Here we outline some important issues relevant to year end and generally. Please contact us if you would like to review your individual circumstances.

BUSINESS 



Payday Super Starts 1 July 

• Reminder: From 1 July 2026, employers must pay superannuation guarantee contributions at the same me as 

wages (i.e., on each pay run), not quarterly:

⚠WARNING: If you are not ready for this new system or run it with incorrect data you risk large SGC penalties 

• Compulsory Super Increase: The SG rate reached its legislated final level of 12% from 1 July 2025.

• Pay Employees' Superannuation Before 30 June 2026: Superannuation is not deductible in the current year unless received by the fund on or before 30 June. Pay early to allow for clearing house delays. 

• IMPORTANT – SBSCH Closing & Payday Super Starts 1 July 2026: The Small Business Superannuation Clearing House (SBSCH) will be closed from 1 July 2026 as Payday Super commences on this date. From 1 July 2026, employers must pay SG contributions on each pay event (not quarterly). Get your payroll systems, so ware and cashflow modelling ready now. 

• DEPRECIATION – $20,000 Instant Asset Write-Off: Businesses with aggregated turnover under $10m may deduct in 2026 the full cost of eligible depreciating assets costing less than $20,000, first used (or installed ready for use) between 1 July 2025 and 30 June 2026. The $20,000 limit applies on a per-asset basis, so multiple assets can each be written off. Assets of $20,000 or more go into the simplified depreciation pool (15% / 30%), and the closing pool balance can be written off if under $20,000. TIP: Paying for or invoicing an asset by 30 June 2026 is not enough – it must be installed ready for use by 30 June 2026 to qualify. WARNING: From 1 July 2026 the threshold technically reverts to $1,000 unless the 2026-27 Budget proposal to make $20,000 permanent is legislated. The five-year 'lockout' for SBEs that opt out of simplified depreciation also recommences from 1 July 2026 – think carefully before opting out this year. 

• STRATEGY – Refinance ATO Tax Debts: Because GIC/SIC incurred from 1 July 2025 is non-deductible, business taxpayers should consider refinancing outstanding tax debts with a bank loan. Interest on borrowings used to pay business tax (income tax or GST) debt remains deductible under s.8-1 per IT 2582, effectively converting nondeductible GIC into deductible interest – often at a lower headline rate too. (Note – this strategy is not available to non-business taxpayers, partners borrowing for personal tax, or for borrowings used to pay a beneficiary's personal tax liability.) 

• Prepayments Deductible for Small and Medium Businesses 2025/26: Immediate deductions available where aggregated turnover is less than $50m and the prepayment does not exceed 12 months with the service period ending in 2026/27. WARNING: If a prepayment does not meet the 12-month rule, the deduction must be apportioned over the eligible service period or 10 years, whichever is less. 

• Don't Forget TPAR Reports: Taxable Payments Annual Reports for payments to contractors in building & construction, cleaning, courier and road freight, IT services, and security industries are due by 28 August 2026. 

• Consider Timing of Invoicing: Under accruals accounting, revenue is typically recognised when a recoverable debt arises. WARNING: Aggressive manipulation of invoicing could be challenged under an-avoidance rules. 

• Accruing Expenses by 30 June: Salary and wages for work performed to 30 June, employee bonuses and commissions definitively committed to, director fees authorised by resolution, and accrued rent / interest may be deductible in 2025/26 even if paid in 2026/27. 

• Bring Forward Expenditure: Consider bringing forward repairs, client gifts, and superannuation contributions (own or employee) into 2025/26 — contributions must be received by the fund by 30 June 2026 to be deductible. 

• Trading Stock Valuation: Choose the year-end valuation method (cost, market selling value, or replacement value) that minimises taxable income. SBEs (and businesses under $50m turnover) using the simplified trading stock rules may elect not to account for stock changes of $5,000 or less. 

• Review Bad Debts Pre-30 June: Evidence the decision to write off a bad debt must exist on or before 30 June 2026 (per TR 92/18). A minute or contemporaneous accounting entry is sufficient. 

• Wages to Spouses and Children: Ensure deductible wages are actually incurred, preferably paid by year end, and documented. WARNING: Deductions are limited where payment is unreasonable. 

• Inter-Entity Transactions: Ensure these are commercially reasonable and properly documented. 

• STRATEGY – Small Business Restructure Rollover (SBRR): If your business has outgrown its current structure, the SBRR in Subdivision 328-G can defer income tax / CGT on transferring ac ve assets between SBE-eligible en es without a material change in ul mate economic ownership. Can be applied asset-by-asset alongside the CGT small business concessions. Note – the rollover does not cover stamp duty, GST or FBT (although the GST going-concern exemption may apply).

CAPITAL GAINS AND LOSSES 

• CGT Events and Timing: A CGT Event usually occurs at the contract date, not settlement. TIP: Seek advice early if a significant capital gain is anticipated – planning options diminish after 30 June. 

• Offsetting CGT Losses: CGT losses cannot be carried back. Consider realising capital losses by year end where strategically beneficial. WARNING: Deliberate "wash sales" may be attacked by the ATO as tax avoidance. Transfers between related people or entities may be justifiable on other grounds such as consolidation of multiple holdings.

TRUSTS 

• Trust Distributions: Distributions must be determined by trustees prior to 30 June. We will send draft minutes to clients. Special attention is required given ongoing complexity around s.100A, Owies-style considerations, and unpaid present entitlements. WARNING: Trust distribution minutes cannot be altered after 30 June. 

• New Beneficiary Notification: Trustees must report TFN details of any new beneficiaries (including minors turning 18 during the year). Failure means 47% TFN withholding on entitlements. 

• Unpaid Trust Entitlements: Continue to be a focus area – attention must be paid to how and when UPEs of a beneficiary are used, and that they only ever benefit the intended recipient.

COMPANIES 

• Company Tax Rate: Qualifying Base Rate Entites (aggregated turnover under $50m and no more than 80% passive income) remain at 25% for 2025/26. Other companies remain at 30%.

• Private Company Loan (Division 7A) Compliance: Minimum repayments on pre-exis ng Div 7A loans must be physically received by 30 June 2026 – any shortfall is treated as a deemed unfranked dividend. Our clients with Div 7A loans have been advised of 2026 loan payment requirements. New loans arising in FY2026 must be repaid or placed under a complying Div 7A loan agreement by the lodgement date of the FY2026 company tax return (with the first minimum repayment by 30 June 2027). WARNING: Loan recycling (drawing similar or larger amounts a er repayment) may be ignored by the ATO. 

• Franked Dividends: Carefully me (and stream where possible) franked dividends. Consider whether declaring a dividend prior to 30 June is beneficial. Comment: Companies sittng on large franking reserves should consider the longer-term risk of franking system changes that might reduce the value of stored franking credits. 

SUPERANNUATION – Pre & Post 30 June Considerations 

• SMSF Minimum Income Stream Payments: SMSFs paying pensions must ensure minimum annual payments are made by 30 June 2026 to preserve tax exemption. Standard minimum percentages apply (4% under 65, scaling to 14% at 95+) — the COVID-era 50% reduction no longer applies.

• SMSF Documenta on & Valuations: Property and unlisted assets should ideally be re-valued annually (or at least every 3 years), supported by comparable sales / market rents (for property) and financial reports / minutes (for unlisted entites). WARNING: With Div 296 commencing 1 July 2026 (see below), annual valuations are now critical – consider an automatic annual valuation arrangement. 

• SMSF Investment Strategy Maintenance: Review and update where circumstances or markets have shifted. 

• 2025/26 Contribution Caps: 
• Concessional cap: $30,000.
• Non-Concessional cap: $120,000. 

• NCC bring-forward (under age 75): up to $360,000 over 3 years where TSB at 30 June 2025 was under $1.76m; $240,000 over 2 years where TSB was $1.76m–under $1.88m; $120,000 single year where TSB was $1.88munder $2m; nil where TSB is $2m or more. 

• Concessional Carry-Forward: unused concessional cap from the previous 5 years is available where TSB at 30 June 2025 was under $500,000. The unused 2020/21 cap ($25,000) EXPIRES on 30 June 2026 – use it or lose it. 

• Contributions must be RECEIVED by the fund by 30 June 2026 – pay early. Heads-up for 2026/27: From 1 July 2026, the concessional cap is set to rise to $32,500 and the NCC cap to $130,000 (indexed). 

• Div 293 Tax on High Earners: Additional 15% tax on concessional contributions where Division 293 income plus super contributions exceed $250,000. 

• Document Personal Super Deductions: Lodge a valid No ce of Intent to Claim with your fund and obtain acknowledgement before lodging your individual return, commencing a pension, taking a lump sum payment or rolling over your benefits to a new superfund. 

DIVISION 296 – The New $3m Super Tax (Now Law) 

The Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026 received Royal Assent on 13 March 

2026. The new Div 296 tax (also called "Better Targeted Super Concessions") applies from 1 July 2026 – meaning the first 

assessments will be issued based on TSB and earnings for the 2026-27 financial year. 

Key features 

• An additional 15% tax on the proportion of earnings attributable to a member's TSB above the Large Super Balance Threshold (LSBT) of $3 million. 

• A further 10% tax (so 25% in total Div 296 tax) on the proportion of earnings above the Very Large Super Balance Threshold (VLSBT) of $10 million. 

• Combined with the 15% fund-level tax, total nominal tax on earnings can reach 30% between $3m–$10m and 40% above $10m. 

• Both thresholds are INDEXED to CPI ($150,000 increments for the $3m, $500,000 for the $10m). 

• Earnings are calculated on a REALISED basis (the controversial "unrealised gains" approach has been removed). 

• Negative earnings years: no refund, no carry-forward of Div 296 losses (although fund-level losses still carry forward inside the fund). 

• Tax is assessed to the individual (not the fund) – the ATO will issue an assessment and a release authority similar to Div 293. 

• On death, the deceased's TSB is reset to nil to prevent a posthumous liability; members dying on or before 30 June 2027 will have no Div 296 liability in 2026-27. 

Pre-30 June 2026 Considerations 

• Get an accurate TSB picture NOW: Identify all members likely to exceed the $3m LSBT at 30 June 2026 – this is the first measurement point for 2026-27. Don't forget overseas pension interests are excluded from TSB under the new rules. 

• Refresh valuations: SMSFs holding property, unlisted units or private company shares should obtain current, supportable valuations as at 30 June 2026 – the ATO has signalled increased scrutiny where valuations sit static for 3 or more years. 

• Consider withdrawals before 30 June 2026: Members aged 60+ who have met a condi on of release and have TSBs near $3m may wish to lump-sum draw down balances before 30 June 2026 to reduce TSB below the LSBT. (Note: recontribution restrictions and pension recalculation traps must be considered.) 

• Equalisation between spouses: Consider contribution splittng and re-contribution strategies to even up balances and keep each spouse below $3m. Remember NCC bring-forward rules use 30 June 2025 TSB. 

• Estate planning: Review BDBNs, reversionary pensions, and ownership of large unlisted holdings. The new rules change how death benefits and TSB interact. 

• Cashflow planning: For members holding illiquid SMSF assets (e.g. property, unlisted investments), model whether the fund will have liquidity to meet a Div 296 release authority – consider liquidity strategies, debt repayment ming, or asset repositioning before the 2026-27 year starts. 

• Optional CGT cost-base reset: The legislation includes optional cost-base reset provisions that may be relevant for members with significant embedded unrealised gains. Talk to us about whether to elect. Post-30 June 2026 (i.e. during 2026-27 and beyond) 

• Watch for ATO "in-scope" notifications: The ATO will notify trustees of in-scope members. Funds must then calculate and report attributable realised earnings to the ATO. 

• Member-level attribution: We will work with fund administrators to ensure earnings are attributed on a fair and reasonable basis consistent with the (forthcoming) regulations. 

• Pay personally or from super: Members can elect to pay the Div 296 tax personally or via a release authority from their super fund – the right answer depends on personal marginal tax rates, fund liquidity, and pension stage. 

• Ongoing strategic review: Because thresholds are indexed but earnings are taxed annually, ongoing review of withdrawal, contribution and structuring strategies is essential. Super is no longer a "set and forget" structure for highbalance members. 

ACCOUNTING & DOCUMENT MANAGEMENT 

Ensure your data is up to date for year-end planning. Modern cloud-based accounting (Xero), portfolio tracking 

(Sharesight) and document management (Hubdoc) make it straigh orward to maintain real-me records — a major 

advantage in navigating financial year-end and opmising your tax position.

 

NEW ADMINISTRATION REQUIREMENTS 

AML/CTF Tranche 2 for Accountants and Lawyers from 1 July 2026 

From 1 July 2026, accountants, tax agents, bookkeepers, lawyers, and real estate agents will become repor ng en es 

under the An-Money Laundering and Counter-Terrorism Financing (AML/CTF)Act. 

What this means:

• Customer due diligence (iden ty verifica on, source of funds) 
• Ongoing monitoring of client transac ons 
• Suspicious matter reporting to AUSTRAC 
• Record-keeping (7 years minimum) 
• AML/CTF program (risk assessment, training, compliance officer) 

Relevance: Nearly all accounting firms will be dragged into this due to basic func ons they ordinarily perform such as 

corporate registered office, trust and company services, and assistance with client transactions. This is a lot of unpaid 

administration work for the government to help them identify the type of clients and transactions we would never deal with. 

Impacts: We are taking all the steps we can to minimise cost and inconvenience to our clients of these requirements. We 

have engaged automated systems and digital ID/KYC tools however there will be some changes in the experience in dealing 

with us such as: 

• Updates to engagement letters 
• Requests for ID, source of funds, and entity details 
• Verification across directors, beneficiaries, trustees, etc.
• Delays before work can start
• Higher administrative costs that will need to be passed on

TASA (Tax Agent Services Act 2009) reform – Breach Reporting 

Where registered tax agents and BAS agents have reasonable grounds to believe there has been a “significant breach” of the 

Code of Professional Conduct (by them or another registered practioner), they must notify the Tax Practioners Board 

(TPB). This applies to breaches occurring on or a er 1 July 2024. 

This includes where significant client non-compliance with a tax law or ATO guidance puts the practioner or another 

practioner at risk of breaching Code obligations (e.g. taking reasonable care in ascertaining the client’s state of affairs, or 

other Code requirements). 

Impact: To some extent these requirements force tax agents to become unpaid police for the tax system. Agents will protect 

themselves by doing more due diligence before taking on clients to ensure they have no unresolved compliance issues, and 

by dumping clients who don’t follow recommendations. 

COMMENT: Regulation like this sees businesses doing unpaid government regulatory work. This is another reason 

treasury’s current narrative of trying to equalise tax outcomes of businesses with those of employed workers is 

misguided. 

ATO RULINGS AND RECENT CASE LAW 

ATO RULINGS

Holiday House Ruling - Old Leisure Facilities Sec on Weaponised 

Repurposing old “leisure facility” rules: The ATO has finalised its controversial new ruling on holiday house rental deductions. 

Under TR 2026/1, the ATO classifies a privately used rental holiday house as a ‘leisure facility’ (an older concept originally 

aimed at recreational assets of businesses) if personal or family recreational use is significant. This new interpretation allows 

the ATO to invoke sec on 26-50 of the Income Tax Assessment Act 1997, which denies major rental property deductions (like 

interest, rates, land tax, maintenance costs) for holiday homes that aren’t predominantly used to generate rental income year

round. This marks a major change from past practice – previously the ATO typically allowed holiday-home expenses with 

proportional (time-based) apportionment without invoking sec on 26-50. The ATO acknowledges it had not publicly applied 

sec on 26-50 to holiday rentals before and has introduced a one-off transitional concession (no audits on pre-1 July 2026 

expenses). 

The problem: If a property is deemed mainly a “leisure facility” (meaning private recreational use outweighs or undermines 

the rental purpose), all the typical holding/ownership deductions (interest, rates, land tax, insurance, repairs, depreciation, 

etc.) can be completely disallowed – not merely reduced – regardless of part-year rental. 

Legal Validity: In justifying the new approach, the ATO relies on case law to interpret “mainly” as a qualitative test (focusing 

on the property’s dominant purpose and availability) rather than a strict >50% time test. Critics note that the ATO’s heavy 

emphasis on peak holiday-season usage (e.g. if owners block out Christmas or similar high-demand periods for personal stays) 

goes beyond what the statute’s wording clearly demands. 

What to do: Consider the following steps to counter the new ATO position as opposed to challenging it: 

• Limitation of personal stays, especially in peak seasons 
• Keeping the property genuinely available and rented out during high-demand periods
• Document rental efforts and usage 
• Avoid aggressive workarounds such as contrived stays or charges 

Impacts: 

• There are numerous issues now (including high Land Tax) that potentially de-value holiday houses 
• This is yet another tax grab. 

CASE LAW 

Bendel Case: ATO Loses in The High Court - The Impact Is Bittersweet Though 

Decision: The High Court dismissed the ATO's appeal in Commissioner of Taxation v Bendel [2026] HCA 18, confirming that a 

trust's unpaid present entitlement (UPE) to a company is not a "loan" for Division 7A purposes 

Background: For years, the ATO treated UPEs as "loans" under Division 7A, requiring loan agreements and minimum 

repayments. 

Impact: Bendel is a welcome reprieve from the ATO making up the law, but it does not remove the need to manage UPEs, 

Division 7A exposure, Subdivision EA and trust distributions carefully. Unfortunately, the ATO has Subdivision EA waiting in the 

wings. That provision targets UPEs directly, is even nastier than Division 7A and applies retrospectively. Large assessments can 

easily be triggered by seemingly innocent actions without the trustees being aware. The real loser is the taxpayer: Division 7A 

remains a sinister, complex trap in desperate need of reform. 

Actions: The dangers arise when there exist unpaid trust distributions to company beneficiaries: 

• Review historical UPEs and any Division 7A loan arrangements that follow previous ATO guidelines 
• Monitor ATO guidance and any legislative response 
• Avoid future problems by physically paying out any historical or current unpaid distributions 

Botella Case: Hardwired Company Division 7A Loan Agreements Don’t Work 

Decision: The Administrative Review Tribunal confirmed in Botella that puttng Division 7A loan terms into a company 

constitution does not of itself satisfy Division 7A.

Background: Many companies have constitutions stating: "If Division 7A applies, loan terms written into the constitution 

apply". This was a practical solution to avoid paperwork for every shareholder loan. Many companies have relied on this. 

Division 7A was designed to be punitive and not practical so companies can be at risk if they don’t have each loan in writting 

separate from the wording of the constitution. 

Actions: Whilst it would be quite nasty for the ATO to pursue this in cases where companies have complied with Division 7a 

loan terms, nothing is a surprise these days. Most companies have separate “facility agreements” in place covering any 

drawings by specific borrowers. One agreement can cover multiple advances, or an “amalgamated loan” provided it is properly 

drawn up and executed prior to the company’s lodgement day for the income year in which the first loan was made.   

• Review all private company loans to related parties to check if they are properly documented 

ATO AUDIT FOCUS AREAS 

What the ATO is targeting this year – and what it means for you. Drawn from the latest ATO publications, NTAA technical 

updates, and recent Tribunal and Federal Court decisions.

The ATO received an additional ~$870 million of compliance funding in the 2025/26 Budget and has moved into an 

aggressive audit phase. The following are the key areas being targeted this year – we summarise what each means for you in 

one or two lines. 

Focus Areas Affecting Individuals 

• ATO interest charges (GIC & SIC) no longer deductible: From 1 July 2025, General and Shor all Interest Charges are NOT tax-deductible — even where they relate to prior-year debts. The after-tax cost of carrying an ATO debt has effectively doubled, so paying tax debts down (or refinancing them via a bank loan if you carry on business) is now a priority. WARNING: personal taxpayers, employees and passive investors CANNOT deduct interest on a loan used to refinance an ATO debt — only operating businesses can. 

• Car logbook claims: The ATO has flagged a high error rate in logbook-method car expense claims and has won multiple Tribunal cases. Logbooks must be a current 12-week period within the last 5 years, properly describe each business journey ("client visit" is NOT enough), and the business-use percentage must reflect actual annual patterns – not just the busiest 12 weeks.

• Rental property interest claims: Continues to be a top ATO audit target – special attention to redraw facilities, refinanced loans partly used for private purposes, and the vacant land rules during construction or substantial renovation. TIP: use OFFSET accounts (not redraw) where possible — offset withdrawals don't taint deductibility. 

• Personal super contribution deductions – Notice of Intent traps: The ATO has NO discretion to waive a late or invalid Notice of Intent. The notice must be lodged BEFORE you lodge your return (or 30 June of the next year, whichever is earlier), AND before you start a pension, AND before any rollover or lump sum withdrawal of the contributed amount. Get this wrong and the full deduction is lost.Focus Areas Affecting Businesses, Trusts & Companies 

• GST reporting on BAS: The ATO is closing an $8.7 billion GST gap (small business contributes 70%). Focus on misclassified taxable sales (e.g. "going concern" errors), over-claimed input tax credits, late lodgers, and businesses that should be registered but aren't. Non-compliant businesses are being moved from quarterly to MONTHLY BAS reporting. 

• Cash businesses & the shadow economy: Hospitality, building & construction, agriculture and labour hire are under direct surveillance through joint ATO/Fair Work raids. Recent cases (Ahmad, Endycott , Day) show the courts almost always uphold default assessments unless your records are detailed, contemporaneous and credible. 

• Property developments (TA 2026/1 and PCG 2026/D2): The ATO is targeting "long-term construction" arrangements where related-party developers defer income recognition while claiming deductions and GST credits during the build. If you are mid-project, get advice – these are now flagged as "red zone" risk. 

• Sham contracting & TPRS data-matching: Joint ATO/Fair Work opera on announced 13 March 2026. If you engage workers as contractors (especially in building & construction or road freight), expect the relationship to be tested. Misclassification triggers SG charge, PAYG withholding, leave entitlements AND Fair Work penal es of up to $495,000. 

• Contractor expense ratios on tax returns: High contractor expenses relative to salaries and wages on the company / trust return is a key data-matching trigger. 

• Lifestyle asset lease expenses (boats, aircrafts, luxury cars): Lease deductions for these assets are reviewed for both FBT and deductibility. The ATO also matches insurance data on high-value lifestyle assets to detect private use. 

• Motor vehicle expenses & the FBT gap: The FBT gap on car benefits is estimated at 30%. Employers claiming car expenses on the business return without a corresponding FBT return are a priority audit target. 

• Base Rate Entity (BRE) status: Claiming the 25% rate when income from rent, interest, dividends or hiring equipment exceeds 80% of assessable income is being scrutinised. Watch in particular: companies leasing equipment (royal es under s.6(1)) and bucket companies receiving trust distributions sourced from passive income. 

• Bad debt deductions: Must be evidenced as actually bad (not merely doubtful), formally written off by 30 June 2026, and previously brought to account as assessable income. A contemporaneous written record (e.g. directors' minute) is essential. 

• Division 7A – loans, journal entries & complying agreements: Recent cases (Bendel, Botella) confirm the ATO's heightened focus. Loan agreements MUST be standalone written agreements between the company and the borrower – clauses buried in a company's cons tu on are NOT enough (Botella case). Minimum yearly repayments must reach the company by 30 June 2026. "Loan recycling" (redrawing similar amounts a er a repayment) is being attacked under s.109R. Journalised set-offs against declared dividends or director fees can work BUT all steps must be executed by 30 June. 

• Trust distributions & s.100A (reimbursement agreement risk): Beneficiaries must genuinely receive and control the economic benefit. Circular funding, distributions where the beneficiary never gets the cash, and "late minutes" remain firmly in the ATO's sights. 

• Family Trust Elections (FTEs) & Family Trust Distribution Tax (FTDT): The ATO has confirmed unlimited me to raise an FTDT assessment at 47% – distributions outside the family group can sit undetected for years. NOTE: the ATO is offering up to 80% remission of accumulated GIC on voluntarily self-reported FTDT — but ONLY UNTIL 31 December 2026. 

• Written agreements for related-party transactions (SNA case): The Full Federal Court has confirmed that longstanding practice, commercial logic and even cash payments are NOT enough where there is no current, binding written contract. Service, licence and lease agreements within private groups should be reviewed and refreshed.

• Income splitting and PSI (PCG 2025/5): Professional firms and personal-services businesses streaming profits to family members or low-tax entities are being challenged under Part IVA — qualifying as a PSB does NOT immunise you.

• Holding-period rule for new bucket companies: If a non-widely-held trust receives franked dividends and then distributes them to a corporate beneficiary that was incorporated AFTER the trust received the dividends, the company will NOT satisfy the 45-day holding rule – franking credits are lost.

• Franking rate (25% vs 30%) mismatch: Newly incorporated bucket companies, and companies whose income mix has changed, are commonly attaching franking credits at the wrong rate. Mismatch can trigger franking deficit tax.

What This Means for Year-End 2025/26

The unifying theme across all these areas is governance over engineering – the ATO is no longer satisfied with structures or labels, they want to see commercially supportable substance, contemporaneous documentation, and consistent cash flows.

Many issues arise not from aggressive planning but from legacy arrangements that no longer reflect how the business actually operates.

• Complete by 30 June 2026 (not after): logbooks, Notices of Intent, Division 7A minimum repayments, bad-debt write-offs and trustee resolutions.

• Refresh related-party written agreements (service, licence, lease) where these have expired or never existed.

• Review FTE / family group exposure NOW – the 80% GIC remission window closes 31 December 2026.

Document trustee distribution decisions and cash flows in real time, not retrospectively.

Pay or refinance outstanding ATO debt – it is no longer deductible.