Super for sportspeople, performers, filmmakers and related activities
The ATO has updated its website guidance on SG obligations for payments made to filmmakers, performers, sportpeople, and others involved in similar activities. When you pay an employee, the SG rules apply. The rules can also apply to people paid for their labour, even if they are independent contractors. The rules can also apply to people who are paid to present, perform, or participate in activities such as entertainment, music, sports, promotional activities, dance, or similar activities. Payments for services related to these activities may also be liable for SG.
The ATO has confirmed that payments to guest speakers, social media influencers, and live streamers will be liable for SG. Payments made to yoga, Pilates, and fitness instructors may also be liable for SG where they physically demonstrate the relevant movements. This means SG can apply even if the person is an independent contractor, has an ABN, is doing the activity as a hobby or is only engaged for a one-off activity. The main exception is where the performance is for a domestic or personal purpose.
The ATO’s updated guidance also confirms that the payer will not have SG obligations where they pay to a trust, partnership, or company. The updated guidance also explains how to deal with SG obligations when payments are made to a group of performers as individuals, how to work out which part of a payment is liable to SG, and how to handle payments made through intermediaries.
Permanent $20,000 instant asset write-off
From 1 July 2026, the $20,000 instant asset write-off (IAWO) limit is permanent. Businesses with annual turnover of less than $10 million may be able to claim an immediate tax deduction for eligible business assets costing less than $20,000. In the same financial year, the asset must be used or ready to be used. The $20,000 limit applies to each asset, so businesses can claim the write-off for multiple eligible assets.
The IAWO can also apply to upgrades or enhancements to an existing asset if the cost is less than $20,000 and the original asset qualified for the write-off. Both new and used assets can qualify, although some assets are excluded or have certain rules. If an asset costs $20,000 or above, the business might not be able to claim the full amount. Instead, eligible assets can be added to the small business depreciation pool and claimed at 15% in the first year and 30% in later years. From 1 July 2026, the low-value pool limit has also been increased to $20,000 from 1,000.
Businesses that stopped using the simplified depreciation rules can use them again until 30 June 2027. They will not have to wait the usual five years before re-entering the system.
PAYG withholding for nonresidents
The ATO has updated its guidance on PAYG withholding annual reports, including the report required for certain payments paid to non-residents. Businesses usually need to file the report if they have paid unfranked dividends, interest, or royalties to foreign residents and withheld tax from those payments. Unfranked dividends and interest are not required to be reported if they are already included in an annual investment income report (AIIR). The PAYG withholding from dividend, interest, and royalty payments made to non-residents – annual report (AT 7187) is due by 31 October each year. It reports the amounts paid and tax withheld and helps the ATO identify foreign recipients. Separate reporting applies to certain other payments to foreign residents, including payments for sporting activities and entertainment, construction and related activities, and casino gaming junket arrangements. These are reported using NAT 12413.
PAYG Form B
The ATO is sending reminders to tax practitioners to check whether Form B is mandatory for clients who have entered the PAYG instalment system. Form B is an instalment activity statement that requires the client to calculate their PAYG instalment using either the instalment rate method or instalment income method, rather than paying an amount advised by the ATO.
Form B is automatically raised by the ATO when a client enters PAYG instalments. It is easy to miss, as it doesn’t appear in Online services for agents Communication history and won’t trigger standard notifications. Practitioners are required to take care when a client is newly registered for PAYG instalments because the first activity statement may need action even where subsequent instalments are released as a notice. If Form B is not filed when needed, the client’s PAYG instalment obligation may not be reported properly. When preparing Form B, practitioners must ensure the right calculation method is used and that the instalment amount reflects the client’s circumstances for a specific period.
Prior year returns and new clients
The ATO sends reminders to tax practitioners even though the deadline for lodgment is 31 October on a weekend for 2026; overdue previous-year tax returns must still be filed, and new clients should be added to the tax agent’s client list by 31 October, rather than the next business day. Meeting this deadline is essential because clients who are not added or lodged by 31 October may not get their 2026 tax return due date under the tax agent lodgment program. Practitioners must allow for processing delays, as it can take up to three weeks for updated due dates to appear in the ATO’s systems after a prior-year return has been lodged. Taxpayment must complete client-to-agent linking before the practitioner can add them to the client list. Practitioners must review overdue returns and new client engagements prior to the 31 October deadline to ensure the relevant steps are completed on time.
Information technology services TPAR
The ATO has updated its guidance on Taxable Payments Annual Report requirements for businesses offering IT services. IT businesses may have to file a TPAR when they pay contractors for IT services as part of their business. IT services can include design, development, execution, maintenance, and support of computer systems and software. Not all contractor payments should be reported. Payments for non-IT services may not need to be included. Where a contract covers both IT and non-IT services, businesses should check whether the IT work falls within the TPAR rules. Businesses must check their contractor arrangements to ensure all reportable payments are identified and reported correctly. Payments to contractors situated outside Australia are not excluded from TPAR reporting.
FBT changes to salary sacrificed work-related benefits
Changes will apply from 1 April 2027 to the FBT treatment of some salary sacrificed work-related expenses. The ‘otherwise deductible’ rule will no longer reduce FBT on salary sacrificed expenses that are covered by the standard work-related deduction. This includes expenses such as home phone or internet, working from home, and self-education costs. The rule will apply to expenses not covered by the standard deduction, and to standard-deduction expenses that are offered outside a salary sacrifice arrangement.
Changes will also apply to the work-related items FBT exemption. From 1 April 2027, items such as computers, software, protective clothing, portable electronic devices, briefcases, and tools of trade will not be exempt when offered through salary sacrifice. If the requirements are met, they can still be eligible when given outside salary sacrifice.
The exemption will also be expanded, allowing employers to offer multiple items with the same or similar function in an FBT year. The items should be used for work. This removes the current one-item limit and extends the exemption to all employers, not just small businesses. Tax practitioners should review clients’ salary sacrifice arrangements and work-related benefits before 1 April 2027, particularly those affected by the new FBT rules.
New foreign resident CGT measure from 1 October
Changes to the foreign resident capital gains tax rules have received Royal Assent and will apply from 1 October 2026. The changes affect foreign residents selling property, Australian land, and certain interests in Australian entities, including trust interests and shares. From 1 October 2026, key changes include:
- Foreign vendors involved in disposals of $50 million or above must notify the ATO when providing certain declarations to the purchaser.
- Purchasers must review whether they have reason to believe a vendor’s declaration is wrong before settlement.
- A new definition of real property will cover land, interests and rights in land, certain leases, and assets fixed to land.
- The principal asset test will change from a single-point test to a 365-day testing period.
- A temporary 50% CGT discount will apply to eligible foreign residents selling certain renewable energy assets.
The ATO is also developing a new form for disposals of interests costing $50 million or more.
Payments from super
The ATO has updated its guidance on various superannuation tax rates and thresholds that apply from 1 July 2026. The low rate cap has increased to $260,000. It limits the amount of a super lump sum that can get a lower or nil tax rate for people who have reached preservation age but are under 60. The cap is a lifetime limit and is reduced by amounts previously counted towards it. It no longer applies to family law arrangements from December 2024.
The untaxed plan cap limits the tax concessions available on super benefits that include an untaxed amount. The cap applies separately to each super plan and is indexed in $5,000 increments, generally each February.
The ATO has also confirmed that the normal minimum annual payment rules apply to account-based and other super pensions and annuities. A temporary 50% reduction applied from 2019–20 to 2022–23 but has not continued. Providers calculate the required minimum payment each 1 July based on the member’s account balance, with a proportional amount applying where a pension starts during the year.
Practitioners should also consider the updated super lump sum and DASP tax rates when advising on withdrawals and rollovers. In limited cases, a DASP held as unclaimed super money can be rolled over if a former temporary resident later becomes a permanent resident, but it remains classified as a DASP and is taxed at the applicable DASP rates.