CPA Australia Tax News

This edition of Tax News was current at the time of publication on 23 June 2026. You can subscribe to the Tax News email in your comms preference centre. 

ATO 2026–27 corporate plan released

The ATO has issued its corporate plan 2026-27 which provides coverage of the functions of the ATO, the TPB and the Australian Charities and Not-for-profits Commission. 

Highlights include plans to: 

• implement the government's $1,000 instant tax deduction by establishing new systems and processes to validate individual entitlement
• expand the dynamic PAYG instalment pilot for small and medium business
• implement Payday Super by embedding superannuation guarantee payments into routine payroll processes from 1 July 2026
• strengthen payment performance and debt collection
• enhance counter-fraud measures 
• build system stewardship across digital partners
• scale and embed the responsible use of AI across ATO work. 

Arbitration process between Australia and Japan signed

The ATO has published the signed Competent Authority Agreement between the ATO and Japan's National Tax Agency that operationalises the arbitration process provided for in Part VI of the MLI (Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting), as it applies to the Australia-Japan tax treaty. 

Its purpose is to fill in the procedural gaps left by the MLI's arbitration provisions so that unresolved mutual agreement procedure cases can proceed to arbitration in a predictable, structured way.

Date of effect: The provisions of Part VI (Arbitration) of the MLI will have effect with respect to cases presented to a competent authority of a Contracting Jurisdiction on or after 1 January 2019.

Trust tax changes: Will businesses need to restructure?

Tax experts weigh in on how businesses should respond to the budget, but warn more detail is needed. Here’s what you should know.

Why intangible assets are reshaping business valuation

How do you measure value when much of a company’s worth no longer appears on the balance sheet? This podcast explores the growing importance of intangible assets and why they have become one of the most significant challenges facing accountants, valuers, investors, and standard setters. Listen now. 

ATO website updates

• Claiming occupancy expenses while working from home 
• R&D activities conducted for an associated foreign corporation
• Pillar Two June information session recap
• Changes to beneficiary TFN reporting for closely held trusts
• Trustee information about MTAS from 1 July
• Property and Construction Forum

Payday Super communication toolkit

The toolkit includes accessible messaging on errors, late contributions and ATO compliance approach, as well as: 

• links to ATO fact sheets and videos on Getting it right: compliance in the first year of Payday Super and Paying super for your employees 
• key messages tailored to each audience 
• suggested content for communication channels 

Performance audit of ATO's regulation of SMSFs

The Australian National Audit Office has commenced an in-progress performance audit examining the effectiveness of the ATO's regulation of SMSFs. The audit is scheduled to be tabled in March 2027.

The ANAO is currently collecting audit evidence and invites members of the public to contribute information for consideration. They particularly value contributions that address significant matters or provide insights into the administration of the subject of the audit.

Send your comments to: [email protected] by 16 October 2026.

Withholding variation for certain FRCGW events

The ATO issued Draft Taxation Administration (PAYG Withholding Variation for Foreign Resident Capital Gains Withholding Payments) Legislative Instrument 2026. It notes exceptions/variations to the 15 per cent withholding requirement for acquisition of a CGT asset from a foreign resident in the following scenarios:

1. Multiple vendors (Section 6): Where a CGT asset is acquired and only some are foreign residents, the amount payable is based on each foreign resident's percentage interest in the asset.

The amount payable is varied to nil where:

2. Deceased estates (Section 7): The asset devolves to a legal personal representative, beneficiary or surviving joint tenant.
3. Income tax exempt entities (Section 8): The asset is acquired from a specified exempt entity.
4. Marriage or relationship breakdowns (Section 9): The asset is acquired from a spouse or former spouse due to a relationship breakdown.
5. Mortgagee sales (Section 10): where a specified mortgagee exercises its power of sale and there is no residue left after the sale.

Date of effect: The day following registration on the Federal Register of Legislation.

Transfer balance cap ruling updated

The ATO released an Addendum to LCR 2016/9, its ruling on the transfer balance cap. The ruling has been updated to:

• explain the proportional indexation of the transfer balance cap
• add commentary on successor fund transfers
• outline when a superannuation income stream is not in the retirement phase
• reflect the increase in the maximum allowable members (6) of small superannuation funds.

ATO also added several new examples.

Date of effect: retrospective.

ATO updates DIS on FCT v Shaw

The ATO has updated its DIS on the Federal Court's decision in FCT v Shaw (2026). It determined that no updates to existing advice and guidance are required at this stage. 

In Shaw, the Court had upheld an ART decision that a truck driver was entitled to a deduction for food expenses based on the ATO's reasonable daily amount. 

The ATO added that TD 2026/4 (Income tax: reasonable travel and overtime meal allowance expense amounts for the 2026-27 income year), which was issued on 24 June 2026, reflects this decision.

No super guarantee charge on teachers' salary loading allowance

Department of Education v FCT (2026) considered whether an annual 17.5 per cent "salary loading allowance" paid to Victorian government teachers formed part of the teachers' notional earnings base before 1 July 2008 and their OTE from 1 July 2008, so that amended superannuation guarantee charge assessments issued to the Victorian Department of Education were valid.

The Court reasoned that teachers' ordinary salary was the payment for their ordinary hours. The loading was a separate annual lump-sum payment, payable by reference to being employed on a date and service criteria, not as earnings for ordinary hours.

Payroll tax payable on payments to subcontracted cleaners

In SKG Cleaning Services Pty Ltd v Chief Commissioner of State Revenue (2026), the NSW Court of Appeal dismissed an appeal against a finding that contracts for the provision of cleaning services were "employment agency contracts" under the Payroll Tax Act 2007 (NSW). Therefore, the appellants were liable for payroll tax on amounts paid to subcontractors.

Liability arose on date of digital signing

In Forever Grateful Holdings Pty Ltd v Chief Commissioner of State Revenue (2026), the NSW Supreme Court held that liability for duty on the transfer of trust property arose on the date the electronic transfer instrument was digitally signed, not on the date when an unexecuted draft form was uploaded to the Revenue NSW eDuties portal. 

Inflation at 4.1% due to gas prices

Stats NZ’s Consumers Price Index showed inflation was 4.1 per cent in the 12 months to the end of June. By far the biggest contributor was the increases to petrol and diesel, at 27.5 per cent and 71 per cent respectively. Without changes in petrol and diesel prices, annual inflation would have been 2.9 per cent. 

In addition, annual food price inflation fell from 4 per cent to 2.8 per cent. Annual rent increases were 0.5 per cent across the year, the lowest for almost 25 years. 

New Zealand’s economy is set to grow 2.7 per cent on average every year for the next four years, creating 220,000 jobs.

New Zealand-Singapore essential supplies agreement

The Agreement on Trade in Essential Supplies between New Zealand and Singapore is now in force. 

Under the agreement, Singapore guarantees to supply New Zealand with fuel, medicines and chemicals. In return, New Zealand guarantees to supply Singapore with food, creating certainty for businesses and citizens of both countries.

$10 billion investment in NZ R&D

The Research and Development Tax Incentive (RDTI) has now supported more than $10 billion invested by businesses in R&D activity. 

Following the 30 June application deadline, more new businesses have enrolled for the scheme this year than for any year since 2021. The majority of those new enrolees have been small businesses. 

It took around three years for the scheme to support its first $1 billion of R&D activity, and fewer than four more years to reach $10 billion. Read more.

Business travel in the APEC region

If you travel regularly for business trade, investment or service delivery across the APEC region, you may be eligible for an APEC Business Travel Card. 

With the card, you can enter participating APEC economies without applying for a separate visa for every trip, as well as access dedicated APEC lanes at major airports.

IR’s overdue debt and returns campaign

Inland Revenue is continuing its targeted campaign aimed at customers with debt. This time, IR is looking at clients who have been through its full billing cycle but have not yet responded. IR will contact the customer twice and leave a message after the first call. 

IR support for serious weather events

IR has advised if you have been affected by the severe weather conditions in the Kaikoura, Waitaki, South Wairarapa and Wairoa districts, and the Marlborough region, you do not need to contact IR right now. Please focus on recovering from the damage caused. 

If you are a tax agent and your client has been affected, please support them as needed. When you can, please contact IR in myIR including the word ‘weather’ or call IR on their disaster line 0800 473 566 for help for you, your family or your business tax. 

IR website updates

• Registering new business tax accounts in myIR 

Employee allowances may be tax exempt

A private ruling considered the tax treatment of various employee allowances such as meal, tool, and laundry allowances paid under employment agreements. The main issues included whether those allowances are exempt income to employees and whether the payer has PAYE withholding obligations.

Large scale digital fraud ends with prison sentence

An Auckland man has been sentenced to five-and-a-half years in prison for a large-scale tax and COVID fraud, as well as for perjury and fabricating evidence. 

Over almost two years, he submitted 121 fraudulent documents to IR to try to get more than $2 million. He received only $251,035.74. 

He purchased people’s personal information and lists of credit card information from online ‘dark web’ marketplaces. Using their details, he logged in to the myIR accounts of individuals and businesses, then submitted fraudulent documents in their names. 

IR systems prevented the vast majority of his attempts to obtain payments. IR was also assisted by the banks and other organisations to help identify him. 

Work done on commercial building was capital

In Podium Investments Limited v Commissioner of Inland Revenue (2026) the High Court concluded that Taxation & Charities Review Authority was correct in finding work done on commercial building was capital in nature. 

Podium Investments Ltd sought to deduct approximately $460,000 of seismic strengthening expenditure and $1.5 million of ground-floor glass façade expenditure incurred as part of a major refurbishment of a commercial building, located in Hamilton. 

The High Court dismissed Podium’s appeal of the Taxation & Charities Review Authority decision which found in in favour of the Commissioner, holding that both categories of expenditure were capital in nature. They formed an integral part of a wider project that transformed a seismically sub-standard retail building into a modern, compliant office building. On a standalone basis, the works independently resulted in significant improvements to the building’s character, functionality and value.

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