4 May 2026 to 8 May 2026
Weekly Bulletin Contents
TAX
monday 4 May 2026
Committee into review of Payday Super Regulations – extension of time
The Government has advised that that the Senate Economics Legislation Committee reviewing the Treasury Laws Amendment (Payday Superannuation) Regulations 2026 has been granted an extension of time to report by 11 May 2026 (previously 1 May 2026). The Committee said it is continuing to gather evidence for the inquiry and the further extension will allow it to consider the evidence received and conclude its deliberations.
Global and domestic minimum tax – proposed amending legislation
The Australian Government is seeking submissions on minor changes it proposes to make to the law which introduced a 15% minimum tax for large companies in 2024 (in accordance with rules agreed with the OECD Inclusive Framework to make sure large companies pay at least 15% tax). The minor changes are needed to keep it consistent with the OECD rules and will: refine the allocation of income and taxes for flow-through and hybrid entities; clarify certain tax allocation rules; modify when substitute loss carry-forward deferred tax assets arise; and make sure Safe Harbours work as intended. Comments due by 22 May 2026.
Institute of Financial Professionals Australia (IFPA) Comment:
Negative gearing change speculation – swings and roundabouts?
With speculation mounting that negative gearing will be abolished or changed in some way, it is worth noting that under the current tax law such non-deductible expenditure can generally be included in the cost base of an asset and thereby reduce the amount of capital gain (however that may be calculated after the Budget!). In other words, it could be a bit of swings and round-abouts: what you lose on the swings, you may later be able to recoup on the roundabouts (albeit, to a lesser extent).
tuesday 5 May 2026
FBT exemption for EVs to be wound back
The Government has announced changes to the FBT exemption for Electric Vehicles (EVs). The changes will be brought in progressively through 3 phases, as follows:
- In the first phase, the existing EV discount will continue in full until end of March 2027.
- In the second phase, between 1 April 2027 and 1 April 2029, the full FBT discount will continue to apply only for EVs costing $75,000 or less -EVs costing more than $75,000 but below the luxury car tax threshold will receive a 25% discount on their payable FBT.
- In the third phase, from 1 April 2029 onwards, all EVs below the luxury car tax threshold will receive the 25% discount on payable FBT.
Note also eligible EVs will continue to be exempt from import tariffs on an ongoing basis.
Budget: “…more dollars in savings than dollars in tax reform” – Chalmers
In a press conference from Parliament House yesterday [Mon 4 May], Treasurer Jim Chalmers said: “…what you will see in the Budget is, in gross terms, there will be more dollars in savings than dollars in revenue upgrades. There will also be more dollars in savings than dollars in tax reform. The point that I’m making there is that savings and spending restraint is doing a lot of the heavy lifting in the very responsible Budget …in eight days from now”.
ASIC instrument made to spread stamp duty costs
The ASIC Corporations (Amendment) Instrument 2026/337 has been made. Its purpose is to smooth the reporting of stamp duty to address concerns that stamp duty can be a large, irregular cost which may misrepresent the actual volatility of a product or option’s fees and cost structure and distort consumer decision-making and super fund investment decisions. As a result, stamp duty costs incurred in a financial year will be apportioned evenly over the next 7 financial years for the purposes of calculating the stamp duty component of transaction costs.
Commercial Broadcasting Tax suspended for 2 years
The Government has announced that the Commercial Broadcasting Tax (CBT) will be suspended for a further two years. As a result, all commercial television and radio broadcasters will receive a 100% rebate of CBT liabilities until 8 June 2028.
wednesday 6 may 2026
2026-27 Victorian State Budget handed down
The 2026-27 Victorian State Budget was delivered on 5 May 2026. The main tax-related measure was an extension to the temporary off-the-plan stamp duty concession for apartments, townhouses, and units. It will be extended for a further six months, until 21 April 2027 (the concession allows eligible buyers to deduct post-contract construction costs from the dutiable value). Otherwise, the following measures continue to apply: the Vacant Residential Land Tax (VRLT) expansions (e.g., on certain unimproved land in metropolitan Melbourne from 1 Jan 2026); and the Congestion Levy rate increases (notably for car parks in inner Melbourne). For full details of the Budget, see here.
Tax Ombudsman Review of ATO engagement with First Nations taxpayers, their tax and super affairs
The Tax Ombudsman has advised it is conducting a Review about how the ATO engages with First Nations taxpayers. The purpose of the Review will be to identify barriers and practical solutions to improve this engagement. Among other things, the Review will consider how the ATO identifies and engages with First Nations individuals and businesses and how they manage their tax and super obligations and entitlements. It will also look at third parties and external partners who support First Nations taxpayers to manage tax and super affairs. It will also look at how ATO staff are supported, trained and resourced to manage interactions with First Nations taxpayers.
New ASIC instrument: super fund disclosure relief for private debt assets
The ASIC Corporations (Portfolio Holding Disclosure) Instrument 2026/338 has been made. It amends the form of disclosure required for internally managed fixed income assets that are private debt assets. The instrument provides that for these assets, the trustee must disclose: (a) the name of the issuer or counterparty for the asset – which in practice will generally be the borrowing entity; and (b) the total value and weighting for the private debt assets (value and weighting by issuer or counterparty is not required).
Note: The portfolio holdings disclosure regime applies to trustees of registrable superannuation entities (i.e. APRA-regulated funds) and does not apply to SMSFs. SMSF trustees are not subject to these public disclosure obligations.
thusday 7 may 2026
ATO Spotlight on PSI compliance focus
The ATO has advised that following the release of PCG 2025/5 Personal services businesses and Pt IVA of the ITAA1936 it is increasing scrutiny of higher-risk PSI arrangements, particularly those involving significant diversion of PSI. As a result, the ATO said that it strongly encourages you to review your circumstances and take steps now to address any PSI alienation risks. The ATO also said that where a genuine attempt is made to move arrangements to low-risk by 30 June 2027, it won’t seek to apply Pt IVA if selected for review.
ATO: Super guarantee charge statements due by 28 May
The ATO has issued a reminder that if you didn’t pay your eligible workers’ super guarantee (SG) in full, on time, and to the right fund by 28 April, you will need to lodge a super guarantee charge (SGC) statement and pay the SGC to them by 28 May. It also emphasised that this will be the last time you can use the late payment offset (LPO) – as the LPO won’t be available for any late SG payments for the June quarter due 28 July.
Budget speculation – Indexation to replace discount? But what of “averaging”?
Institute of Financial Professionals Australia comment: With Budget speculation firming that the CGT discount will be replaced by “indexation” in some way, it also begs the question of whether CGT “averaging” will also be reintroduced – as it also applied together with indexation before the introduction of the CGT discount in 1999. As a background, “averaging” was generally aimed at having an assessable capital gain taxed at the taxpayer’s normal marginal tax rate instead of it pushing the taxpayer into a higher tax bracket. But so far amidst all the Budget talk, there has been little or no public speculation about CGT “averaging”.
friday 8 may 2026
ATO: Managing the changeover to Payday Super
The ATO has issued a reminder that during July you may need to manage more than one super payment, including a final quarterly super payment due 28 July and one or more Payday Super payments for July paydays. As this can raise questions, particularly around which rules apply when and how payments are applied, the ATO has released various materials to explain this changeover period and what to plan for to help reduce last minute pressure.
Taxpayer unsuccessful before tribunal in seeking an “independent evaluator”
A taxpayer has been unsuccessful in his application for “an independent neutral evaluation by an independent evaluator” appointed by the Tribunal pursuant to ss 49, 53 and 87 of the Administrative Review Tribunal Act 2024. The application arose in relation to disallowed objections. However, the ART found that that conciliation was the more appropriate process as it would allow the parties to clarify the issues, assess their respective positions and explore resolution on a risk basis in a way that was cost effective and proportionate to the totality of the dispute. (De Chellis and FCT (Practice and procedure) [2026] ARTA 749, 1 May 2026)
WA 2026-27 Budget: further stamp duty relief for first home buyers
The 2026-27 Western Australian Budget was handed down on 7 May 2026. The key tax measure was an extension of the first home buyer’s stamp duty concession. From 7 May 2026 first home buyers will pay no stamp duty for newly built or established homes up to $600,000 (up from $500,000), with stamp duty concessions available for homes up to $800,000 (up from $700,000). Also, first home buyers will pay no stamp duty for vacant land purchases up to $450,000 (up from $350,000), with reduced rates for homes up to $550,000 (up from $450,000). In addition, the off-the-Plan Duty Concession has been extended for until 30 June 2028 and has been expanded to include survey strata developments (eg villas, townhouses). Also, the cap for the First Home Owners Grant (south of 26th parallel) increased to $800,000. For full details of the WA 2026-27 Budget see here.
SUPER & FINANCIAL SERVICES
Treasury consults on strengthening the superannuation performance test
Treasury has released a consultation paper on potential changes to the annual superannuation performance test. The consultation seeks views on whether the test is creating unintended barriers to investment and whether its scope remains fit for purpose.
The paper sets out four reform options:
- adjusting the treatment of emerging and alternative asset classes
- introducing an assessment of risk-adjusted returns using a simple reference portfolio
- introducing a routine review of the benchmarks
- extending the test to externally directed accumulation products, with longer-term consideration of single-sector and retirement products
The paper notes stakeholder concerns about “benchmark hugging” and the treatment of assets that are not well represented in existing benchmarks, as well as gaps in the products currently covered by the test.
The performance test was introduced in 2021. It currently applies to MySuper products and to trustee-directed products. Trustee-directed products are diversified choice options where the fund designs and runs the investment strategy. Submissions can be made through the Treasury Consultation Hub and close on 19 June 2026.
Government Tightens EV Salary Packaging Concessions
The Government will scale back the fringe benefits tax (FBT) exemption for electric vehicles, transitioning to a permanent 25 per cent FBT discount. The changes, will be rolled out in three phases:
- Until 31 March 2027: The existing full FBT exemption continues unchanged.
- 1 April 2027 to 1 April 2029: The full exemption applies only to EVs costing $75,000 or less. EVs priced above $75,000 but under the luxury car tax threshold will receive a 25 per cent discount on payable FBT.
- From 1 April 2029: All EVs below the luxury car tax threshold will receive a 25 per cent discount on payable FBT
The announcement follows a review of the Electric Car Discount, which recommended changes as costs rise. The review noted that for an EV valued around $50,000, an individual on salary sacrifice currently saves $3,200–$4,700 per year depending on their marginal tax rate, equating to $12,800–$18,800 over a typical four-year lease.
Foreign super status requires Australian-style benefit restrictions
A recent ATO private ruling reminds advisers that whether a foreign retirement scheme is a foreign super fund for tax purposes comes down to whether the payment of benefits are restricted to retirement, death or similar core superannuation purposes. The ruling confirmed that a scheme allowing withdrawals on cessation of employment alone was not a foreign super fund.
Institute of Financial Professionals Australia (IFPA) comment
Whether or not a foreign retirement scheme is a foreign super fund has tax implications. If the scheme qualifies, a lump sum taken more than six months after becoming an Australian resident are ordinarily taxed only on the “applicable fund earnings” component, broadly the growth in the fund relating to the period of Australian residency.
Treasury releases April 2026 Regulatory Initiatives Grid
Treasury has published Edition 3 of the Regulatory Initiatives Grid, its twice-yearly stocktake of regulatory initiatives expected to affect the financial sector over the next 24 months. The April update lists several initiatives such as reforms to the education requirements for professional financial advisers. This reform seeks to create a sustainable pathway into the profession and addressing declining adviser numbers.
Federal Court finds Telstra Super breached internal dispute resolution rules
The Federal Court has found that Telstra Super failed to comply with the mandatory internal dispute resolution requirements that have applied to super trustees since October 2021. These were the first proceedings ASIC has brought under the IDR regime.
About one third of complaints made between October 2021 and January 2023, were not responded to within the mandatory 45-day timeline, and around 30% of those took more than 100 days. It was also found that in some cases the fund failed to explain the reason for the delay or inform complainants of their right to escalate to AFCA.
Institute of Financial Professionals Australia (IFPA) comment
The case fits a broader pattern of ASIC scrutiny of trustee member service standards. ASIC put trustees on notice about IDR shortcomings in December 2022, and has since pursued action over delayed death benefit claims handling and poor complaints management.