6 November 2026

2 November 2026 to 6 November 2026 Weekly Bulletin Contents TAX MONDAY 2 NOVEMBER 2026

TAX · Monday 2 November 2026

ATO: CGT reform and market valuations

The ATO has clarified that the CGT reform measures, which will deem a taxpayer to have sold and immediately reacquired relevant assets held at 30 June 2027, don't require a taxpayer to have a valuation in place on that date. The ATO also said taxpayers shouldn't obtain one before that date, as a valuation can't be forward-looking. Where the market valuation method is chosen under the new CGT rules, a valuation undertaken retrospectively will be sufficient (as is currently the case where a market valuation is needed), provided it uses an acceptable method.

ATO: Dental practice searched over early release of super scheme

The ATO has advised that its officers, with support from the Australian Federal Police (AFP), executed a search warrant at a Melbourne dental practice. The practice is linked to a former health practitioner suspected of helping individuals illegally access their super early by falsely claiming compassionate grounds. The ATO said the investigation highlights the significant risk posed by facilitators who abuse compassionate release arrangements and put Australians' retirement savings at risk. Note: it is alleged the health practitioner supplied fraudulent medical reports to support applications for compassionate release of super for dental treatment, where applicants were ineligible or the dental work was never provided.

No Daily Update tomorrow

There will be no Daily Update published tomorrow (Tuesday 3 November) because of the Melbourne Cup public holiday.

WEDNESDAY · Wednesday 4 November 2026

ATO: Ruling withdrawn re total superannuation balance

The ATO has withdrawn LCR 2016/12 Superannuation reform: total superannuation balance from 4 November 2026. The ATO said that the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 introduced the concept of an individual's total superannuation balance and that the Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026 changed how an individual's total superannuation balance is calculated from 30 June 2026 onwards. The ATO also said that to the extent that the views in LCR 2016/12 remain relevant, they have been incorporated into draft TR 2026/D3 Total superannuation balance.

ATO monthly consultation report

The ATO has released its monthly report on ATO consultation activities, as follows: Uplifting the Australian Business Number and Super Fund Lookup Services; Australian Business Number Authentication; Payment methods; Foreign resident capital gains tax changes; ATO Creditor Guidelines (appendix to PS LA 2011/16); and Crypto - Asset Domestic Reporting Regime.

THURSDAY · Thursday 5 November 2026

High Court: Pt IVA applies to share sale which generated $56m loss

The High Court has confirmed that Pt IVA applied to a share sale scheme entered into by the taxpayer whereby shares it sold to a related entity generated a capital loss of some $56m which offset a later gain from its sale of other shares to a third party. In doing so, the High Court unanimously upheld the decision of the Full Federal Court in Merchant v FCT [2025] FCAFC 56 that the “share sale” scheme was entered into or carried out for the dominant purpose of obtaining a tax benefit for the purposes of s 177D, and that there was no other meaningful or realistic commercial objective achieved by the taxpayer. However, by majority, the High Court held that the “dividend stripping” provisions in s 177E did not apply to identified schemes as they did not have substantially the effect of a scheme by way of, or in the nature of, “dividend stripping”. (FCT v Merchant; Merchant v FCT [2026] HCA 39, 4 November 2026)

NSW Payroll Tax: High Court - Uber liable for payments made to drivers

The High Court has dismissed an appeal by Uber from the NSW Court of Appeal in respect of its liability for NSW payroll tax for fare payments it made to drivers. In a majority decision, the High Court held that the relevant “Driver Contracts” were contracts under which Uber supplied the “driving services” of drivers, who agreed to perform particular driving services, to particular standards. The High Court further held that the remitted fares were paid or payable for or in relation to the performance of work under the Driver Contracts within the meaning of s 35(1) of the Payroll Tax Act 2007 (NSW) and were therefore deemed to be wages for the purposes of that Act. The High Court therefore held that Uber was liable to pay payroll tax. (Uber Australia Pty Ltd v Chief Commr of State Revenue [2026] HCA 40, 4 November 2026)

ATO rulings: How to calculate total superannuation balances and interests

The ATO has released Draft Taxation Ruling TR 2026/D3 Total superannuation balance which outlines how to calculate the total superannuation balance (TSB), which is the combined value of all of a person’s Australian superannuation interests. The total superannuation balance is relevant for determining: a person’s Div 296 tax liability; eligibility to carry forward unused concessional contributions; eligibility for the non-concessional contributions cap (including access to the bring-forward arrangement); eligibility for the work test exemption, relevant for deducting personal superannuation contributions; and eligibility for the government co-contribution. Comments due 18 December 2026.

At the same time, the ATO has released LCR 2026/D6 Total superannuation balance value which explains how to determine the TSB value of a superannuation interest generally, and the TSB value of: (a) a superannuation interest subject to a payment split where the non-member spouse cannot become a member of the plan; and (b) the associated notional interest of the non-member spouse. Comments due 18 December 2026.

Guideline updated: simplified transfer pricing record-keeping options

The ATO has updated Practical Compliance Guideline PCG 2017/2 Simplified transfer pricing record-keeping options with the interest rate for low-level inbound and outbound loans for the 2026–27 year. The interest rate for both sets of loans will be 5.69%.

FRIDAY · Friday 6 November 2026

Taxpayer primarily successful in showing assessments excessive

A taxpayer has been primarily successful before the ART in showing that amended assessments issued to him for the 2013 to 2017 income years were excessive. The assessments had increased his assessable income by $7.8m and imposed penalties of $3.7m. The taxpayer, who had lived in Monaco with his wife for some 30 years before returning to Australia in 2012, was issued with amended assessments on the basis of the CFC and transferor trust rules. Further, the assessments were issued out of time on the basis of “fraud or evasion”. The ART firstly concluded that the taxpayer had not met his burden of proving that the evasion opinion should not have been made - but only in relation to the transferor trust Issues. However, the ART then otherwise found that the taxpayer had “narrowly” met the burden of proving that the amended assessments were excessive and what his income should have been. Accordingly, the ART ruled that the amended assessments should be set aside and reissued on the basis of agreed adjustments and other matters it determined. Likewise, the ART found that short fall penalty assessments should be remitted in part, but that a base penalty rate of 80% should be applied. (QKPW and FCT(Taxation) [2026] ARTA 2614, 30 October 2026)

Court dismisses tax-agent’s application for stay of TPB’s actions

The Federal Court has dismissed a tax-agent’s applications for a stay of the Tax Practitioners Board application to seek declarations, a permanent injunction and a pecuniary penalty against the tax-agent in relation to alleged contraventions of the Tax Agent Services Act 2009 (Cth). The tax agent sought the stay pending the hearing of related criminal proceedings in the District Court in Brisbane and because of personal health reasons. However, the Court held that there were insufficient evidence and grounds for a stay in the circumstances. (Tax Practitioners Board v Ke (No 2) [2026] FCA 1657, 3 November 2026)

DIS on Cheung case – default assessments for $30m

The ATO has released a Decision Impact Statement on the Full Federal Court decision in FCT v Cheung [2026] FCAFC 75. In that case, the Court found that the taxpayer did not discharge the onus of showing that default assessments issued to him for some $30m (from bank deposits) were excessive and that the amounts were in the nature of a gift from his sister. The ATO said that this decision makes clear that a taxpayer seeking to prove that amounts received have the character of a gift, needs to produce evidence that is coherent, consistent, corroborated and complete. Comments due 4 December 2026.

SUPER & FINANCIAL SERVICES · Monday 2 November 2026

Trust minimum 30% tax bill passes the House

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 Thurs 29 October 2026. Note: The Bills have been referred to the Senate Economics Legislation Committee for report by 13 November 2026.

ATO: Dental practice searched over early release of super scheme

The ATO has advised that its officers, with support from the Australian Federal Police (AFP), executed a search warrant at a Melbourne dental practice. The practice is linked to a former health practitioner suspected of helping individuals illegally access their super early by falsely claiming compassionate grounds. The ATO said the investigation highlights the significant risk posed by facilitators who abuse compassionate release arrangements and put Australians' retirement savings at risk. Note: it is alleged the health practitioner supplied fraudulent medical reports to support applications for compassionate release of super for dental treatment, where applicants were ineligible or the dental work was never provided.

ASIC announces a second review of adviser qualification records

On 30 October 2026, ASIC announced a further targeted review of the Financial Advisers Register (FAR). The review will examine a sample of the qualifications and training courses that AFS licensees have recorded on the FAR as going towards their relevant providers meeting the qualifications standard.

Treasury consults on doubling the deceased estate withdrawal limit

Treasury opened a consultation on 22 October 2026 on draft amendments to section 69B of the Banking Act 1959. Submissions close on 20 November 2026.

The draft amendments increase the withdrawal limit for a deceased person's estate-related expenses, including funeral expenses, from $15,000 to $30,000. The limit applies to payments an authorised deposit-taking institution makes without production of probate, the will or letters of administration. The amendments also allow payment of court filing fees when applying for probate of a deceased person's will or letters of administration of the estate.

In a joint media release on 23 October 2026, the Assistant Treasurer and the Treasurer said the Government intends to implement the changes from later this year, following consultation.

UDIA calls for new homes to be exempt from SMSF borrowing restriction

The Urban Development Institute of Australia (UDIA) has called on the Government to exempt newly built homes from the restriction on SMSF borrowing. For limited recourse borrowing arrangements (LRBAs) entered into on or after 10 August 2026 an SMSF can only use an LRBA to acquire real property if it is business real property.

UDIA cites Treasury evidence that about 8,700 SMSFs entered into new LRBAs in 2023-24. The Government’s earlier estimate was that 4,000 dwellings would be affected. UDIA puts the property investment at risk at an indicative $8.7 billion a year, based on an assumed average property value of $1 million.

ASIC proposes to remake the tax advice exemption for licensees

On 28 October 2026, ASIC released a proposal to remake ASIC Corporations (Recognised Accountants: Exempt Services) Instrument 2016/1151 for 5 years. The instrument is due to sunset on 1 April 2027. ASIC proposes minor amendments to bring it up to date and says its effect will not change.

ATO confirms tax-free part of a foreign pension

In a recent private ruling, the ATO has confirmed that an Australian resident is entitled to an undeducted purchase price (UPP) deductible amount for their foreign pension. The UPP deductible amount is the part of the annual pension that represents a return of the taxpayer's personal contributions which is tax-free.

The annual amount is calculated as A × (B - C) ÷ D, where:

• A is the taxpayer's share of the pension (typically 1 if all of it is payable to them)
• B is the UPP
• C is the residual capital value (nil here)
• D is the relevant number, which for this pension is a life expectancy factor for the taxpayer, or for their spouse if the spouse has a greater life expectancy.

The factor comes from the Australian Life Tables, using life expectancy at the date the pension first became payable. The ruling also sets a pro-rated amount for a part income year, based on the number of days the pension was paid in that year.