CPA Australia Tax News

This edition was current at the time of publication.

Better Targeted Superannuation Concessions draft legislation released

The Federal Government has released exposure draft legislation for the Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2025. This introduces a new tax (Division 296) on individuals with total superannuation balances exceeding $3 million, or a higher rate over $10 million. 

The measure proposes to tax the proportion of a member’s superannuation earnings over $3 million at an additional 15 per cent, bringing the effective tax rate on those earnings to 30 per cent, with an additional 10 per cent, or 40 per cent overall, applying to earnings attributable to the proportion of the member’s balance over $10 million.

The tax is charged to those who are assessed as having balances of more than $3 million and is in addition to any applicable fund earnings tax which is 15 per cent. Division 296 tax is assessed on realised earnings attributable to members with total superannuation balances more than $3 million.

A joint submission (by CPA Australia, Chartered Accountants Australia and New Zealand and the Institute of Public Accountants) highlights concerns with the exposure draft. These include the scale of additional administration and system costs that would be borne across the entire superannuation system — including by members who may never be subject to Division 296 — and the risk of undermining confidence in superannuation as a stable, long-term retirement savings vehicle.

Our submission also raises concerns regarding the treatment of franking credits and other tax offsets, which do not reduce Division 296 earnings. This approach may produce inequitable outcomes and distort investment decisions, particularly in relation to Australian equities. In addition, aspects of the notional pension income rules, the absence of meaningful discretion for the Commissioner in exceptional circumstances, and the treatment of certain contributions are identified as areas requiring further refinement.

Although transitional capital gains tax relief is proposed, our submission questions its design, noting that it may impose unnecessary compliance costs on funds and trustees, particularly where the concession may never ultimately be required.

Given the complexity of the measure and the reliance on further regulations and administrative guidance, we caution that unintended consequences are likely and urge ongoing consultation and timely legislative amendments to better align the law with its stated policy intent.

Changes to interest and FTL penalty remission requests

The ATO has updated its web pages on interim changes to interest and failure to lodge penalty remission requests. These are the relevant forms:

• GIC – ATO GIC remission application form.
• SIC  ATO SIC remission application form (PDF, 68.5KB)This link will download a file.
• FTL – ATO FTL remission application form (PDF, 68.5KB)This link will download a file.

Additional web content updates

• QC 106065 (New webpage) - How to request a remission of interest and failure to lodge penalties
• QC 106067 (New webpage) – Examples of GIC remission requests
• QC33410 - Failure to lodge on time penalty
• QC33796 – Remission of penalties
• QC33808 – Remission of interest charges
• QC65241 – Communication in online services for business
• QC82537 – Practice mail

TPB issues revised guidance on conflicts of interest

The Tax Practitioners Board has refined its discussion of the obligations under s 20 of the Determination in guidance TPB(I) 46/2024, which deals with managing conflicts of interest when undertaking activities for government and maintaining confidentiality in dealings with government.

National gun buyback scheme: income tax consequentials

The Combatting Antisemitism, Hate and Extremism (Firearms and Customs Laws) Bill 2026 has been passed by the Houses of Federal Parliament without amendment and awaits assent. It contains amendments to the Income Tax Assessment Act 1997 which ensure that any compensation payments that a taxpayer may receive under the national gun buyback scheme will not be assessable.

ATO website updates

• Protect your GST and fuel tax credit entitlements
• How to complete the ACR form
• Examples of GIC remission requests 
• Global and domestic minimum tax 

 

Superannuation and Financial Planning

ASIC updates guidance on managing conflicts of interest 

ASIC has released updated Regulatory Guide 181 AFS Licensing: Managing Conflicts of Interest (RG 181), with effect from 13 December 2025. It aims to help financial service licensees understand their obligations and implement robust conflict management strategies to protect consumers, investors, and the broader financial ecosystem. 

ATO super updates

What we look for when auditing an SMSF auditor
CRT Alert 001/2026 

 

Professional Development

Excel Masterclass series 2026 

Featuring a different topic each month, the Excel Virtual Masterclass series focuses on four key areas to improve your Excel effectiveness. Register now. 

 

Legislation

$47.3m CSLR special levy legislated

The Corporations (Financial Services Compensation Scheme of Last Resort - Special Levy) Determination 2025 has been registered to implement the $47.3m special levy announced by the Assistant Treasurer on 10 December 2025.

The table below shows the five sub-sectors most highly impacted by the special levy. SMSF trustees are not impacted by the special levy.

2025-26 Special Levy

Date of effect: The Instrument commences 13 December 2025. The levy notices are due for payment 30 business days after date of issue.

 

Rulings and guidance

Ruling on CBC reporting withdrawn, practice statements updated

The ATO withdrew Law Companion Ruling LCR 2015/3 on country-by-country reporting. The ruling has been withdrawn as it is no longer reflects the current law (including the expansion of the significant global entity concept) and has been superseded by various ATO website documents.

The ATO also updated the following practice statements to remove references to LCR 2015/3:

• PS LA 2012/4 (Administration of the false or misleading statement penalty – where there is no shortfall amount)
• PS LA 2012/5 (Administration of the false or misleading statement penalty – where there is a shortfall amount)
• PS LA 2014/2 (Administration of transfer pricing penalties for income years commencing on or after 29 June 2013).

 

Cases

Property transfer between company and director: mixed outcome

The Administrative Review Tribunal (ART) partially allowed objections regarding the taxation treatment of a property transfer. It found that the market value was lower than claimed by the ATO, but that the transfer was a taxable transaction for both income tax and GST purposes. The ART concluded that: 

• the property was not held on trust by TCR for Mr Robinson. The transfer of the property to him was a taxable supply for GST purposes
• the market value of the property was $2.25m and not $4.128m (and amount referable to the GST-exclusive value was assessable income of TCR 
• the property was not Mr Robinson's main residence
• a deemed dividend did not arise under s 109C ITAA 1936 as the consideration paid equalled the market value. (Robinson and FCT [2026] ARTA 50, ART, Willis GM, 16 January 2026.) 

Queensland landholder duty – appeal news

The Queensland Chief Commissioner of State Revenue has lodged an appeal against the Queensland Supreme Court's decision in Special Situations Investing Group III, Inc v Commissioner of State Revenue [2025] QSC 345 that share transfers within a corporate group were exempt from Queensland landholder duty. 

In November 2017, the taxpayer acquired approximately 97 per cent of the shares in GS Asian Venture (Delaware) L.L.C through two separate transactions. GS Asian Venture had subsidiaries that owned interests in Queensland:  land with an unencumbered value over $2 million, potentially exposing the taxpayer to landholder duty. The court held that the GS Asian Venture shares were "group property" under s 407(1)(a)(i) of the Duties Act 2001 (Qld) and each transfer was part of a corporate reconstruction. Accordingly, the taxpayer was exempt from landholder duty.

 

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