ATO tightens compliance and expands employer support
The ATO has released several new resources, including a checklist to help employers get ready for what it calls a “once-in-a-generation change” along with an updated guidance on commercial deal tax.
Here’s a roundup of the latest news.
Preparing for Payday Super
The ATO has issued a Payday Super Checklist to help employers prepare for the commencement of the new regime from 1 July 2026.
The timeline checklist is designed to help employers understand the new requirements, plan their transition, prepare their business systems and processes and switch to paying super each payday.
In addition, Practical Compliance Guidelines outlining the ATO’s compliance approach during the Payday Super legislation’s first year of operation, have now been released.
Barter credit tax scheme under the microscope
The ATO is warning taxpayers to steer clear of an emerging tax scheme involving barter credits, a form of alternative currency used in some business networks.i
The scheme involves artificially inflating deductions by claiming donations of barter credits to deductible gift recipients. This practice is unlawful and may trigger a tax audit and significant penalties.
According to the ATO, the scheme is enabled by barter exchanges issuing credits with a nominal face value far higher than the amounts actually paid by participants.
Get certainty on commercial deals
To help business owners understand the tax implications of proposed commercial transactions, the ATO has created a series of case studies and videos.
The current case studiescover a range of scenarios, including a small business capital gains tax (CGT) rollover for a primary production business, the CGT implications when two siblings wish to sell family company shares to a third sibling, and the restructuring of a small company and subsequent share sale.
The information resources are designed to show how engaging early with the ATO can help resolve tax issues before lodgement and avoid later tax disputes.ii
Protect your GST and fuel tax credits
Some taxpayers are missing out on GST and fuel tax credits because they are not claiming the credits within the four-year time limit, which generally expires four years from the due date of the original BAS in which the credits should have been claimed.
Lodging an amendment or voluntary disclosure does not protect these credit entitlements, as the ATO must process amendments and include it in your tax assessment within the time limit.iii
Once GST and fuel tax credit entitlements expire, the ATO has no discretion to amend a tax assessment to include the credits. Good processes and regular reviews are essential to avoid missing out.
Avoiding delays when winding up SMSFs
The ATO is reminding trustees to follow the correct procedure when winding up their SMSF if they wish to avoid errors and delays.iv
Trustees have 28 days after lodging their final SMSF annual return (SAR) to complete the final rollover before the fund can be officially wound up. Failing to roll out all member benefits can result in significant delays, an inability to use SuperStream and requires lodgement of an additional SAR if assets remain after the wind-up date.
Trustees need to keep their contact details updated, promptly finalise outstanding transactions and pay debts, close the SMSF bank account only after confirming the wind-up, and roll over most of the fund’s asset before lodging the final SAR.
ATO help with natural disasters
Following the series of natural disasters around the country, the ATO is reminding taxpayers that support is available for those affected by disasters such as bushfires, cyclones, drought, flood or storms.v
For major disaster areas, the ATO may pause correspondence and provide extra support depending on circumstances. This may include:
- extra time to pay tax debts
- more time to lodge tax returns, BAS or other obligations
- personalised payment plans
- remission of penalties or interest charged during the affected period.
If you need more information or clarification about any of the recent tax changes, please give us a call.
i ATO warns about barter credit tax scheme | Australian Taxation Office
ii Commercial deals service resources | Australian Taxation Office
iii Act early: Protect your GST and fuel tax credit entitlements | Australian Taxation Office
iv Get it right! Avoid delays when winding up your SMSF | Australian Taxation Office
v Summary of our disaster support | Australian Taxation Office
