CPA Australia Tax News

This edition was current at the time of publication.

Middle East conflict relief measures

The government has announced relief measures to support businesses and individuals facing financial strain and supply chain disruptions due to the economic fallout from the conflict in the Middle East.

Key updated ATO temporary relief measures announced for taxpayers include:

• more generous payment plans, remission of interest and penalties, and support in varying PAYG instalments where there has been a downturn in taxable income
• some compliance actions will be limited across the worst affected industries and some debt collection actions may be paused where appropriate
• a dedicated channel will be established by the ATO that businesses can use to access the relief provisions, or they can contact their registered tax professional to request access on their behalf.
  
  

Improved TPB Public Register

The TPB has issued a reminder that registered tax practitioners can now choose which contact details appear on their TPB Register record and update them at any time through My Profile.

New applicants will also be able to select their preferred published contact details when submitting a registration application.

TPB terminates tax agent registration

The TPB  has issued a media release regarding the termination of a tax agent’s registration after finding him not to be a fit and proper person, imposing a 4-year ban prohibiting him from re-applying for registration. 

Accounting for Intangibles Summit 

Intangible assets now sit at the centre of business value, from software and data to technology platforms and AI‑enabled capabilities. 

This CPA Australia summit brings together global standard setters, regulators, valuation experts, investors and senior finance practitioners, to examine burning intangibles questions and explore where accounting and reporting for intangibles may be heading next. Register here.

 

ATO website updates

• Record keeping resources
• Super payment third quarter 
• Changes to your PAYG withholding cycle 
• Qualifying earnings super 
• ATO fuel payment plans 
• Apply for ATO fuel payment plan  

 

SUPERANNUATION AND FINANCIAL PLANNING

ASIC e-learning to support sustainability reporting

ASIC has launched e-learning sustainability reporting educational modules, developed in partnership with the AASB, to help companies understand new sustainability reporting requirements under the Corporations Act 2001. 

Additional resources include Regulatory Guide 280. 

 

LEGISLATION  

Employee entitlement schemes – new ASIC instrument 

ASIC has released a new legislative instrument the ASIC Corporations (Employee Entitlement Schemes) Instrument 2026/199 establishing updated regulatory requirements for operators of employee entitlement schemes under the Corporations Act. 

The release replaces existing relief arrangements and introduces mandatory licensing requirements that will significantly impact how these schemes operate. Under the new instrument, scheme operators must apply to ASIC for an Australian financial services licence by 1 September 2026. The instrument provides conditional relief from managed investment, product disclosure and hawking provisions of the Corporations Act while transitional arrangements remain in place until ASIC grants the required AFS licence.

Date of effect: 1 April 2026

  

RULINGS AND GUIDANCE

Part IVA: property development arrangements 

Earlier this year, the ATO raised concerns about certain property development arrangements (PDAs) between related parties involving long-term construction contracts: see Taxpayer Alert TA 2026/1.The ATO has now issued an accompanying practical compliance guideline, Draft PCG 2026/D2, which contains a risk assessment framework on the potential application of Pt IVA.

The ATO's concerns centre around the use of PDAs between entities with common ownership or control, or who are not dealing with each other at arm's length. Specifically, the ATO's proposed compliance focus is on entities that undertake a single economic activity of property development but separate the land ownership and development activities in an attempt to defer the recognition of income and circumvent the trading stock rules.

Proposed date of effect: retrospective.

Send your comments to: [email protected] by 1 May 2026.

 

CGT and deceased estate practical compliance guideline update  

The ATO has updated PCG 2019/5: Capital gains tax and deceased estates - the Commissioner's discretion to extend the 2-year period to dispose of dwellings acquired from a deceased estate. 

Para 53 has been revised to instruct applicants to submit a request for an exercise of the ATO's discretion in writing, rather than through the private ruling process.

 

CASES 

Proceeds of property development not assessable - ATO loses appeal

The Full Federal Court has upheld a decision that the proceeds from the development of a farm into a residential subdivision were not assessable income. In Morton v FCT [2025] FCA 336, the Federal Court held that the taxpayer had not embarked on a business of developing land and had never ventured the farm into a profit-making scheme; he had merely realised a capital asset. 

That decision has been unanimously upheld by the Full Court. Relevant factors included: the taxpayer had not acquired the land with the intention of profiting by its sale; farming on the land was no longer commercially viable; and he was unwilling to be involved (and was not involved) in any active way with the development of the land. (FCT v Morton [2026] FCAFC 31, O'Callaghan, Derrington and McEvoy JJ, 27 March 2026.)

Non-cash benefits not fringe benefits - taxpayer wins appeal 

The Full Federal Court has held that three brothers who controlled a family business through a family trust were not employees of the trustee company and therefore non-cash benefits provided to them were not fringe benefits, thereby allowing the taxpayer's appeal. 
The Court held that the primary judge made a number of errors of law: there were no written employment contracts for the brothers; there was no board resolution suggesting any employment contract; the brothers were not paid wages; they had no other entitlements associated with employment such as leave; there were employed managers for all relevant functions in the business; and the brothers' conduct was consistent with control as proprietors. (SEPL Pty Ltd as trustee of the SFT Trust v FCT [2026] FCAFC 36 (Full Fed Ct, Perry, O'Callaghan and Thawley JJ, 27 March 2026.)

Part IVA applied to schemes: taxpayer fails on counterfactual  

The ART has rejected a taxpayer's counterfactual and no-reasonable-postulate arguments in relation to Pt IVA determinations, but reduced the quantum of tax benefits, resulting in no tax benefit in one income year. On remittal from the full Federal Court, the ART:

• rejected the taxpayer's counterfactual. While the ART accepted that the taxpayer's litigation history made asset protection a genuine concern, it was not persuaded that, absent the schemes, none of the IET income would have been distributed to the taxpayer for the purposes of s 177C(1)(a); but
• further reduced the tax benefit quantum to $4.6m for the 1998 to 2001 income years, with losses fully offsetting the taxpayer's proportion of IET income for 1997. Penalties were adjusted accordingly. (Collie and FCT [2026] ARTA 328, Olding SM, 12 March 2026)

 

NEW ZEALAND TAX NEWS

Taxation Bill now in effect

On 30 March 2026, the Taxation (Annual Rates for 2025 −26 Compliance Simplification, and Remedial measures) Bill received Royal assent, passing it into law.

Alongside these legislative amendments, IR’s April 2026 changes also include other policy and remedial items, system enhancements, and the annual rate and threshold updates. Changes include (but are not limited to):

• A new option of ‘scheme pays’ is available for paying tax on some overseas pensions, with tax withheld at a flat rate of 28% from the transferred pension amount.
• Some property income details will automatically pre fill income tax returns using information from IR3R and IR833 attachments, which are now filed first. 
• Best Start will be income tested from the 1st year, aligning it with the approach already used in years 2 and 3.
• Student loan, ACC and Working for Families rate and threshold changes apply.

Fringe benefit tax (FBT) changes now in effect

Recent legislative changes to FBT rules are now in effect. Employers may need to review how they currently treat motor vehicles, gift cards, and certain employee reimbursements to make sure they’re applying the rules that best fit the situation.

For employee reimbursements that would otherwise be unclassified benefits, employers may now choose to apply the FBT rules or treat the amount as employment income and deduct PAYE.

Unbranded personal protective equipment is exempt from FBT from 1 April 2026.

From 1 April 2026, changes have been made to how FBT is calculated for motor vehicles where a vehicle’s tax book value includes an Investment Boost reduction. The taxable benefit is calculated using the following rates:

• 10.35% (GST inclusive) or 11.90% (GST exclusive) for quarterly returns
• 41.4% (GST inclusive) or 47.61% (GST exclusive) for income year or annual returns.

 

IR website updates

• Tax pooling pilot for certain income tax debt 
• Overdue tax and late tax returns - automated voice messages to continue 
• Tax Agents' extension of time (EOT) agreement (IR9XA)

 

SUPERANNUATION AND FINANCIAL PLANNING

Fraudulent trading platforms using fake news to entice investors

The FMA is warning consumers about an increasing number of scams using fake news articles featuring prominent politicians and business leaders to entice consumers to invest in fake trading platforms. Scammers are using artificial intelligence to create deepfake images and videos featuring likenesses of politicians and business leaders to create a sense of credibility. 

The current wave features clickbait headlines claiming to have information that authorities don’t want revealed. Individuals impersonated using deepfakes include Rt Hon Winston Peters, Kiwibank CEO, Steve Jurkovich and Westpac CEO, Catherine McGrath. But the scammers continuously switch the identities they’re impersonating, so stories may still be fake if they feature a different individual,” Ms McGuire warns.

The FMA identified 110 ads linked to the scam published in one 24-hour period on Meta sites. Since the start of March this year, over 190 of these fake trading platform websites have been identified and flagged for removal.

 

 

LEGISLATION  

Tax debt relief options: standard practice statement exposure draft 

On 27 March 2026, IR issued the standard practice statement (SPS) exposure draft (ED0261) entitled Options for relief from tax debt. The SPS sets out the Commissioner's practice when considering the options of debt relief from the requirement to pay tax, interest and/or penalties under the TAA 1994. The options available to the Commissioner are to write-off amounts, enter into an instalment arrangement, remit amounts, or a combination of those options. The SPS outlines a number of factors that the Commissioner will consider when granting relief from tax.

The Commissioner also has discretion to not grant relief after considering the taxpayer's circumstances, and may take steps to recover the outstanding tax, including applying to have the taxpayer made bankrupt or liquidated.

One finalised, the SPS updates and replaces SPS 18/04: Options for relief from tax debt.

Send your comments to: [email protected] by 1 May 2026.

International tax disclosure exemption: determination (ITR37)

On 31 March 2026, IR issued determination ITR37: 2026 International tax disclosure exemption. The Determination sets out which interests in foreign companies and foreign investment funds for the year ended 31 March 2026 the Commissioner does not require a person to disclose for the administration of the international tax rules.

The scope of the 2026 disclosure exemption is the same as the 2025 disclosure exemption.

Date of effect: The exemption applies for the income year corresponding to the tax year ended 31 March 2026.

 

  

RULINGS AND GUIDANCE

Shortfall penalty interpretation statements (IS 26/03 - 09) 

IR issued the following interpretation statements (each with a factsheet) in relation to shortfall penalties:

• IS 26/03: Shortfall penalties - requirements for a "tax position" and a "tax shortfall" –in ss 141A to 141E of the Tax Administration Act 1994 (TAA).
• IS 26/04: Shortfall penalty for not taking reasonable care – explains the meaning of "reasonable care" in s 141A of the TAA.
• IS 26/05: Shortfall penalty for taking an unacceptable tax position – explains the meaning of "unacceptable tax position" in s 141B of the TAA.
• IS 26/06: Shortfall penalty for gross carelessness – explains the meaning of gross carelessness in s 141C of the TAA.
• IS 26/07: Shortfall penalty for taking an abusive tax position – explains the meaning of "abusive tax position".
• IS 26/08: Shortfall penalty for evasion or a similar act –in s 141E of the TAA. 
• IS 26/09: Shortfall penalties - reductions and other matters –  including when a shortfall penalty is reduced (or increased).

Bare trusts and mortgages: draft QWBA (PUB00544)  

IR has issued the exposure draft Questions We've Been Asked (QB) entitled Income tax - Bare trusts and mortgages. The draft QB considers whether a bare trust can exist for tax purposes when the property held in the trust has a mortgage over it.

The draft QB concludes that a person can still be considered a bare trustee even if they are a borrower on a loan/mortgage used to acquire the trust property. It confirms that under s YB 21 of the ITA 2007, if a valid bare trust exists, the bare trustee is ignored for tax purposes. The beneficiary is treated as if they hold the property and obtained the mortgage themselves.

Once finalised, the QB replaces IS 23/02: Income tax - Application of the s CZ 39 5 year bright-line test to certain family and close relationship transactions to the extent the interpretation statement is not consistent with this QB.

Send your comments to: [email protected] by 1 May 2026.

 

 

 

 

 

 

 

 

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