10 November 2025 to 14 November 2025
Weekly Bulletin Contents
TAX
Monday 1 December 2025
PCG: Application of Pt IVA to personal services businesses income
The ATO has released Practical Compliance Guideline PCG 2025/5: Personal services businesses and Part IVA of the Income Tax Assessment Act 1936. It provides guidance on the ATOs compliance approach to the application of Pt IVA of ITAA 1936 to arrangements where personal services income (PSI) of an individual is derived through an entity that is conducting a personal services business for the purposes of Div 86 of ITAA 1997. In particular, it provides guidance on “alienation arrangements”, including when the ATO would consider they have a “low” or “higher” risk of Pt IVA applying and the likelihood of the ATO reviewing those arrangements. It also contains various examples to illustrate the ATO’s approach.
Instant asset write off Bill passed
The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 has been passed by the Senate and awaits Royal Assent. Among other things, the Bill proposes to extend the $20,000 instant asset write‑off by 12 months until 30 June 2026. It will allow small businesses (with an aggregated annual turnover of less than $10m) to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use on or before 30 June 2026.
ASIC: Proposed stamp duty disclosure requirements for super funds
ASIC has advised that it is inviting the superannuation and investment management sectors to have their say on changes to stamp duty and portfolio holdings disclosure requirements. This follows a targeted review of superannuation investment disclosure requirements announced in August 2025. ASIC is proposing the following: (a) Stamp duty be disclosed as an average amount over seven years, rather than an annual sum, in fees and costs summaries. The proposal would require a change to ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070; and (b) Class order relief for superannuation trustees, aligning portfolio holdings disclosure obligations for internally-managed private debt with externally-managed private debt. Submissions due by 20 February 2026.
Tuesday 2 December 2025
Alleged breaches of settlement deed not relevant to whether assessments excessive
The Full Federal Court has unanimously dismissed the appeals of the taxpayers from the decision of the AAT in BSKF v FCT; HGYT v FCT 2024 [2024] AATA 3377. The main substantive matter decided by the Court was that alleged breaches of a settlement agreement between the ATO and the taxpayers (involving a sum of $3.9m plus GIC) could not be considered in determining if assessments issued by the ATO to give effect to that settlement were excessive. Likewise, the Full Court ruled that the GIC payable under the settlement was not extinguished by the assessments issued and that there had been an “assessable recoupment” in relation to the GIC under s 20‑20(3) of the ITAA 1997. Further, the Full Court also ruled that the AAT had taken into account relevant considerations in finding that Pt IVA applied to a scheme that had been undertaken for the purpose of obtaining an imputation benefit. (Ziegler v FCT [2025] FCAFC 168, 26 November 2025)
ATO guidance on PSI businesses
The ATO has issued a reminder that it has issued a new guideline to help taxpayers and their advisers better understand and manage their PSI obligations when they operate a personal services business (see PCG 2025/5 Personal services businesses and Part IVA of the Income Tax Assessment Act 1936). The ATO said the guideline outlines the types of arrangements the ATO considers to be at ‘low’ or ‘higher’ risk of Pt IVA applying and those which are likely to attract its attention. The ATO also said it is more likely to target arrangements where there are substantial distributions or payments made to associated lower taxed persons or entities. However, the ATO stressed that taxpayer should not be concerned that it will apply to compliance resources to pursue Pt IVA where they have made a genuine attempt to move their arrangement into low risk by 30 June 2027.
Excise Amendment: Remission Increase for Distillers and Brewers
The Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025 has been made. Its purpose is to amend the Excise Regulation 2015 to increase the maximum amount of remission an eligible alcohol manufacturer may be entitled to per financial year. Specifically, this remission cap is increased from $350,000 to $400,000 in relation to certain alcoholic beverages entered for home consumption on or after 1 July 2026. The amendments implement the Government’s commitment in the 2025-26 Budget to support Australian brewing and distillery businesses by providing increased tax relief through the excise remission scheme.
Wednesday 3 december 2025
ATO: Check clients’ GST registration
The ATO has issued a reminder if your client’s business has grown or reduced in size, you may need to register or cancel your GST registration. The ATO said things to check included: if your client’s GST turnover is $75,000 or more, you need to register for GST; if your client’s GST turnover is less than $75,000, you can choose to cancel your GST registration; if your client no longer in business, you need to cancel your GST registration within 21 days of stopping your business activities; and if your client is a taxi or ride-sourcing driver, they must be registered for GST, regardless of your turnover. The ATO said you can register or cancel your GST registration through its Online services for business.
Vic: Reminder – short stay levy
The Victoria State Revenue Office has reminded booking platforms and owners/tenants that accept short stay bookings (less than 28 days) directly that they must register, lodge and pay levy returns. It said that if you collect booking fees less than $75,000 per year, you must lodge and pay the levy annually (and your first annual return is due 30 January 2026). If you collect booking fees that are $75,000 or more per year, you must lodge and pay the levy quarterly (and you had quarterly returns due on 30 April 2025 to 30 October 2025, and your next return is due on 30 January 2026). The Victoria State Revenue Office also stressed that if you don’t register, lodge and pay on time, it may investigate and recover unpaid levies plus penalties. There are also free online education sessions to help relevant persons to understand their obligations.
NSW land tax: Rulings re boarding houses and low cost accommodation exemptions
Revenue NSW has released two annual land tax revenue rulings for boarding houses and low cost accommodation for the 2026 tax year. These specify the maximum tariffs/rents that may be charged during 2026 to qualify for the exemptions. The Rulings are: Exemption -Land Used and Occupied Primarily for a Boarding House; and Exemption – Land Used and Occupied Primarily for Low Cost Accommodation.
Thursday 4 December 2025
Tax Ombudsman to investigate ATO online services and other matters
The Tax Ombudsman has advised that the following matters are planned for investigation in the coming months: How the ATO engages with First Nations taxpayers; Online Services for Agents; and, the ATO’s use of Director Penalty Notices (DPNs). The Tax Ombudsman said that the schedule reflected what the community identified as the biggest challenges in the administration of the tax system. The Tax Ombudsman also said that the ATO’s Online Services was raised frequently in its recent review into the ATO’s registered agent phone line and service offer to agents – noting that the ATO had agreed with its recommendations for improved digital channels and services.
Matter of GST refund and “windfall gain” remitted to Tribunal
In a matter involving whether a property developer was entitled to a refund of GST – in terms of whether or not the GST had been “passed on” and whether or not there would be a “windfall gain” to the taxpayer – the Full Federal Court has unanimously remitted the matter to the ART to be reheard. In doing so, the Full Court allowed the taxpayer’s appeal from SFQV v FCT [2024] ARTA 9 and found that the ART had adopted the wrong approach by misapplying the inquiry required by Div 142, resulting in the term “passed on” bearing something other than its ordinary meaning. (Geocon Land Holdings No. 5 Pty Ltd v FCT [2025] FCAFC 172,1 December 2025.)
Full Court dismisses Commissioner appeal re Pt IVA and s 45B
The Full Federal Court has dismissed the Commissioner’s appeal from the decision in Ierna v FCT [2024] FCA 592. In that case, the Court at first instance found that s 45B (capital benefit schemes) and Pt IVA did not apply to a scheme that involved the distribution of capital to the shareholders of a company through the selective buy-back of shares in that company and Div 7A loans. The Full Court has now dismissed the Commissioner’s appeal on the basis that, firstly, the facts did not support a conclusion that the capital returned was paid in substitution for an assessable dividend for the purposes of s 45B. It then found that the Commissioner had sought to apply Pt IVA in a manner where he had identified another way in which the Div 7A loans may have been repaid which would have resulted in more tax becoming payable – but “the bare fact that a taxpayer pays less tax, if one form of transaction rather than another is made, does not demonstrate that Pt IVA applies”. (FCT v Hicks [2025] FCAFC 171, 3 December 2025)
Friday 5 December 2025
Agent’s registration cancellation set aside: temporary supervision instead
The ART has set aside the Tax Practitioners Board decision to cancel a tax agent’s registration (and that of his consulting company) for 2 years. The deregistration occurred because of various breaches of the Code of Professional Conduct – including making a false declaration re the tax liability of an entity, wrong BAS statements and failing to pay employees super. However, the ART has now ordered that the tax agent, instead, be issued with a written caution and that he be allowed to provide tax agent services but under the supervision of an approved registered tax agent for 12 months, and that his company appoints a new director for 12 months. In doing so, the ART said that the new sanctions would satisfy the public interest requirement and would be sufficient to maintain public confidence in the profession. The ART also noted that the tax agent had already served a period of suspension and had shown demonstrable remorse – in that “since he returned to practice in October 2022, the evidence shows that he has conducted himself as a registered tax agent is expected to conduct himself”. (Protego Consulting Pty Ltd and Tax Practitioners Board (Taxation and business) [2025] ARTA 2544, 25 November 2025)
Power to amend assessment for capital gain returned in wrong year
In a matter where a taxpayer returned none of the $2.3m capital gain he made from the sale of a property in the 2019 income year, and only some of it in the 2020 income year – when the whole of the gain should have been returned in the 2019 year – the Federal Court has ruled that in terms of the power to amend an assessment outside the 2 year amendment period under s 170(10AA) of the ITAA 1936, the Commissioner could amend the 2019 assessment in 2023 under the exception in that section “for the purpose of giving effect to” the operation of s 104-10(3) in CGT event A1. (Note: s 104-10 says the “time of the event ..is when you enter into the contract for the disposal” – at which time the whole capital gain has to be returned.) However, the Court found that the Commissioner could not amend the 2020 assessment in the circumstances. The Court also ruled that the Commissioner was able to assess the same taxpayer twice in respect of the same income in different income years. (Sunna v FCT [2025] FCA 1499, 3 December 2025)
Institute of Financial Professionals Australia (IFPA) comment: See TD 94/89 for Commissioner’s approach to the inclusion of a capital gain in assessable income on settlement of a contract of sale.
Draft instrument: Nil withholding for aboriginal art works
The ATO has released Draft Legislative Instrument LI 2025/D25 Taxation Administration (Withholding Variation for Payments to Indigenous Artists who do not Quote an ABN) Legislative Instrument 2026. It provides that the amount that an entity must withhold under s 12-190 in Sch 1 to the TAA 1953 from a payment it makes to an Indigenous person for a supply of artistic works (as defined) is varied to nil where the person: (a) works or lives in Zone A; and (b) does not quote an ABN in relation to that supply. Comments due: 16 January 2026.
SUPER & FINANCIAL SERVICES
IAWO extension receives Royal Assent
The Bill to extend the $20,000 instant asset write-off (IAWO) for small businesses until 30 June 2026 has received Royal Assent and is now law.
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.The Bill also amends the Corporations Act to ban advertising of certain superannuation products to new employees as part of the onboarding process.
Retirees feel cost-of-living squeeze this Christmas
Australian retirees may face a leaner Christmas this year as the latest ASFA Retirement Standard shows the cost of a comfortable retirement has risen to record levels. For homeowners aged 65 and over, a comfortable annual budget is now $76,505 for a couple and $54,240 for a single, with increases of around 3.5% over the year, outpacing CPI. Retirees are feeling the pinch because they spend more on essentials such as food, energy and health, where prices have risen fastest.
ASFA notes that superannuation is helping many retirees manage these pressures, with most drawing income on top of the Age Pension. Recent reforms, including the increase in the Superannuation Guarantee to 12% and forthcoming Payday Super, are expected to further improve retirement outcomes for future generations
ASIC final warning on adviser qualification deadline
ASIC has issued a final warning to existing providers of advice. Those who want to continue giving personal advice after 31 December 2025 must meet the education and training standards. They must also review their details on the Financial Advisers Register and ensure their AFS licensee has notified ASIC of their qualifications or use of the experienced provider pathway.
ASIC’s latest spot check shows a sizeable cohort of advisers are not yet recorded as meeting the qualifications standard, with many still needing to rely on the experienced provider pathway or complete specified tax and commercial law courses.
Advisers who have not met the standard by 1 January 2026 risk losing existing provider status and will need to complete a professional year and an approved degree before they can resume giving personal advice.