CPA Australia Tax News

This edition of Tax News was current at the time of publication on 25 June 2026. You can subscribe to the Tax News email in your comms preference centre. 

Don’t trust your tax return to TikTok or ChatGPT

As we head into tax time, CPA Australia is urging Australians to think twice before relying on “finfluencers” or AI-generated tips - especially with some of the biggest tax changes in decades on the table. CPA Australia Tax Lead Jenny Wong warns the 2026–27 Federal Budget reforms are complex and highly individual. Read more.

How the ATO protects your financial data

This podcast takes a deep dive into the ATO’s counter-fraud program, emerging scam trends and the practical tools available to strengthen digital security across the tax system. Listen now.

PM announces Budget changes

• The Prime Minister announced important changes to tax reform measures contained in the 2026-27 Budget, as well as several new changes to the CGT rules includingto increase the turnover threshold for the existing small business 50% active asset CGT reduction from $2 million to $10 million. 
• Treasury released a consultation paper on the design of a 50% discount for early-stage investors termed the "Innovative Business CGT Concession".
• The government is planning to release a consultation paper on implementation of the minimum tax on discretionary trusts "in the coming weeks”.
• The government will exempt income from all types of discretionary testamentary trusts from the minimum tax provided they are established for genuine testamentary purposes and limited to income from assets of the deceased estate. 
• the government will introduce legislation "next week" to implement the changes to loss carry back and instant asset write off.

Treasury Fact Sheet on CGT and trust reforms

Treasury set out the impact of the proposed CGT and trust changes for small businesses. The explainer provides a brief overview of the reforms and several examples to illustrate how the CGT changes could impact micro-businesses (ie with one or 2 owners). It also outlines instant asset write-off, 2-year loss carry back rule, loss refundability for start-ups, and the proposed new Innovative Business CGT Concession.

Preparing tax practitioners for expanded AML/CTF regime

The TPB reminds tax practitioners that Australia's AML/CTF regime will expand from 1 July 2026 to include higher-risk services provided by several industries, including the accounting sector.

A factsheet outlines the changes, including how the AML/CTF framework interacts with the TASA, and provides practical guidance on steps to assess and manage risk. TPB/AUSTRAC joint webinar recording covers AUSTRAC's role, an overview of the reforms, key obligations for regulated entities and program starter kits.

ATO website updates

• Transition from the SBSCH before 1 July
• Lodge your 2025-26 NFP self-review return
• Record-keeping rules for business
• Deductions for home-based business expenses
• Enhancing the link between ATO and myGov
• R&D transparency report 2023-24 in September

ASIC approach to superannuation advertising ban

ASIC has released its transitional approach to enforcing a new ban on the advertising of superannuation funds during the employee onboarding process.

Date of effect: 1 July 2026.

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Div 296 earnings attribution and valuation rules

Income Tax Assessment (1997 Act) Amendment (Building a Stronger and Fairer Super System and Other Measures) Regulations 2026 prescribe certain values, calculations, and methods so that all applicable superannuation interests are properly assessed for the purposes of the Div 296 tax.

Schedule 1 contains attribution rules for working out a member's share of a fund's Div 296 earnings, which is relevant to Div 296 tax liability.

Schedule 2 prescribes rules for valuing defined benefit interests and certain other superannuation interests.

Schedule 3 makes adjustments to TSB values for defined benefit interests subject to a family law payment split.

Schedule 4 updates some of the method assumptions in Schedules 1A and 1AA of the Principal Regulations, which are used to value notional taxed contributions and defined benefit contributions. 

Date of effect: 19 June 2026.

Identifying the employer in tripartite working arrangements

Draft Superannuation Guarantee Ruling SGR 2026/D1, explains how to identify the employer in a tripartite working arrangement involving an intermediary firm, an entity ("end-user") requiring the services or labour of an individual, and the individual (worker) performing those services or labour.

The ATO says that the employer is identified by applying the following steps.

• Determine whether a contract for the performance of work or the supply of labour exists. 
• Identify the parties to that contract. The end-user cannot be the employer if there is no contract between the worker and end-user. 
• Assess whether an employment relationship exists under the common law or the expanded meaning of "employee" in s 12 of the SG (Admin) Act 1992 per TR 2023/4.

Proposed date of effect: retrospective.

Taxpayer not entitled to occupancy and car deductions while working from home

The ATO issued its final DIS on the Full Federal Court's decision in FCT v Hall (2026). In that case, the Full Court held that the taxpayer was not entitled to deductions for occupancy expenses and car expenses. In Hall v FCT (2025) the ART allowed the taxpayer a deduction for occupancy expenses, as well as a deduction for car expenses for travel from his home to the ABC studios.

The ATO states in the DIS that:

• For occupancy expenses, a home office remains part of the home, and it does not become business premises merely because it is used regularly or necessarily for income-earning activities.
• For transport expenses, traveling between work and is considered ordinary commuting, not income-producing travel, even whilst working at home. This position is unaffected by contemporary or pandemic-era working arrangements.

Recoupment assessable if amount deducted

The ATO issued a DIS on the Full Federal Court's decision in Ziegler v FCT (2025). The Court dismissed the taxpayer's appeal against an AAT decision, which provides authority for the following propositions:

• For the purposes of s 177EA of the ITAA 1936, a scheme may be identified broadly, including as a single step, and purpose is determined objectively by reference to the relevant circumstances.
• A recoupment is assessable under s 20-20 of the ITAA 1997 where an amount has been in fact deducted, irrespective of entitlement.
• The Commissioner has a continuing duty to assess administrative penalties and may amend a penalty assessment where it is considered incorrect.
• in Pt IVC proceedings, "excessiveness" depends on the correct application of the tax law, and not on administrative conduct or contractual arrangements.

Income tax liabilities waived on serious financial hardship grounds

In Prasser and FCT (2026) the ART set aside an ATO decision refusing to release a taxpayer from outstanding income tax liabilities and associated general interest charges, on grounds of serious financial hardship.

The ART determined that the total household income after expenses left approximately $600 a month but the ATO's proposed payment plan was for the taxpayer to pay approximately $3,000 per month. The ART concluded that satisfying his liabilities would cause him serious financial hardship.

The ART also considered that, taking into account PS LA 2011/17, it was appropriate to release Mr Prasser from his liabilities. The ART took into account that the debt had arisen in the unique circumstances of a global pandemic that significantly impacted his industry and the use of the funds he had set aside to pay the tax was reasonable. 

GST types of unincorporated bodies submission

Our submission supports IR’s initiative to clarify the GST treatment of unincorporated bodies, including the distinction between simple co-ownership, joint ventures and partnerships. The draft guideline is a positive step, but the current framework remains highly fact-dependent and may leave taxpayers uncertain about when separate GST registration and compliance obligations arise.

We recommend practical tools to support consistent application, including a diagnostic checklist or matrix, a safe harbour for low-risk arrangements, clearer liability guidance, and practical processes for input tax and invoicing issues. The guideline should also include more worked examples, trust-specific guidance and a post-implementation review.

Online gambling duty name change

The Offshore Gambling Duty is now referred to as the Online Gambling Duty (OGD). IR is currently updating its systems and returns to reflect this change, so you may see both names used for a period of time. For more information, click here.

IR website updates

• Protect your myIR account and client information
• Baycorp to collect overdue tax debt
• More information request letters for individual income tax assessments

99.5 per cent benefiting from KiwiSaver rate change

After an increase that took effect on 1 April, approximately 99.5 per cent of Kiwi Saver contributors are now allocating 6 to 7 per cent of their wages or salaries to their accounts KiwiSaver has just under 3.5 million members, of whom about 1.8 million contribute to their accounts through employee deductions.

BNZ admits misleading conduct and pays $2.6 million

Bank of New Zealand breached fair dealing rules by misleading customers on how interest was calculated on some non-profit accounts. They have agreed to pay $2.6 million to the Crown through an enforceable undertaking.

BNZ updated its terms and conditions in 2014 to state that interest would be calculated daily. However, from December 2014 to February 2024, for the non-profit accounts, BNZ calculated interest using a different method based on the lowest monthly balance, resulting in customers receiving less interest than they were entitled to.

BNZ became aware of the issue in September 2023 after a customer query. A total of 23,103 customers were affected, with about $5.39 million in interest underpaid. BNZ self-reported the issue to the FMA and has remediated affected customers, paying approximately $5.44 million, including use of money interest.

Annual CPI adjustments

IR issued the following updated determinations and operating statement to adjust for Consumers Price Index (CPI):

• Dual Use of Premises (OS 19/03): The square metre rate is $57.30 (applying to the 2026 income year).
• Childcare Providers (DET 09/02): The hourly standard cost (per child) is $4.70, and the annual fixed record-keeping cost is $460.00.
• Household Boarders (DET 19/01): The weekly standard-cost (per boarder) is $245.00.
• Short-Stay Accommodation (DET 19/02): The daily standard-cost is $65.00 for owned dwellings and $59.00 for rented dwellings.

Working for Families tax credits and family scheme income

IR published IS 26/12 which provides an overview of eligibility for Working for Families tax credits and discusses the adjustments required to a person's net income to determine family scheme income. The statement is also accompanied by a fact sheet.

The statement makes clear that the government has announced changes to the Working for Families rules as part of the Budget 2026, which include changes to the definition and calculation of family scheme income, and changes to the residency rules. 

The legislative changes do not take effect until 1 April 2027. IR said that a revised item incorporating the enacted legislative changes will be published on or before 1 April 2027.

Prison time for tax fraud

An Auckland man was sentenced to 11 months’ imprisonment for tax fraud. 

William Ricco Solomon appeared in the Auckland District Court on 19 June after trying to get seven GST refunds that he was not entitled to. Between November 2023 and May 2024 Solomon submitted GST returns through two myIR accounts, trying to get $247,665.48. No money was released to him.

IR’s systems show Solomon amended figures multiple times in some returns and assessed how this would impact the refund amount before finalising the return.  

Some documents provided as evidence of business activity were fake and two traders named by Solomon in the fake documents said they never traded with him.

After discounts for Solomon’s guilty plea, time spent in custody and personal circumstances, an end point of 11 months’ imprisonment was reached.

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