CPA Australia Tax News

This edition of Tax News was current at the time of publication on 3 September 2026. You can subscribe to the Tax News email in your comms preference centre. 

Data matching of passenger movements

The ATO has registered a notice of a data–matching program with the Department of Home Affairs for 2026–27 through to 2028–29. Data items include arrival date, departure date, passport information, and visa status.

The data will used to identify taxpayers for tax and superannuation compliance.  

Administration of Director Penalty Notices

The Tax Ombudsman’s review will assess whether the ATO’s administration of DPNs is fair, effective and has appropriate safeguards, including within insolvency and restructuring contexts. 

This includes being responsive to the circumstances of affected directors when administering the director penalty regime, including consideration of statutory defences. 

It will focus on how the ATO identifies and responds to vulnerability-related issues such as coerced directorships. It aims to identify where improvements may be needed while continuing to protect public revenue and employee entitlements.

Send your comments to: [email protected] by 21 September 2026.

ATO interest income not yet available

The ATO has yet to provide ATO interest income on individual prefilling reports. It will provide an update as soon as the fix has been deployed successfully.

Treasury releases plan for 2026-27

Treasury has released its Corporate Plan 2026–27. Notable measures include:

• a new housing supply measure comparing dwelling completions to demand
• a pending measure for deciding low-risk foreign investment proposals within 30 days, following Government reforms announced in May 2026
• continued 100% compliance targets for Budget delivery (Charter of Budget Honesty) and payments to States/international institutions.

Reducing costs for climate-related financial disclosure

Treasury has released a consultation paper seeking feedback on ways to reduce compliance costs while maintaining the quality of sustainability reporting.

Mandatory climate–related financial disclosures commenced on 1 January 2025, requiring Australia's largest entities to report on their climate–related risks and opportunities. 

The paper is accompanied by transition planning guidance, which was released in draft form last year.

Send your comments: to [email protected] by 25 September 2026.

ATO website updates

• Three reasons to lodge your trust tax return on time 
• Assign and manage permissions
• Protect your tax practice from cyber threats
• Read Commissioner Rob Heferen’s speech at CPA Tax Forum 2026
• Read Second Commissioner Kirsten Fish’s speech at CPA Tax Forum 2026 
• Tax crime prosecution case studies.

Small businesses must act early on financial difficulties

ASIC published an article focused on helping small business directors recognise warning signs (such as cash flow issues, overdue tax or super, unpaid suppliers) that they may be on the verge of insolvency. 

Regulatory Guide 217 sets out ASIC's expectations of directors to prevent insolvent trading and provides guidance on the use of safe harbour protection from liability for insolvent trading. 

New ASIC guidance for professional year candidates

ASIC advises that it has published new guidance for professional year candidates, their supervisors, and Australian financial services (AFS) licensees.

• Professional Year (INFO 297) provides answers to common questions, including information about documentation, record keeping, plans, tasks and logbooks.
• Candidates have access to a snapshot of some key milestones that must be met during the professional year.

New series on sustainability reporting requirements

ASIC has released eight educational modules aimed at helping companies understand sustainability reporting requirements.

ASIC sets focus on promoting economic growth

ASIC’s Corporate Plan 2026–27 frames the year ahead around four themes: 

• supporting better financial outcomes for all Australians
• driving productivity
• enhancing innovation
• building resilience. 

This comes after the government handed ASIC a new Statement of Expectations with a mandate that emphasized its role in promoting economic growth through strong regulation. 

Defensive plans against AI cyberattacks

ASIC and APRA warned financial market entities about the growing threat of AI-powered cyberattacks and encouraged them to develop defensive responses. 

During a series of roundtables in June and July, industry leaders gathered insights and created a set of key questions that boards and executives should be asking themselves. 

12 superannuation products underperformed in annual test

APRA has released the results of the 2026 superannuation performance test and product insights. 1 of 50 MySuper products failed the test, which was the first time a MySuper product had failed since 2023. Failure was largely driven by poor investment performance.

APRA’s annual test assesses the long-term performance of superannuation products to improve member outcomes and enhance transparency.

Levy on digital advertising revenue

Parliament passed the Treasury Laws Amendment (News Media Bargaining) (Consequential) Act 2026 last week. It introduces a new levy, the News Media Incentive (the "NMI") of 2.75 per cent on advertising revenues. 

This will apply to social media entities who have Australian digital advertising revenue that exceeds $250 million in the previous 12 months. 

The NMI is not deductible for tax purposes (s 26–120 of the ITAA 1997). However, expenditure incurred due to an entity managing its tax affairs related to the payment of the NMI is deductible (ss 25–5(1)(g) and 25–5(1)(h)). The changes apply to income years starting on or after 1 January 2025.

Standard deduction for work-related expenses

Draft LCR 2026/D5 states that individuals who qualify for the standard deduction are not required to substantiate their work-related expenses (and do not need to incur any expenses). 
However, in order for individuals to claim over $1,000 in work-related expenses, they need to keep records in relation to each expense claim from the first $1.

The draft includes a proposed compliance approach for individuals claiming laundry expenses, calculation method and record keeping from 1 July 2026 ($1 for a full load of work–related laundry, 50c for a mixed load). 

Proposed date of effect: 1 July 2026.

Send your comments by 25 September to [email protected]

Increased cap for WET producer rebate for NZ producers 

The ATO has issued an addendum to Wine Equalisation Tax Ruling WETR 2006/1 on the operation of the WET producer rebate for New Zealand wine producers, which includes an increase to the maximum amount of the rebate from $350,000 to $400,000.

Extensive amendments have been made to the ruling due to legislative changes. 

No transfer pricing adjustment in Alcoa case

The ATO has issued a DIS outlining its response to the ART's decision in Alcoa of Australia Ltd and FCT (2025). In this case, the ART determined that Alcoa’s sale of alumina to a smelter in Bahrain through an intermediary was not at arm’s length due to bribery arrangements. 

However, the dealing had not resulted in Alcoa receiving less consideration than they would’ve in an arm’s length dealing. Therefore, the transfer pricing provisions in former Div 13 of the ITAA 1936 did not apply. 

The ATO’s DIS confirms that it will continue to consider the totality of evidence to establish the arm's length conditions. 

Overall, the ATO states that the ART's decision will have no implications for the ATO's advice and guidance products.

Privilege waived over brief to counsel

In McEwan v FCT (2026), the Qld Supreme Court ordered the Commissioner of Taxation, the Commonwealth DPP and certain individuals to disclose a brief to counsel and related documents in connection with their defence to a claim for malicious prosecution. 

The defendants had deliberately pleaded and produced the advice of counsel as justification for the prosecution decision, but sought to withhold the underlying brief and instructions. 

The Court found the defendants' conduct was inconsistent with maintaining privilege over the brief to counsel. The advice could not be meaningfully understood or assessed without the brief that shaped it. The Court ordered disclosure of those documents under rule 223(1).

IR targets scheme to claim fraudulent expenses

IR has identified a coordinated scheme in which people claim bogus expenses due to information from social media. As a result of its investigation, IR has stopped nearly three thousand fraudulent amended returns.

People who claim illegitimate expenses could be subject to sanctions, including a 150 per cent evasion shortfall penalty and/or prosecution, as well as having to pay the money back. 

CPA members gain new pathway under NZ skilled migration settings

Following sustained advocacy by CPA Australia, eligible members who can undertake the work of a Qualified Statutory Accountant in New Zealand and who are members of CPA Australia can claim six points under the Skilled Migrant Category Resident Visa pathway. 

Eligibility depends on both membership status and the nature of the work being undertaken. Members should refer to Immigration New Zealand for full details on the Skilled Migrant Category Resident Visa requirements.

Fiji and New Zealand conclude double tax agreement negotiations

The Fiji Revenue and Customs Service has successfully concluded the second and final round of negotiations with the NZIRD on the review of the DTA between Fiji and New Zealand. 
A further announcement will be made when the revised DTA is to enter into force, following the completion of the domestic procedures required by each country.

Final AML/CFT Bill targets criminals, cuts red tape

The fourth and final bill in the government’s overhaul of New Zealand’s anti-money laundering laws will soon be introduced to Parliament. 

Aimed at reducing compliance burden, the bill will allow businesses to simplify customer verification where the risk of money laundering or terrorist financing is low. 

The bill also includes allowing an issuing officer, such as a judge or Justice of the Peace, to approve the temporary freezing of high-risk transactions and accounts. In addition, the bill creates powers to regulate cash payments involving remittance services and virtual assets, such as cryptocurrencies and tokens.

Fuel tax hike cancelled

The fuel excise hike planned for next year will no longer occur. The next increase of 5c a litre will instead take effect from 1 January 2028, followed by three further 5 cent increases at six-month intervals. Annual increases will then resume from 1 January 2030, of 5 cents per year.

Previously, the fuel excise was scheduled to resume annual increases starting with a 12c per litre increase from 1 January 2027. 

Road user charges have also been delayed and will increase from 1 January 2028 (instead of 1 January 2027) at rates equivalent to the increase in fuel tax.

S&P affirms New Zealand’s AA+ rating

S&P has affirmed New Zealand’s AA+ foreign currency credit rating and forecasts the economy to grow 2.5 per cent in the 12 months to June next year. 

In its review, S&P acknowledged New Zealand's monetary policy flexibility, wealthy economy, relatively low net debt and strong institutions. It noted that action to reduce the deficit and revitalise the economy included: reducing income taxes, streamlining the public service, incentivising foreign investment through the reversal of offshore oil and gas exploration bans, and reforming the local government sector. 

New Zealand is one of just 18 economies in the world to have an AA+ or better rating.

IR website updates

• Apply for Fees Free before 31 December
• Requirements for extension of time

New FBT rate of interest for employment-related loans

IR’s DET 26/06 states that for the quarter commencing 1 October 2026 and subsequent quarters, the fringe benefit tax prescribed rate of interest applying to employment-related loans will be set at 6.07 per cent (previously 5.77 per cent).

Property deemed trading stock

TDS 26/12 concluded that a build and fit-out were trading stock for Investment Boost purposes. 

The Tax Counsel Office considered that the taxpayer held the building and fit-out for the dominant purpose of selling them in the ordinary course of its business (rather than deriving rental income) (s YA 1).

Increased cap for WET producer rebate for NZ producers

The ATO has issued an addendum to Wine Equalisation Tax Ruling (WETR 2006/1) which includes an increase to the maximum amount of the WET rebate for NZ wine producers from $350,000 to $400,000.

Extensive amendments have been made to the ruling as a result of legislative changes. 

Dates of effect: 

• 1 October 2019 (for changes that reference A New Tax System (Wine Equalisation Tax) Regulations 2019)
• 1 July 2026 (for the increased producer rebate)
• 12 August 2026 (for changes that reference A New Tax System (Wine Equalisation Tax) (New Zealand Foreign Exchange Conversion) Determination 2026).

Home detention for tax evasion

A New Plymouth woman was sentenced to home detention when she appeared in court on tax evasion charges. The taxpayer was sentenced by Judge Kellar in the New Plymouth District Court on 31 charges of evading or attempting to evade the assessment or payment of GST and income tax worth nearly half a million dollars.

Moko Drilling provided consulting services, and the resulting income was transferred directly to the taxpayer. For tax periods between 2017 and 2024, she failed to file GST returns and income tax returns for the company and for herself.

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