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The Supreme Court of Western Australia has granted the Commissioner’s application for summary judgment of $1.16m in rela...
20/10/2026

The Supreme Court of Western Australia has granted the Commissioner’s application for summary judgment of $1.16m in relation to director penalty notice (DPN) liabilities against a director of an NDIS Supported Independent Living provider.

The company failed to meet PAYG withholding, SGC and GST obligations.

The director argued that she was not made aware of the DPNs, that she had taken all reasonable steps to comply, and that the fault lay with NDIS payment delays.

The Supreme Court dismissed all of these arguments.

The Court reiterated that directors are expected to keep themselves informed of tax liabilities and that NDIS funding issues do not excuse statutory tax duties.

Case: Deputy Commissioner of Taxation v Moyo (2026) WASC 434, 7 October 2026

The ATO has released Draft TR 2026/D2: Income tax: carrying on a business by an individual.It sets out the indicators th...
18/10/2026

The ATO has released Draft TR 2026/D2: Income tax: carrying on a business by an individual.

It sets out the indicators the Commissioner considers relevant to determine whether an activity you have undertaken, as an individual, is a business as opposed to an investment or a hobby.

To determine whether an activity or series of activities you carry on amounts to carrying on a business, the activity needs to be considered against the following indicators of carrying on a business, established by the courts:

• significant commercial purpose or character
• intention to carry on a business
• purpose and prospect of profit
• not a hobby or recreation
• organised and carried on in a business-like and systematic manner[8]
• size and scale, and
• repetition and regularity.

These indicators must be considered in combination and as a whole. The importance of each indicator will vary from case to case. Each case will turn on its own particular facts. No one indicator is decisive. Determining whether you are carrying on a business involves a process of weighing all the relevant indicators.

The Ruling also states that the indicators in this Ruling are well established and are consistent with previous ruling and tax legislation.

The ATO has advised that it will continue accepting credit card payments for tax obligations until 30 June 2027. It said...
11/10/2026

The ATO has advised that it will continue accepting credit card payments for tax obligations until 30 June 2027.

It said that it will continue to consult with relevant stakeholders and stewardship groups to understand how best to support those experiencing financial hardship and identify alternative arrangements for businesses and individuals who are unable to pay via other methods.

Taxpayers who wish to continue using a credit card to meet their tax obligations after 30 June 2027 may continue to use third-party payment providers.

The ATO encourages taxpayers considering these options to carefully consider relevant fees, charges and processing timeframes.

The ATO also encourages taxpayers to remain vigilant against scams and verify the credentials of any third-party providers before sharing information or making payments.

The ATO has advised that it is taking action against businesses that omit income and over-claim deductions and GST credi...
04/10/2026

The ATO has advised that it is taking action against businesses that omit income and over-claim deductions and GST credits.

It said that while most small businesses do the right thing, it continue to see cases where some don't.

As a result, the ATO said that its stepping up its compliance action against those that:
- omit income, including failing to report cash income;
- over-claim expenses and GST credits; and
- “use business income to pay for private expenses”.

The ATO are using sophisticated data, analytics and third-party information, to identify businesses that aren't reporting correctly. Since July 2025, they’ve engaged with more than 17,000 small businesses where there were signs of omitted income, leading to close to $3 million in amended tax liabilities.

In 2025–26, audits uncovered more than $210 million in unpaid taxes. and they issued more than $50 million in penalties to businesses that deliberately omitted or under-reported income, such as cash payments.

Don't get caught out.

If you need help with your financial reporting, please get in touch with us and we'll look after the rest.

The ATO has advised that following the Reserve Bank's Review of Merchant Card Payment Costs and Surcharging, the ATO wil...
01/10/2026

The ATO has advised that following the Reserve Bank's Review of Merchant Card Payment Costs and Surcharging, the ATO will stop accepting credit cards as a payment method after 30 November 2026.

It said that as a government agency, the ATO has decided it would not be appropriate for the cost of credit card merchant fees to be transferred to the community. Alternative payment options for taxpayers are outlined at https://bit.ly/3VEZA7F.

The ATO recognises that some taxpayers currently rely on credit card payments to manage their tax payments and understands this change may require some adjustments.

The ATO said it is committed to helping taxpayers transition to alternative payment methods and will continue to support those experiencing financial hardship or other circumstances that make it difficult to meet their obligations.

The ATO has advised that new statistics show more than 52,000 tip-offs were made during 2025–26, with approximately 1,00...
28/09/2026

The ATO has advised that new statistics show more than 52,000 tip-offs were made during 2025–26, with approximately 1,000 reports every week from community members concerned about businesses and individuals doing the wrong thing.

The ATO said that the community is continuing to speak up when they see unacceptable behaviour, like people evading their fair share of tax, employers not paying their employees super and other shadow economy activities.

The ATO also said that the community is playing an increasingly important role in protecting honest businesses and maintaining confidence in the tax and super system.

Claiming car expenses? Don’t fall for these 5 common myths.The ATO has highlighted some common mistakes with the cents p...
23/09/2026

Claiming car expenses? Don’t fall for these 5 common myths.

The ATO has highlighted some common mistakes with the cents per kilometre method:

❌ Myth 1: I can claim travel from home to work.
Generally, no. Normal commuting is private travel, with limited exceptions.
❌ Myth 2: I can automatically claim 5,000 km without records.
No. You still need to show how you calculated your work-related kilometres.
❌ Myth 3: If I lease my car, I can claim the kilometres.
Not always. Cars under a novated lease generally don’t qualify for a personal car expense claim.
❌ Myth 4: I can claim depreciation as well.
No. Depreciation, fuel, registration, insurance, repairs and maintenance are already built into the cents per kilometre rate.
❌ Myth 5: I can switch between cents per kilometre and logbook methods during the year.
No. You need to use the same method for the full income year.

Financial Edge Tip:

Don’t wait until tax time to reconstruct your kilometres. Keep records throughout the year so we can determine the most appropriate method and make sure you’re claiming what you’re legitimately entitled to.

Good records. Better decisions. Better tax outcomes.

A taxpayer has been unsuccessful before the ART in claiming that an insurance payment was not assessable income. Instead...
13/09/2026

A taxpayer has been unsuccessful before the ART in claiming that an insurance payment was not assessable income.

Instead, the ART was satisfied that the insurance payment was compensation for his lost earnings resulting from the injuries he suffered in a car accident.

The ART concluded that as the lost earnings would have been ordinary income to him, the insurance payments he received compensating him for such lost earnings also have the character of ordinary income, and as such are assessable as income to him.

Case: Sebastian and FCT (2026) ARTA 1981, 9 September 2026

A taxpayer that claimed it carried on a business of acquisition, renovation and operation of properties as Airbnb accomm...
10/09/2026

A taxpayer that claimed it carried on a business of acquisition, renovation and operation of properties as Airbnb accommodation has been unsuccessful before the ART in claiming input tax credits of $50,000 in respect of a property purchase that fell through.

Essentially, the ART found on the evidence that the activities undertaken by the taxpayer had not moved beyond commencement steps and indicated “intention” rather than the actual carrying out of relevant activities.

As a result, the ART ruled that the taxpayer had not established that the acquisitions were acquired for a creditable purpose.

Case: XP Investments Pty Ltd and FCT (Taxation and business) (2026) ARTA 1890, 21 August 2026

The Federal Court has dismissed the appeal of the taxpayer from the decision of the ART in Quy and FCT [2025] ARTA 174. ...
07/09/2026

The Federal Court has dismissed the appeal of the taxpayer from the decision of the ART in Quy and FCT [2025] ARTA 174.

In that case, the ART found that the taxpayer who lived and worked in Dubai between 2015 and 2020 (albeit, returning to Australia 12 time to visit his wife and children for periods ranging from a week to 5 weeks) was a resident of Australia under the “domicile test” on the basis that he had not established a “permanent place of abode” outside Australia.

In affirming the ART decision, the Court found that there had been no “misapprehension, mistake, misconception, unreasonableness or miscarriage of judgment” that would authorise it to interfere with the ART’s decision and set aside its conclusion.

The Court also found that it was open to the ART to conclude that it was not satisfied that the taxpayer had a “permanent place of abode” outside Australia.

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