Remission Requests for Interest and Penalties
From 22 January 2026, registered tax and BAS agents must use the approved remission application form to request the remission of general interest charge (GIC), shortfall interest charge (SIC) or failure to lodge (FTL) penalties.
Forms must be lodged through ATO Online services or by mail. A separate form is required for each taxpayer and for each type of interest or penalty. If an agent cannot access ATO Online services, they can contact the registered agent phone line, and the ATO will complete the form for them.
If the ATO does not fully remit the amount, it will provide a written decision explaining the reasons and outlining the taxpayer’s review and objection rights. Requests submitted before 22 January 2026 will continue to be processed under the current arrangements. The ATO has also updated its website to explain when GIC remission requests are likely to be approved or refused.
Pillar Two Compliance
Here are the four new lodgment obligations:
- GloBE Information Return (GIR)
- Foreign lodgment notification
- Australian IIR/UTPR Tax Return (AIUTR)
- Australian DMT Tax Return (DMTR).
For tax consolidation, each group entity in Australia must lodge either a GIR or a foreign lodgment notification. Each group entity also needs to lodge DMTR or AIUTR, unless its circumstances qualify for a lodgment exemption. A nominated entity can be appointed by multinational groups to file on behalf of each entity in the group that has a lodgment obligation.
Super Guarantee
The ATO reminds employers to pay SG for the December 2025 quarter by 28 January 2026 to avoid interest and penalties. SG must be paid by the quarterly due dates. Some super funds need monthly payments. By joining those funds, employers agree to the monthly terms.
The SBSCH will close from 1 July 2026. Existing users can access it until 11:59 pm AEST, 30 June 2026, and should move to another payment method before then. Employers should check if any industrial awards require contributions to a specific super fund.
Employers may make post-tax personal super contributions for employees under employment terms, laws, or awards. These do not count toward SG.
Employers can use Super Fund Lookup to check if a fund is complying. If a fund is not listed, get written confirmation from the trustee that the fund:
- Is a complying super fund,
- Will accept the contributions, and
- Will continue to meet legal requirements.
Written confirmation may protect employers if a fund later becomes non-compliant. Payments to a non-complying fund do not meet SG obligations, are not tax deductible, and may trigger FBT.
Valid SG contributions are tax-deductible only when paid. Late or missed payments may attract the SG charge, which is not deductible. Late payments may reduce an SG charge or count as pre-payment for future SG for the same employee. Practitioners should closely monitor payment timing, as delays affect SG compliance and deduction timing.
GST and Fuel Tax Credit Entitlements
The ATO reminds taxpayers that the GST credits and fuel tax credits expire if they are not claimed within the 4-year time limit, and the ATO has no ability to amend assessments to include the credits. The ATO reminds taxpayers to:
- Have food governance frameworks and processes to regularly review the correctness of reporting – this should reduce the requirement to identify mistakes in the past time near to the 4-year credit time limit. For the top 100 large corporates, the ATO usually expects disclosures to be made in real-time.
- Ensure credits are calculated correctly and keep the right records to support your claims – penalties may apply if you claim credits you are not liable to.
- Actively manage the risk of expiry of your credits if you identify an error.
The 4-year credit time limit is different from the period of review. The period of review is how long the ATO can amend an assessment. This is usually 4 years from when the BAS is lodged, but it can be extended by agreement.
The 4-year credit time limit for GST and fuel tax credits is stricter. Once this time limit passes, the ATO cannot add credits, even if the period of review is still open. This means the ATO may amend an assessment for underpaid or overpaid GST, but expired credits cannot be included. It is important to claim all credits within the 4-year time limit.
SERR Lodgments
Tax agents can file Sharing Economy Reporting Regime reports on their clients’ behalf in Online services for agents through file transfer.
ATO Issuing Departure Prohibition Orders
Departure prohibition orders are used by the ATO to strengthen payment compliance and debt collection. Since July 2025, 21 DPOs have been issued by the ATO, indicating a clear shift towards earlier and firmer enforcement action. A DPO won’t let individuals with outstanding tax liabilities leave Australia until their debt is paid or satisfactory payment arrangements are in place.
Commercial Deals Service Resources
Small business CGT concessions
For instance, a partnership sold a property and wanted to reduce the capital gain completely by applying the small business 50% active asset reduction and the small business rollover.
The ATO asked for more information to prove the partnership was carrying on a primary production business. After reviewing the information and TR 97/11, the ATO decided there was not enough evidence of active trading. The partnership tax returns showed no primary production income or expenses, so the taxpayer was not eligible for the concessions. The taxpayer accepted the ATO’s decision and withdrew the claims.
Market value substitution rule
Another example involved three siblings, each owning one-third of a family company. Two siblings sold their shares to a trust controlled by the third sibling. Because this was not at arm’s length, the ATO reviewed whether the market value substitution rule applied. After valuation advice and enquiries, the ATO found the sale price was below market value. The sellers confirmed that the buyer set the price, and there was no negotiation to avoid family conflict. A pre-lodgment agreement was reached to use market value instead.
Value shifting in restructures
In a company restructure, new share classes with special rights were issued before a planned transaction. Later changes to rights and a share split increased the value of those shares. The ATO decided this caused a direct value shift from individuals to a family trust. Under the value shifting rules, the ATO treated the individuals as making capital gains in the 2022 income year, giving certainty for the later transaction.
Foreign resident CGT withholding
In a foreign resident CGT case, a non-resident shareholder received non-cash consideration. To proceed before a shareholder vote, the taxpayer provided security equal to the expected CGT. After discussions, an escrow arrangement was agreed and the withholding rate was reduced to 0%.
Apportioned CGT discount for non-residents
The ATO reviewed how a trust calculated the CGT discount for a non-resident beneficiary. The taxpayer used the contract date instead of 30 June as the gain day. Correcting this reduced the CGT discount, based on the periods the beneficiary was an Australian resident.