CPA Australia Tax News

This edition of Tax News was current at the time of publication on April 9. You can subscribe to the Tax News email in your comms preference centre. 

Pre-Budget Submission

CPA Australia submitted a pre-Budget submission in January. You can download it here.

TPB Sanctions Regime Changes

On Friday 24 April CPA Australia, together with other professional associations, made a submission on the draft legislation containing proposed changes to the TPB’s sanctions regime.
 
Broadly we support the changes proposed in the draft legislation, as a strong focus of the proposals is to increase the TPB’s powers to combat unregistered practitioners.  

For other proposed penalty increases we are advocating to ensure that the focus for poor behaviour by registered practitioners is on the most egregious actions, as intended by Parliament. This currently is not overtly captured in the draft legislation. 

Strengthening foreign resident capital gains tax 

We made a submission to the Treasury’s foreign CGT  consultation raising serious concerns.

The draft legislation as currently framed would retrospectively reopen transactions dating back nearly two decades and broaden the CGT base in ways that go beyond a narrow clarification.

FBT targeted consultation - Red Tape Reduction Review 

We made a submission to the Board of Taxation’s FBT targeted consultation. The submission raised key issues and provided comments in reducing red tapes the following areas:

• Grouping Approaches: Potential changes to how entities are grouped for FBT purposes.
• Motor Vehicles: Compliance and valuation methods regarding private vehicle use.
• Work-Related Travel: Streamlining the compliance obligations for business travel.
• Car Parking Valuation: Addressing the complexity in valuation and compliance.
• Meal Entertainment: Providing input on the tax treatment and compliance requirements for entertainment benefits. 

HELP minimum repayment income 

The Department of Education has registered the notice specifying the minimum repayment income ($69,528) and replacement indexable amount ($129,717) for the Higher Education Loan Program (HELP) for the 2026-27 income year. 

ATO website updates

• Mutuality principle for taxable NFPs
• Not-for-profit Stewardship Group 
• Section D: Super funds
• RTP schedule instructions 2026

SUPERANNUATION AND FINANCIAL PLANNING

ASIC intensifies global finfluencer enforcement action

ASIC has issued warning notices to four finfluencers and commenced reviews of several Australian Financial Services licensees as part of a coordinated international enforcement action targeting unlawful social media financial influencers. 

The action, conducted alongside 16 global regulators during the second Global Week of Action Against Unlawful Finfluencers, aims to disrupt illegal online financial promotion and protect consumers from potential financial harm.

Since issuing Information Sheet 269 Discussing financial products and services online (INFO 269) in 2022, ASIC has actively reminded licensees about their supervisory obligations when engaging finfluencers. The regulator expects licensees to maintain adequate, documented supervision arrangements and comprehensive records of oversight activities.

ATO super updates 

• Increased visibility for trust elections 
• RTP schedule 2026 - Super funds – 
• Don't miss disqualified trustees 
• Super funds and CIVs RTP schedule 

LEGISLATION

No TFN required to accept PPL superannuation contributions 

Treasury Laws Amendment (Minor and Technical Amendments No. 1) Regulations 2026 (the amending regulations) have been made to make the following minor and technical amendments:

• update the reference to the MSCI Australia Quarterly Private Infrastructure Fund Index in the Superannuation Industry (Supervision) Regulations 1994 (SIS Regs) to reflect that the Index was frozen in September 2024
• correct a typographical error in Retirement Savings Accounts Regulation 1997 (RSA Regs) so that the provision cross-references to the correct provision
• amend the SIS Regs to allow the regulated superannuation fund to accept Paid Parental Leave Superannuation Contributions even if the member's Tax File Number has not been quoted for superannuation purposes to the trustee of the fund and
• fix an incorrect cross-referencing in Corporations Regulations 2001 (Corps Regs).

Date of effect: The Regulations commence 21 April 2026.

RULINGS AND GUIDANCE

ATO transfer pricing guidance for inbound distributors update  

The ATO issued an update to Practical Compliance Guideline PCG 2019/1, which contains a transfer pricing risk-assessment framework for inbound distribution arrangements. The update clarifies the scope of PCG 2019/1 and includes a white zone.

A taxpayer will be in the white zone if its inbound distribution arrangements are covered by a signed APA, a settlement agreement with the ATO, a relevant court or tribunal decision, or a low-risk or high-assurance rating from the ATO, with no subsequent material change in the comparability factors or pricing of the arrangements.

Date of effect: applicable to existing and new inbound distribution arrangements. 

PS LA 1998/1 update  

The ATO has updated Practice Statement PS LA 1998/1: Law administration practice statements. This practice statement explains what ATO law administration practice statements are, why they exist, and how they are created, maintained and used. The changes are replacing references to the new PAG Advisory Committee (previously PAG Steering Committee), clarifying maintenance obligations, and ensuring alignment of content of content in practice statements to the intent of the Policy management framework.

CASES

Div 7A deemed dividend and dividend stripping scheme

The ART has confirmed that a loan did not satisfy the requirements of Div 7A and therefore the taxpayer received a deemed dividend, although the amount of the distributable surplus was reduced by payroll tax liabilities, and that a corporate restructure was a dividend stripping scheme. The loans were made by way of advances and book entries, not pursuant to a pre-existing written agreement. 

The ART also confirmed the ATO's decision to treat the corporate restructure in September 2018 as a scheme "by way of or in the nature of dividend stripping" under s 177E of the ITAA 1936 and a "dividend stripping operation" under s 207-155 of the ITAA 1997. A dividend stripping operation does not require an unrelated external party, the use of imputation credits did not constitute "escaping" tax and Div 7A does not displaced the operation of s 177E. (Botella and FCT [2026] ARTA 604, ART, Lazanas DP, 16 April 2026.)

FBT car fringe benefits: operating cost method unavailable

The taxpayer failed to establish that it could use the operating cost method (OCM) to calculate the taxable value of car fringe benefits for 2 of its vehicles, and was found to have been reckless in its FBT lodgments. The ART was satisfied that car fringe benefits arose in relation to Cars 6 and 7, with the taxable value to be calculated under the SFM. The ART refused to exercise its discretion to allow the taxpayer to make a late election to use the OCM. The ART also upheld the 50% administrative penalties (on the basis of recklessness), stating that not providing information or calculations to the ATO still constituted false or misleading statements and the taxpayer had not taken "reasonable care". (Prestige Form Group NSW Pty Ltd and FCT [2026] ARTA 627, ART, Willis GM, 16 April 2026.)

NEW ZEALAND TAX NEWS

Big events that shook accounting 

AI may be the new kid on the accounting block, but it’s not the only change, technologically or otherwise, that has altered accounting forever – and it won’t be the last. Here’s what history tells us.

Information sharing between IR and Ministry of Social Development

Inland Revenue and the Ministry of Social Development are seeking feedback on plans to amend their Approved Information Sharing Agreement.

The proposed change would waive the existing requirement under the Privacy Act 2020 for MSD to give welfare recipients 10 working days' notice to dispute the accuracy of their personal information when an adverse action is taken (such as reducing or stopping a benefit) based on shared information. This change would help avoid overpayments of benefits and reduce the likelihood of welfare recipient debt.

The government has agreed that, from July 2028, MSD can use PAYE information to assess eligibility and automatically calculate payment rates for benefits and other income-tested assistance. These changes will improve payment accuracy and reduce the compliance burden on welfare recipients to declare their PAYE income to MSD.

GST input tax claims by unregistered unincorporated bodies 

IR issued the questions we've been asked QB 26/01: GST - Registered members of unregistered unincorporated bodies. 

The QB considers whether a member of an unincorporated body who is registered for GST can claim input tax deductions for expenditure incurred by the unincorporated body if the unincorporated body is not itself registered for GST. It also considers whether members can claim input tax deductions for contributions they make to the unincorporated body.

IR website updates

• Adding bank accounts when registering a new tax type in myIR 
• Tax Agent debt webinar April 2026 
• Reminder for cryptoasset investors 
• Changes to sharing information about unpaid tax   

SUPERANNUATION AND FINANCIAL PLANNING

FMA joins global initiative tackling unlawful influencers

The FMA joins global regulators in a week of action to tackle unlawful finfluencers and misleading online financial promotions in New Zealand. During the week beginning 20 April, 17 regulatory authorities are taking part in the second annual operation, undertaking enforcement actions, regulatory measures, consumer awareness campaigns and educational programmes for financial influencers, or finfluencers. 

The FMA’s actions are focused on raising public awareness of the risks involved in engaging with finfluencers, while also reminding finfluencers and the industry of the legal boundaries when promoting or offering financial products or services. The FMA contacted 14 finfluencers active across a range of social media platforms, to outline relevant legal obligations and address concerns about their online content or offerings. As a result, misleading or harmful content has been removed, including advertisements targeting New Zealanders. Some finfluencers have reduced the scope of their services or stopped offering services to New Zealanders altogether.

LEGISLATION

GST for goods and services in commercial dwellings (PUB00511)

IR issued the interpretation statement exposure draft entitled Goods and services tax - Reduced value rule in s 10(6) for supplies of domestic goods and services in commercial dwellings. It explains how GST applies to long-term accommodation in commercial dwellings under s 10(6) of the GST Act.

The Statement clarifies that there are two separate rules with different trigger points:

• Under the main rule, the reduced value for the supply of domestic goods and services applies after the first 4 weeks of accommodation.
• Under the proviso, the reduced value for the supply of domestic goods and services applies from the start of the supply.

The Statement also covers nuances around the legislation such as "residential establishment", multiple stays across different bookings, etc.