1 July 2026

The ATO has updated its web guidance to clarify the interaction of the debt deduction creation rules (DDCR) and UPEs placed on Division 7A complying loan terms. Division 7A complying loans are not excluded from the operation of the DDCR. Specifically, the ATO indicates that arrangements where the trustee of a trust enters into a Division 7A complying loan agreement with a related private company beneficiary to fund, or facilitate the funding of, the discharge of a UPE owing to that beneficiary (Type 2: Payment or distribution case) may be subject to the DDCR.

The Hydrogen Production Tax Incentive (HPTI) is a refundable tax offset that is available at a rate of $2 per kilogram of eligible hydrogen for companies that satisfy the eligibility requirements. It is available in respect of hydrogen produced during income years commencing on or after 1 July 2027 and ending before 1 July 2040.

To be eligible to claim an offset in relation to hydrogen production, among other criteria, if the facility producing the hydrogen is connected to an electricity grid, and electricity from that grid is used to produce hydrogen, the electricity that the facility obtains from the grid must satisfy the grid matching requirements (as defined).

Treasury has released for comment an exposure draft instrument, which sets out the grid matching rules for hydrogen producers who want to claim the HPTI. These requirements are intended to ensure that where renewable hydrogen is produced using renewable electricity, that electricity is connected to the same electrical grid as the hydrogen production facility, and does not create additional demand for non-renewable electricity elsewhere in Australia. Comments closed 25 June 2026.

In Balmain Dental Clinic Pty Ltd as Trustee for Dentist & Co Trust and Commissioner of Taxation (Taxation and business) [2026] ARTA 895, the Administrative Review Tribunal considered whether an oral health therapist (OHT), engaged by a Sydney dental clinic, was an “employee” under the extended definition in section 12(3) of the Superannuation Guarantee (Administration) Act 1992 (Cth). 

The Commissioner had assessed the clinic for approximately $70,000 in superannuation guarantee charge (SGC) across the period 1 January 2014 to 30 June 2020, on the basis that the individual worked under a contract wholly or principally for labour. The clinic argued she was an independent contractor who paid a service fee for use of its facilities and was free to delegate her work, while the Commissioner contended she was engaged to work personally as part of an integrated dental team. 

In applying judicial authorities, including from the Moffet, Jamsek, Personnel Contracting, and JMC cases, the Tribunal focused on the objective terms of the written contract. It found that the “Duty to the Company” clause, which required the individual to “faithfully serve”, “devote the whole of her time and attention”, and observe all clinic policies, established a master-and-servant relationship, that the 40% commission imposed no genuine service fee or business risk on her, and that her payments were subject to discretionary add-backs. The dental registration Scope of Practice Registration Standard also barred an OHT from practising independently, requiring a structured relationship with a dentist as clinical team leader, and the delegation argument failed because the contract was silent on delegation and the “shared treatment” scenarios merely showed professional referral, not free delegation for payment. The Tribunal concluded the contract was wholly or principally the individual’s labour, so that she was an “employee” under section 12(3).

The ATO has announced that it intends to refresh its guidance on identifying the appropriate employer of an employee for the purposes of superannuation guarantee (SG) obligations, particularly in tripartite arrangements involving intermediary labour hire or employment agencies. A tripartite arrangement typically involves a contract between a labour hire agency (the intermediary) and the end-user requiring services of a worker, and a contract between the intermediary and the worker performing the services, meaning no contract exists between the worker and the end-user.

To this end, the ATO has released draft Superannuation Guarantee Ruling SGR 2026/D1, which explains the Commissioner’s view of which entity is the ‘employer’ of an ‘employee’ under the Superannuation Guarantee (Administration) Act 1992 (SGAA) in the context of contractual working arrangements involving three or more parties (tripartite working arrangements). This draft ruling sets out the principles to apply when determining whether an intermediary or an end-user is the employer of a worker in a tripartite working arrangement. It should be read together with Taxation Ruling TR 2023/4, which discusses the Commissioner’s view on the meaning of “employee” for the purposes of the ordinary and extended meaning of the term under section 12 of the SGAA.

When finalised, the draft SGR will replace SGR 2005/2, which covers the same topic, and while the Commissioner’s views in the existing SGR have been substantially retained in the new draft, these now align with TR 2023/4 and reflect recent important judicial views on the definitions of “employer” and “employee” for SG purposes.

The last day for comments on the draft ruling is 31 July 2026.

A decision impact statement has been issued by the ATO in the matter of Commissioner of Taxation v Baya Casal 2026 FCAFC 11 (Baya Casal) where the Full Federal Court ruled against the Commissioner, finding that a redundancy payment made to a terminated employee was tax-free as a genuine redundancy payment (see our summary in the April 2026 issue of PwC’s Monthly Tax Update).

The ATO has accepted that a material reduction in hours and remuneration for an employee who is paid hourly is a relevant factor when considering the question of whether the employee’s position is genuinely redundant.

While the ATO has agreed to the relevance of reduced hours in considering the question, it notes that the Court’s decision does not mean that any reduction of 20% to 40% in hours and remuneration of a position will constitute a redundancy, and the degree of reduction and the nature of work performed are still relevant. The question was ultimately one of fact and degree based on circumstances, with mathematical bright-line tests rejected by the Tribunal.

The Commissioner has issued a legislative instrument, Taxation Administration (Withholding Schedules) Instrument 2026, containing 15 withholding schedules specifying the formulas and procedures for working out the amount required to be withheld by an entity from certain payments under the Pay As You Go (PAYG) withholding system. Each schedule in the instrument provides information to calculate the withholding amount, taking into account the particular circumstances presented in the schedule.

The instrument repeals and replaces the Taxation Administration (Withholding Schedules) Instrument (No 2) 2025 (2025 instrument). All 15 withholding schedules have been updated by the new instrument, making changes to reflect the following legislative amendments:

• Revisions to the income tax rates applicable to individuals for the 2026–27 income year, in line with amendments to the Income Tax Rates Act 1986

• Increased Medicare levy low-income thresholds under the Medicare Levy Act 1986 and the A New Tax System (Medicare Levy Surcharge—Fringe Benefits) Act 1999

• Annual indexing of repayment income thresholds for study and training support loans, and other rates and thresholds

The instrument commences on 1 July 2026.

The ATO has issued a draft legislative instrument, Draft Taxation Administration Amendment (Withholding Variation for Payment of Certain Allowances) Legislative Instrument 2026, which amends the Taxation Administration (Withholding Variation for Payment of Certain Allowances) Legislative Instrument 2025 (2025 Instrument) for PAYG withholding variations in relation to payments of allowances for laundry expenses and award transport payments.

These amendments are required due to the changes to the law relating to the substantiation of work-related expense deductions and the provision of the standard $1,000 work-related deduction for income years beginning on or after 1 July 2026.

Laundry expenses

The 2025 Instrument varies to nil the amount withheld from laundry expense allowances where the total paid in a financial year does not exceed a specified limit. To continue this variation, the new instrument amends the 2025 instrument by:

• Inserting a definition of laundry expenses as a work expense to do with washing, drying, or ironing clothes (but not dry cleaning)

• Replacing the reference to section 900-40(7)(b) of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997) in the 2025 Instrument with a reference to the amount of $150

Award transport payments

The 2025 Instrument had varied to nil the amount withheld from award transport payments, defined in section 900-220 of ITAA 1997 as a transport payment for particular travel paid under an industrial instrument in force on 29 October 1986. As a result of the recent amendments to the ITAA 1997, including the repeal of Subdivision 900-I of the ITAA 1997 (which contains section 900-220 and related deduction provisions), this draft instrument repeals the reference to award transport payments in the 2025 Instrument. From the date the instrument commences, the PAYG withholding variation for award transport payment variation will no longer apply and payers will be required to withhold from those payments.

The last day for comments on the draft instrument was 12 June 2026.

The ATO has issued Draft Goods and Services Tax Ruling GSTR 2026/D1, which is relevant to non-resident suppliers making inbound supplies of things other than goods or real property (such as services, digital products, or rights) to Australian consumers that use or enjoy those supplies in Australia. The draft Ruling explains when these supplies are treated as being made to Australian consumers and, therefore, connected with the indirect tax zone under paragraph 9-25(5)(d) of the A New Tax System (Goods and Services Tax) Act 1999. The draft Ruling also discusses the safeguard approach in section 84-100 in determining whether a recipient is an Australian consumer by setting out circumstances in which entities are not treated as being Australian consumers under the GST law whereby the taxpayer can treat the recipient as not being an Australian consumer of a supply if they reasonably believe they are not an Australian consumer.

The draft Ruling also explains the evidence a taxpayer should hold, and the steps they may take to collect that evidence, to support a conclusion that a supply is not made to an Australian consumer.

Appendix 1 sets out compliance approaches that non-resident suppliers may consider when determining whether a recipient is not an Australian consumer.

When finalised, the Ruling will replace Goods and Services Tax Ruling GSTR 2017/1. While GSTR 2017/1 focused primarily on the residency requirement in paragraph 9-25(7)(a) of the definition of Australian consumer in the GST Act, the draft Ruling provides further guidance on the consumer requirement in paragraph 9-25(7)(b). The existing approach to residency is unchanged.

Once finalised, the draft Ruling is proposed to apply both before and after its date of issue. Comments close on 24 July 2026.

The ATO has issued Draft A New Tax System (Goods and Services Tax) (Waiver of Adjustment Note Requirement – Reverse Charged Supplies) Determination 2026, which waives the requirement for a recipient to hold an adjustment note for a decreasing adjustment where the adjustment relates to a reverse charged supply to which section 83-5 of the A New Tax System (Goods and Services Tax) Act 1999 applies. 

Under section 83-5, in certain circumstances, the liability to pay GST is shifted from a non-resident supplier to the recipient, and under subsection 83-35(1), the non-resident supplier is not required to issue a tax invoice to the recipient for the taxable supply. As such, where an adjustment event occurs that requires the recipient to attribute a decreasing adjustment in relation to a reverse charged supply, it may be difficult for the recipient to obtain an adjustment note from the non-resident supplier. Without this instrument, these entities would be required to obtain an adjustment note that meets the requirements in subsection 29-75(1) from the non-resident supplier before being able to attribute a decreasing adjustment of more than $75 to a tax period.

The instrument repeals and replaces the Goods and Services Tax: Waiver of Adjustment Note Determination (No. 39) 2016 – Reverse Charged Supplies, which would otherwise sunset on 1 October 2026. The draft instrument has the same substantive effect as the 2016 Instrument. Comments on the draft close 10 July 2026.

The ATO has released a Decision Impact Statement (DIS) to outline its response to Geocon Land Holdings No. 5 Pty Ltd v Commissioner of Taxation [2025] FCAFA 172. The decision concerned whether an amount of excess GST had been passed on to purchasers of residential units for the purposes of section 142-10 of the A New Tax System (Goods and Services Tax) Act 1999. The Court allowed the taxpayer’s appeal on the passing on issue and remitted the matter to the Administrative Review Tribunal for reconsideration (for further details, see the February 2026 edition of Monthly Tax Update). While the Commissioner sought special leave to appeal to the High Court of Australia, it was refused on the basis that the application did not raise a question of general principle.

The DIS states that the Commissioner has accepted the findings regarding passing on under Division 142. Consistent with the Court’s reasoning, the Commissioner considers that whether excess GST has been passed on is a question of fact to be determined on a case-by-case basis. It cannot be resolved by reference to general presumptions about profitability or economic expectations. Taxpayers who have a decision from the Commissioner that they have passed on excess GST may consider that, in light of the Full Federal Court case, the decision is incorrect. Subject to time limits, those taxpayers may have rights of objection. Where it is determined that excess GST has been passed on, taxpayers may request the Commissioner to make a decision under subsection 142-15(1) to refund the excess GST, provided that the refund would not result in a windfall gain.

The DIS also notes that the ATO is reviewing the impact of the Geocon decision on related advice or guidance, including Goods and Services Taxation Ruling GSTR 2015/1, which considers the meaning of the terms ‘passed on’ and ‘reimburse’ for purposes of Division 142 of the GST Act. Comments on the DIS closed 26 June 2026.

New Zealand wine producers are entitled to claim a producer rebate (in the form of a wine tax credit) for certain dealings in wine where they meet certain eligibility criteria.

The ATO has released draft Legislative Instrument LI 2026/D11, which sets out the manner in which a component of the approved selling price of wine, which is expressed in a currency other than Australian currency, may be converted to Australian currency for the purpose of calculating the wine producer rebate. Once registered, this instrument repeals and replaces the 2016 Instrument, which would otherwise sunset on 1 October 2026.

The competent authorities of Australia and the Netherlands have entered into a Memorandum of Understanding to establish the mode of application of the arbitration process provided for in Part VI of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. 

The ATO has released the following draft products for consultation as applicable to the application of excise in relation to certain spirits:

• Draft Excise (Denatured Spirits) Determination 2026, which sets out the CEO-determined formula under subsection 77FG(1) of the Excise Act 1901 that determines denatured spirits that can be delivered for use, other than as fuel used in an internal combustion engine, in the domestic market free of excise duty. Comments closed 26 June 2026. 

• Draft Excise (Concessional Spirits Approvals) Guidelines 2026, which sets out the matters that the Commissioner of Taxation must consider when deciding whether or not to grant an approval under subsection 77FF(1) of the Excise Act 1901 to use spirit for a specified industrial, manufacturing, scientific, medical, veterinary, or educational purpose. Comments close 10 July 2026.

Both the draft instrument and the draft guidelines have the same substantive effect as those each will replace, which would otherwise sunset on 1 October 2026.  

Trade mark owners, importers, and supply chain operators should review their compliance and IP-protection arrangements in light of new law that introduced a strict liability criminal offence for importing goods bearing false trade marks and allows the Australian Border Force to issue financial penalties directly to importers as an alternative to prosecution. For further details, see our Tax Alert.

The Australian Anti-Dumping Commission (ADC) is currently probing dumping and subsidised aluminium windows and doors from China, signalling broader enforcement and potential cost increases for importers. For further details, see our Tax Alert.

The Productivity Commission has initiated an investigation into whether safeguard action on fabricated structural steel imports amid surge concerns is required, with the Government to decide on any measures. Read more in our Tax Alert about this issue, and what affected businesses should be doing now to position themselves in readiness for any possible action.

Two recent announcements mark a step change in how the United States (US) enforces forced labour prohibitions at the border and which entities may act as Importer of Record, and both have direct consequences for Australian businesses that import into, or trade through, the US: 

• On 2 June 2026, the United States Trade Representative (USTR) determined that the practices of 60 economies, including Australia, in failing to impose and effectively enforce a prohibition on the importation of forced labour goods, are actionable under Section 301 of the Trade Act of 1974, with proposed additional duties of 10% or 12.5% on virtually all products of those economies.

• On 3 June 2026, the US President signed an Executive Order on Strengthening Customs Enforcement, prioritising enforcement against goods produced with forced labour and tightening Importer of Record (IOR) eligibility, bonding, disclosure, and penalty settings.

Find out more about the implications in our Tax Alert. 

The OECD has released a working paper on the impact of population ageing on tax revenues in OECD countries. The paper examines the potential effects of demographic change on tax systems by analysing the distribution of tax bases across age groups and assessing the impact of ageing. It also explores how tax design may further exacerbate revenue pressures.

The paper then analyses the implications of population ageing for labour income tax revenues as the working-age population evolves and considers how the relative importance of other tax bases, such as consumption, capital income, and wealth-related taxes, may change depending on policy design. It also presents simulations of tax-to-GDP ratios from 1950 to 2060 that isolate the mechanical effects of demographic change under a no-policy-change scenario, and, among other matters, discusses potential policy considerations and areas of further work.

The OECD has released consolidated commentary to the Pillar Two Global Anti-Base Erosion (GloBE) Model Rules, which incorporates Agreed Administrative Guidance that has been approved by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) before the end of May 2026.

On 28 May 2026, New Zealand’s Finance Minister Nicola Willis announced the New Zealand Government’s 2026 Budget—the last before the election to be held later this year. In an issue of Tax Tips, PwC New Zealand outlines the key tax changes, including changes to the foreign investment fund (FIF) rules, financial arrangements rules, fringe benefit tax (FBT), research and development tax incentive (RDTI), charities and not-for-profits, non-resident contractors’ tax, shareholder loans, thin capitalisation for foreign-owned banks, the proposed prudential levy, Working for Families, and Inland Revenue compliance funding.

The Government has opened consultation regarding the introduction of a new Innovative Business CGT Concession (IBCC), in response to the capital gains tax reforms announced at the 2026–27 Federal Budget.

The IBCC would operate as a targeted CGT discount for investors in innovative start-ups, including founders, participants in employee share schemes (ESSs) and employee share option plans (ESOPs) that qualify for tax on capital account, early stage investors, and general partners of eligible limited partnership funds. The design of the IBCC will draw on elements of existing ESS start-up concessions and the Early Stage Investment Company (ESIC) program, and the concession will be available in addition to existing concessions for start-ups. 

The discount would operate as a targeted 50% discount on nominal capital gains on early investors’ shares and options in innovative start-ups, which would maintain the existing CGT treatment for eligible shares.

Shareholders would have the choice to calculate their CGT liability using the 50% discount without a minimum tax or using cost base indexation and the 30% minimum tax when they realise a capital gain. This would align the CGT treatment for early stage investment in innovative start-ups to the arrangements for investments in eligible new residential dwellings.  

The discount would be available for gains on shares issued after 30 June 2027 that meet all of the following eligibility criteria:

1. Eligible shares must be new equity issued after 30 June 2027 by an unlisted and independent company. 
2. Eligible shares must have been issued while the start-up was small and young—that is, annual turnover of less than $50 million and less than 10 years of incorporation. 
3. Eligible shares must have been issued by an active, innovative start-up.  
4. Eligible shares must have been held by the taxpayer for a minimum of five years.

The discount would not be available to investors that are companies, foreign residents, or superannuation funds (who do not qualify for the 50% CGT discount under current rules). Transitional arrangements would apply to gains on existing shares issued by innovative start-ups that are less than 10 years old on 30 June 2027. 

The consultation poses a series of questions regarding the design of the proposed concession, with comments invited until 10 July 2026.

The Australian Taxation Office (ATO) has advised that the car limit for capital allowance purposes for the 2026–27 financial year will increase to $69,883 (up from $69,674 in 2025–26). The car limit is used, among other things, to work out the depreciable cost of passenger vehicles (except motorcycles or similar vehicles) designed to carry a load of less than one tonne and fewer than nine passengers.

The Taxation Laws (Requirement to Lodge a Return for the 2026 Year) Instrument 2026 specifies generally which persons and entities are required to lodge an income tax return for the 2025–26 income year, and when that return must be lodged. Other lodgment requirements for franking returns, venture capital deficit tax returns, ancillary fund returns, a community charity return, and trustees of self-managed superannuation funds are also set out.

The Income Tax Assessment (Requirement for Parents Liable for or Entitled to Child Support to Lodge a Return for the 2026 Year) Instrument 2026 specifies that a carer or parent liable for or entitled to child support is required to lodge an income tax return for the 2026 year, unless:

• The total of certain amounts they received during that income year was less than $31,047

• They received one or more specified Australian Government pensions, allowances, or payments for the whole of that income year

The ATO has released a summary of changes that have been made to non-individual tax return forms and schedules for the 2025–26 reporting period. 

The ATO has finalised Taxation Determination TD 2026/3, which explains the Commissioner’s view on when a public or private ancillary fund provides a benefit under the Taxation Administration (Private Ancillary Fund) Guidelines 2019 and the Taxation Administration (Public Ancillary Fund) Guidelines 2022. Ancillary funds are charitable trusts established solely to fund and support eligible deductible gift recipients (DGRs). Although ancillary funds are themselves DGRs, they do not undertake charitable work. Instead, they act as intermediaries between donors and eligible DGRs that do.

The Determination is intended to assist trustees of ancillary funds to understand how benefits to DGRs may satisfy minimum annual distribution requirements (under subsection 15(4) of the Guidelines) and when transactions may contravene the prohibition on providing benefits to related entities (under subsection 22(3) of the Guidelines). 

The views expressed in the Determination apply both before and after its date of issue.

The ATO has released information about its private capital program, which is a review program funded by the Tax Avoidance Taskforce in recognition of the continued growth and sophistication of private capital investments in Australia over the past decade. The program focuses on the most commonly used private capital investment structures across:

• Private equity 

• Foreign funds (i.e. foreign pension funds and sovereign wealth funds)

• Collective investment vehicles 

• Infrastructure and business fragmentation, including stapled structures

The private capital program tailors its engagement with taxpayers throughout the private capital investment lifecycle. 

The High Court has refused the taxpayer’s application for special leave to appeal against the Full Federal Court’s decision in Commissioner of Taxation v S.N.A Group Pty Ltd [2026] FCAFC 10. In that case, the Full Federal Court found for the Commissioner, finding that payments made by way of service fees to related entities were not deductible for tax purposes. For further details, see the March 2026 edition of Monthly Tax Update.

In Cameron v Commissioner of Taxation [2026] FCA 609, the Federal Court has dismissed appeals brought by entities within a family trust structure, finding that interest on sub-trust loans was not deductible under section 8-1 of the Income Tax Assessment Act 1997, and that a decades-old family trust election had been validly made. 

In the relevant income years, the unpaid present entitlements of the corporate beneficiary to distributions from the alleged “family trust” were set aside and placed on separate sub-trusts. Those amounts were converted to interest-only loans from the corporate beneficiary sub-trust to the trust. The amount to which the trust was entitled under the sub-trust borrowing for a year was then set off against the corporate beneficiary’s unpaid present entitlement from the trust for that year. In other words, no money was actually advanced by the corporate beneficiary sub-trust to the trust. In the disputed years, the trust claimed the interest payments made under the sub-trust loans as deductible outgoings. 

The Federal Court did not accept the taxpayer’s argument that the connection between the interest payments and the derivation of assessable income by the trust arose out of the connection between the sub-trust loans and the derivation of income by a different trust. The Court observed that on the taxpayer’s argument, a beneficiary of a trust would have the (objective) purpose of gaining or producing assessable income by not calling on its entitlement to receive money under the trust, simply because the trust now has more resources with which to derive assessable income to make future distributions to the beneficiary—this is not supported by case law (specifically, Total Holdings and the Roberts cases). The asserted connection between the sub-trust loans and the gaining or producing of assessable income by the trust was too remote. 

The appeal also considered whether three of the taxpayers were liable to pay family trust distribution tax (FTDT) in the relevant years, which turned on whether a valid and effective family trust election was in place. The trust’s income tax return for the income year ended 30 June 1999 referred to a family trust election being made for the 1995 income year. However, the taxpayers asserted that no family trust election was ever made. On this point, the Court dismissed the appeal, noting that the taxpayers bore the burden of establishing that a family trust election was not made in respect of the trust. In this instance, they had not done so.  

An appeal has since been lodged with the Full Federal Court in respect of the decision to deny the interest deductions. 

Treasury has commenced a consultation intended to inform a review of the tax and corporate whistleblowing regimes to consider whether they are working to protect whistleblowers and encourage compliance with relevant laws. The Review arises from a statutory requirement to be undertaken as soon as practicable within five years after the 2019 amendments made by the Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019. It will investigate whether the laws are working as intended, identify any ongoing concerns, and, where appropriate, make recommendations in a final report for further improvement.

Comments close 29 July 2026.

Taxation Determination TD 2012/8 outlines the types of temporary absences from foreign service that form part of a continuous period of foreign service under section 23AG of the Income Tax Assessment Act 1936. The ATO has released a draft update to the Taxation Determination TD 2012/8DC to clarify that only short, unexpected work-related absences from a foreign country for reasons related to that foreign service are able to be accepted as part of the person’s continuous foreign service by the Commissioner. The updates that are the subject of this draft Consolidation are proposed to apply from 2026–27 and later income years. Comments close 17 July 2026.

In Eltamimy and Commissioner of Taxation (Taxation and business) [2026] ARTA 929, the Administrative Review Tribunal (ART) considered, among other matters, a taxpayer’s claims for deductions (or greater amounts of deductions) for expenses said to have been incurred in relation to a rental property and a motor vehicle, with the Tribunal finding against the taxpayer on these counts.

In respect of the rental expenses, it was noted that the taxpayer had reported in his income tax returns in the relevant years amounts of assessable income comprising ‘rent’ derived by him in relation to a property in Melbourne. In each of the relevant years, the amount of rental expense deductions claimed exceeded the rental income returned, sometimes by a substantial margin. The Commissioner allowed deductions for a portion of the outgoings characterised as ‘rental expenses’ up to the amount of the rental income declared by the taxpayer in each year, but no more—a position the taxpayer disputed. However, the Tribunal found for the Commissioner, noting that the taxpayer had not produced sufficient evidence for it to be satisfied on the balance of probabilities that the taxpayer was entitled to further deductions beyond those already allowed. In particular, the Tribunal was not satisfied as to the existence or terms of the claimed tenancy, the nature of the taxpayer’s use of the property, and the commerciality of the amount of rent said to have been paid by the tenant.

As to the matter of vehicle expenses, the Tribunal found that the logbook documents prepared by the taxpayer for the 2020 and 2021 years did not meet the requirements of Subdivision 28-G of the Income Tax Assessment Act 1997, with the result that the taxpayer was not able to use the logbook method for working out any deductions for car expenses for either year.

The following two cases before the ART have considered a taxpayer’s residency for tax purposes: 

• In Ward and Commissioner of Taxation (Taxation) [2026] ARTA 872, the Tribunal concluded that the taxpayer, who was an Australian citizen, was not a tax resident of Australia after having moved to the United States for her husband’s overseas work assignment before later moving to the Netherlands. Relevantly for this case, the statutory definition of ‘resident’ includes a person ‘whose domicile is in Australia, unless the Commissioner is satisfied that the person’s permanent place of abode is outside Australia’. Ultimately, the Tribunal concluded that the taxpayer had abandoned her Australian residency to live overseas in a permanent way during the relevant period, establishing a permanent place of abode first in the United States and then in the Netherlands. A primary factor in this decision was that of physical presence—the Tribunal gave considerable weight to the fact that the taxpayer spent in excess of 17 years overseas, and that her return visits to Australia during that time were generally only infrequent and short. The result of this finding was that, as a non-Australian tax resident, the taxpayer was subject to capital gains tax in Australia on the sale of her former Australian main residence. 

• In Bulie and Commissioner of Taxation (Taxation) [2026] ARTA 1003, the Tribunal considered whether the taxpayer, who was a Norwegian citizen, was to be treated as a tax resident of Australia or Singapore for the disputed income years. Under the domestic tax law of the respective countries, the taxpayer was a resident of each of them. The matter addressed the application of the ‘tie-breaker’ rules under the Australia-Singapore tax treaty that determine which country the taxpayer is to be treated as a resident of. The Tribunal found that the taxpayer’s economic and personal relations to Singapore were, in composite, stronger than his economic and personal relations to Australia during the relevant period. During the relevant period, the taxpayer spent the bulk of his time in Singapore and earned the bulk of his income in Singapore. Though his personal relations to Australia were stronger, he had meaningful personal relations in Singapore as well. Although his ownership of assets in Australia was not insignificant, they did not produce income and were less significant when compared to the primacy of his income-earning activity in Singapore. 

The 2026–27 Queensland (QLD) Budget was delivered on 23 June 2026 by Treasurer David Janetzki. The Government stated that there are no new or increased taxes as part of the Budget. However, it did include the following revenue measures, which were also included in the Revenue (Cost of Living Relief Locked-in Law) and Other Legislation Amendment Bill 2026 introduced on the day of the Budget to implement these measures:

• The 50% payroll tax rebate for wages paid to apprentices and trainees will be extended by 12 months until 30 June 2027.  

• From 1 August 2026, temporary residents will generally be ineligible for Queensland’s home, first home, and vacant land transfer duty concessions, and will be required to pay transfer duty at standard rates, broadly consistent with investor treatment.

The Budget provided additional funding of around $15 million per annum for the next four years to the Queensland Revenue Office to support compliance and debt recovery activities across Queensland’s tax, royalty, and penalty debt systems.   

For further information on the 2026–27 QLD Budget, see our Australian State and Territory Budget Insights 2026–27.

The 2026–27 Australian Capital Territory (ACT) Budget was delivered on 10 June 2026. From a tax perspective, the headline announcement was that the ACT Government will completely eliminate stamp duty for first home buyers from 1 July 2026. Other stamp duty concessions will also be expanded for pensioners, eligible National Disability Insurance Scheme (NDIS) participants, and all home buyers who have not owned property in the last five years.  

Specifically, from 1 July 2026: 

• The existing stamp duty concession for owner-occupier off-the-plan units will be made permanent and expanded to the purchasers of turn-key units. 

• Eligible pensioners will no longer pay stamp duty. 

• Home buyers eligible for the Disability Duty Concession Scheme will no longer pay any duty regardless of the price of the property. 

• The commercial stamp duty tax-free threshold will increase to $2.1m.  

• The Pensioner Duty Concession Scheme will be expanded to Service Pension recipients with a permanent incapacity to work, and Department of Veterans’ Affairs Gold Card holders will no longer require a 12-month waiting period. 

Separately, the ACT Government announced that motor vehicle duty tax rates will increase for certain vehicles from 1 February 2027 so as to incentivise the uptake of lower emissions vehicles. Additionally, and in response to escalating fuel costs, the implementation of additional indexation to motor vehicle registration fees previously announced in the 2025–26 Budget will be delayed, with the ACT Government to re-commence additional indexation to motor vehicle registration fees from 2027–28 to 2029–30. 

In respect of the short-term rental accommodation levy, which has been in place since 1 July 2025, the ACT Government announced that the levy will increase to 7.5% (up from 5%) from 1 July 2027.  

For further information on the 2026–27 ACT Budget, see our Australian State and Territory Budget Insights 2026–27. 

The 2026–27 South Australian (SA) Budget was delivered on 4 June 2026. 

From a tax perspective, the Budget announced the abolition of stamp duty for victims of domestic, family, and sexual violence. Under this new ex-gratia scheme, taxpayers who have vacated a home due to domestic, family, or sexual violence may be eligible for 100% stamp duty relief on a new or established home as well as the First Home Owner Grant for eligible new home or vacant land contracts entered into on or after 4 June 2026. For eligible established home contracts, only the full stamp duty relief applies. An information circular has also been issued by the South Australian Government in respect of the announcement.

The 2026–27 South Australian Budget also restated the South Australian Government’s commitment to stamp duty relief for downsizers. For eligible contracts entered into on or after 25 March 2026, stamp duty relief is available to eligible applicants aged 60 years and over who sell their eligible principal place of residence and downsize to a replacement property. Specifically, no stamp duty is payable on the purchase of:

• An eligible new home valued up to $2m, with relief progressively phasing out for properties valued up to $2.1m 

• Vacant land valued up to $1.2m on which a new home will be built, with relief progressively phasing out for land valued up to $1.3m 

A taxpayer must sell (or must have sold) their principal place of residence within 12 months of purchasing their replacement home to be eligible for the relief, and the land size of the replacement home must also be smaller than that of the existing (or previous) home. 

For further information on the 2026–27 SA Budget, see our Australian State and Territory Budget Insights 2026–27.

The New South Wales Civil and Administrative Tribunal has considered the following cases concerning surcharge land tax: 

• In Heilmann v Chief Commissioner of State Revenue [2026] NSWCATAD 180, the Tribunal found that a taxpayer—a German citizen who was a permanent resident of Australia but had resided in Germany since May 2023—was still subject to surcharge land tax on property she owned with her husband. While the taxpayer contended that she was not liable by virtue of Article 24 of the Australia-Germany double tax agreement (which concerns non-discrimination), the Tribunal disagreed, noting that section 5(3) of the International Tax Agreements Act 1953 (Cth), as amended by the Treasury Laws Amendment (Foreign Investment) Act 2024 (Cth), preserved the operation and therefore primacy of State revenue laws, which was also confirmed by the High Court in the G Global and Stott cases. 

• In Howton v Chief Commissioner of State Revenue [2026] NSWCATAD 181, the Tribunal found that a taxpayer—a New Zealand citizen who was in Australia for 29 days in the relevant land tax year—was similarly liable to surcharge land tax as a result of amendments to the Treasury Laws Amendment (Foreign Investment) Act 2024 (Cth). It is irrelevant that the landowner was aware of the existence of the power of the Commissioner to levy land tax or whether the Commissioner could have notified the landowner of her liability at an earlier time. Since the landowner conceded that the statutory criteria for the imposition of surcharge land tax had been met and no exemption to that obligation has been identified and there is no other statutory power available to the Tribunal to exempt the landowner from surcharge land tax on the basis of procedural or other unfairness, there was no basis to set aside the Assessment. 

The Building Legislation and Treasury Legislation (Tax Relief) Amendment Bill 2026 (Vic) has completed its passage, with amendments, through the Victorian Parliament. The Bill introduces various amendments to numerous building laws, alongside changes to Victorian land tax law in relation to the principal place of residence exemption to:

• Make further provision for the exemption to apply in cases where a joint owner of land ceases to use and occupy their principal place of residence and commences construction or renovation of a new principal place of residence

• Extend the exemption to circumstances in which the construction or renovation of a principal place of residence takes longer than four years

• Amend the definition of ‘works start date’ and the provision under which the owner of land may nominate a works start date to allow the landowner to nominate the date of issue of certain permits as the works start date for the purposes of the exemption for construction or renovation of a principal place of residence 

• Provide a deferral of land tax on certain residential land for six months by correcting an anomaly affecting owners who start and finish construction or renovation works of the principal place of residence within the same year but, as at 31 December of that year, do not use and occupy the land as their principal place of residence

Amendments were made to the Bill during its passage through Parliament to extend the temporary off-the-plan concession from duty for newly constructed dwellings in strata subdivisions for six months to 21 April 2027.

The Victorian State Revenue Office has issued the following transfer duty rulings, both with effect from 1 June 2026:

• Ruling DA-26v3, which has been updated to address developments in case law. The ruling provides updated guidance on how and when dutiable transactions are aggregated under section 24(1) of the Duties Act 2000 (Vic), including worked examples.  

• Ruling DA-071 is a new ruling, which provides guidance on the exception from aggregation for domestic builders under section 24(2) of the Duties Act 2000 (Vic).

Separately, the Victorian State Revenue Office has also invited comments on draft Ruling DA-020v2 Transfer of land – Incorporated associations and amalgamations of incorporated associations. This ruling replaces DA-020 to refer to the Association Incorporation Reform Act 2012 (Vic), which replaced the Association Incorporation Act 1981 (Vic), and improves readability. Comments closed 24 June 2026. 

The Taxation and Related Legislation (Miscellaneous Amendments) Bill 2026 (Tas) was introduced into the Tasmanian Parliament on 16 June 2026 and aims to reduce red tape, simplify tax administration, and support investment and housing supply in Tasmania.

The Bill makes a range of changes to the duties and land tax laws, including, among others:

• Expansion of the duty concession relating to superannuation funds to include self-managed superannuation funds
• Reduction in the minimum number of new residential dwellings to qualify for Foreign Investor Duty Surcharge relief from 1 July 2026 from 50 to ten or more new residential dwellings in a financial year 
• Streamlining refund processes and addressing unintended duty outcomes affecting some inter-generational rural property transfers
• Improving the corporate reconstruction and consolidation duty exemption provisions by: 
  • Allowing the duty exemption to apply to companies limited by guarantee
  • Allowing a head corporation to own shares in a corporation prior to the corporate consolidation exercise and remain eligible for a duty exemption 
  • Removing the pre-association and post-association tests, bringing the Tasmanian legislation in line with those of other jurisdictions
• Extending from three years to five years the period within which the Commissioner may withdraw a tax assessment, to align with existing timeframes applying to reassessments and refunds

Generally, and unless otherwise specified, the provisions of the Bill will commence on the day the Bill receives royal assent.

The Finance Legislation Amendment (Housing Affordability) Bill 2026 (WA) was introduced into the Western Australian Parliament on 17 June 2026. The Bill provides for amendments to the Duties Act 2008 (WA), First Home Owner Grant Act 2000 (WA), and the Rates and Charges (Rebates and Deferments) Act 1992 (WA).

In respect of amendments to the Duties Act, the Bill implements the following measures that were announced in the WA 2026–27 State Budget Housing Taxation Package: 

• An increase in the First Home Owner Rate (FHOR) of duty exemption and concession thresholds by $100,000

• Removal of the requirement for a property to be under the First Home Owner Grant (FHOG) cap to qualify for the FHOR 

• An extension of the off-the-plan duty concession for two years until 30 June 2028, as well as an increase in the concession thresholds by $50,000, and expansion of the concession to survey-strata scheme developments

• The introduction of a new ‘build-to-sell’ exemption from foreign transfer duty for foreign persons that build and sell a house that adds at least one more dwelling to the housing stock 

In addition, the Bill converts the existing foreign buyers duty exemptions for land on which ten or more dwellings will be constructed or refurbished, or land that will be subdivided for the purposes of constructing ten or more dwellings, to an upfront exemption instead of a reassessment and refund. The amendments to the Duties Act are proposed to commence on the day after the Bill receives royal assent.

The Land Tax Assessment Amendment (Build-to-Rent) Bill 2026 (WA) has completed its passage through the Western Australian Parliament.

The Bill delivers and expands on the WA Government’s election commitment to increase the land tax exemption for eligible build-to-rent (BTR) developments from 50% to 75% for eligible BTR developments completed on or after 1 July 2025 and before 1 July 2030. The amendments apply the increased 75% exemption for the first ten years if all the dwellings in the development become able to be lawfully occupied between 1 July 2025 and 30 June 2030. After the first ten years, the exemption reverts to 50% for the subsequent ten years of the BTR exemption, with usual land tax rates to apply thereafter. If an existing BTR development receiving the general exemption completes an expansion development within the eligibility period, the expansion can qualify for the increased exemption by receiving a separate exemption to the original development.

The Treasury Legislation Amendment Bill 2026 (NT) has completed its passage through the Northern Territory Legislative Assembly. The Bill contains the 2026–27 Budget measures to extend the HomeGrown Territory grant ($50,000 for first home buyers building or purchasing a new home) through to 30 September 2027. It also introduces a higher payroll tax rate for large employers from 1 July 2026.

In Commissioner of State Revenue v Special Situations Investing Group III, Inc [2026] QCA 98, the Queensland Court of Appeal has unanimously allowed the Commissioner’s appeal against the decision of the QLD Supreme Court, which had found that on proper construction of section 407(1)(a)(i) of the Duties Act 2001 (Qld), a corporate reconstruction was eligible for exemption from landholder duty.

In the first instance decision, the Supreme Court agreed with the taxpayer’s contention that the proper construction of section 407(1)(a)(i) should be read as requiring the transferor and the transferee to have been group companies either before the property was first owned by the transferor or before the property was first owned by another group company. As a result, the Court determined that the shares acquired by the taxpayer were group property and the transfers in which the taxpayer participated were carried out for a corporate reconstruction. For further details of that decision, see the February 2026 edition of Monthly Tax Update.

The Court of Appeal has found for the Commissioner, noting that the provision required that there be an ascertainable point in time at which the property becomes first owned and by which the transferor and transferee must already be group companies. Under the taxpayer’s reading, there may be two different and alternative ascertainable points in time at which the transferor and the transferee must be group companies, and the taxpayer’s interpretation would have given rise to disharmony with the continuous ownership requirement in (ii) in section 407(1)(a). 

Ultimately, the Court concluded that the relevant entities were not group companies before the shares transferred were first owned within the meaning of the provision. Accordingly, the shares were not group property that complied with section 406(2)(d) and, further, the relevant acquisitions of the shares by the taxpayer were not exempt from landholder duty.

The ATO has released the following 2026 income tax returns and instructions for the following super funds:

• Self-managed super fund (SMSF) annual return (SAR) and instructions for 2025–26

• Other super funds

A reminder that for the first time with effect from the 2026 income year, some large super funds will also be required to lodge with the ATO, as part of their income tax return, the Reportable Tax Position Schedule where they report total fund income of $250m or more in the current year.