30 October 2026

26 October 2026 to 30 October 2026 Weekly Bulletin Contents TAX MONDAY 26 OCTOBER 2026

TAX · Monday 26 October 2026

ART confirms tax agent not a “fit and proper person”

The ART has affirmed the decision of the Tax Practitioners Board to terminate the registration of a tax agent and prohibit him from applying for registration for 5 years. The matter related to inappropriate use of the tax agent portal, as well as alleged breaches of the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001. It also involved the tax agent making false and misleading representations in the provision of financial advice, which resulted in financial loss for clients. Accordingly, the ART affirmed that the tax agent was not a “fit and proper person” for the purposes of the Tax Agent Services Act 2009. It also noted his lack of contrition or insight into his wrongful conduct, and found that there was a substantial risk of future breaches. (Merhi and Tax Practitioners Board (Taxation and business) [2026] ARTA 2456, 22 October 2026)

ATO: Gift or loan from overseas, make sure you can prove it

The ATO has warned that it is concerned some people describe overseas income as a gift or loan to avoid paying tax. It said that if you receive a genuine gift or loan from a related overseas entity, such as a family member, you don't have to report it in your tax return as it is not taxable income. However, you do need to be able to prove it is a genuine gift or loan. The 3 requirements for a genuine gift or loan are: you have sufficient and appropriate documents to support your claim; the actions of everyone involved are consistent with the money being a genuine gift or loan; and the money comes from funds genuinely independent of you. The ATO also said to keep records showing the payment is a genuine gift or loan, as it may check this later. If you don't have sufficient documentation, the ATO may treat it as taxable income.

ATO: Extension of GIC remission offer for FTDT liabilities

The ATO has advised that it is extending its GIC remission offer on family trust distribution tax (FTDT) liabilities for another 6 months, until 30 June 2027. The ATO said that where you proactively self-review, notify and pay an FTDT liability, it will favourably consider remission of up to 80% of the GIC, where it's fair and reasonable to do so. It also said that many trustees, electing entities and their tax agents have already acted on this opportunity.

TUESDAY · Tuesday 27 October 2026

ATO: CGT reforms – guidance on market valuations

Following the passing of the first tranche of the CGT discount reform (under which taxpayers may need to determine the market value of their CGT assets immediately before 1 July 2027), the ATO has now issued a reminder about its existing guidance on market valuations for tax purposes. This guidance outlines: the ATO’s expectations regarding market valuations; the evidence needed to support a valuation; and what it will take into account when considering the accuracy of a valuation. The ATO also said that it recognises that people are seeking certainty about how the new reforms will operate in practice and that as a result, it is considering: what advice and guidance products may be required; tools and calculators it can develop or update; and systems changes required to support compliance and administration.

ATO: Tips to keep work cars on track for FBT compliance

The ATO has issued a reminder that employers providing work cars need to ensure they understand and meet their FBT obligations, including record keeping. The ATO also said that it has observed a large proportion of employers that provide work cars for their employees are not fully meeting their FBT obligations and that, based on the common errors it sees employers make, its 3 key tips are: correctly classify vehicles for FBT purposes; understand what is considered private use; and keep complete and accurate records.

WEDNESDAY · Wednesday 28 October 2026

Tax Reform No. 4 Bill introduced: start-up concessions, R&D, FBT and PAYG

The Treasury Laws Amendment (Tax Reform No. 4) Bill 2026 was introduced into Parliament on 27 October 2026. The Bill will:

• provide investors in innovative start-up companies with access to a 50% CGT discount and exempt them from the minimum 30% tax on capital gains in respect of “Innovative Business CGT Concession” (IBCC) assets, as defined. An eligible IBCC company is broadly an Australian company that has been incorporated for less than 15 years (and is not controlled by another company that has been incorporated for 15 or more years) and must not be listed or have aggregated turnover of $50m or more. It must also satisfy the “predominant activity” tests. Date of effect: broadly, from 1 July 2027.
• simplify and refine the R&D Tax Incentive by, among other things: increasing the minimum and maximum expenditure thresholds; increasing the turnover threshold for the refundable offset; restricting access to the refundable offset to R&D entities in their first 10 years of carrying on an enterprise or since first registration for the R&D Tax Incentive; increasing the offset rates for R&D activities; reducing the intensity premium threshold; and enabling the Minister to determine kinds of activities that are considered eligible R&D activities. Date of effect: broadly, from 1 July 2028.
• modernise tax incentives for venture capital partnerships and investors (ie VCLPs and ESVCLPs) to, among other things: increase the permitted entity value cap for an investee and any connected entities eligible for the VCLP tax exemption from $250m to $480m; increase the permitted entity value for an investee and any connected entities eligible for the ESVCLP tax exemption from $50m to $80m; increase the maximum asset value of eligible investee entities at which ESVCLP investment returns can be fully tax exempt from $250m to $420m; and increase the maximum committed capital limit for ESVCLPs from $200m to $270m. Date of effect: from 1 July 2027.
• allow entities to choose to pay PAYG instalments monthly rather than quarterly or annually, and also allow the Commissioner to determine that an entity with a history of non-compliance with taxation law obligations must pay PAYG instalments monthly, subject to a right of objection within 60 days of the decision being served. Date of effect: for income years beginning on or after 1 July 2027.
• phase in changes to the FBT treatment of eligible electric cars: eligible electric cars provided under commitments made before 1 April 2027 continue to be exempt from FBT; eligible electric cars provided from 1 April 2027 to 31 March 2029 can access a 100% or 25% FBT discount, depending on the base value of the vehicle; and, from 1 April 2029 onwards, eligible electric cars provided to employees under commitments made on or after that date may only access a 25% FBT discount, depending on the base value. The Minister can determine circumstances in which these amendments do not apply. Date of effect: from 1 April 2027.

ATO 2025–26 Annual Report

The ATO has issued its “Commissioner of Taxation annual report 2025–26”. It details the ATO's performance for the financial year. Among other things, it reports that the ATO collected tax of $687.4 billion, $32.1 billion above the Federal Budget forecast; improved performance in payment of debts, with 90.1% of liabilities paid on time and in full; and continued enhancements to the ATO app.

Tax Practitioners Board: 2025–26 Annual Report

The Tax Practitioners Board (TPB) has published its 2025–26 Annual Report, highlighting its work to protect consumers, support tax practitioners and strengthen the integrity of the tax system and profession. The TPB said that, throughout 2025–26, it continued to target higher-risk behaviour and take action against tax practitioners who failed to meet their obligations, while providing practical guidance, education and improved services to help tax practitioners comply.

THURSDAY · Thursday 29 October 2026

No deduction for work-related expense – but interest included in cost base

The ART has dismissed the application of a taxpayer in relation to claims for a range of work-related expenses totalling some $14,000. These included: car expenses of $5,685, dismissed on the basis of a lack of appropriate records and insufficient evidence of nexus with employment; travel and accommodation expenses of $2,519, dismissed on the basis of no evidence that they were employment related or employer directed despite being incurred during COVID; and self-education expenses of $2,685, dismissed because the studies commenced before employment began. However, while the ART did not allow a deduction for interest of $67,000 incurred on money borrowed from family friends to acquire shares, including speculative mining stocks, on the basis that it was “capital in nature”, it allowed the interest to be included in the cost base of the shares as third-element cost base expenditure under s 110-25(3) of the ITAA 1997. (Bhardwaj and FCT (Taxation) [2026] ARTA 2482, 23 October 2026)

Tax practitioner not a fit and proper person for registration purposes

The ART has affirmed the decision of the Tax Practitioners Board to terminate the registration of an 86-year-old tax practitioner and prohibit him from applying for registration for 3 years for various breaches of the Tax Agent Services Act 2009. These included making false declarations on applications to renew his tax agent registration, failing to complete CPE requirements, failing to lodge his BASs and income tax returns over an 8-year period, and disclosing client information to an overseas third party without client authorisation. Accordingly, the Tribunal agreed with the TPB that the tax practitioner was not a “fit and proper person” for registration purposes. (Simmons and Tax Practitioners Board (Taxation and business) [2026] ARTA 2502, 27 October 2026)

CPI for September 2026 quarter

The Australian Bureau of Statistics (ABS) has issued the Consumer Price Index (CPI) for the September 2026 quarter. It is 103.64, previously 102.31 for the June 2026 quarter. The CPI number is used for calculating the CGT improvement threshold, the car limit and certain superannuation amounts and thresholds.

FRIDAY · Friday 30 October 2026

Tax Reform No. 3 Bill passed by House of Reps – minimum 30% tax on trust income

The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026, which contain the measures to establish a minimum 30% tax on the net income of discretionary trusts, as well as the second tranche of CGT and negative gearing reform changes, were passed by the House of Reps on Thursday 29 October 2026. The Bills have been referred to the Senate Economics Legislation Committee for report by 13 November 2026.

Tax Reform No. 4 Bill passed by House of Reps – 50% discount for start-ups etc

The Treasury Laws Amendment (Tax Reform No. 4) Bill 2026 was passed by the House of Reps on Thursday 29 October 2026. The Bill will provide investors in innovative start-up companies with access to a 50% CGT discount; increase the minimum and maximum expenditure thresholds for the R&D incentives; modernise tax incentives for venture capital partnerships and investors; allow entities to choose to pay PAYG instalments monthly rather than quarterly or annually; and phase in changes to the FBT treatment of eligible electric cars.

GST: No adjustment events re electricity supply payments

The Federal Court has dismissed the taxpayer’s appeal in relation to a matter concerning “adjustment events” under the GST Act. The taxpayer, AusNet, was the representative member of a GST group which included AusNet Electricity Services Pty Ltd (AES). AES was issued with a licence to distribute electricity and was therefore a distributor for the purpose of the Electricity Distribution Codes. AES was required to meet certain service levels in relation to the provision of the relevant services, ie “Guaranteed Service Levels” (GSLs). If AES did not meet those service levels, it was required under the regulatory regime to make a GSL payment to the relevant customers. The Federal Court found that the making of GSL payments did not constitute a change to the previously agreed consideration for the supply of the relevant services and therefore did not constitute an adjustment event within s 19-10 of the GST Act. (AusNet Services Limited v Commissioner of Taxation [2026] FCA 1609, 29 October 2026)

SUPER & FINANCIAL SERVICES · Monday 26 October 2026

ATO targets promoters of compassionate release of super

The ATO has released its 2025–26 data on compassionate release of super. In a joint media release with the Australian Health Practitioner Regulation Agency (Ahpra), the ATO said the number of applications approved fell by 5%, while the total value approved rose by 2% to more than $1.4 billion.

Since 1 July 2025 the ATO has started more than 160 reviews and audits where it considers false or misleading statements were made in applications or medical reports. Penalties imposed total more than $1.5 million. In one case study, the ATO imposed an administrative penalty of around $30,000 on a health practitioner for false or misleading statements in a medical report used to certify an application.

The ATO said its concerns include business arrangements that use short online consultations and templates to streamline access to super, and dentists who encourage individuals to access super for cosmetic dental procedures. The release also says one practitioner has had their registration suspended and other practitioners are the subject of ongoing tribunal proceedings.

AFCA reports 42% rise in superannuation complaints

AFCA received 8,755 superannuation complaints in 2025–26, up 42% on the previous year, according to its Annual Review. Complaints about funds refusing to pay claims rose by 80%.

Across all sectors AFCA received almost 120,000 complaints, the highest number in its history. Banking and finance accounted for 66,971 and general insurance for 36,022. AFCA said large investment collapses were the main driver of investments and advice complaints, most of which concerned the Shield and First Guardian Master Funds.

Senate committee calls for submissions on trust minimum tax

On 15 October 2026 the Senate referred the Treasury Laws Amendment (Tax Reform No. 3) Bill 2026 and the Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026 to the Senate Economics Legislation Committee.

The Treasurer introduced the Bills on 14 October 2026. The Tax Reform No. 3 Bill:

• requires trustees to pay a 30% minimum tax on the taxable income of discretionary trusts from 1 July 2028, with non-refundable offsets for beneficiaries other than corporate beneficiaries;
• provides expanded rollover relief from 1 July 2027 for trusts that restructure into another arrangement, such as a company or a fixed trust, under Schedule 2;
• allows a trust to make an election that exempts it from the minimum tax for as long as it distributes to pre-nominated beneficiaries in line with an upfront nomination;
• continues the capital gains tax and negative gearing reforms under Schedules 4 and 5; and
• provides transitional relief for excess contributions in the first year of Payday Super.

Minister sets $170.3 million CSLR special levy for 2026–27

The Assistant Treasurer and Minister for Financial Services, Dr Daniel Mulino, has made a determination setting a special levy of $170,262,208 for the 2026–27 levy period of the Compensation Scheme of Last Resort (CSLR). The determination is dated 12 October 2026. It was made after the Minister was notified under subsection 1069F(3) of the Corporations Act 2001 that the revised claims, fees and costs estimate for the licensed personal advice sub-sector could cause that sub-sector’s levy cap to be exceeded. The determination does not commence if either House of Parliament disallows it.

The levy is spread across 23 sub-sectors. The amount for licensees that provide personal advice on relevant financial products to retail clients is $10 million. This is in addition to the sub-sector’s annual levy, which is capped at $20 million. SMSFs are not among the sub-sectors listed.