Australia’s ancillary fund landscape has received an important update, with the ATO clarifying how “benefits” are defined and applied in practice. While this may seem like a technical shift, it has real implications for trustees and families using these structures to support their philanthropic goals.

The Australian Taxation Office (ATO) has confirmed that the Small Business Superannuation Clearing House (SBSCH) will be closing as of 01 July 2026. This change will affect small businesses that currently use the ATO clearing house to make employee superannuation contributions.

The Federal Government has proposed significant changes to the way trusts are taxed, including a potential 30% tax on trust income. While these changes may appear technical, they could have far‑reaching consequences for charities, religious organisations, schools, and other community groups that rely on trust distributions for funding.

From 1 July 2026, the way employers pay superannuation for their employees will change. These reforms, known as Payday Super, are designed to align super payments more closely with employees’ pay cycles and will affect how businesses manage payroll, cash flow and compliance.

The Federal Government has announced major changes to how capital gains tax (CGT) will be calculated in Australia from 1 July 2027. While the removal of the 50% CGT discount had been widely anticipated, several additional measures may significantly affect long‑term investment, property and retirement planning.

The Government has announced proposed changes to negative gearing for residential investment properties, scheduled to commence from 1 July 2027. The changes are aimed at redirecting tax benefits toward new housing supply, while protecting existing property investors through grandfathering rules.

The Federal Government has announced a proposal to introduce a minimum tax rate of 30% on discretionary trust income, effective from 1 July 2028. This represents a significant change to how discretionary trusts are taxed and how income distributions may be used within family and business structures.

Key announcements include the reintroduction of the loss carry‑back regime, the permanent extension of the $20,000 instant asset write‑off for small businesses, and the expansion of dynamic monthly PAYG instalments. Below you will find a summary of these measures and their key features.

The 2026 Federal Budget confirms a phased reduction of the Fringe Benefits Tax (FBT) exemption for eligible electric vehicles, with a transition to a reduced concession over coming years.

The Budget confirmed a package of personal tax measures that, taken together, are designed to increase take‑home pay for working Australians and simplify tax compliance over the coming years. While no new headline tax rates were announced, previously legislated tax cuts will proceed, alongside a new permanent tax offset and a simplified deduction for work‑related expenses.

This measure is designed to continue to provide tax relief and boost cash flow for millions of small businesses across the country. 

The Australian Taxation Office (ATO) has released Practical Compliance Guideline PCG 2025/5, which sets out its compliance approach to Personal Services Income (PSI) and the potential application of Part IVA (anti-avoidance provisions).

On 12 November 2025, the Australian Taxation Office (ATO) released Draft Practical Compliance Guideline PCG 2025/D7 marking a significant shift in how the ATO applies section 26-50 of the Income Tax Assessment Act 1997 to holiday homes.