CPA Australia Tax News

This edition was current at the time of publication.

  

ATO’s GIC remission management review

The Tax Ombudsman conducted a review into the ATO’s decision making in relation to the GIC on tax debts. CPA’s submission on this is here.

The TO’s review found the ATO’s inconsistent decision-making, vague guidance and poor communication were leading to confusion and unfair outcomes for taxpayers. The TO made four recommendations including the ATO agree an up-front interest-free payment plan for eligible taxpayers.

Ruth Owen will share the outcomes and recommendations of the review in a webinar tomorrow March 6. Register here.

ATO reforms on interest charge relief welcomed

CPA Australia supports the Tax Ombudsman’s call for a fairer approach to GIC remission, and the ATO’s acceptance of all recommendations to improve consistency, transparency and fairness in decision-making.

CPA Australia Tax Lead Jenny Wong said the findings align closely with concerns raised by members over several years. Read more in our media release. 

AML/CTF and Privacy obligations

Becoming a reporting entity, and providing designated services, as part of the AML/CTF regime may also mean you have new Privacy obligations.

The Office of the Australian Information Commissioner provides guidance to help you understand your potential obligations. Additionally, you will also need to consider cyber threats to the personal information you are holding. The Australian Signals Directorate has a small business hub to help.

AML/CTF Solution Providers

CPA Australia is committed to supporting members as they prepare for the commencement of new AML/CTF obligations through partnerships with trusted AML/CTF solution providers. 

Details of the solution provider we are partnering with can be found here.

ATO private wealth priorities for 2026

Private Wealth Deputy Commissioner Louise Clarke has discussed recent developments in the private wealth space and priorities for 2026. 

Main points include:  

• The ATO is expected to publish a practical compliance guideline on back-to-back rollovers.
• Continued focus on compliance with Division 7A, including complying loan agreements, making minimum yearly repayments and the correct benchmark interest rate. Focus will be expanded into arrangements aimed at circumventing Division 7A.

Focus will also continue for Family trust elections and compliance with the 45-day holding rule.

CPA Australia warns against standalone CGT and negative gearing changes

CPA Australia is calling on the government to not make isolated changes to the capital gains tax discount or negative gearing, warning that small changes could have unintended impacts on investment, housing markets and overall economic confidence. Read our media release.

ASIC’s focus revealed amid auditing’s tech evolution

In 2026, auditors are working in an environment defined by AI technologies. ASIC commissioner Kate O’Rourke discusses the evolution of audit and financial oversight in this podcast. Listen now. 

ATO website updates

• ATO lodgments menu 
• ATO systems troubleshooting 
• NFPs supporting natural disasters 
• Late payment offset deadline 
• Tips for upcoming lodgments 

 

SUPERANNUATION AND FINANCIAL PLANNING

Super thresholds for 2026-27

Thomson Reuters has used the latest AWOTE figure released from the Australian Bureau of Statistics, to calculate the superannuation rates and thresholds for 2026-27 in accordance with Subdiv 960-M of the ITAA 1997. Key super rates and thresholds will be confirmed on the ATO website at a later date.

Important superannuation thresholds are set for an increase from 1 July 2026 as shown here.

 

LEGISLATION

Payday superannuation regulations published  

The government has published the Treasury Laws Amendment (Payday Superannuation) Regulations 2026, which support the Treasury Laws Amendment (Payday Superannuation) Act 2025 by introducing mechanisms to reduce administrative penalties and streamline superannuation contribution processing. The release establishes a framework that incentivises employer compliance while ensuring faster processing of superannuation contributions for Australian workers.

The government also announced it will introduce technical amendments to ensure individuals do not exceed their concessional contributions cap in 2026-27 from their SG contributions as a result of the transition from the quarterly superannuation guarantee system to the new Payday Super system.

Date of effect: 1 July 2026

 

 

RULINGS AND GUIDANCE

GST: supplies of formula products 

GST Determination GSTD 2026/1, considers whether supplies of formula products are GST-free under any of the following items in clause 1 of Sch 2 to the GST Act:

• items 1 and 2 (certain specified milk products or beverages consisting of at least 95% of these products) - the ATO says no;
• item 13 (beverages, and ingredients for beverages, of a kind marketed principally as food for infants) - the ATO says the supply is GST-free if the child is up to 12 months old.

GSTD 2026/1 includes a transitional compliance. The ATO will not devote compliance resources to reviewing this GST treatment for tax periods ending before 1 July 2026.

Date of effect: retrospective.

Product ruling (annuity) issued

Product Ruling PR 2026/1 (Allianz Guaranteed Income for Life) - an annuity granted under this scheme satisfies the definition of "annuity" in s 27H(4) of the ITAA 1936.

 

CASES 

Appeals update 

GEOCON LAND HOLDINGS: The Commissioner has applied for special leave to appeal to the High Court against the Full Federal Court decision in Geocon Land Holdings No 5 Pty Ltd v FCT [2025] FCAFC 172. The Court found that the ART had erred in its approach to determining whether excess GST had been "passed on" by a developer to purchasers and it remitted the matter to the ART with directions that the parties be permitted to adduce further evidence on remittal.

ZIEGLER: The taxpayer has sought special leave to appeal to the High Court against the decision of the Full Federal Court in Ziegler v FCT [2025] FCAFC 168. The Court had unanimously dismissed the taxpayer's appeal against a decision affirming an ATO determination under s 177EA of the ITAA 1936 to cancel an imputation benefit.

SUNNA: The taxpayer has appealed (and the Commissioner has cross-appealed) to the Full Federal Court against the decision of Derrington J in Sunna v FCT [2025] FCA 1499. The Court  concluded that the ATO was allowed to amend a 2019 assessment to include a capital gain deemed to be made in that year, even though the capital gain had been wrongly included in the 2020 assessment.

S.N.A.: It is understood that the taxpayer is expected to lodge an application for special leave to appeal to the High Court against the Full Federal Court decision in FCT v S.N.A Group Pty Ltd[2026] FCAFC 10. The Full Federal Court had held that two members of a real estate group were not entitled to deductions for service fees paid to related trust entities, as there was insufficient evidence of valid contracts requiring payment of such fees, thereby allowing the ATO's appeal.

 

 

 

 

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