• Latest Weekly Updates

19 June 2026

  • June 19, 2026

15 June 2026 to 19 June 2026

Weekly Bulletin Contents

TAX

monday 15 June 2026

PAYG withholding schedules

The Taxation Administration (Withholding Schedules) Instrument 2026 has been made. It contains withholding schedules that specify the amount, formulas and procedures to be used for working out the amount required to be withheld by an entity under the PAYG system. The instrument contains fifteen withholding schedules. Each schedule provides information for calculating the withholding amount, taking into account the particular circumstances presented in the schedule.

ATO: Enhancing how clients link the ATO to myGov

The ATO has advised that the way your individual and sole trader clients link the ATO to myGov has been updated. These changes are part of the ATO’s Counter Fraud Program and deliver a more intuitive and secure experience. Key changes to this process include: an increased number of topics that your client could be asked about; a tailored experience, based on how your client signs in and the information we hold about them; clearer direction on the support process when your clients are unable to complete the linking process online; and stronger protections against identity fraud and unauthorised access.

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tuesday 16 june 2026

TPB factsheet re Anti-Money Laundering and Counter-Terrorism Financing Laws

The Tax Practitioners Board (TPB) has released a comprehensive factsheet that outlines changes regarding Australia’s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regime which will expand from 1 July 2026 to include higher-risk services provided by several industries, including the accounting sector. Tax practitioners who provide ‘designated services’ will fall within the expanded regime and will be required to comply with AML/CTF obligations in addition to their existing responsibilities under the Tax Agent Services Act 2009.

Taxpayer released from liabilities under Privileges and Immunities Act 

In a debt release application, the ART has ruled that a taxpayer should be released from tax liabilities of $148,582 in respect of payments he received as a consultant engaged by the Asian Development Bank to consult to the National Airports Corporation of PNG. Ordinarily such payments would be tax-exempt under the International Organisations (Privileges and Immunities) Act 1963 – provided that the services were performed outside of Australia (per Taxation Ruling TR 92/14). However, in this case the taxpayer was prevented from doing so because of quarantine measures during the COVID-19 Pandemic. Instead, his contract was varied to permit him to provide the services remotely from Australia. In these unique circumstances, and having weighed all the relevant factors (especially the taxpayer’s lack of capacity to repay the debt), the ART ruled that it is appropriate to release the taxpayer from this liability. (Prasser and FCT (Taxation and business) [2026] ARTA 1053, 12 June 2026)

Vic: Draft duty rulings – aggregation of transactions

The Victorian State Revenue Office has released the following draft rulings: Aggregation of dutiable transactions (DA-26v3) – which explains when multiple dutiable transactions, such as land transfers, may be aggregated and treated as a single transaction for duty purposes (applicable from 1 June 2026) and Exception from aggregation for domestic builders (DA-071) – this rulings explains when registered domestic builders who purchase multiple parcels of vacant land may qualify for an exception from aggregation. It applies to contracts of sale signed on or after 1 June 2026. Comments are due by 24 June 2026.

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wednesday 17 june 2026

ATO: Payday super is fast approaching

The ATO has issued a reminder to employers that if they haven’t already prepared their business for Payday Super, the clock is ticking. The ATO said that as 1 July is fast approaching, it’s time to act now and that getting ready for Payday Super means you’ll need to: review your payroll systems; ensure your employee data is accurate; and confirm your software is ready for more frequent payments. The ATO said that you’ll also need to understand new concepts like ‘qualifying earnings’ and the ATO’s first-year compliance approach, as well as what penalties apply for late contributions.

APRA and ASIC announce FAR changes to reduce administrative burden

APRA and ASIC have advised that they will streamline aspects of the Financial Accountability Regime (FAR) to reduce regulatory burden without lowering accountability standards. Under the regulators’ proposed changes, APRA and ASIC will remove key functions requirements from the FAR regulator rules; raise the materiality threshold for notifying APRA and ASIC of changes in accountability; and no longer require information on accountable persons’ direct reports in accountability maps. APRA and ASIC estimate that the changes will reduce reporting for all accountable entities and the 4500 impacted accountable people.

APRA: Next phase of push to strengthen governance requirements

APRA has advised that it has commenced the final phase of its governance review by setting out updated requirements designed to strengthen governance across banking, superannuation and insurance. APRA began consulting on proposals to modernise its governance requirements in March last year before refining some of its proposals last October. Having engaged extensively with industry, APRA has published a response to industry feedback as well as an updated draft of CPS 510 Governance for further consultation.

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thusday 18 june 2026

DIS on Hall’s case: No deductions for work from home during COVID

The ATO has released the final version of its Decision Impact Statement on the Full Federal Court decision in FCT v Hall [2026] FCAFC 43. The case concerned whether rental payments and home to work travel expenses were deductible under s 8-1 of the ITAA 1997 incurred by a taxpayer during COVID lockdowns. The Full Court held that the rental outgoings were of a private and domestic character and therefore not deductible (despite the COVID circumstances), and that the car expenses were merely incurred by the taxpayer to get ‘to’ work and were not ‘on’ work . The ATO said that the decision does not represent a departure from established principles concerning the application of s 8-1 and related ATO rulings.

DIS on Zeigler case: Pt IVA and alleged breach of settlement agreement

The ATO has issued a decision Impact Statement on the decision in Ziegler v FCT [2025] FCAFC 168. The case involved, among other things, the application of Pt IVA and claims of breach of a settlement deed entered into between the taxpayers and the ATO. The ATO said the decision provides authority for the fact that a recoupment is assessable under s 20-20 of the ITAA 1997 where an amount has been in fact deducted irrespective of entitlement to the deduction and that the ATO has a continuing duty to assess administrative penalties and may amend a penalty assessment where it is considered incorrect. The ATO also said that it meant that for the purposes of section 177EA of the ITAA 1936, a scheme may be identified broadly, including as a single step, and purpose is determined objectively by reference to the relevant circumstances.

Withdrawal of PSLA 2009/3: time limits on recovery for indirect taxes

The ATO has withdrawn PS LA 2009/3: Indirect taxes: time limit on recovery. It contained guidance on applying former s 105-50(3) of Sch 1 to the Taxation Administration Act 1953 (now repealed) which had effect only for tax periods that started before 1 July 2012.

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friday 19 june 2026

Government’s proposed changes to Budget measures

The Government has announced proposed changes to its Budget tax reform package following the first round of post-Budget consultation. The proposed changes are:

  • An increase to the turnover threshold for the CGT small business “50% active asset reduction” concession (in Subdiv 152-B of the ITAA 1997) from $2m to $10m (otherwise the CGT small business concession will remain unchanged, as outlined in the Budget).
  • The release of a consultation paper on the design of a new Innovative Business CGT Concession that would provide a 50% CGT discount to early-stage investors including founders and employee share scheme participants of innovative start-up businesses (see Treasury website, here);
  • Confirming that income from all types of testamentary trusts will be exempt from the minimum 30% tax for trust income, including future discretionary testamentary trusts, with implementation details included in further consultation (see below); and
  • Confirming amendments will be made to the legislation in the Senate rather than in legislative instruments, to provide certainty on as much of the implementation details of the Government’s tax reforms as possible.

Other Budget proposed changes
The Government also intends to move the following amendments in the next sitting fortnight:

  • Ensure deductible gift and donations reduce capital gains that are subject to the minimum tax, to maintain tax incentives in relation to charitable giving.
  • Provide the list of income support payments that qualify for an exemption from the minimum tax on capital gains.
  • Embed the calculation method for the Working Australians Tax Offset in legislation.
  • Remove ministerial powers no longer needed to give effect to Govt policy intent.

The Government also intends to remove ministerial discretion in relation to the following aspects of the Bill (with legislation to be introduced later this year following consultation):

  • Definition of new builds that are eligible to choose a 50% discount on gains accrued from 1 July 2027, and eligible to access negative gearing for properties purchased after 12 May 2026, consistent with the details outlined in the Budget.
  • Definition of the types of housing investment exempt from the limits on negative gearing, including affordable housing. The definition of new builds and housing investment exemptions will be moved into primary legislation with final details, including treatment of certain types of accommodation and housing investment, subject to consultation.

The Government will also introduce legislation next week to give effect to the Budget measures regarding loss carry back and to make the instant asset write off for small business permanent.

Proposed testamentary trusts changes
In response to consultation, the Government will exempt income from all types of discretionary testamentary trusts from the minimum 30% tax “provided they are established for genuine testamentary purposes”. The exclusion will be limited to income from assets of the deceased estate. For discretionary testamentary trusts established on or after 1 July 2028, the exclusion will only apply to trusts that can only benefit individuals and income tax exempt entities.
 
Institute of Financial Professionals Australia comment: It will be interesting to see how the proposed changes to testamentary trusts will cater for the requirement that it “is established for genuine testamentary purposes”!

Superannuation Div 296 tax regulations made

The Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026 has been made. Its purpose is to amend the Income Tax Assessment (1997 Act) Regulations 2021 to prescribe certain values, calculations, and methods so that all applicable superannuation interests are properly assessed for the purposes of the Div 296 tax which reduces the tax concessions available to individuals with a total superannuation balance (TSB) exceeding the large superannuation balance threshold ($3 m) for income years on and after 1 July 2026. Div 296 also amends rules for calculating an individual’s TSB and introduces the concept of a TSB value.

Institute of Financial Professionals Australia (IFPA) represents members at ATO Tax Practitioners Stewardship Group

The Institute of Financial Professionals Australia (IFPA) Vice President Kurtis Alaeddin attended the ATO Tax Practitioners Stewardship Group (TPSG) meeting on 17 June 2026, alongside other professional bodies.

IFPA used the meeting to raise the practical pressures members are facing. Key points included:

  • The sheer volume and complexity of compliance obligations. Practitioners are juggling tight deadlines, STP, TPAR, AML/CTF, breach reporting, Payday Super, new concepts like qualifying earnings, the VDS and SGC distinction, ongoing tax law changes and Budget measures.
     
  • Recognising the collaborative relationship between practitioners and the ATO. Members support the tax system through competent, efficient and diligent work, and IFPA noted that requests for additional lodgment time or remission of failure to lodge penalties, where driven by agent resourcing constraints, would benefit from continued professional courtesy.
     
  • Concern about the state of the profession. The job market is tight, margins are thinner than ever, fewer graduates are entering public practice and offshore outsourcing is now common. IFPA asked whether there is a link between these pressures and the recent surge in data breaches and compromised TFNs.
     
  • The growing CPE burden. Practitioners must stay across more complex areas to meet the standard of care regulators expect. Simpler returns are increasingly self-prepared, helped by the instant $1,000 deduction, leaving practitioners to handle the harder matters.

IFPA will continue to advocate for members through forums like the TPSG.

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SUPER & FINANCIAL SERVICES​

Government’s proposed changes to Budget measures

  • The Government has announced proposed changes to its Budget tax reform package following the first round of post-Budget consultation. The proposed changes are:

    • An increase to the turnover threshold for the CGT small business “50% active asset reduction” concession (in Subdiv 152-B of the ITAA 1997) from $2m to $10m (otherwise the CGT small business concession will remain unchanged, as outlined in the Budget). 
       
    • The release of a consultation paper on the design of a new Innovative Business CGT Concession that would provide a 50% CGT discount to early-stage investors including founders and employee share scheme participants of innovative start-up businesses (see Treasury website, here);
       
    • Confirming that income from all types of testamentary trusts will be exempt from the minimum 30% tax for trust income, including future discretionary testamentary trusts, with implementation details included in further consultation (see below); and
       
    • Confirming amendments will be made to the legislation in the Senate rather than in legislative instruments, to provide certainty on as much of the implementation details of the Government’s tax reforms as possible.

    Other Budget proposed changes
    The Government also intends to move the following amendments in the next sitting fortnight:

    • Ensure deductible gift and donations reduce capital gains that are subject to the minimum tax, to maintain tax incentives in relation to charitable giving.
       
    • Provide the list of income support payments that qualify for an exemption from the minimum tax on capital gains.
       
    • Embed the calculation method for the Working Australians Tax Offset in legislation.
       
    • Remove ministerial powers no longer needed to give effect to Govt policy intent.

    The Government also intends to remove ministerial discretion in relation to the following aspects of the Bill (with legislation to be introduced later this year following consultation):

    • Definition of new builds that are eligible to choose a 50% discount on gains accrued from 1 July 2027, and eligible to access negative gearing for properties purchased after 12 May 2026, consistent with the details outlined in the Budget.
       
    • Definition of the types of housing investment exempt from the limits on negative gearing, including affordable housing. The definition of new builds and housing investment exemptions will be moved into primary legislation with final details, including treatment of certain types of accommodation and housing investment, subject to consultation.
    The Government will also introduce legislation next week to give effect to the Budget measures regarding loss carry back and to make the instant asset write off for small business permanent. 

    Proposed testamentary trusts changes
    In response to consultation, the Government will exempt income from all types of discretionary testamentary trusts from the minimum 30% tax  “provided they are established for genuine testamentary purposes”. The exclusion will be limited to income from assets of the deceased estate. For discretionary testamentary trusts established on or after 1 July 2028, the exclusion will only apply to trusts that can only benefit individuals and income tax exempt entities.
     
    Institute of Financial Professionals Australia (IFPA)comment: It will be interesting to see how the proposed changes to testamentary trusts will cater for the requirement that it “is established for genuine testamentary purposes”!
ATO releases March 2026 SMSF quarterly statistical report

The ATO has published its self-managed super fund quarterly statistical report for the March 2026 quarter. The report sets out the latest figures on the SMSF sector.

There are now 672,805 SMSFs with a combined 1,239,977 members. Total estimated SMSF assets sit at $1.06 trillion.

Listed shares remain the largest asset class by value, making up 26% of total estimated SMSF assets. Cash and term deposits follow at 16%.

On member demographics, 53% of SMSF members are male and 47% are female and 85% of members are aged 45 or older.

The full report includes further detail on fund and member demographics, asset holdings, and the annual flows of money into and out of SMSFs. It is available through the ATO SMSF newsroom.

Division 296 regulations made

The Division 296 regulations have been registered.

The regulations prescribe the values, calculations, and methods needed to assess superannuation interests for the Division 296 tax. That tax places an additional 15% tax on earnings attributable to balances exceeding $3 million and a further 10% on earnings attributable to balances exceeding $10 million. It applies for income years starting on or after 1 July 2026.

Among other things, the new regulations:

  • Prescribe the amount of relevant superannuation earnings for a superannuation interest to be nil (paragraph 296‑55(2)(c));
     
  • Declare individuals who hold an excluded interest in a constitutionally protected fund (item 1 of subsection 296-55(3));
     
  • Set rules for how Division 296 fund earnings are to be attributed to members (subsections 296-65(3) and (5));
     
  • Prescribe superannuation interests that do not use the general rule for working out your relevant superannuation earnings (subsection 296-65(2)) and matters relevant to that earnings formula, including a prescribed factor, ‘your contributions total’ and ‘your withdrawals total’ (subsection 296-70(1));
     
  • Modify the operation of sections 296-65 and 296-70 which deal with working out an individual’s relevant superannuation earnings (subsection 296-75(1));
     
  • Set out circumstances where a non-member spouse is to be treated as having a superannuation interest where the member spouse’s interest is the subject of a family law payment split (subsections 307-230(3) and (4));
     
  • Specify a value or method for determining the TSB value of a superannuation interest (paragraph 307-230A(1)(a)); and
     
  • Prescribe a factor for the purpose of the transitional arrangements that will adjust the net capital gains component used in working out the Division 296 earnings of certain entities for the first four transitional years (section 296-60 of the ITTP Act).  
Pension income free area and asset thresholds rise from 1 July 2026

The Department of Social Services has released the indexed payment rates and thresholds applying from 1 July 2026.

The pension income free area increases to $226 a fortnight for singles and $396 for couples combined.

The pension assets test thresholds rise as well. The asset test free area is the level of assets a person can hold before their pension starts to reduce. The cut-off limit is the level above which no pension is payable. The new amounts for homeowners are set out below.
 

Homeowner

Free area from 1 July 2026

Cut-off limit from 1 July 2026

Single

$333,000

$733,500

Couple combined

$499,000

$1,102,500

The couple cut-off limit of $1,102,500 is the figure for a homeowner couple where both partners are eligible.

The deeming thresholds also rise to $66,800 for singles and $110,600 for couples however the deeming rates themselves are unchanged on 1 July. They remain at 1.25% for the lower tier and 3.25% for the upper tier. These rates were set on 20 March 2026 and are next reviewed in September.

A range of other settings increased too, including Family Tax Benefit rates and Paid Parental Leave income limits. Pension base rates are unchanged, as they index in March and September.