CPA Australia Tax News

This edition was current at the time of publication.

Tax debt: How to avoid repeating the pandemic playbook

Recent developments suggest Australia may be slipping back into a familiar policy pattern: rapid, crisis driven intervention reminiscent of the COVID 19 era. The most visible example is government’s decision to temporarily halve the fuel excise for three months, at an estimated budget cost of $2.55 billion.

The policy rationale is clear. Escalating geopolitical tensions have triggered a sharp fuel price shock, feeding directly into household and business cost pressures. A fuel excise cut delivers immediate, highly visible relief at the bowser. 

But this approach also revives uncomfortable lessons from COVID era economic management. Temporary relief measures, while politically effective, tend to be poorly targeted, fiscally expensive and difficult to unwind. Economists have warned that cutting fuel excise risks sustaining inflationary pressure and shifting the burden to the Budget through higher borrowing or foregone revenue. As with pandemic stimulus, the longer term consequence may be a debt legacy rather than structural reform.

This matters in a tax system already grappling with a significant tax debt overhang. The ATO has made clear that the era of COVID style forbearance is over. With the tax debt book having ballooned during the pandemic, the ATO has returned to a much firmer collection stance, including tighter payment plans, limited interest remissions and increased use of enforcement tools. For businesses, this means cost of living relief on one hand, but far less tolerance for tax arrears on the other.

Against this backdrop, questions of policy consistency arise. CPA Australia has previously cautioned against discrete, ad hoc tax changes, such as singling out the CGT discount, arguing that piecemeal measures can undermine system coherence and are unlikely to fix the housing crisis. 

The same principle is relevant here. A one off fuel excise cut may be defensible as short term crisis relief, but it should not become a substitute for broader, better targeted support or longer term tax reform.

The challenge for policymakers is to avoid repeating the COVID playbook: fast intervention now, followed by higher public debt and tougher tax enforcement later. If crisis responses are unavoidable, they must be clearly temporary, transparent in cost, and accompanied by a credible pathway back to sustainable fiscal and tax settings.

I welcome your thoughts. Email me.

Jenny Wong
Tax Lead
CPA Australia

ATO responds to impacts of high fuel costs

The ATO has published a media release outlining its response to the impacts of the high fuel costs to businesses. 

In addition to the general support options available, the ATO is offering streamlined access to a tailored payment plan for eligible businesses (including sole traders). 

ATO fuel response payment plan

An eligible business can access the ATO fuel response payment plan with the following conditions:

• no upfront payment
• a 3-year payment plan period of 36 equal monthly instalments
• general interest charge (GIC)remission – the ATO will make a decision to remit any GIC that accrues from the time of the application to the date of the third monthly instalment, provided that the taxpayer:
  – pays all instalments agreed under the payment plan for 3 months 
  – bring any outstanding lodgments up to date in that period. 

No further application for GIC remission for this period is required. 

The ATO fuel response payment plan is available by registration of interest through online services until 30 June 2026 (no phone registration available at this time). 

Tax practitioners can register interest on behalf of their clients. In addition to registering an interest in accessing the ATO fuel response payment plan, taxpayers can indicate their intention to vary PAYG instalments. 

The ATO will use this information to notify taxpayers or their representatives of next steps to formally enter the payment plan and information about varying instalments.

It will continue to assess the situation and support options available and communicate whether it will continue or change this support beyond 30 June.  Updates will be made to information here if the ATO's response changes.

The role of tax practitioners

Given the important role tax practitioners play in the tax system, particularly during times clients may be experiencing financial pressures, the ATO has included dedicated web content for tax practitioners.

Survey shows Aussie small businesses falling behind Asia-Pacific peers

Australian small businesses continue to rank at or near the bottom of the Asia-Pacific region on growth, innovation and technology adoption, with CPA Australia warning Australia is falling further behind, highlighting the urgent need for productivity reform.

Results from CPA Australia’s 17th annual Asia-Pacific Small Business Survey shows Australia again underperforming across key indicators of small business success – with the trend showing little sign of improvement.  

CPA Australia Business and Investment Lead Gavan Ord said the findings paint a troubling picture for Australia’s economic future. Read more.

Use of AI and the Code of Professional Conduct

The TPB has released a draft Information sheet (TPB(I) D62/2026) as an exposure draft to provide practical guidance to assist tax practitioners in understanding their obligations under the Code of Professional Conduct in relation to the use of artificial intelligence.

Some notable key considerations for tax practitioners when using AI:

• Responsibility and Competency – while AI tools are useful and can deliver significant benefits, tax practitioners are still  responsible for the tax agent services they provide 
• Confidentiality and Data Security – entering client information into AI chatbots/copilots, depending on how these tools are configured and used may constitute breaching Code item 6 with further consideration for the Privacy Act 1988 (Cth) and the Privacy (Tax File Number) Rule 2015.

Send you comments by 10 April to [email protected]

Board of Taxation and TPB appointments 

The government has announced the appointment of the Hon David Bradbury as the part-time chair and member of the Board of Taxation, and reappointed  Peter de Cure as  part-time chair and member of the TPM. 

 

ATO website updates

• Modernising tax administration systems 
• Tax consolidated group restructures  
• Trusts administration changes 
• Late payment offset
• Using SBSCH for the last time.

 

SUPERANNUATION AND FINANCIAL PLANNING

Access to abuser's superannuation for survivors of child sexual abuse 

The Treasury Laws Amendment (The Survivors Law) Bill 2026 was introduced to Parliament. The Bill creates a framework enabling victims and survivors of specified child abuse offences to access certain amounts from a perpetrators' superannuation to satisfy unpaid compensation orders. 

The process involves six steps. To access the process, victims or survivors must meet specific criteria including:

• that the perpetrator has been convicted or found guilty of a specified child abuse offence to a criminal standard
• a court has ordered compensation which has remained unpaid for at least 12 months; and
• the recovery period has not expired.

For SMSFs, additional consequences apply for non-compliance, including automatic disqualification of trustees and directors.

Date of effect: The Bill commences the day after Royal Assent, with requests for perpetrator superannuation information available from 12 months after commencement. 

 

PROFESSIONAL DEVELOPMENT

Year-end tax wrap   

2-4 June

Attend this two-part webinar series for a 12-month overview of all the tax changes and learn how these changes will affect you and your clients.

CPA PD - Year end tax wrap 2026 - Webinar series

Public Practice Program – Brisbane, Sydney, Melbourne  

Completing the Public Practice Program is a requirement to obtain your Public Practice Certificate. This two-day workshop has been designed to help set your business up for success. 

CPA PD - Public Practice Program 2026 - Workshop

 

LEGISLATION  

Remaining Payday Super measures pass Parliament  

The Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Bill 2025 finally passed both Houses on Monday 23 March 2026 and awaits assent to become law. 

Employee onboarding reforms 
Schedule 1 of the Bill amends the SGAA to enable employers to provide employees with information about their stapled fund during onboarding, giving employees greater choice.

Date of effect: The changes will commence on the day after the Bill receives assent and will apply in relation to contributions made on or after that day.

Ban on advertising 
Schedule 2 amends the Corporations Act 2001 to ban advertising of superannuation products to employees during onboarding. 

Date of effect: The changes will commence from 1 July 2026.

 

Updates to Australia's Domestic Minimum Tax provisions 

Treasury has registered the Taxation (Multinational -- Global and Domestic Minimum Tax) Amendment (2026 Measures No.1) Rules 2026 (the Amending Rules). The purpose of the Amending Rules is to make administrative amendments to ensure the effective operation of the Domestic Top-up Tax under Chapter 2 of the Taxation (Multinational -- Global and Domestic Minimum Tax) Rules 2024 (the Rules), including:

• Clarifies the operation of Domestic Top-up Tax in respect of Stateless JVs and JV subsidiaries.
• Ensures that Domestic Top-up Tax liabilities of subsidiary members are correctly allocated to the head entities. 
• Implements a "push-down" mechanism, where if Australia imposes taxes on a Hybrid Entity or Reverse Hybrid Entity.

Date of effect: 1 January 2024.

 

RULINGS AND GUIDANCE

FBT: cents per kilometre rates for 2026-27

The ATO has released the cents per kilometre rates for calculating the taxable value of a fringe benefit arising in the 2026-27 FBT year from the private use of a motor vehicle (other than a car). The rates are:

• vehicles with an engine capacity of up to 2,500cc - 70 cents/km
• vehicles with an engine capacity of over 2,500cc - 82 cents/km and
• motorcycles - 20 cents/km.

Date of effect: 1 April 2026.

 

FBT: LAFHA - reasonable amounts for meals for 2026-27 

The ATO has released the weekly amounts it considers reasonable for food and drink expenses incurred by employees receiving a living-away-from-home allowance fringe benefit for the 2026-27 FBT year (ie starting 1 April 2026).

For locations within Australia, the reasonable weekly amounts are: 1 adult - $353; 2 adults - $530; 3 adults - $707; 1 adult and 1 child - $442; 2 adults and 1 child - $619; 2 adults and 2 children - $708; 2 adults and 3 children - $797; 3 adults and 1 child - $796; 3 adults and 2 children - $885; and 4 adults - $884. An "adult" for this purpose is a person who is aged 12 years or more at 31 March 2026.

For larger family groupings, $177 is added for each additional adult, while $89 is added for each additional child under 12.

Date of effect: 1 April 2026.

FBT rate update: Electric vehicle home charging  

The ATO has updated PCG 2024/2: Electric vehicle home charging rate - calculating electricity costs when a vehicle is charged at an employee's or individual's home, by inserting rate for the FBT year and income year commencing on and after 1 April 2026.

The EV home charging rate is set at 5.47 cents per km (4.20 cents previously) for FBT year or income year commencing on and after 1 April 2026.

 

 

CASES 

Taxpayer succeeds in showing bank deposits were not assessable

The ART set aside amended assessments and penalty assessments, concluding that various deposits assessed as the taxpayer's income were not assessable income including loans from his parents, the repayment of loans he made to friends, reimbursements of expenses, repayments of short-term loans the taxpayer had made to his various companies when they needed capital and reimbursements from the taxpayer's business for items he had paid for himself. 

The ART was satisfied that the taxpayer and his parents were truthful and credible witnesses and that the parents' evidence was not self-serving. In addition, narrations on bank statements supported the taxpayer's contentions and a forensic accountant reconciled deposits against invoices and verified the flow of funds. (Day and FCT [2026] ARTA 349, ART, McBride GM, 23 February 2026.)

Appeals updates 

The taxpayer has filed an application for special leave to appeal to the High Court against the Full Federal Court decision in FCT v. S.N.A. Group Pty Ltd [2026] FCAFC 10. The Full Federal Court had held that 2 members of a real estate group were not entitled to deductions that were claimed under s 8-1 ITAA 1997 for service fees paid to related trust entities, as there was insufficient evidence of valid contracts requiring payment of such fees, thereby allowing the ATO's appeal.

 

 

 

 

 

 

 

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