice.
Division 296 guidance
The ATO has released guidance on how the new Division 296 tax will operate. This tax applies to earnings on total superannuation balances above $3 million from 1 July 2026.
The guidance covers the calculation and collection of Division 296 tax. It also provides guidance on the method for calculating super earnings, and how the tax applies to defined benefit interests.
ATO refreshes super guidance for performers, sportspeople and film makers
The ATO has updated its guidance on super guarantee (SG) obligations for payments made to performers, sportspeople, film makers and those in related activities. The refreshed material sets out the ATO’s position more clearly and with expanded examples.
Look past the label
The obligation applies even where the individual is not a professional, holds an ABN, issues invoices, is engaged on a one-off basis, or describes themselves as an independent contractor. The entity making the payment carries the SG obligation. Payers should ask enough questions about who they are engaging, and for what, to get this right.
Key exceptions
No SG obligation arises where the payment is made to a company, trust or partnership, rather than to a natural person. SG also does not apply where the arrangement is wholly or principally domestic or private in nature and the individual works less than 30 hours a week, for example a band hired for a wedding. The same 30 hour threshold exempts payments to individuals under 18.
FSCP finds adviser breached Best Interests Duty on insurance replacement advice
The Financial Services and Credit Panel (FSCP) has determined that it reasonably believes a financial adviser contravened sections 961B(1), 961G and 921E(3) of the Corporations Act 2001 in relation to superannuation and insurance advice given to a retail client in 2024.
The adviser failed to make reasonable inquiries into the client’s pre-existing medical condition and did not properly investigate replacement insurance before recommending a switch in cover. In advising on the transfer of insurance between providers, the adviser also failed to investigate product eligibility and did not base the recommendation on the client’s circumstances.
The Panel found the advice fell short of the Code of Ethics’ values of competence and diligence, breaching Standards 5, 8 and 9.