Transfer balance cap
The ATO has released an addendum to LCR 2016/9 to:
- Further explain how proportional indexation applies to the transfer balance cap and superannuation income streams that are subject to a commutation authority.
- Clarify how general principles apply to successor fund transfers.
- Reflect the increase in the maximum number of members allowed in a self-managed super fund (SMSF) under the Treasury Laws Amendment (Self Managed Superannuation Funds) Act 2021.
PAYG withholding variation for FRCGW payments
The ATO has released draft LI 2026/D18, Taxation Administration Legislative Instrument 2026. The draft instrument proposes changes to the foreign resident capital gains withholding regime by varying the amount purchasers must withhold when obtaining CGT assets from foreign residents. It would also repeal, consolidate, and replace five existing class variation instruments with a single legislative instrument. This is likely to make it easy for taxpayers and practitioners to determine when a class variation applies.
The consolidated instrument covers acquisitions involving:
- Multiple vendors.
- Deceased estates and legal personal representatives.
- Marriage or relationship breakdowns.
- Income tax-exempt entities.
- Mortgagee sales where no sale proceeds remain after the exercise of a power of sale.
Fuel blends
The ATO has registered LI 2026/25, Fuel Tax (Fuel Blends) Determination 2026, which sets out when blends of taxable fuel and other products are not treated as fuel for fuel tax purposes.
Where covered, producers may still claim fuel tax credits for the taxable fuel used, and excise duty will not apply because the blend is not treated as excisable under subsection 77G(1) of the Excise Act 1901.
The instrument replaces the 2016 determination, due to sunset on 1 October 2026, and largely preserves the existing rules. However, biodiesel blends containing surfactants or oleic acid that also contain another fuel will now be treated as fuel for fuel tax purposes.
Excise guidelines for the alcohol industry
Chapter 7 of the Excise guidelines for the alcohol industry has been updated by the ATO, which covers remissions, refunds, drawbacks, and exemptions. The update reflects changes made by the Excise Amendments Regulations 2025. From 1 July 2026, the maximum remission available to an eligible alcohol manufacturer each financial year has been increased from $350,000 to $400,000 for certain alcoholic beverages entered for home consumption.
Third party reporting exemptions for government-related entities
The ATO has issued the Taxation Administration Determination 2026. Government-related entities are exempt from reporting certain financial transactions to the Commissioner under the third-party reporting regime. However, these entities can still choose to report transactions covered by the exemption where not reporting the transaction would create a greater administrative burden than reporting it.
GST recipient-created tax invoices
Draft GST ruling GSTR 2026/D2 has been released by the ATO that sets out its updated views on when a recipient-created tax invoice can be issued. The draft ruling replaces GSTR 2000/10. Under the GST legislation, the Commissioner can determine the circumstances where the recipient of a taxable supply can issue the tax invoice instead of the supplier.
Previously, there were 51 separate legislative instruments issued by the Commissioner in relation to RCTIs. Most of these were replaced by an updated instrument issued in 2023. The new draft ruling reflects this updated position.
The draft ruling covers key issues relating to RCTIs, including:
- The requirement for the recipient to determine the value of the supply, which is often relevant when deciding whether an RCTI can be issued.
- The requirements for a written agreement to be in place for an RCTI to be a valid tax invoice.
- How RCTIs operate when a recipient acts through an agent.