Helping you stay ahead of tax system changes

Action: For information and further dissemination We recognise the significant volume of change currently occurring across the tax, super and regulatory landscape. With new legislation, policy reforms and administrative updates being introduced, staying informed can be challenging.

Helping you stay ahead of tax system changes 

Tax Practitioner Stewardship Group

Action: For information and further dissemination 

We recognise the significant volume of change currently occurring across the tax, super and regulatory landscape. With new legislation, policy reforms and administrative updates being introduced, staying informed can be challenging. 

To support your awareness and help you keep your clients informed, we are sharing the following updates on recent law changes, emerging issues and key developments. We encourage you to read these articles and share them with your networks where relevant. 

Below are key updates on:

• Client-to-agent linking for individuals and sole traders new webpage now available and pilot information
• An ATO open forum not to be missed
• Checking the progress of your client’s tax return
• Strengthening the FRCGT regime
• Latest R&DTI transparency report released   
• Ancillary funds will be known as giving funds. 

Client-to-agent linking for individuals and sole traders new webpage now available and pilot information 

We're progressing the expansion of client-to-agent linking for individuals and sole traders, with a pilot starting March 2027 and full implementation planned from November 2027. 

We're introducing an agent-initiated linking process after consultation showed it was the preferred approach for agents and was likely to provide a simpler experience for individuals and sole traders. This approach has been designed specifically for individual and sole trader client relationships and does not replace or change the existing client-to-agent linking process for ABN entities. 

To support the profession, a dedicated client-to-agent linking webpage is now available and will be updated regularly as the project progresses. 

We encourage you to bookmark ato.gov.au/CALAnnouncement and refer back to it for the latest information, key dates, guidance and opportunities to participate in upcoming activities. 

Participating in a pilot program 

We're inviting registered tax and BAS agents who represent individuals and sole traders to express their interest in participating in a pilot program. We welcome expressions of interest from a diverse range of practices, including: 

• sole practitioners 
• small, medium and large practices 
• tax and BAS agents with varying client volumes 
• regional, rural and metropolitan practices. 

We encourage your involvement in the pilot if you expect to onboard new individual and sole trader clients during the pilot period, and particularly if your clients may require support to interact digitally e.g. temporary migrants, foreign residents and deceased individuals, or other taxpayers. 

For more information about the pilot the expression of interest process, visit ato.gov.au/CALpilot. 

You can also read our latest Tax and BAS Agents newsletter article about the expansion of client-to-agent linking for individuals and sole traders. 

We encourage you to share this information with your members and networks. We will continue to provide updates through our existing communication channels as further information becomes available. 

An ATO open forum not to be missed 

ATO open forums: the right information at the right time. 

Cyber security is no longer just an IT issue. It is a critical business, reputation and client trust issue that affects every practice, regardless of size. 

The ATO and the Tax Practitioners Board are partnering to bring you a timely discussion on two issues shaping the future of the profession: cyber security and artificial intelligence (AI). 

Whether your members are already using AI, exploring its potential, or looking to strengthen their cyber resilience, this session will provide practical insights, expert perspectives and real-world examples that can be applied immediately. 

Join us on 28 October 2026, from 1:00 pm to 2:30 pm AEDT.

We encourage you to share this opportunity across your networks and with your members to help ensure the profession remains informed, resilient and prepared for emerging risks and opportunities. 

Register today and join the conversation on protecting your practice, your clients and your reputation in the age of AI.

Checking the progress of your client's tax return 

The fastest way to check the progress of your client's tax return is through Online services for agents. Checking Online services for agents first will give you the most up-to-date information and may save you and your client an unnecessary phone call. 

To view real-time information about your client’s tax return, including its status and outcome, go to Client Summary, select Lodgment, then Income tax and History. 

Before contacting us, check whether the tax return is still within our published processing timeframes. Our service commitment timeframes allow us to complete most returns without additional intervention. Our staff can only investigate or follow up a lodged tax return once the processing timeframe has been exceeded. 

To ensure we can assist you efficiently, only enquiries about a lodged tax return that has exceeded the applicable service commitment can be made through the Registered agent phone line. 

Strengthening the FRCGT regime 

The government's Strengthening the foreign resident capital gains tax regime measure has received royal assent and will come into effect from 1 October 2026. It’s intended to: 

• improve the integrity of the foreign resident capital gains tax (CGT) regime 
• provide greater certainty on which Australian assets are subject to CGT.  

The foreign resident CGT regime will also expand, meaning some additional foreign-owned investments in real property and real property interests will soon be subject to tax in Australia. Read our Tax professionals newsroom article for an overview of the changes, including the mandatory notification. 

A temporary 50% CGT discount will be in place for eligible non-individual foreign residents disposing of certain renewable energy assets. This discount will be available until 2040. 

We’ll publish more general information about the new measure before commencement. We’re considering if formal public advice and guidance (PAG) products are required to support the new rules. You’ll have opportunities to provide feedback on any PAG through the public consultation process. 

Latest R&DTI transparency report released  

We’ve released our annual Report of data about Research and Development tax incentive entities. Our report aims to improve accountability and voluntary compliance by increasing public awareness of the companies claiming the Research and Development (R&D) tax incentive.  

The latest data shows that companies invested $16.7 billion in R&D in 2023–24. The figures are based on 13,490 R&D companies. Small businesses made up 51% of these companies, followed by privately owned and wealthy groups which made up 31%, and public and multinational businesses made up the remaining 18%.  

Key highlights from the report include:  

• Public and multinational companies invested $9 billion in R&D, the highest among all business populations.  
• The professional, scientific, and technical services industry was the leading industry in R&D investment, followed by the manufacturing sector.  

With 3 years of reports now available, we've included a comparison of data over time for the industry and population segments. 

The published data includes both the original amount and, if applicable, the amended total R&D expenditure amounts the R&D entity made. Commissioner amendments are not included in the data. If an adjustment was made by the Commissioner, the report will only include the original amount reported by the R&D entity.  

You can view the report at ato.gov.au/RDTaxTransparency.  

Ancillary funds will be known as giving funds 

From 1 October 2026, public and private ancillary funds will be known as public and private giving funds. This renaming is the result of law passing and acknowledges the important role these funds play in facilitating charitable giving. 

What you need to know 

• This is a name change only and doesn’t affect a fund’s endorsements, obligations or regulatory requirements. 
• Clients operating ancillary funds aren’t required to amend their governing documents or the name of their fund as a result of this change. 
• You may continue to see references to ancillary funds in legislation, ATO guidance, forms, rulings and other materials while updates are progressively made. 
• While the Ancillary Fund Return name will be updated in due course, tax agents and their Not-for-profit clients should meet their 2025-26 Ancillary Fund Return reporting requirements by the due date. 
• References to an ancillary fund should be read as references to a giving fund. 
• You may wish to make your clients aware of the terminology change, particularly where they are involved in establishing, advising or administering giving funds. 

For more information, visit Philanthropy – support to double philanthropic giving by 2030.

Sarah Vawser 

Assistant Commissioner 

Individuals and intermediaries 

Australian Taxation Office