CPA Australia Tax News

This edition of Tax News was current at the time of publication on 11 June 2026. You can subscribe to the Tax News email in your comms preference centre. 

Submission to Senate Committee on Tax Reform No. 1 Bill 

CPA Australia has called on the Senate Economics Legislation Committee to recommend that the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 not proceed in its current form.

We have warned that the legislation contains material gaps including nine unwritten ministerial instruments, including one specifying an alternative valuation methodology at 30 June 2027, and multiple unresolved interaction issues.

The submission, lodged on 9 June 2026, argues the legislation was introduced without adequate consultation time, resulting in avoidable technical deficiencies that will impose significant compliance burdens on Australian taxpayers and their advisers.

While the government's objectives of improving housing affordability, reforming CGT concessions and providing tax relief are legitimate policy goals, CPA Australia is concerned that the legislation has been introduced before critical interactions between different parts of the tax law have been fully tested.

A key concern relates to the Bill's deemed sale mechanism, which effectively requires taxpayers to split gains between pre- and post-1 July 2027 periods. Although intended as a transitional measure, CPA Australia argues the mechanism creates numerous interactions with existing CGT provisions that have not been adequately addressed.

The submission identifies a range of areas where the new rules may produce unexpected outcomes when combined with existing tax provisions. These include interactions with tax consolidation, deceased estates, trusts, small business CGT concessions, rollovers, capital losses and other long-standing components of the CGT regime.

Treasury estimates the ongoing annual compliance cost of the CGT and negative gearing measures at $88.4 million per year. CPA Australia's bottom-up analysis, drawing on ATO Taxation Statistics, Tax Time lodgement data, and member survey responses, puts the figure at $295 to $542 million per year and identifies a further one-off transitional valuation obligation of at least $675 to $825 million that Treasury has not disclosed. Every CGT asset held on 30 June 2027 must have a market value established at that date, creating a significant compliance event for property investors, private company shareholders, and business owners.

The submission proposes a three-tier framework for capital gains on business assets, recommending a new section 115-103 that retains the 50 per cent CGT discount for assets satisfying the active asset test under section 152-40 where the taxpayer's aggregated turnover does not exceed $20 million. CPA Australia argues that without this carve-out, founders and small business owners who have built genuine enterprise value from a low or nil cost base will face outcomes materially worse than the discount they are losing.

CPA Australia's submission makes eight specific asks of the Committee, including correction of the Explanatory Memorandum errors before passage, release of the transitional apportionment method instrument by 1 October 2026, publication of distributional analysis of the minimum tax provisions, and a statutory independent review commencing no later than 1 July 2029.

CPA Australia's full submission is available here.

I welcome your feedback. Email me.

Jenny Wong
Tax Lead
CPA Australia

Small business guide to ATO compliance

In this podcast, Angela Allen, assistant commissioner at the ATO, responsible for small business experience, discusses the most common tax issues affecting small business.

Listen to podcast 

ATO loses appeal in High Court decision on Bendel 

In a 5-2 split (Jagot and Beech-Jones JJ dissenting), the High Court yesterday handed down the majority decision and dismissed the Commissioner's appeal in Bendel’s case, ruling that:

• The corporate beneficiary (Gleewin Investments) did not provide "financial accommodation" under section 109D(3)(b).
• The arrangement did not, in substance, effect a "loan of money" to the trustee. 
• The resolutions to set aside the trust income did not establish a relevant debtor-and-creditor relationship under the strict statutory meaning required by Division 7A.

This decision effectively invalidates the ATO's long-standing administrative position held since 2009 (and codified in TD 2022/11). Tax practitioners will now look closely at how the ATO structures its Decision Impact Statement. (Commissioner of Taxation v Bendel (2026)).

Call for fair and sustainable solution to CSLR funding

In a joint submission to Treasury, CPA Australia, CAANZ and The Institute of Public Accountants are calling for proposals to shift Compensation Scheme of Last Resort (CSLR) costs onto SMSFs to be reconsidered, warning it will unfairly burden investors while failing to address the true causes of financial losses.

Read more in our media release.

Tax and corporate whistleblowing review 

Treasury has published a consultation paper to inform a review of the tax and corporate whistleblowing regimes which were reformed in 2019. The Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019 made amendments to:

• the framework contained in Part 9.4AAA of the Corporations Act 2001 
• introduce a new tax whistleblowing regime in Part IVD of the Taxation Administration Act 1953.

The 2019 Act included a requirement for a review of tax and corporate whistleblowing regimes after 5 years. 

Treasury seeks feedback on whether the existing frameworks effectively protect whistleblowers and encourage disclosures. 

Send your comments by 17 July to: [email protected]

Providing tax agent services whilst unregistered

The TPB  has issued a media release about an investigation of an unregistered accountant in Western Sydney for providing and advertising tax agent services. His registration was previously terminated by the TPB.

The investigation found the accountant had contravened the Tax Agent Services Act 2009 by providing tax agent services unlawfully and that he went to "extra lengths" to conceal his involvement.

The TPB warns it will monitor unregistered tax agent activities during this year's tax time and encourages the community to report any suspect activity.

ASIC IDR data dashboard updates

ASIC has issued a media release highlighting updates to its Internal Dispute Resolution data dashboard with the inclusion of:

• complaints open, received or closed between 1 July and 31 December 2025
• a new complainant demographics page showing trends by age group, gender and location
• a downloadable data file, enabling users to analyse selected complaint metrics

ATO website updates

• Tax time toolkit
• 5 EOFY tips for trustees
• Public and MNCs Private Capital Program
• Key tips for electing family trust entities
• Updated family trust guide
• Income from digital platforms or apps
• Payday Super myths

Leadership vs. Technical Management

25 June | 1 CPD hour

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Government Finance Business Partner Conference

29–31 July | Canberra

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Medicare Thresholds and Pension Supplement changes

The government added two more schedules to Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026. Changes include:

• increase of Medicare levy low-income thresholds
• addition of pension supplement while overseas.

Date of effect: 20 September 2026 (if the Act receives Royal Assent on or before 20 July 2026.) 

The amendments apply prospectively to all relevant recipients overseas before, on or after commencement of the Schedule.

Interest rate for superannuation splits

Family Law (Superannuation) (Interest Rate for Adjustment Period) Determination 2026) says that where  a superannuation interest is subject to a base amount splitting order or agreement under the Family Law Act, and the interest is a defined benefit superannuation interest, or an interest in an SMSF, the Australian Government Actuary determines the interest rate for any 12-month adjustment period. 

This instrument is technical in nature and applies Australian Bureau of Statistics data to existing formulae in the Family Law (Superannuation) Regulations 2025 in relation to these interest rates.

Under paragraph 76(4)(a) of the FLS Regulations, for an adjustment period with the financial year beginning on 1 July 2026, the interest rate is 6.1%.

Date of effect: 1 July 2026

Promotion of tax exploitation schemes

In FCT v Perez (No 2) (2026) the Federal Court found that a registered tax agent promoted various tax exploitation schemes involving fraudulent R&D tax offset claims made on behalf of corporate taxpayers.

The Court found that each scheme was directed at obtaining a tax offset under Div 355 of the ITAA 1997, thereby constituting a "scheme benefit”.

The Court also found that he was a "promoter" of the schemes, received consideration in the form of contractual entitlements to a percentage of any R&D tax offset obtained, and had a substantial role in the marketing and encouragement of each scheme.  

Rental property and car expense claims unsuccessful 

A taxpayer was largely unsuccessful in claiming deductions for rental property and car expenses in Eltamimy and FCT (2026).

The ART was not satisfied as to the existence or terms of the taxpayer’s claimed tenancy, the nature of the taxpayer's use of the property, or the commerciality of the rent said to have been paid.

He did not meet the requirements of Subdiv 28-G to use log book documentation. Accordingly, the taxpayer should have used the cents per kilometre method to work out deductions for car expenses. 

Landholder duty: shares not group property 

In Commissioner of State Revenue v Special Situations Investing Group III, Inc (2026), The Queensland Court of Appeal held that 2 acquisitions of shares by a private landholder were not exempt from landholder duty under s 406 of the Duties Act 2001 after finding that the shares did not constitute “group property” under s 407(1)(a)(i) and therefore the acquisitions were not exempt from landholder duty under s 409. 

The Court held that since the shares in GS Venture had been owned by other group companies well before either GS Holdings or Special Situations became group companies, neither the transferor nor the transferee was a group company before that first ownership commenced. 

Five client communication tips

The key to forging strong relationships with clients is a personalised and proactive approach to communications using secure channels for sensitive information. Here’s how.

61 mortgage fraud charges against six individuals

The FMA has filed 61 charges against six individuals under the Crimes Act 1961, the Secret Commissions Act 1910 and the Financial Markets Authority Act 2011. The charges relate to an alleged mortgage fraud and were filed at the Manukau District Court. 

The matter is currently before the courts with some suppression orders in place.

Overdue tax and late tax payments

Between 10 and 19 June, IR will be contacting about 2,000 customers who have overdue tax of over $100, and one or two outstanding tax returns. 

New double tax agreement with the UK

New Zealand and the United Kingdom have signed a new double tax agreement to replace the current 1984 agreement. 

The new DTA will better support cross-border trade and investment by providing greater certainty to taxpayers on their tax obligations, while protecting New Zealand’s interests. It also includes key anti-abuse provisions developed by the OECD to prevent base erosion and profit shifting. Read more.

New diesel storage finished

The work to recommission an additional 93 million litres of diesel storage capacity at Marsden Point in Northland has been completed. 

IR website updates

• Tax agents survey results

Leadership vs. Technical Management

25 June | 1 CPD hour

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Budget Bill introduced

The government has introduced the Taxation (Budget Measures) Bill (No 3) into the House on 29 May 2026. The Bill contains four of the measures in Budget 2026:

• Reduction of the maximum cap for gifts qualifying for the donation tax credit to the lower of $100,000 or the donor's taxable income
• An exemption from non-resident contractors' tax for the dry leasing of aircraft and parts
• Changes to tax a shareholder on an outstanding loan six months after the lending company is removed from the Companies Register
• Working for Families measures to make it simpler for people to understand obligations and reduce the risk of going into debt.

KM rates for business use of vehicles

OS 19/04 (KM 2026) sets the kilometre rates for the 2025-26 income year for the purposes of deductions relating to business motor vehicle expenditure.

Kilometre rates for the 2025-26 income year

Overseas trust inheritance (TDS 26/06)

TDS 26/06: Living trust, bare trust, distributions involved an overseas trust deed (GPT) set up by a couple who lives overseas while their son lives in New Zealand as tax resident. The question was what New Zealand tax consequences would arise when the couple eventually died, and the trust's assets passed to their son or his family.

The main issues considered by the Tax Counsel Office were:

• whether the amended GPT deed created a valid trust in New Zealand law until the death of the last surviving trustor (ie the couple). A: No
• whether the nature of the trust created on the death of the last surviving trustor, a bare trust. A: Yes
• whether the inheritance is taxable in New Zealand. A: No.

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