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1.
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New GST Simplified Accounting Method Finalised for Restaurants, Cafes and Caterers
A GST determination has been finalised to use eligible restaurants, cafes and caterers the option to use a simplified accounting method (SAM), known as the "purchases snapshot method", to work out their net GST. The new method allows businesses to estimate input tax credits on trading stock purchases using actual purchase data from two 4-week sample periods each financial year, rather than classifying every purchase as taxable or GST-free.
To use the new method, a retailer must be registered for GST throughout the tax period, operate a restaurant, cafe or catering business, and have GST turnover under the $2 million small enterprise threshold.
The new determination (F2026L01275) replaces the 2016 SAM instrument, which was due to sunset on 1 October 2026, and has the same substantive effect. It commenced on 24 September 2026.
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A New Tax System (Goods and Services Tax) (Simplified Accounting Method for Restaurants, Cafes and Caterers) Determination 2026 - Federal Register of Legislation
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2.
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ART Confirms Div 7A Treatment of Intercompany Loans
The Administrative Review Tribunal (ART) has upheld amended assessments and penalties issued to members of the Complete Fire Doors Group, finding that intercompany transfers recorded as loans constituted deemed dividends under Division 7A.
An ATO audit found that loans made by the group's trading company, CFDA, to related entities and individuals during the 2016 to 2020 income years were not supported by compliant loan agreements and were not returned for tax purposes. The Commissioner therefore treated the unpaid amounts as deemed dividends and imposed shortfall penalties.
The taxpayers argued the transfers formed part of the group's shared banking arrangements and working capital funding, rather than distributions. They also sought relief under section 109RB on the basis of honest mistake or inadvertent omission.
The ART agreed with the Commissioner, holding that the evidence did not establish that the amounts were anything other than loans or that any statutory exceptions applied. The Tribunal also found no basis to exercise the section 109RB discretion and upheld the penalties.
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Traynor and Commissioner of Taxation (Taxation and business) [2026] ARTA 2024 (15 September 2026)
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3.
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New Law Strengthens Tax Practitioner Accountability and Foreign Resident CGT Rules
The Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026 (the Act) received Royal Assent on 15 September 2026, introducing stronger sanctions for tax practitioner misconduct and significant changes to the foreign resident CGT and withholding regimes.
The new law expands the TPB's regulatory and enforcement powers, increases civil penalties, introduces infringement notices and enforceable undertakings, and creates new offences for certain unregistered tax practitioners.
The Act also strengthens the foreign resident CGT regime by broadening the scope of taxable Australian real property, modifying the principal asset test, and making changes to foreign resident withholding arrangements. In addition, eligible foreign residents disposing of Australian renewable energy assets may access a transitional 50% CGT discount until 30 June 2040.
Further changes allow taxpayers to claim credits for amounts withheld under the foreign resident capital gains withholding regime in the same income year that the underlying transaction is recognised for tax purposes, provided the amount has been paid to the Commissioner.
The Act also updates the deductible gift recipient framework by adding new listed DGRs, extending existing listings, and renaming Public and Private Ancillary Funds as Public Giving Funds and Private Giving Funds.
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Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026 – Parliament of Australia
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4.
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New Disclosure Obligations Support Expanded TPB Sanctions Regime
The Code of Professional Conduct obligations for registered tax practitioners have been updated to align with the TPB's expanded enforcement powers introduced under recent tax practitioner reforms.
The Tax Agent Services (Code of Professional Conduct) Amendment (Enhancing Tax Practitioners Board Sanctions) Determination 2026 amends the 2024 Determination to require practitioners to disclose certain sanctions imposed under the Tax Agent Services Act 2009 to clients in specified circumstances.
The changes support the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026, which introduced new offences, increased civil penalties, registration suspension powers, and other enforcement tools for the Tax Practitioners Board.
The amendment also makes technical clarifications to the operation of the existing Code of Professional Conduct framework.
The new disclosure requirements are intended to ensure taxpayers are informed about practitioner conduct that may be relevant when assessing a practitioner's suitability to provide tax agent services. Public consultation on the exposure draft was undertaken between 3 and 14 August 2026.
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Tax Agent Services (Code of Professional Conduct) Amendment (Enhancing Tax Practitioners Board Sanctions) Determination 2026 - Federal Register of Legislation
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5.
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GST Rulings on Retirement Villages Updated Following Aged Care Reforms
The ATO has proposed updates to GST Ruling GSTR 2012/3 to align with the aged care legislative reforms that commenced on 1 November 2025.
The draft update (GSTR 2012/3DC) reflects the replacement of the Aged Care Act 1997 with the Aged Care Act 2024 and updates references throughout the ruling to the new aged care framework. The changes incorporate updated terminology and concepts, including the "aged care service list", prescribed "care services", and "approved residential care homes".
The ruling explains when care services and accommodation supplied in certain aged care and retirement village settings are GST-free under section 38-25 of the GST Act. The ATO has indicated that the substantive GST treatment of these supplies remains largely unchanged.
Once finalised, the updated ruling will apply from 1 November 2025. Comments on the draft are due by 16 October 2026.
Separately, an addendum to GSTR 2007/1 has been issued to update the definition of a "retirement village" and reflect the aged care reforms. The addendum applies from 1 November 2025 and removes previously included industry views on the meaning of "communal facility", relying instead on the Commissioner's interpretation.
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GSTR 2012/3DC | Legal database
GSTR 2007/1A2 - Addendum | Legal database
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6.
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TPB Releases Guidance on Expanded Sanctions Framework
The TPB has issued guidance on the enhanced sanctions framework introduced under the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026.
The reforms provide the TPB with a broader range of compliance and enforcement tools, allowing it to respond to misconduct and non-compliance in a more graduated and proportionate manner, including in cases involving unregistered practitioners.
The TPB has emphasised that the new framework is primarily directed at higher-risk misconduct and is not intended to increase the regulatory burden on tax practitioners who are meeting their professional obligations.
Under the enhanced regime, the TPB will continue to adopt a measured, risk-based approach when determining appropriate regulatory action. The new sanctions complement the Board's existing powers and may be applied alongside existing sanctions where permitted.
The TPB has indicated that further guidance materials and educational resources will be released in coming months to assist practitioners in understanding the operation of the expanded sanctions framework
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Enhancing the TPB sanctions regime | Tax Practitioners Board
TPB provides guidance on reforms to sanctions powers | Tax Practitioners Board
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7.
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ATO Expands Visa Data-Matching Program
The ATO has announced a new visa data-matching program under which it will obtain visa and migration data from the Department of Home Affairs for the 2026-27 to 2028-29 financial years.
The program is expected to collect records relating to approximately 9 million individuals each year, including visa grant history, visa status, international travel movements, sponsor details, migration agent information, address and contact history, and education provider details for student visa holders.
The ATO says the data will be used to help verify that individuals and businesses are meeting their tax and superannuation obligations, identify compliance risks, improve risk detection models, and support voluntary compliance.
The program will also assist the ATO in identifying fraud involving the visa system, cancelling ABNs held by ineligible entities, and supporting compliance activities under Australia's foreign investment rules.
The data-matching program was announced in a Gazette notice dated 21 September 2026 and will be conducted in accordance with the Office of the Australian Information Commissioner's data-matching guidelines and relevant privacy laws.
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Gazette notice: Commissioner of Taxation – Notice of a visa data-matching program 21 September 2026 - Federal Register of Legislation
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