On 2 March 2026, the Tax Ombudsman Ms Ruth Owen has released her report into the review of the ATO’s management of GIC remission. The Tax Ombudsman called for improvements in how the Australian Taxation Office (ATO) administers relief from General Interest Charges (GIC) on overdue tax debts. The review found that the current system…
On 16 October 2025, Tax Ombudsman Ruth Owen released a review into the Australian Taxation Office’s service delivery to registered tax agents, highlighting significant concerns about the deteriorating relationship between the ATO and the tax profession. Key Findings Declining Service Standards The review found increasing dissatisfaction amongst tax agents regarding the ATO’s phone service over…
Background The Bendel case has attracted significant attention in the tax community. It concerns whether unpaid present entitlements (UPEs) owed by trusts to private companies can be treated as loans under Division 7A of the Income Tax Assessment Act 1936. The Full Federal Court previously rejected the Commissioner of Taxation’s appeal against an earlier Administrative…
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…