3 August 2026 to 7 August 2026
Weekly Bulletin Contents
TAX
monday 3 August 2026
ATO flags new LRBA rules from 10 August
The ATO released guidance on changes to the limited recourse borrowing arrangement (LRBA) rules for SMSFs. From 10 August 2026, SMSFs are prohibited from entering into new LRBAs to acquire residential property.
Key changes to SMSF LRBA rules
LRBAs are restricted, not banned
The changes do not prohibit SMSFs from entering into new LRBAs. However, where an LRBA is entered into on or after 10 August 2026 to acquire real property, the property must be BRP.
The new changes apply to all lenders
The changes apply to all LRBAs, regardless of the lender. It does not matter whether the lender is a bank, non-bank lender, related party or another entity.
BRP definition must be met throughout the LRBA
For an LRBA entered into on or after 10 August 2026, the property must be wholly and exclusively used in one or more businesses at the time the arrangement is entered into and must continue to meet this BRP definition for the duration of the LRBA.
Existing SMSF LRBAs are unaffected
The changes do not affect LRBAs entered into before 10 August 2026. Existing LRBAs may continue to be maintained or refinanced on or after that date without the property needing to be BRP.
SMSFs acquiring real property under an LRBA before 10 August 2026
The changes do not apply where an SMSF entered into a binding contract to acquire the property before 10 August 2026, even if settlement or the LRBA occurs after that date. However, if the contract is significantly altered the arrangement may be treated as a new acquisition and subject to the amended rules.
ASIC: Action taken against 36 SMSF auditors
ASIC has advised that it has taken administrative action against 36 approved SMSF auditors between January and June 2026. This brings its total for FY26 to 64, a year-on-year increase. The latest actions comprised 4 disqualifications, 3 suspensions, additional conditions on 8 auditors and 21 registration cancellations. The breaches included failing to maintain independence, non-compliance with auditing and CPD requirements, and failing to lodge annual statements.
tuesday 4 august 2026
Treasury: Draft Tax Practitioners Board sanctions reforms
Treasury is seeking feedback on draft regulations and a draft determination that will support a stronger sanctions framework for the Tax Practitioners Board. The draft regulations would require the Tax Practitioners Board to publish information about sanctions on the public register. This would apply when: a tax practitioner’s registration is suspended or terminated; an unregistered tax practitioner is convicted of an offence under the Tax Agent Services Act 2009; an unregistered tax practitioner pays an infringement notice; the Tax Practitioners Board accepts an enforceable voluntary undertaking. The draft determination would also require tax practitioners to tell clients about certain conduct matters. Comments due 14 August.
ATO data-matching program re motor vehicle registrations
The ATO has advised that for the purposes of a data-matching program it will acquire motor vehicle registries data from state and territory motor vehicle registry authorities for 2025–26 through to 2029–30. It estimates that records relating to approximately 2.5 million individuals will be obtained each financial year. It said that the data collected under this program will be used for identifying relevant cases for administrative action, building a tax compliance risk profile of taxpayers buying, selling or acquiring motor vehicles, and providing the ATO with information for: delivering products and tailored education to support taxpayers in managing their tax and superannuation obligations; and identifying taxpayers at risk of not complying with their tax or superannuation obligations for referral to relevant areas for appropriate treatment.
ATO: Tips to meet the Payday Super 7 business day timeframe
The ATO has released tips to follow to help ensure super reaches your employees’ super funds within 7 business days after payday. These tips are: check the super fund will accept payments; monitor your payments; know where to find errors and how to fix them; check your payroll provider supports payday super; and keep up to date. The ATO also said that it understands it may take time to adjust to this new requirement and that employers who genuinely try to do the right thing will not be the focus of its compliance action in the first year.
wednesday 5 august 2026
Draft legislation released for next tranche of CGT and negative gearing reforms
The Government has released exposure draft legislation on the next tranche of legislation to give effect to its 2026-27 Budget measures (which will apply from 1 July 2027) to limit negative gearing to new residential properties reintroduce CGT cost base indexation and set a 30% minimum tax on capital gains.
The Government has also released Exposure Draft material for the purpose of defining “new residential dwellings” and “housing investment” which will be exempt from these changes and for the purpose of providing an apportionment method for calculating capital gains (or losses) that are subject to the new rules as an alternative to obtaining a formal market valuation (which will be limited to real property and assets that do not have a readily ascertainable market value).
The Government is now seeking feedback on how all these proposed measures should apply in specific situations, including the following:
- keeping current tax treatment when certain property transfers because of death or relationship breakdown
- defining a ‘new residential dwelling’ (which lets owners offset net rental losses against other income and access the 50% discount)
- exempting some affordable and social housing, NDIS housing, public housing and build-to-rent developments from the negative gearing changes
- keeping existing negative gearing and CGT treatment when first using an eligible main residence to produce assessable income
- excluding capital gains from certain trusts and deceased estates from the minimum tax on capital gains
- further clarifying how the CGT changes apply to trusts, including attribution managed investment trusts (AMITs)
- ensuring the changes apply correctly to people who are Australian residents for only part of the time they own an asset
- ensuring certain CGT events do not trigger tax earlier than intended for deferred capital gains
Comments on these proposed measures are due by 21 August 2026 (ie in 16 days!).
See also accompanying Treasurer’s media release, here.
ATO: New ATO pre-fill data for contractors
The ATO has advised that it is making it easier for contractors to get their tax right, with expanded pre-fill services rolling out for Tax Time 2026. The ATO said that for the first time, approximately $21 billion in payments made to contractors reported through the Taxable Payments Annual Report (TPAR) will automatically appear as pre-filled income in eligible tax returns, helping 700,000 sole traders and individuals in business save time, reduce mistakes and lodge with greater confidence. The ATO also said that the pre-fill data will also help it identify when income has been left out of a tax return – and whether that’s an honest mistake or a deliberate attempt to under-report earnings.
thusday 6 august 2026
ATO: Paying super for independent contractors
The ATO has issued a reminder that if you had to pay super for independent contractors before, you’ll continue to do so under Payday Super. The ATO also said that you’ll generally need to pay super where you’re paying an independent contractor, mainly for their labour, personal effort, skills or time. This can apply even if they have an ABN, invoice you for their work or if they are described as a contractor in a written agreement. The ATO emphasised that where an independent contractor is entitled to super, the contribution must be paid for each payday and reach their super fund within 7 business days after payday. |
Payday Super-related Law Companion Rulings released
The ATO has released the following Payday Super-related Law Companion Rulings: LCR 2026/1 Payday Super: application and transitional provisions; LCR 2026/2 Payday Super: eligible contributions; and LCR 2026/3 Payday Super: calculation and assessment of the superannuation guarantee charge.
CGT reform: Proposed apportionment method for calculating gains
Yesterday [Wed 5 Aug 2026], the Government released exposure draft legislation to give effect to the next tranche of its 2026-27 Budget measures to: limit negative gearing to new residential properties; reintroduce CGT cost base indexation; and set a 30% minimum tax on capital gains. This included the draft legislative instrument Income Tax Assessment (Method for Apportioning Capital Gains and Capital Losses) Determination 2026. Crucially, it provides an apportionment method for calculating capital gains (or losses) that are subject to the new CGT rules – as an alternative to obtaining a formal market valuation of the asset at 30 June 2027.
This proposed method will divide a realised capital gain (or loss) between: (a) the ownership period prior to 1 July 2027 (which continues to benefit from the existing 50% discount); and (b) the ownership period from 1 July 2027 (which will be subject to calculation under indexation). Specifically, the apportioning method will estimate the CGT asset’s value as at the end of 30 June 2027, by assuming the CGT asset grew at a compounding daily growth rate (or declined in value at a negative daily compounding rate) over the entire ownership period, whereby “the capital proceeds on the deemed sale at the end of 30 June 2027 are determined using this growth rate”.
This apportioning method will be limited to real property and assets that do not have a readily ascertainable market value. This is likely to include assets for which there is no transparent or liquid market from which information on an asset’s value at a point in time can be obtained.
friday 8 august 2026
ATO: Missing final quarterly super payment?
The ATO has advised that if you didn’t pay your June quarter super payment on time, it’s important you act now to meet your obligations. You need to be aware that paying super even a little bit late might result in a quarterly super debt. The ATO said that if your employee’s super fund didn’t receive contributions in full for the June quarter by 28 July, don’t pay directly to the fund. Instead, for the final quarterly payment, you need to lodge a super guarantee charge (SGC) statement and pay the SGC to us by 28 August to remain compliant. The ATO also said that any payments received on or after 29 July will be automatically allocated to Payday Super amounts.
Update of PS LA 2013/2: ATO’s Economist Practice
The ATO has updated PS LA 2013/2 Economic advice and the Economist Practice for various style matters. The Statement outlines the role of the ATO’s Economist Practice, the nature of economic advice it provides and the process for obtaining accredited economic advice. It says that within the ATO, only the Economist Practice can prepare accredited economic advice pertaining to taxpayers and the operation of all laws that the Commissioner administers. Accredited economic advice may be relied upon by the ATO as expert economic advice for the purposes of determining the ATO’s view.
Vic: land tax rulings – assumed tax amounts; amalgamations
The Victorian State Revenue Office has released 2 new land transfer duty revenue rulings:
- DA-070 – Land transfer duty – Assumed tax amounts – which explains when amounts paid by a purchaser towards certain vendor tax liabilities, such as land tax, are included in the dutiable value of a land transfer. It generally applies to contracts of sale entered into on or after 17 August 2026.
DA-020v2 – Incorporated associations and amalgamations of incorporated associations – which provides guidance on a land transfer arising from an incorporation of association or amalgamation of incorporated associations under the Associations Incorporation Reform Act 2012. It also sets out examples illustrating the circumstances under which a duty exemption would be available.
SUPER & FINANCIAL SERVICES
ATO flags new LRBA rules from 10 August
The ATO released guidance on changes to the limited recourse borrowing arrangement (LRBA) rules for SMSFs. From 10 August 2026, SMSFs are prohibited from entering into new LRBAs to acquire residential property.
Key changes to SMSF LRBA rules
LRBAs are restricted, not banned
The changes do not prohibit SMSFs from entering into new LRBAs. However, where an LRBA is entered into on or after 10 August 2026 to acquire real property, the property must be BRP.
The new changes apply to all lenders
The changes apply to all LRBAs, regardless of the lender. It does not matter whether the lender is a bank, non-bank lender, related party or another entity.
BRP definition must be met throughout the LRBA
For an LRBA entered into on or after 10 August 2026, the property must be wholly and exclusively used in one or more businesses at the time the arrangement is entered into and must continue to meet this BRP definition for the duration of the LRBA.
Existing SMSF LRBAs are unaffected
The changes do not affect LRBAs entered into before 10 August 2026. Existing LRBAs may continue to be maintained or refinanced on or after that date without the property needing to be BRP.
SMSFs acquiring real property under an LRBA before 10 August 2026
The changes do not apply where an SMSF entered into a binding contract to acquire the property before 10 August 2026, even if settlement or the LRBA occurs after that date. However, if the contract is significantly altered the arrangement may be treated as a new acquisition and subject to the amended rules.
ASIC: Action taken against 36 SMSF auditors
ASIC has advised that it has taken administrative action against 36 approved SMSF auditors between January and June 2026. This brings its total for FY26 to 64, a year-on-year increase. The latest actions comprised 4 disqualifications, 3 suspensions, additional conditions on 8 auditors and 21 registration cancellations. The breaches included failing to maintain independence, non-compliance with auditing and CPD requirements, and failing to lodge annual statements.