13 April 2026 to 17 April 2026
Weekly Bulletin Contents
TAX
monday 13 APRIL 2026
Foreign CGT measures: TARP and discount for investment in renewable energy
The Government has released draft legislation to amend aspects of the foreign resident CGT regime. There are two components to the reforms. The first component will ensure that CGT applies to foreign investors selling assets that have a “close economic connection to Australian land and natural resources” by clarifying and broadening the category of assets that are “taxable Australia Real Property” (TARP). This measure was first announced in the 2024-25 Budget. The second component will provide a “time limited” 50% CGT discount concession to foreign residents (but not individuals) who invest in, and dispose of, “Australian renewable energy assets” or eligible indirect interests in such assets the renewables sector. Broadly, “Australian renewable energy assets” must have the primary purpose of generating, or directly facilitating the generation of, electricity in Australia using an eligible renewable energy source (within the meaning of the Renewable Energy (Electricity) Act 2000). This discount will apply to CGT events that happen from commencement of these measures until 30 June 2030. Comments on the proposed measures are due by 24 April 2026. See also Treasurer’s media release here.
Full Court: No deduction for rent for working from home during COVID
The Full Federal Court has unanimously overturned the decision of the ART in Hall and FCT (Taxation and business) [2025] ARTA 600. In that case the ART held that a radio broadcaster, who during COVID did part of his broadcasting duties from his rented residential premises and who was also required to travel to the radio studios from his home on certain days, was entitled to deductions for a proportion of his rent referable to the use of his home office and also for car expenses incurred in driving between his residence and the studio. However, the Full Court has now held that in relation to the rental expenses, the essential character of the expenditure was rent paid to secure domestic accommodation – and that while the prevailing conditions required the respondent to work from home, this necessity did not alter the essential character of the expense. In relation to the travel expenses, the Full Court found that they also were not deductible essentially on the basis that the ART’s conclusion that the taxpayer was “at work the entire time” when travelling between his home and the studios, and therefore “on work” whilst driving, was not open to it on its findings of fact. (FCT v Hall [2026] FCAFC 43, 10 April 2026)
No deduction for self-education expenses – no nexus with duties
The ART has affirmed the decision of the Commissioner to disallow a taxpayer’s claim for deductions for self-education expenditure for on online educational and training courses and related computer software and hardware of $25,000, as well as expenditure on membership fees. It did so on the basis that it did not relate to his employment duties, as the relevant expenditure related to online content creation, affiliate marketing and entrepreneurship whereas his employment related to providing technical IT and computer services to his employer’s clients. (Bhattacharya and FCT (Taxation) [2026] ARTA 538, 10 April 2026)
No jurisdiction to stay adverse debt release decision
The ART has refuse the application of two taxpayers for a stay order from the Commissioner’s decision to refuse to grant hardship relief to them. The ART did so on the basis that as the decision does not concern release from tax related liabilities made in relation to a small business entity, it did not have the jurisdiction to make an order to stay the Commissioner’s decisions. However, the ART noted that the Commissioner’s decision itself not to release the taxpayers from their tax related liabilities were reviewable decisions and that the substantive applications were listed for a case management direction hearing. (Taylor and FCT (Taxation) [2026] ARTA 543, 10 April 2026 and Taylor and FCT (Taxation) [2026] ARTA 540, 10 April 2026)
No grounds to set aside decision to disqualify trustee of SMSF
The ART has affirmed the Commissioner’s decision to disqualify the applicant from being the responsible officer of a corporate trustee of a self-managed superannuation fund following contraventions of ss 34D and 62 of the SISA Act (dealing with lodgement of returns and sole purpose test). In doing so the ART found that the contraventions had been established and that the disqualification decision should have been made – especially as contraventions had not been rectified. (Maietta and FCT (Taxation) [2026] ARTA 534, 9 April 2026)
tuesday 14 april 2026
Tax Practitioners Board sanctions reforms – draft legislation
Treasury is seeking feedback on draft legislation that would give the Tax Practitioners Board stronger regulatory powers and sanctions. The draft legislation proposes to: introduce criminal penalties for unregistered tax return preparers; increase the maximum amounts for civil penalties; allow infringement notices for alleged breaches of some civil penalty provisions; enable enforceable voluntary undertakings; allow contingent and interim suspensions of registration in certain circumstances; introduce new civil penalties for: breaches of the Code of Professional Conduct by registered tax practitioners; false or misleading statements by unregistered preparers; extend the maximum period before a terminated practitioner can reapply for registration from 5 years to 10 years. Comments due 24 April 2026.
Payment from redundancy fund not a “redundancy” payment
The ART has held that a taxpayer, a sprinkler fitter, who on being made redundant received a payment from a redundancy fund to which he had been contributing was not entitled to treat the payment as a concessionally taxed redundancy payment. This was essentially because the ART found that the taxpayer could reasonably have expected to receive the same amount from the fund in consequence of a voluntary termination of his employment as that which he received due to his position becoming redundant. The ART was therefore not satisfied the payment made to the taxpayer from the fund was a genuine redundancy payment as it did not exceed the amount that could reasonably be expected to be received by an employee in consequence of a voluntary termination of his employment. (Hardy and FCT (Taxation) [2026] ARTA 528, 7 April 2026)
ATO: SMSF minimum pension drawdown reminder
The ATO has issued a reminder that a SMSF must pay a minimum amount each year to a member who is receiving a pension that commenced on or after 20 September 2007. (These are mainly account based pensions – also known as a super income stream). So, if you haven’t already, then you’ll need to make sure all members receiving an account-based pension are paid their minimum pension amount by 30 June. This is calculated by applying the relevant percentage factor based on the member’s age by the member’s pension account balance calculated as of 1 July 2025.
wednesday 15 april 2026
ATO sounds alarm on dodgy super dental offers
The ATO and the Australian Health Practitioner Regulation Agency (Ahpra) are warning Australians to be wary when considering applying for compassionate release of superannuation to pay for dental treatment. The ATO said it and Ahpra are concerned that some health practitioners and third parties are using predatory practices to get individuals to inappropriately access their super early. The ATO said that it is unacceptable for anyone to pressure Australians into accessing their superannuation savings early to pay for unnecessary treatments.
Practise Statements updated to include “vulnerability” as a relevant factor
The following Practice Statements Law Administration have been updated to include “vulnerability” as an example of circumstances beyond the entity’s control (as relevant): PS LA 2014/4 Default assessment penalty; PS LA 2011/17 Debt relief, waiver and non-pursuit; and PS LA 2005/2 Penalty for failure to keep or retain records.
thusday 16 APRIL 2026
ATO: Payday Super – how to manage super during the changeover
The ATO has released information about how to change from quarterly super to the new Payday Super from 1 July 2026. The information includes: What you need to do in 2026; How to pay super during the June–July changeover; How to report super in Single Touch Payroll; Preparing to meet the 7 day timeframe for Payday Super; Getting your records from the Small Business Superannuation Clearing House; How to tell your employees about Payday Super; and If you have difficulty changing over to Payday Super.
TPB unsuccessful in seeking to quash stay order granted to tax-agent
The TPB has been unsuccessful before the Federal Court in seeking to quash an interim stay order granted to a tax agent whose registration had been suspended. The tax agent had successfully obtained the interim order until determination of the substantive stay application matter. The TPB sought to quash the interim order to the extent that it restrained it from publishing notice of the termination decision. However, the Federal Court found that the Tribunal had not misconstrued the relevant provisions of the ART Act 2024 that gave it power to grant the stay. It also said that the power of the Tribunal to “make an order staying or otherwise affecting the operation or implementation of the decision” extends to ordering that the Board not publish on the register information about a decision which the TAS Act 2009 or the TAS Regulations 2022 would otherwise require be published. (Tax Practitioners Board v LMU25 [2026] FCA 429, 15 April 2026)
Foreign CGT measures: TARP amendments – date of effect
On Monday 13 April we reported that the Government has released draft legislation to amend aspects of the foreign resident CGT regime. This included amendments that will ensure that CGT applies to foreign investors selling assets that have a “close economic connection to Australian land and natural resources” by clarifying and broadening the category of assets that are “taxable Australia Real Property” (TARP). Importantly, these measures “will apply to CGT events happening on or after the day the amendments commence”. In other words, it appears the measures will apply to relevant assets already held by taxpayers.
Institute of Financial Professionals Australia comment: A sign of things to come re any CGT discount changes in the Budget?
friday 17 APRIL 2026
Taxpayer not entitled to GST registration – not carrying on enterprise in her own right
The ART has ruled that a taxpayer was not entitled to be registered for GST in her own right as she was not carrying on an “enterprise”. As a result, among other things, she was not entitled to fuel tax credits. In arriving at this conclusion, the AAT found that the taxpayer was unable to provide a coherent explanation of the nature of her alleged business or provide basic business records or put forward any basis for concluding that there was a reasonable expectation of profit from the alleged business. The ART also found that the weight of other evidence did not permit a conclusion that the taxpayer was carrying on a business in her own right separately from her and her husband’s construction business, or that it was she who was contracting with suppliers. (Twilley and FCT (Taxation and business) [2026] ARTA 562, 15 April 2026)
Practice statement updated for “vulnerability” factor
The ATO has updated the following Practice Statements to include “vulnerability” as a relevant factor when the ATO exercises the concessional powers in the statements: Practice Statement Law Administration PS LA 2011/14 General debt collection powers and principles; and Practice Statement Law Administration PS LA 2011/15 Lodgment obligations, due dates and deferrals
Key things to know when onboarding new employees
The ATO is reminding employers of the key things they need to know when onboarding new employees for superannuation purposes. The ATO said employers play a critical role in making sure the system works as intended and that “super fund stapling” is helping more Australians keep their super consolidated. The ATO said it is designed to keep workers connected to the same super account as they move between jobs, helping them avoid unnecessary duplicate accounts and fees. Moreover, the ATO said employers are central to making that work.
SUPER & FINANCIAL SERVICES
ATO updates guidance on SMSF bank account requirements
The ATO has published updated guidance on setting up and maintaining SMSF bank accounts.
The guidance reinforces that every SMSF must have a unique bank account clearly showing it is held for the fund. The account name must reflect the fund’s trustee structure and show the connection between the trustee and the SMSF. For example, “John Smith and Jane Smith as trustees for Smith Super Fund” for individual trustees, or “Smith Super Fund Pty Ltd as trustee for Smith Super Fund” for a corporate trustee.
The ATO says this helps make it clear the account is an asset of the fund and not a personal or business account. Trustees should check with their financial institution what account name format it accepts before opening the account.
Trustees must notify the ATO of the account details and update them immediately if they change. The ATO sends email or SMS alerts when bank details are updated in its records. Trustees who receive an unexpected alert should contact the ATO immediately on 13 10 20.
Tribunal affirms trustee disqualification: Commercial returns not enough to satisfy sole purpose test
In Maietta and Commissioner of Taxation [2026] ARTA 534, the Tribunal affirmed the ATO’s decision to disqualify an SMSF trustee who transferred SMSF assets to his Spanish property development company and failed to lodge annual returns.
The applicant established an SMSF in late 2021, rolled in approximately $120,000, and within days began transferring the money to a Spanish company of which he was the sole director and shareholder.
The Tribunal found the fund breached the sole purpose test (s 62 of SIS Act). While the agreement contemplated a commercial return, the arrangement had another purpose being to fund the trustee’s personal development projects. The trustee had also failed to lodge any annual returns, breaching s 35D for four consecutive years.
Institute of Financial Professionals Australia (IFPA) comment
The decision is a reminder that the sole purpose test is not simply a question of whether an investment generates a commercial return. A fund can offer market-rate terms and still breach s 62 if the arrangement is also serving a trustee’s personal interests. For advisers, the substance of why a transaction was entered into matters just as much as the terms on which it was done.
ASIC launches Moneysmart Retirement Hub amid planning gap concerns
ASIC has launched new free retirement planning tools on its Moneysmart website after research found that 48% of Australians aged 50–66 worry about running out of money in retirement, yet only 18% have a clear plan in place.
The survey of over 2,000 Australians aged 45–75 also found that only 26% of pre-retirees demonstrated a strong understanding of retirement finances.
The new Retirement Hub at moneysmart.gov.au/retirement includes a planning tool that brings together superannuation, Age Pension eligibility and other income sources, allowing users to model scenarios and assess whether they’re on track
ATO rules settlement payment is an ETP
In a recent private ruling the ATO confirmed that a lump sum payment received by a taxpayer under a Deed of Settlement and Release was an employment termination payment (ETP) under s 82-130 of the ITAA 1997.
The taxpayer’s employment was terminated, and they subsequently lodged a general protections claim in the Fair Work Commission seeking damages for economic loss and hurt, humiliation and distress. The matter was settled by deed, with the employer paying a lump sum. The taxpayer sought confirmation that the payment was “genuine compensation for damages” and not taxable income.
The ATO applied the “in consequence of” test from TR 2003/13, finding the payment would not have been made but for the termination. It was received within 12 months of termination and was not an excluded payment under s 82-135. The ATO ruled it was an ETP and taxable as such.
IFPA comment
The ruling is a useful reminder that settlement payments arising from post-termination disputes will generally be treated as ETPs where the causal link back to the termination is clear. This is the case even where the payment is characterised as compensation for damages in the settlement documentation.
ATO guidance on how to manage super during the changeover for payday super
The ATO has released guidance to help employers prepare for the transition to Payday Super from 1 July 2026, highlighting the need to update payroll systems, check employee data and ensure processes can meet tighter timeframes. Under the new rules, super guarantee (SG) contributions must be paid on payday and received by funds within seven business days. Reporting will be aligned through Single Touch Payroll and based on a new “qualifying earnings” measure. The ATO also notes the closure of the Small Business Superannuation Clearing House from 1 July 2026.
Importantly, for the quarter ending 30 June 2026, employers must ensure SG contributions are paid by 28 July 2026 (or earlier). If this deadline is missed, an SG charge (SGC) statement must be lodged and paid, with no late payment offset available for this final quarter. Any contributions received on or after 29 July 2026 will be treated under the new Payday Super rules, even if intended for the June quarter.
From 1 July 2026, all pay runs will fall under the Payday Super regime, with SG calculated on qualifying earnings paid from that date, regardless of when the work was performed.
ATO and Ahpra sound the alarm on dodgy super dental offers
The ATO and the Australian Health Practitioner Regulation Agency (Ahpra) have warned Australians to exercise caution when considering early access to superannuation for dental treatment, noting that many of these arrangements fall outside the strict compassionate release rules and may be unlawful. The regulators are concerned that some practitioners and third parties are engaging in predatory practices, including providing misleading advice or inappropriate certifications to facilitate early access to super.
Participation in these schemes can lead to significant tax liabilities, penalties and potential regulatory action for both patients and practitioners. Advisers should caution clients against such arrangements and ensure any access to super for medical treatment is undertaken through the ATO’s approved compassionate release process.
Super fund stapling: things every employer needs to know
The ATO has reminded employers of their key obligations under the super stapling rules, which require employers to pay super contributions into an employee’s existing “stapled” fund where no choice of fund is made. A stapled fund is an employee’s existing super account that follows them between jobs, helping reduce multiple accounts and unnecessary fees. Employers must first offer new employees a choice of fund and, if no choice is provided, request stapled fund details from the ATO before making contributions – default funds can only be used where no stapled fund exists. The ATO also emphasises the importance of establishing an employment relationship (via TFN declaration or STP reporting) before making a request, and ensuring correct processes are in place to avoid compliance risks and potential penalties.