9 October 2026

5 October 2026 to 9 October 2026 Weekly Bulletin Contents TAX MONDAY 5 OCTOBER 2026

TAX · Monday 5 October 2026

ATO focus on omitted income, expenses and GST credits

The ATO has advised that it is taking action against businesses that omit income and over-claim deductions and GST credits. It said that while most small businesses do the right thing, it continue to see cases where some don't. As a result, the ATO said that its stepping up its compliance action against those that: omit income, including failing to report cash income; over-claim expenses and GST credits; and “use business income to pay for private expenses”.

Full Court: No power to amend assessment for gain returned in wrong year

The Full Federal Court has unanimously dismissed the taxpayer’s appeal from the decision in Sunna v FCT [2025] FCA 1499. In that case, the Court found that the Commissioner could not amend the taxpayer’s 2020 assessment in which part of a $2.3m capital gain from a property sold in the 2019 year had been wrongly returned. Specifically, the Court ruled that in terms of the power to amend an assessment outside the 2 year amendment period under s 170(10AA) of the ITAA 1936, the Commissioner could only amend the 2019 assessment outside the 2 year limit to include the whole of the gain from the 2019 year (under the exception “for the purpose of giving effect to” the operation of CGT event A1) – but that it had no power under s 170 to amend the 2020 income year to excise the capital gain that had wrongly been included in that year. In upholding this decision, the Full Court found that s 170 operates “according to its terms” – and, in this case, these terms prevented an amendment being made to the 2020 income year, but did not limit the power of the Commissioner to amend the 2019 return in the circumstances. The Full Court also noted that this problem was entirely of the taxpayer’s own making. (Sunna v FCT [2026] FCAFC 133, 1 October 2026)

TAX · Tuesday 6 October 2026

Foreign resident vendors – new CGT notification forms

The ATO has advised that from 1 October 2026, foreign vendors providing a non-Indirect Australian Real Property Interest (IARPI) vendor declaration to a purchaser for an asset disposal (including related transactions) of $50m or more must complete a form to notify the ATO, usually at least 28 days before settlement. They then need to notify the purchaser, in writing, that they've done so. The ATO said to support the new requirements, it has now published: Foreign vendor notification of non-IARPI declarations; and Notice of non-IARPI declaration: form and instructions. The ATO also stressed that if the vendor doesn't notify it using the approved form, and notify the purchaser in writing they have done so, then the purchaser can't rely on the non-IARPI declaration and foreign resident capital gains withholding may apply.

ASIC: Attribution Managed Investment Trusts exemption

ASIC has released Legislative Instrument ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2026/726. It provides an exemption from the equal treatment duty in s 601FC(1)(d) of the Corporations Act 2001 to allow responsible entities of attribution managed investment trusts to attribute tax amounts to members on a fair and reasonable basis under s276-210 of ITAA 1997, even if this results in different outcomes for members of the same class.

NSW duty exemptions: Updates to surcharge purchaser duty resources

NSW Revenue has advised that recent amendments introduced additional surcharge purchaser duty exemptions and refunds for certain transactions involving Australian-based developers, build-to-rent properties and transfers of retirement villages. It said that to support these changes, it has updated and created the following surcharge purchaser duty pages on its website: exemptions for retirement village transfers; exemptions for Australian-based developers; and exemptions for build-to-rent developments.

TAX · Thursday 8 October 2026

Repeat unregistered agent hit with $150,000 in penalties

The Federal Court has ordered an unregistered tax preparer to pay $150,000 in civil penalties for providing tax and BAS services for a fee. It is the second time he has been penalised for the same offence.

In Tax Practitioners Board v Hinckfuss (No 3) [2026] FCA 1436, it was found that the individual:

• prepared and lodged income tax returns or amendments for 11 clients for fees, in breach of s 50-5(1) of the Tax Agent Services Act 2009 ($132,000)
• prepared and lodged a client's BAS for four 2021 periods, in breach of s 50-5(2) ($12,000)
• advertised tax agent services while unregistered, in breach of s 50-10(1) ($6,000).

He earned $43,955.95 from the work, including $11,921 from a single client. He lodged through each client's own myGov account, so the returns looked self-prepared.

A permanent injunction stopping him from providing tax agent services for a fee was made earlier in the year.

ATO releases new form for crypto CGT letters

The ATO has published a new form for taxpayers who have received a letter about a capital gain or loss from selling crypto assets.

The form is for people who won't be amending their return. They can use it to tell the ATO why no amendment is needed, or to confirm that the gain or loss already reported is correct.

To fill it in, taxpayers need details of their crypto activity for the year and any CGT exemptions they applied.

ATO online services get a new look from November

The ATO has advised it will roll out a refreshed design across its online services from November 2026. The change covers Online services for agents, business, individuals and foreign investors.

The ATO says the new design should be easier to use and more accessible, and will make its platforms look consistent wherever users log in. It will release more detail closer to launch.

TAX · Friday 9 October 2026

ATO moves broader MTAS changes to Tax Time 2028

The ATO is moving delivery of the broader changes in its Modernisation of Tax Administration Systems (MTAS) program to Tax Time 2028. It was originally scheduled for Tax Time 2027. The ATO has updated its MTAS web page with the adjusted delivery plan.

The broader changes include:

• new labels on the trust tax return and statement of distribution
• redesigned paper versions of the trust tax return, statement of distribution and trust income schedule
• other reporting changes aimed at simplifying the processing of trust returns and improving transparency.

Addendum to TD 2012/8 on temporary absences from foreign service

The ATO has issued an addendum to Taxation Determination TD 2012/8. The determination sets out which temporary absences still count towards a continuous period of foreign service under s 23AG of the ITAA 1936. (Section 23AG exempts certain foreign employment income from Australian tax.)

The addendum applies from the 2026-27 income year. Under the updated determination, short work-related trips back to Australia during a period of foreign service no longer count towards the continuous period.

ATO releases exchange rates for July to September 2026

On 8 October 2026, the ATO updated its monthly exchange rates for the 2026-27 financial year. The figures now run from July to September 2026. Rates for the major currencies are below.

Foreign currency equivalent to A$1, monthly average

Currency July 2026 August 2026 September 2026 United States dollar 0.6963 0.7102 0.7126 European euro 0.6096 0.6127 0.6187 UK pound sterling 0.5206 0.5245 0.5310 Japanese yen 113.1609 112.8730 111.4450 Chinese renminbi 4.7189 4.7840 4.7807 New Zealand dollar 1.2054 1.2025 1.2342 Canadian dollar 0.9829 0.9878 0.9944 Swiss franc 0.5642 0.5738 0.5833  

SUPER & FINANCIAL SERVICES · Wednesday 7 October 2026

AFCA reports 63 systemic issues to regulators

AFCA has released Edition 9 of its Systemic Issues Insights Report, covering the second half of 2025-26. Over the period, AFCA ran 104 systemic issue investigations and reported 63 systemic issues to regulators. These issues affected 390,724 consumers and small businesses, and firms paid $1.2 million in refunds and remediation.

Most of the issues were in banking and finance (39) and general insurance (14). Superannuation accounted for 6, and investments and advice for 2.

The super section looks at two themes:

• Trustee oversight of insurer decisions. In one case, a trustee accepted an insurer's decision to vary or avoid cover retrospectively under section 29 of the Insurance Contracts Act 1984. The trustee had not reviewed the underwriting information behind the decision. AFCA said trustees need enough information to form their own view and, where needed, challenge the outcome.
• Member instructions that aren't completed. One fund had a system setting that blocked valid investment switches. A separate automated process failed after funds had already been taken from member accounts. Reconciliation controls were slow to pick up the failed transfers, and members were exposed to market movements while their instructions sat incomplete.

On advice, AFCA raised concerns about transactions made without the client's authority and about how well licensees supervise their representatives. It said a well-documented advice process doesn't protect clients if what happens afterwards goes beyond the agreed strategy.

PS LA 2026/2: ATO explains when Payday Super deadlines can be extended

The ATO has issued PS LA 2026/2: Payday Super: exceptional circumstances determinations. It provides guidance to ATO staff on when the Commissioner may make an exceptional circumstances determination under s 18C(4) of the Superannuation Guarantee (Administration) Act 1992 for the purposes of allowing additional time for affected employers to make 'on-time' eligible contributions. It sets out events that constitute exceptional circumstances and the considerations relevant to allowing a longer period of time to make eligible contributions.

ASIC puts advice fees charged to super back on its radar

ASIC has published supervisory letters setting out its 2026-27 priorities for the banking, superannuation, general insurance, life insurance and markets sectors.

For superannuation, ASIC will start two new reviews. The first looks at how trustees oversee advice fees deducted from member accounts and begins in the first half of 2026-27. The second looks at how trustees are implementing the retirement income covenant and follows in the second half of the year. ASIC will also continue its multi-year review of member services, which includes how funds handle death benefits.

In life insurance, ASIC will review funeral insurance and continue its work on service issues.

Advisers who charge fees to clients' super accounts should expect funds to check consents and fee arrangements more closely over the next 12 months.

Tribunal confirms penalties for false SMSF auditor details

In a decision handed down on 24 September 2026, the Administrative Review Tribunal affirmed intentional disregard penalties against the trustees of an SMSF. The fund's 2015 to 2018 annual returns named an auditor who never audited the fund. Each return gave an audit completion date and recorded an unqualified opinion. No audit had been done.

The trustee who prepared the returns admitted she knew there were no audit reports. She said she lodged to stop the fund being made non-complying, and that lodging before the audit was common practice. The base penalty is 60 penalty units for each false statement.

All trustees were held jointly and severally liable, including those who had left the fund's administration to one person.

ATO refreshes its guidance on appointing SMSF trustees

The ATO has updated its Appoint your SMSF trustees page. The page sets out who can be a trustee. Every member must be a trustee or a director of the corporate trustee. They must be at least 18, not under a legal disability and not a disqualified person. Disqualification covers any dishonesty conviction, including spent convictions. It also covers civil penalty orders, bankruptcy and past disqualification by a regulator. A waiver may be available for less serious offences. All trustees must consent in writing and sign the Trustee declaration within 21 days of appointment.