22 June 2026 to 26 June 2026
Weekly Bulletin Contents
TAX
monday 22 June 2026
Govt: Fuel excise relief for July 2026
The Government has announced it will extend fuel excise relief for another month, making petrol and diesel 16 cents per litre cheaper versus normal prices for July 2026. The government said this is more temporary support. In addition, the Albanese Government will reduce the Heavy Vehicle Road User Charge by 16 cents for the same period.
No error in overturning decision of TPB to terminate registration
The Federal Court has dismissed the appeal of the Tax Practitioners Board (TPB) and found that there was no error in the Tribunal’s reasoning in setting aside the decision of the TPB to terminate a tax agent’s registration for contravention of the Code of Professional Conduct. The Tribunal found that the tax agent was a fit and proper person despite, among other things, his tax agent company not having sufficient number of registered tax agents to provide tax agent services to a competent standard and to carry out supervisory arrangements. The TPB had also found that the tax agent had failed to act lawfully in the best interests of their clients. However, the Court also found that the Tribunal had not erred by ordering the tax agent to take corrective action instead of agreeing to the termination of his registration. In short, the Court found that the Tribunal’s decision was not unreasonable, irrational or illogical and nor had there been any error in respect of its reasoning. (Tax Practitioners Board v Auz Tax Pty Ltd [2026] FCA 751)
Failed application for PAYG refund by claimed creator of “Crocodile Dundee”
The ART has dismissed a taxpayer’s application for review of an objection decision to deny PAYG withholding tax credits that the taxpayer claimed he was entitled to in respect of significant “royalty” income that he claimed he had derived as the “creator” of Crocodile Dundee”. The ART ruled that the ATO’s refusal to allow withholding tax credit did not give rise to a reviewable decision as PAYG credits are applied against assessed tax, rather than forming part of the assessment process. It also dismissed the taxpayer’s application per se on the basis that it was frivolous, vexatious and had no reasonable prospects of success in the circumstances. The taxpayer claimed that he had derived the royalty income and therefore was entitled to the PAYG credits notwithstanding that the amended assessment in question reduced his taxable income to nil (and eliminated any tax liability) on the basis that he had not in fact derived any such income. (Bouvet and FCT (Practice and procedure) [2026] ARTA 1075, 18 June 2026)
tuesday 23 june 2026
ATO: What happens if you don’t pay super correctly from 1 July 2026
The ATO has issued a reminder that if you don’t pay the minimum super guarantee amounts for your employees in full and on time, or you don’t correctly follow the choice of fund rules, you are liable to pay the super guarantee charge. However, it said that for paydays from 1 July 2026, you no longer need to lodge a super guarantee statement if you don’t pay the minimum super guarantee amounts for your employees in full and on time. The ATO will calculate your super guarantee charge and send you a notice of assessment.
CGT improvement threshold for 2026–27
The ATO has released the CGT improvement threshold for the 2026–27 year. It is $194,165 (up from $187,962 from 2025-26). The improvement threshold is determined for the purposes of when a capital improvement to a pre-CGT asset that is a separate asset (s 108-70 of ITAA 1997).
wednesday 24 june 2026
SMSF residential borrowing banned to pass Tax Reform Bill
The Government has advised that it has agreed to amendment moved by the Greens to ban future limited recourse borrowing arrangements (LRBAs) for residential property by superannuation funds in exchange for their support to pass the Treasury Laws Amendment (Tax Reform No 1) Bill 2026 (Reform No 1 Bill) and the Income Tax Rates Amendment (Tax Reform No 1) Bill 2026. The Government said that these proposed changes won’t impact any existing SMSF borrowing arrangements. The Government has also agreed to remove discretionary Ministerial powers to: declare further types of residential investment property as being eligible for negative gearing; and, to add further classes of assets as being eligible for CGT discount.
Cents per Kilometre Deduction Rate for Car Expenses
The Income Tax Assessment (Cents per Kilometre Deduction Rate for Car Expenses) Determination 2026 has been made. It sets the rate at which work-related car expense deductions may be claimed in an income year when using the cents per kilometre method. The Commissioner has determined the rate to be 91 cents per kilometre for the 2026–27 income year. This figure is the base cents per kilometre rate of 89 cents with a temporary one-off uplift of 2 cents per kilometre for the 2026-27 income year. For future income years, the calculated annual indexation rate will be applied to the 2026–27 base cents per kilometre rate of 89 cents.
NSW State Budget 2026-27
The NSW State Budget 2026-27 was handed down yesterday [23 June 2026]. It contains no new broad tax increases – except waiving the 9% foreign purchaser surcharge duty for qualifying large-scale build-to-rent and retirement living developments from 1 July 2026. It also implements a 0.5% early-payment discount for land tax.
Queensland State Budget 2026-27
The Queensland State Budget 2026-27 was handed down yesterday [23 June 2026]. There are no new or increased tax measures contained in the Bill. Instead, the budget focuses on maintaining previously legislated tax relief for first-home buyers.
APRA Supervisory Levies Determination made
The Australian Prudential Regulation Authority Supervisory Levies Determination 2026 has been made to set the superannuation supervisory levy and the retirement savings account (RSA) providers supervisory levy for the 2026–27 financial year.
thusday 25 june 2026
Government amendments to Tax reform Bill
The Government has made amendments to Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the accompanying Imposition Bill as follows:
Capital Gains Tax
The amendments will:
- remove the power for the Minister to determine, by legislative instruments, kinds of CGT assets that would retain the 50% CGT discount for individuals and trusts;
- increase the aggregated turnover threshold for entities to access the small business 50% reduction in Subdiv 152-B from the disposal of active assets to $10m (from $2m);
- maintain incentives to make deductible charitable gifts or donations by providing for the gains subject to the minimum tax to be reduced where a taxpayer has made a deductible gift or donation; and
- amend the provisions exempting recipients of specified social security and other related payments from the minimum tax to insert a list of specified such payments (see para 1.26 of supplementary Explanatory Memorandum for full list) and remove the power for the Minister to specify payments by legislative instrument.
Date of effect: These amendments broadly apply to assessments for the 1 July 2027 income year and later income years.
Negative Gearing
The amendments will remove the following Ministerial determination powers:
- the power to determine a kind of business or enterprise for which a residential dwelling could be used for that would exempt it from the loss quarantining requirements;
- the power to determine a class of entities which are exempt from the loss quarantining requirements; and
- the power to determine a class of dwellings which are exempt from the definition of residential dwelling (and therefore exempt from the loss quarantining requirements).
Date of effect: These amendments commence the day after Royal Assent.
Working Australians tax offset (WATO)
The amendments will remove the power for the Minister to determine, by legislative instrument, the amount of the WATO for the purposes of new s 61-160(1)(b) of the ITAA 1997 and replace it with the method for calculating this amount based on what would be an individual’s basic income tax liability if their taxable income consisted solely of net labour income.
Date of effect: These amendments apply to assessments for the 2027-28 income year and later income years.
Note: The Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and the accompanying Imposition Bill) is expected to be passed by parliament today [Thurs 25 June 2026].
Tax Ruling: Reasonable travel amounts etc for 2026–27
The ATO has released TD 2026/4: reasonable travel and overtime meal allowance expense amounts for the 2026–27 income year. It sets out the amounts that the Commissioner considers are reasonable (reasonable amounts) for the 2026–27 income year in respect of the substantiation exception for: reasonable overtime meal allowance expenses in s 900-60 of ITAA 1997 – for food and drink when working overtime; domestic travel allowance expenses in s 900-50 – for accommodation, food and drink, and incidentals when travelling away from home overnight for work (particular reasonable amounts are given for employee truck drivers, office holders covered by the Remuneration Tribunal and federal members of parliament); and overseas travel allowance expenses in s 900-55 – for food and drink, and incidentals when travelling overseas for work.
Updated PCG Non-commercial business losses – Commissioner’s discretion
The ATO has updated PCG 2022/1 Non-commercial business losses – Commissioner’s discretion regarding flood or bushfire. The update to this Guideline extends the date of effect of the safe harbour compliance approach to 30 June 2027. The update also narrows the scope of the Guideline to remove COVID-19 related events from 1 July 2025. The Guideline remains applicable to businesses affected by flood or bushfire events.
Draft PCG: Dynamic PAYG instalments and GIC on excessive variation
The ATO has released Draft PCG 2026/D3 Dynamic pay as you go instalments and general interest charge on excessive variation – ATO compliance approach. It outlines the Commissioner’s proposed practical compliance approach to the application of the general interest charge on excessive variations of PAYG instalments under Subdiv 45-G of Sch 1 to the Taxation Administration Act 1953, for taxpayers using the dynamic PAYG instalment method. When finalised, this draft Guideline is proposed to apply from 1 July 2026 for businesses who participate in ATO-led pilots and will apply to businesses who opt-in to an ATO-approved dynamic PAYG instalment calculation from 1 July 2027. Comments due: 28 August 2027.
friday 26 june 2026
Tax Reform No 1 Bill passed: Negative gearing and CGT changes now law
The Treasury Laws Amendment (Tax Reform No 1) Bill 2026 (Reform No 1 Bill) and the Income Tax Rates Amendment (Tax Reform No 1) Bill 2026 were passed by Parliament yesterday [Thursday 25 June 2026]. The measures contained in the Bill will:
- replace the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax rate on capital gains accruing from 1 July 2027;
- quarantines negative gearing deductions for residential property investments to new builds from 1 July 2027 (or from 12 May 2026 under transitional arrangements);
- provides for a non-refundable tax offset (the Working Australians Tax Offset) from the 2027-28 year for Australian resident individuals who earn labour income;
- provides for a $1,000 standard deduction from 2026-27 year for work-related expenses for individual Australian tax residents who derive assessable labour income; and
- increase the turnover threshold for accessing the small business 50% reduction under Subdiv 152-B with effect from 1 July 2027.
Note: Further related amendments are expected to give effect to the CGT discount changes.
Tax Reform No 2 Bill 2026 introduced
The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 was introduced into Parliament on 25 June 2026. It will :
- Amend the income tax law to allow corporate tax entities that are not “significant global entities” to carry back a tax loss in an income year and apply it against tax paid in either or both of the previous two income years to receive a tax offset. Date of effect: To assessments for income years commencing on or after 1 July 2026.
- Permanently extend the $20,000 instant asset write-off from 1 July 2026. It allows small businesses (with an aggregated annual turnover of less than $10m) to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use for a taxable purpose on or after 1 July 2026.
Provide an income tax exemption from Australian tax for income derived in respect of employment with the PNG Chiefs Limited, being the new PNG rugby league based franchise. Date of effect: To assessments for the 2025-26 income year and the following 9 income years.
Real estate agent has minor success in Tribunal
A real estate agent who returned over $300,00 in assessable income and originally claimed over $143,000 in work and other expenses (that were ultimately reduced by the Commissioner to a total of $34,000) has had favourable adjustments of some $6000 made by the ART on review. The work related expenses claimed included car, clothing and other work expenses (eg office expenses and amounts paid to various parties for ad hoc administrative work). The additional claims allowed by the ART included laundry expense of $144 for a branded business uniform and additional advertising expense of some $3,000. However, the ART maintained 50% shortfall penalties for recklessness – but removed a 20% uplift amount that had originally been imposed “on the basis that the taxpayer had previously been subject to the same penalty following a prior audit” of a prior year tax return. (Marsh and FCT (Taxation) [2026] ARTA 1129, 22 June 2026)
SUPER & FINANCIAL SERVICES
Legislation banning residential property LRBAs awaits Royal Assent
SMSFs will soon be barred from using limited recourse borrowing arrangements to acquire residential property. The ban arrived as a late amendment to the Treasury Laws Amendment (Tax Reform No 1) Bill 2026, which the Senate passed on 25 June 2026. The Bill now awaits assent.
The change sits in new Schedule 5. It amends section 67A of the Superannuation Industry (Supervision) Act 1993 to confine future LRBAs on real property to investments in business real property, as defined in section 66 of the SIS Act. This means an SMSF will no longer be able to borrow to buy residential property.
When the ban starts
The ban commences on the 45th day after the amending Act receives assent. It operates prospectively, so existing borrowing arrangements entered into before commencement are unaffected. Refinancing of a pre-commencement borrowing is also carved out. So too is an arrangement where the asset is acquired under a contract entered into before commencement, even if settlement falls after that date.Why the change?
The restriction was not in the Bill as introduced. It was added in the Senate as part of the package the government agreed with the Australian Greens, alongside the measures the government announced on 18 June 2026.
CGT and negative gearing await Royal Assent
The same Treasury Laws Amendment (Tax Reform No 1) Bill 2026 that carries the LRBA ban above also delivers a wider package of CGT and negative gearing reforms.
The measures in the Bills will:
- replace the 50 per cent CGT discount for individuals and trusts with cost base indexation and a 30 per cent minimum tax on capital gains accruing from 1 July 2027;
- quarantine negative gearing deductions on residential property investments to new builds from 1 July 2027 (or from 12 May 2026 under the transitional rules);
- provide a non-refundable tax offset, the Working Australians Tax Offset, from the 2027-28 year for Australian resident individuals who earn labour income;
- provide a $1,000 standard deduction from the 2026-27 year for work related expenses for individual Australian tax residents who derive assessable labour income; and
- increase the turnover threshold for the small business 50 per cent reduction under Subdivision 152-B, with effect from 1 July 2027.
Note: Further related amendments are expected to give effect to the CGT discount changes.
ATO updates guidance on paying super under Payday Super
The ATO has updated its guidance for employers on working out and paying super guarantee under Payday Super. It applies to employee earnings paid from 1 July 2026. Quarterly rules still apply to earnings paid up to 30 June 2026.
Pay within seven business days
The key date is the QE day, being the day qualifying earnings are paid. The ATO advises that the contribution must reach the employee’s fund within seven business days of that day, unless a longer period applies.
Contributions allocated to the earliest shortfall
The guidance also confirms a change to allocation. A contribution is automatically applied to the earliest payday with an unpaid super guarantee shortfall. Employers can no longer elect to apply a late contribution to a different period.
SBSCH closes from 1 July 2026
The ATO reminds employers that the Small Business Superannuation Clearing House closes from 1 July 2026. Existing users have access until 30 June 2026, and should download their records before then. No new registrations are being accepted.