The first half of 2025 has been a busy period in Australian tax law, with several significant cases before the Federal Court, Full Federal Court and AAT. Many of these are now subject to appeal, meaning the year ahead could reshape how businesses and individuals approach compliance and planning. Key Federal Court & Full Court…
The Australian Taxation Office (ATO) has announced a major shift in its approach to Single Touch Payroll (STP) reporting. Since STP was first introduced in 2018, the ATO has largely focused on educating employers and allowing them time to adapt. Now, with transitional periods ending, the ATO has confirmed it will move to enforcement and…
On 16 July 2025, the Australian Taxation Office (ATO) released Draft Practical Compliance Guideline PCG 2025/D3, outlining how it will manage compliance during the transition to the new Global and Domestic Minimum Tax regime. This measure gives effect to Australia’s adoption of the OECD’s Pillar Two GloBE rules, designed to ensure that large multinational groups…
A landmark Full Federal Court decision in Bendel has overturned more than 15 years of ATO practice on the taxation of unpaid present entitlements (UPEs), sending ripples through the tax landscape for discretionary trusts across Australia. Key Takeaway from the Case The Court held that a UPE from a trust to a corporate beneficiary is…
With the Federal Government re-elected, one of the most talked-about proposals in superannuation – the Division 296 tax on super balances above $3 million – is back in the spotlight. While the legislation is not yet final, many experts believe it could take effect from 1 July 2025, possibly with retrospective application. So, what do…
As the end of financial year approaches, the Australian Taxation Office (ATO) is reminding trustees to stay on top of their compliance obligations. Getting it wrong can mean unnecessary tax bills, breaches of trust, and even severe penalties. To help, the ATO has published a practical trust compliance checklist. Here’s what trustees and advisers should…
A familiar debate is resurfacing in Australian tax policy circles – whether it’s time to bring back an inheritance tax or introduce a levy on unrealised capital gains. With governments under pressure to fund services for an ageing population, the idea of “taxing wealth, not work” is gaining traction. A Look Back: Death Duties in…
The Federal Budget delivered on 25 March 2025 brought few surprises for Australian businesses. While there were no major new tax measures, the Budget did confirm some changes, defer others, and left many big questions unanswered. Key Deferrals Two previously announced measures have been pushed back: These delays mean businesses now have more time to…
The Federal Government handed down its 2025–26 Budget on 25 March 2025. Marketed as a “plan for a new generation of prosperity,” the Budget focuses on cost-of-living relief, housing, education, and tax integrity. Here are the key highlights for individuals, businesses, and the community. Tax Relief for Individuals Housing Measures Business and Investment Other Key…
The Australian Taxation Office (ATO) has announced its compliance priorities for small businesses in 2025, with a strong focus on income reporting, GST obligations, and the correct use of incentive measures. 1. Contractor Income Reporting The ATO continues to uncover cases where contractors — including sole traders, consultants, and subcontractors — are omitting or under-reporting…