From the Regulator
FTC calculator
The ATO updated its Business Activity Statement (BAS) fuel tax credit (FTC) calculator to reflect the new FTC rates due to the temporary fuel excise reduction. The reduction was made to the fuel excise on petrol and diesel by 60.9% from 1 April to 30 June 2026. For off-road business use, the FTC rate decreases to 20.6 cents per litre for diesel and petrol. For heavy vehicles travelling on the public roads, the FTC rate increases to 20.6 cents per litre because the road user charge has been set to 0 temporarily. FTC rates are based on the date the fuel was acquired.
Payday super
Here are some common myths clarified by the ATO for tax practitioners:
- Payday super changes how super is paid for contractors: No, it doesn’t change who is owed super, only when it is due. Where a contractor is considered an employee for super purposes, super should be paid so that it reaches their fund within 7 business days after their invoice is paid.
- Clearing houses will process payments faster under Payday Super: Not necessarily. Employers must check their own provider’s processing times. Contribute on the same day as the payday to meet the 7-business-day requirement.
- Quarter 4 super must be paid by 30 June 2026: The old quarterly deadline still applies for this final period. Super payments for the April to June quarter must be received by the employee’s super fund on or before 28 July 2026. If missed, an SGC statement and payment are due by 28 August 2026, and the late payment offset won’t be available for this quarter.
Tips for trustees
With the 30 June deadline for trust resolutions approaching, the ATO has released some web guidance providing tips for trustees, including for family trust distributions tax (FTDT) risk management. The ATO highlights some tips for trustees for the end of the year:
- Trustees must determine trust income by reference to the trust deed, ensuring not to confuse this with accounting profit or to misinterpret trustee powers, and must review the deed to ensure income is distributed as per each beneficiary’s entitlements.
- Beneficiaries need to be identified per the deed, with all entitled beneficiaries quoting their TFN and being notified of their entitlement, since errors often arise from distributing to non-beneficiaries or outside the family group where a family trust election (FTE) or interposed entity election (IEE) is in place.
- Resolution to distribute income should be validly made and documented by 30 June. In the recent Goldenville Family Trust decision, the ART confirmed that missing this deadline can lead to default beneficiaries being deemed entitled, or the trustee being taxed on all trust income at the top marginal rate plus the Medicare levy.
- Trustees need full written substantiation for losses and expenses, since bank statements and accounting records alone are insufficient, and unsubstantiated claims risk having deductions disallowed or carrying forward losses lost.
- Trustees and beneficiaries need to satisfy holding period rules to access franking credits, which requires reviewing dividend and distribution statements to confirm that both the trustee and the relevant beneficiary meet the rules.
The ATO is reminding trustees of family trusts with a Family Trust Election (FTE) to review their exposure to Family Trust Distribution Tax (FTDT). Key points include:
- Review existing elections: Trustees should assess whether their FTE is still required, keeping in mind that the specified individual can only be changed once and is subject to strict eligibility rules.
- Understand the family group rules: Distributions made to individuals or entities outside the defined family group may trigger FTDT at 47%.
- Maintain accurate records: Trustees should retain records of FTEs, family group membership and distributions for at least five years after final lodgment obligations. The relevant income year for the election must also be disclosed in the tax return each year the FTE remains in force.
- Take advantage of penalty relief: The ATO is offering a remission of up to 80% of General Interest Charge (GIC) on FTDT liabilities identified through proactive self-review and paid by 30 December 2026.
Income from digital platforms or apps
The ATO is increasing its focus on income earned through digital platforms and apps, such as ride-sharing, short-term accommodation, delivery services and online freelance work.
This income does not automatically prefill in tax returns, so taxpayers must report it manually. Under the Sharing Economy Reporting Regime (SERR), platforms report earnings directly to the ATO, allowing it to cross-check reported income.
Tax agents should ask clients about any income earned through digital platforms to help avoid omissions and potential ATO reviews. Clients providing ride-sourcing services generally need an ABN and GST registration, regardless of their income.
Car thresholds 2026-27
The updated car thresholds will apply for the 2026-27 financial year. The car limit if $69,883 for depreciation purposes for 2026-27. The luxury car tax threshold for 2026–27 is:
- $91,661 for fuel-efficient vehicles
- $80,809 for all other luxury vehicles.
Changes to non-individual tax returns and schedules for 2026
The ATO has released guidance that summarises the changes to the non-individual forms for 2026, such as tax return forms. Probably the primary area of change is when it comes to the trust tax return, as the ATO has added some new items and changed some other items.
AML/CTF regime
The Tax Practitioners Board (TPB) has released a factsheet to help tax practitioners prepare for the expanded AML/CTF regime. From 1 July 2026, registered tax practitioners providing designated services must comply with obligations such as enrolling with AUSTRAC, maintaining an AML/CTF program, and implementing appropriate governance arrangements.