2 February 2026 to 6 February 2026
Weekly Bulletin Contents
TAX
Monday 2 February 2026
2026-27 Pre-Budget submission
On 30 January 2026, the Institute of Financial Professionals Australia (IFPA) lodged its 2026–27 Pre-Budget submission to Treasury, setting out a comprehensive reform agenda across tax, superannuation and financial services. The submission calls on the Federal Government to modernise key tax and superannuation settings ahead of the 2026–27 Federal Budget, warning many existing measures are outdated and no longer reflect the needs of modern Australians. IFPA’s submission includes nine tax recommendations and 17 superannuation and financial services proposals, all focused on simplifying the system, improving fairness and delivering more equitable outcomes.
Further details are available in the full submission on our website.
Determination: NZ wine producers entitled to wine tax credit
The A New Tax System (Wine Equalisation Tax) (New Zealand Producer Rebate Claim Lodgment) Determination 2026 has been made. It allows eligible New Zealand wine producers that export wine to Australia to claim a producer rebate, in the form of a wine tax credit, at any time within 4 years after the wine tax credit arises. It will reduce compliance costs for New Zealand wine producers that are not registered for GST in Australia by giving them more flexibility to claim their wine tax credits.
TPB to review Australia’s thin cap reforms
The Board of Taxation has advised that the government has asked it to independently review the recent changes to Australia’s thin capitalisation rules. These changes were introduced in Sch 2 of the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Act 2024. Section 4 of the Act requires this review. The Board will assess whether the changes are operating as intended. In conducting the review, the Board will assess whether the amendments are operating in a manner consistent with the policy intent, which was to strengthen Australia’s thin capitalisation regime to address risks arising from the use of excessive debt deductions, informed by the OECD’s best practice guidance.
Tuesday 3 February 2026
Consultation on Super and Victims of Crime legislation
The Government is seeking public consultation on draft legislation designed to prevent convicted child sexual abusers from hiding their assets in superannuation to avoid paying compensation to their victims. The draft legislation will enable victims and survivors of child sexual abuse to seek access, via a court order, to additional personal or salary sacrifice superannuation contributions made by the offender where a related court order for compensation remains unpaid after 12 months. Victim-survivors will be able to apply to the ATO, with appropriate safeguards, to identify any potential eligible superannuation prior to seeking access. Unfulfilled historical compensation orders brought into existence before the measure’s commencement will be eligible if they remain legally enforceable and were awarded criminal conviction or finding of guilt for child sexual abuse. Comments due: 20 February 2026.
Unions call for CGT discount to be reduced to 25%
The Australian Council of Trade Unions (ACTU) has issued a media release saying that Australian Unions want to see tax changes to help fix Australia’s housing affordability crisis. It said unions want the Government to phase-in a scale back of the size of the CGT discount so that working Australians have a better shot at home ownership. In a submission to the Senate Inquiry into the CGT discount, unions are calling for it to be wound back from 50% to 25%. In its media release, the ACTU also said that these changes should apply to new housing investments beyond a single investment property, leaving the existing CGT discount and negative gearing arrangements in place for up to five years before being phased out giving people time to adjust.
Institute of Financial Professionals Australia comment: A hint of things to come?
Vic: Vacant residential land tax notifications due
The Victorian State Revenue Office (SRO) has advised that you must notify it by 15 February 2026 if you own certain residential land in Victoria that was vacant in 2025. Vacant residential land tax (VRLT) may apply if you own: a home that was vacant for more than 6 months in 2025; a home that has been under construction or renovation, or uninhabitable, for 2 years or more; land in metropolitan Melbourne that has remained undeveloped for a continuous period of 5 years or more and is capable of residential development. The SRO said that if you have made a notification in the past, you only need to make a new one if your circumstances have changed.
Wednesday 4 February 2026
ATO: Start 2026 strong ..!
The ATO is encouraging small businesses to start 2026 strong to avoid compliance actions. ATO Assistant Commissioner Angela Allen said the new calendar year is the perfect time for small businesses to reset their habits to set themselves up for success. The ATO said seeking advice from a registered tax professional is one of the most effective ways to avoid common errors and navigate areas of complexity. The ATO also said part of the $27.2 billion small business income tax gap is driven by mistakes, so it’s important to be aware of the ATO’s small business focus areas and if you’re unsure seek support early.
ATO: Protect your clients from cryptocurrency email scams
The ATO has advised that a new cryptocurrency focused email scam impersonating the ATO is circulating in the community. The scammers are pretending to be from the ATO or myGov and are asking people to make an immediate declaration by calling the phone number on the email to avoid further action. The ATO said registered tax practitioners can protect and educate their clients by reading the latest scam alert.
Govt response to Financial Services report on ethics etc
The Government has released its response to the Parliamentary Joint Committee on Corporations and Financial Services’ report on ethics and professional accountability. The response outlines the government’s actions to strengthen the regulation of accounting, auditing and consulting firms in Australia.
Thursday 5 February 2026
ATO reminder: $20,000 instant asset write-off for 2025–26
The ATO has issued a reminder that If a taxpayer’s business has an aggregated annual turnover of less than $10m, they may be able to use the instant asset write-off to immediately deduct the business portion of the cost of eligible assets which cost less than $20,000. The ATO also said that eligible assets must have been first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026, and that the $20,000 limit applies on a per asset basis, so taxpayers can instantly write-off multiple assets.
Taxpayer’s application dismissed; original objection invalid
The ART has dismissed a taxpayer’s application against the Commissioner’s decision to refuse it an extension of time to lodge an objection against amended BAS statements. In doing so, the ART said that although the Commissioner made a decision that was reviewable that had enlivened its jurisdiction, the taxpayer’s purported objection itself had not been validly made. Therefore, the taxpayer’s application had no reasonable prospects of success as there was no valid objection to which an extension of time could attach. In any event, the ART found that even if it were wrong about the validity of the taxpayer’s objection, it was satisfied that the correct and preferable decision would be to affirm the Commissioner’s objection decision to refuse an extension of time. Aus Loadshifting (ALS) Pty Ltd and FCT (Taxation) [2026] ARTA 116, 2 February 2026
Friday 6 february 2026
ATO: Help clients navigate government payments
The ATO has advised that if it will be contacting tax-agents and their clients in early February by email to ensure that income received from government agencies is reported correctly in their tax returns. The ATO said that if your clients receive government payments for delivering services such as healthcare, disability support or childcare under a Commonwealth program, they have an obligation to: keep accurate records; and report the income they receive in their tax return. It also emphasised that it is important that providers under programs such as the National Disability Insurance Scheme and the Aged Care Subsidy who receive government payments to deliver these services meet their tax obligations.
CGT discount – Senate Committee enquiry
The “Select Committee on the Operation of the Capital Gains Tax Discount” was established on 4 November 2025 and submissions closed on 19 December 2025. It was set up to inquire into and report on, among other things, the contribution of the CGT discount to inequality in Australia, particularly in relation to housing; the role of the CGT discount in suppressing Australia’s productivity potential by funnelling investment into existing housing assets; and how the CGT discount influences the types of assets purchased and whether these classes of investments are productive or speculative. The Committee is due to report on 17 March 2026.
SUPER & FINANCIAL SERVICES
Super Trustees Must Upgrade Governance as Assets Reach $6 Trillion by 2030
In a recent keynote address ASIC Commissioner Simone Constant noted that super Trustees will increasingly act as stewards not only of members’ retirement savings but of Australia’s broader economic future. The super sector currently stands at around $4.5 trillion and is expected to grow to $6 trillion by 2030.
Constant emphasised the urgent need for trustees to scale governance, capability, skills, systems and operations to match this expanded role.
She pointed to several immediate priorities:
- Recent cyber attacks on super funds
- Inadequate analysis of complaints data (some large trustees identified zero systemic issues despite thousands of complaints)
- Super funds lagging significantly behind the major banks in scam awareness messaging and member reporting channels on their websites
Additional priorities include follow-up on death benefits, ensuring the Retirement Income Covenant moves from implementation to meaningful delivery, greater transparency in public and private markets, financial reporting surveillance, and strengthened enforcement action on member service failures and poor private credit practices.
CGT discount – Senate Committee enquiry
The “Select Committee on the Operation of the Capital Gains Tax Discount” was established on 4 November 2025 and submissions closed on 19 December 2025. It was set up to inquire into and report on, among other things, the contribution of the CGT discount to inequality in Australia, particularly in relation to housing; the role of the CGT discount in suppressing Australia’s productivity potential by funnelling investment into existing housing assets; and how the CGT discount influences the types of assets purchased and whether these classes of investments are productive or speculative. The Committee is due to report on 17 March 2026.
Consultation on Super and Victims of Crime legislation
The Government has released exposure draft legislation for a proposed framework that would allow victims and survivors of child sexual abuse (and similar offences) to seek limited visibility of a perpetrator’s superannuation and, in certain circumstances, pursue a court-ordered release of amounts from the perpetrator’s super to satisfy unpaid compensation.
How it would work (in brief)
- Where a compensation order has remained unpaid for 12 months or more, an eligible victim could apply to the ATO Commissioner for limited information about the perpetrator’s super.
- With that information, the victim could apply to the court for a “perpetrator contributions release order”, enabling the Commissioner to issue release authorities to relevant super providers and remit released amounts to the victim.
- The proposed release is targeted at additional (non-mandated) contributions, like personal contributions or salary sacrifice, made during an “eligible period”, rather than ordinary employer-mandated contributions.
Notably, the draft materials indicate compensation debts of this kind would survive bankruptcy, improving the prospects of recovery over time.