by Ariful | Oct 13, 2026 | Australia Updates
TITLE: Australian Tax Update: Trust Tax Inquiry, GST Combination Food Rules, SMSF Penalties and October Due Dates
Here are three Australian tax and compliance developments to know today, plus key October due dates. Use this update to check your records, GST classifications and payroll processes before upcoming reporting deadlines.
Proposed trust tax faces a Senate inquiry, keep decisions on hold
Treasury’s proposed 30% minimum tax on discretionary trusts, announced in the May budget, is not yet law. The Greens have confirmed they will seek a Senate inquiry into the proposed carve-out for small firms. Economics spokesman Nick McKim said the government had “watered down its own position before the legislation has even reached parliament.”
Treasurer Jim Chalmers is expected to introduce the legislation on Wednesday 14 October. However, with the Greens pushing for an inquiry and the Coalition opposing the proposal, the measure is not expected to pass before at least late 2026.
The potential costs are substantial. Wilson Asset Management and CPA Australia estimate that the 210,000 business trusts Treasury expects to be affected could face between $8 billion and $13.3 billion in advice and restructuring costs. State stamp duty on asset transfers could add more. Chalmers is in talks with the states about possible relief for businesses required to restructure. Business groups also point out that trusts are used for legitimate purposes, including asset protection and succession planning.
Read the reporting from AAP and the Australian Financial Review.
What to do: Don’t make an allocation or restructuring decision based on a proposal that has not passed Parliament. Keep current trust, asset and transaction records, so costs and compliance consequences can be assessed if the legislation proceeds. This applies whether your business operates in Sydney, Melbourne, Brisbane, Perth, Adelaide or regional Australia.
ATO consults on GST treatment of combination food. Review products sold together
The ATO opened consultation on 7 October on Draft GST Determination No. GSTD 2024/1DC, covering supplies of combination food.
The draft clarifies that a food product is taxable combination food if it contains a separately identifiable taxable food. A combination food may be visually identifiable and sufficiently joined with other components at the time of sale. Classification is determined at the point of supply.
The draft also sets out a low-risk treatment for certain cereal products:
- Cereal products containing 15% or less combination foods by weight, excluding packaging, are treated as low risk.
- Cereal products containing more than 15% combination foods are not treated as low risk.
This matters to food, grocery and online sellers bundling taxable and GST-free items. Breakfast cereals, mixed snack packs and bundled hampers may need careful review. A change to product composition or packaging can affect the GST outcome at the point of supply.
The ATO’s advice-under-development page lists an expected completion date of October 2026. It does not specify a formal public closing date for comments. See the draft determination and the consultation reporting from Bloomberg Tax.
What to do: Review food products that combine taxable and GST-free items. Check product ingredients, weights, packaging and how each item is supplied. Keep evidence that supports the GST treatment reported on your BAS. If a product’s classification is unclear, use the ATO consultation process to raise the question.
SMSF audit information penalties upheld, verify every return detail
The Administrative Review Tribunal has affirmed penalties against trustees in QQCS, CZMV, JRFK, PJXX and WHVG and Commissioner of Taxation [2026] ARTA 2159.
The fund’s 2015 to 2018 annual returns named an auditor who had not audited the fund, recorded an audit completion date and stated that an unqualified opinion had been given. No audit had been carried out. The ATO was told this by the named auditor. The trustee who prepared the returns admitted knowing that audit reports did not exist, but said they lodged the returns to prevent the fund from being made non-complying.
The Commissioner found the trustees had made a false or misleading statement. All trustees were held jointly and severally liable, including those who had left administration of the fund to one person. The penalties were imposed on the basis that the fund intentionally disregarded a taxation law. ART general member Joanne Dunne said intentional disregard requires dishonesty and actual knowledge that a false or misleading statement is being made, which can be inferred from the facts and circumstances.
What to do: Check that auditor names, audit completion dates and opinions in lodged returns match the signed audit reports. Keep those reports on file and correct inaccurate information before the ATO contacts you. A passive or uninvolved role in fund administration does not, by itself, remove a trustee’s exposure to joint and several penalties. Read the report from SMS Magazine.
October compliance dates: plan lodgments and payroll checks
Put these dates in your compliance calendar. Confirm the dates that apply to your own reporting arrangements.
- 21 October 2026: Lodge and pay the September 2026 monthly BAS.
- 28 October 2026: Standard due date for the July to September 2026 quarterly BAS, also known as the Quarter 1 activity statement. Eligible electronic lodgers and registered-agent clients may have later lodgment dates, so confirm the date that applies to you.
- 28 October 2026: This is not a Payday Super payment deadline. Since 1 July 2026, super contributions must reach each employee’s fund within seven business days of payday. However, the ATO treats unpaid July to September quarter super shortfalls by 28 October as a compliance risk indicator under PCG 2026/1. Reconcile contributions against each payday, not only at quarter end. See the ATO’s guidance on Payday Super payment deadlines and PCG 2026/1.
- 31 October 2026: Tax professionals must add new clients to the lodgment program by this date. It falls on a Saturday and is not extended.
What to do: Match BAS and payroll records to your accounting data before lodgment. For employers in Sydney, Melbourne, Brisbane, Perth, Adelaide and regional Australia, build a payday-by-payday super reconciliation into routine payroll checks. This helps identify missing or delayed contributions earlier.
ATO credit card payments continue until 30 June 2027
The pause on the ATO’s planned ban on direct credit card payments for tax and super obligations continues until 30 June 2027. Confirm the payment methods available for your account and review any scheduled direct debit or card arrangements before that date. Check the ATO’s current guidance for updates on payment options.
by Ariful | Oct 13, 2026 | US Updates
TITLE: Tariff Evasion Is Now a DOJ Enforcement Priority — What Importers Need to Know
On 1 October 2026, the U.S. Department of Justice (DOJ) made tariff evasion, unlawful importation and forced-labour-related trade fraud a corporate enforcement priority. That same week, officials confirmed that a prior disclosure filed with U.S. Customs and Border Protection (CBP) does not, by itself, count as a voluntary self-disclosure to DOJ.
For an international seller or e-commerce brand importing into the United States, your customs compliance file is now also a potential criminal-risk file. Information provided through your freight forwarder, customs broker or supplier can affect both your civil exposure to CBP and any separate DOJ assessment.
Know what DOJ will weigh before a trade issue escalates
Directive 26-12 sets out four corporate enforcement priorities:
- Healthcare fraud and related conduct.
- Fraud affecting public trust, government procurement and public functions.
- Significant evasion of internal or external revenue.
- Fraud involving tariff evasion, imports of goods or services, or forced labour.
For companies, the directive says prosecutors must place great weight on ten non-exhaustive factors when considering charges or negotiating agreements. In plain English, the risk picture can worsen where there is:
- Management knowledge of or involvement in the conduct.
- Concealment from government agencies or auditors, or obstruction of oversight.
- Conduct that continues for three years or more.
- Threats to public safety, security or military readiness.
- Substantial harm to a taxpayer-funded programme or government function.
- Harm affecting multiple taxpayer-funded programmes or government functions.
- Activity spanning three or more federal districts.
- Financial harm to 25 or more victims, or losses of $25 million or more.
- Funds moved to support foreign adversaries.
- Immigration offences.
These factors are not automatic findings of wrongdoing. They are signals of what prosecutors may consider. The DOJ’s Corporate Enforcement and Voluntary Self-Disclosure Policy, dated 10 March 2026, is a separate policy framework; a disclosure that goes only to a regulator may not meet DOJ’s requirements.
Check origin first: transshipment can hide the real risk
Country-of-origin fraud, including transshipment, was the leading pattern in trade fraud cases over the past year, accounting for more than half. Routing goods through another country does not necessarily change their origin. If records or declarations suggest that goods were made somewhere other than where they were actually produced, CBP may examine the entries and the surrounding evidence.
This matters across the United States. Entries routed through Los Angeles / Long Beach, Newark or Chicago O’Hare can attract scrutiny, and an inquiry may involve CBP field offices beyond the port where a shipment arrived. DOJ is based in Washington D.C.; a company’s own records and conduct may matter regardless of where the goods entered.
Nor is exposure necessarily limited to the importer of record. Under 18 U.S.C. § 545, a person who knowingly receives, buys, sells or facilitates the sale of merchandise after importation, knowing it was imported contrary to law, may face liability. Earlier in 2026, a company that was not the importer of record pleaded guilty and paid a $6,382,000 fine over imported plywood. The statute can also expose goods to forfeiture. Liability depends on the legal elements and evidence; simply being connected to an import does not establish guilt.
Choose the disclosure route carefully
A CBP prior disclosure under 19 CFR 162.74 is a civil customs tool. It can help address a good-faith classification or valuation error and may reduce civil penalties under 19 U.S.C. § 1592. It does not, on its own, protect you from a DOJ case or qualify as a voluntary self-disclosure to DOJ.
Use this decision path:
- Identify the issue and preserve the records. Don’t edit or delete relevant documents or messages.
- Get qualified counsel involved before filing. A CBP submission and a DOJ disclosure serve different purposes and can affect separate proceedings.
- Assess both routes. DOJ remarks suggest that if an internal review would lead you to discipline or terminate an employee over the conduct, that is a signal to evaluate a DOJ voluntary self-disclosure alongside any CBP prior disclosure.
This is a legal decision, not a routine bookkeeping correction. Do not treat one filing as a substitute for the other.
Treat every Form 28 as a request to examine the wider process
CBP is shifting toward a stronger compliance focus and using data analytics to identify classification, valuation and origin anomalies. That is driving more CF-28 Requests for Information.
A Form 28 is not a penalty notice. It is a request for information. But your response can expose wider inconsistencies. CBP expects an applicable determination to be used across analogous entries, not only the entry named in the request.
Read the form carefully: the response date on the notice controls. Responses are typically due within 30 days of the form date. If you need more time, request an extension before the deadline lapses. Collect the entry records, invoices and supporting documents, answer each question fully, and keep a copy of what you submit.
Worked example: one mismatch across 40 entries
Imagine an Amazon FBA seller ships products from Shenzhen to a third-party warehouse in Los Angeles. The commercial invoice shows a value of $10,000 per shipment. The freight forwarder enters $6,000 and lists a different country of origin. CBP analytics identify the mismatch across 40 entries.
For illustration only, assume the correct duty rate is 15% and apply it to the value difference. The invoice-to-entry gap is $4,000 per shipment, or $160,000 across 40 entries. On that assumed rate, the estimated duty shortfall is $600 per entry, or $24,000 total. Actual duty depends on the goods’ classification, origin and applicable rates; other duties, taxes and fees are not included in this example.
If a civil violation is established, potential penalty ceilings under section 1592 can depend on the degree of culpability and the domestic value of the goods. On these assumptions, the loss-based ceilings could be up to $48,000 for negligence or $96,000 for gross negligence, subject to the statutory limits and the facts. These figures are not automatic assessments. If the evidence supports a criminal case, there may also be forfeiture risk for the goods.
The right fix is not to ask the forwarder to amend one entry and move on. Reconcile all 40
by Ariful | Oct 12, 2026 | Banking
TITLE: SME Banking Goes Global: New Multi-Currency Accounts, Instant Payments and What They Mean for Your Tax Records
SME banking is becoming more international and more automated. This week’s launches bring new options for holding foreign currency, making cross-border payments and keeping financial records up to date. The practical challenge is making sure faster money movement still produces complete, reliable records for tax and year-end reporting.
Get more choice for holding and moving money internationally
UK SMEs now have more ways to manage foreign-currency balances and overseas payments. Flagstone has expanded its cash platform to include USD and EUR business savings accounts, allowing eligible UK businesses to hold and earn interest on those balances without moving money offshore. Check the account provider, access terms and protection arrangements before depositing funds. Flagstone operates as a platform, so understand which partner institution holds each deposit and what protections apply.
OakNorth’s partnership with Wise Platform brings international payments into its business banking experience. The service is designed to support payments in more than 20 currencies, with local payment rails in relevant markets. Wise says 77% of payments are delivered in under 20 seconds, although speed can vary by destination, payment route and checks.
Other launches show the broad reach of this trend. Revolut Business introduced a startup-focused proposition covering 25-plus currencies across four pricing tiers. Yellow Card launched global business accounts for companies operating across borders in Africa, while Lumepay entered Kenya with multi-currency accounts and local settlement options. In Canada, Tangerine Business launched services for entrepreneurs. Ecobank also agreed to join China’s CIPS network for direct yuan settlement.
These services can reduce friction, but they are not interchangeable. A savings account, a payment account and a payment platform may have different access, protection, settlement and reporting terms. Compare the service against how your business actually receives, holds and spends money.
Prepare now for changing payment and reporting rules
Some developments are relevant now; others are signals to start planning.
India: New RBI trade rules took effect on 1 October. They include reporting requirements for service exports, but the RBI clarified that individuals providing services abroad for personal purposes are not required to be reported. For amounts up to ₹10 lakh per bill, a self-declaration can be used instead of an uploaded invoice. The exporter provides information to their authorised dealer or bank; the bank or intermediary handles portal reporting. Check the RBI’s October press conference transcript and confirm how the rules apply to your entity and transactions.
UK cryptoassets and stablecoins: The FCA’s application period for firms seeking authorisation, or a variation of existing permissions, opened on 30 September 2026 and closes on 28 February 2027. The new regime is scheduled to begin on 25 October 2027. Firms in scope should identify the relevant regulated activities and prepare well ahead of the deadline. See the FCA’s gateway guidance. Payments-specific stablecoin regulation is not expected before 2029, so do not treat the broader regime as a complete payments rulebook.
Open finance: The FCA’s October PRISM Taskforce report sets out a framework for assessing open-finance use cases, including the dependencies, evidence and risks involved. SME lending is a priority use case. A discussion paper on the first open-finance scheme is expected in early 2027. This is not a new reporting obligation for SMEs, but better permissioned financial data could shape future lending processes. Read the PRISM outcomes report.
EU and France: Under the EU’s VAT in the Digital Age package, digital reporting requirements for cross-border B2B transactions are due from 1 July 2030. France is moving sooner: businesses must be able to receive e-invoices from September 2026, while SME and micro-enterprise issuance is scheduled from 1 September 2027. National approaches may differ, so businesses trading across Europe should prepare their invoice data and systems rather than assume one country’s process applies everywhere. The European Commission’s ViDA overview sets out the EU timeline.
Canada and the US: Canada’s Real-Time Rail is scheduled to launch in Q4 2026 with a phased onboarding of participants. The initial transaction cap is expected to be C$100,000, though a bank or provider may set a lower customer limit. Follow Payments Canada’s launch updates. In the US, FedNow is already live, with a $10 million network transaction maximum. Federal Reserve work on possible cross-border arrangements remains under consideration; it does not mean FedNow cross-border payments are already available.
AI ledgers could speed up bookkeeping, but keep controls
Several product launches this week point to a shift from periodic bookkeeping towards more continuous finance operations.
Briefcase launched an AI-native general ledger on 5 October, with automated reconciliation, VAT and Making Tax Digital filing, and an MCP server for agentic workflows. Mercury has added a free AI-powered ledger to its banking product through the end of 2026. Hal launched an “AI finance co-founder” focused on real-time cash-basis financial health, while Monesize Books introduced automated transaction categorisation and an MCP interface for AI agents. Computis raised €2 million in pre-seed funding to develop SME accounting automation.
Automation can reduce repetitive work, but it does not remove the need for oversight. Before relying on any AI bookkeeping tool, check how it handles exceptions, approval rights, audit trails, data access and corrections. Make sure you can export records and retain evidence of VAT calculations and submitted returns.
Keep compliance attached to every new account
A multi-currency business account can simplify payments, but it also adds bookkeeping work. Each foreign-currency receipt, payment and closing balance needs a clear record. Exchange-rate movements may create realised or unrealised gains and losses, and the transaction’s VAT or GST treatment still depends on what was supplied and where the relevant tax rules apply.
Faster cross-border payments do not remove the need to reconcile every balance. Clean records support VAT compliance, year-end accounts and corporation tax calculations. That matters whether you are an ecommerce brand, a SaaS business, an agency or a growing SME. If you are looking for an ecommerce accountant UK businesses can rely on, strong ecommerce bookkeeping UK processes need to capture marketplace settlements and foreign-currency activity as well as bank transactions.
Before adding a multi-currency or instant-payment provider, check:
- Confirm the account structure. Identify the legal account provider, currency options, fees, protections and withdrawal terms. This helps you understand where funds are held and when you can access them.
- Map transaction data. Check that statements include the detail your bookkeeping and tax processes need, such as transaction dates, currencies, exchange rates and counterparties. Confirm how you will export and retain that data.
- Set reconciliation rules. Decide how foreign-currency balances will be tracked, how exchange-rate gains and losses will be recorded, and who reviews exceptions.
- Match tax treatment. Confirm the VAT or GST position for each transaction type and jurisdiction, and keep evidence that supports the treatment applied.
- Review access and controls. Limit who can move money, approve payments or change settings, and keep an audit trail of those actions.
- Test reporting early. Run a trial reconciliation and reporting cycle before your year-end so any gaps can be fixed in good time.
by Ariful | Oct 12, 2026 | E-Commerce
TITLE: Ecommerce Tax Deadlines and Q4 Margin Checks: What to Review Now
This week, prepare for VAT and tax filing deadlines, review your Q4 marketplace margins and get your cross-border records in order. The dates and rules below reflect information available on 12 October 2026. Where a date or measure in an earlier brief needs clarification, we’ve noted it.
1. UK VAT: Prepare your 30 September return
Your VAT return and payment for the quarter ending 30 September 2026 are due by 7 November 2026. Reconcile your sales and VAT before submission so you can correct missing or duplicated entries in time.
For your ecommerce bookkeeping in the UK, check:
- Amazon settlement reports against your bookkeeping records, including refunds, fees and adjustments.
- Shopify orders against payout reports. Payouts may combine several orders and deduct fees.
- Gross sales, discounts, refunds and marketplace fees separately. A payout is not the same as taxable turnover.
- Marketplace-collected VAT. Identify VAT accounted for by a marketplace to avoid counting it twice.
- Stock locations and FBA fulfilment countries. Inventory held overseas may affect your VAT obligations there.
- Foreign-currency settlements and exchange rates. Keep records of the original currency, conversion and settlement amounts.
The UK VAT registration threshold is £90,000 of taxable turnover. Monitor your rolling 12-month total and the separate forward-look test, which can apply if you expect to exceed the threshold in the next 30 days. The deregistration threshold is £88,000, subject to HMRC’s conditions. See HMRC’s VAT threshold guidance.
2. Making Tax Digital for Income Tax: Submit your second update
If you have qualifying self-employment and property income over £50,000, the second quarterly update is due 7 November 2026. It covers the period from 6 July to 5 October, with figures reported cumulatively from 6 April.
MTD for Income Tax extends to qualifying income over £30,000 from 6 April 2027, then over £20,000 from April 2028. HMRC is not applying penalty points for late quarterly updates in 2026–27. That does not remove the requirement to submit updates, or the separate rules for late tax returns and payments. Check HMRC’s MTD guidance.
Limited companies are outside MTD for Income Tax. If you are a director with separate sole-trader selling activity, keep those records separate from your company’s books. Clear separation makes reporting easier and reduces the risk of mixing personal and company transactions.
3. Self Assessment: Fix a missed registration deadline
The 5 October 2026 registration deadline has passed for people who needed to file for the first time for 2025/26, including those with more than £1,000 of gross self-employment income.
If you missed it, register with HMRC as soon as possible. HMRC may issue a filing deadline based on when it contacts you, so follow the date in its notice. The usual online filing deadline for 2025/26 returns is 31 January 2027, and tax due is generally payable by then. Late filing, late-payment penalties and interest can apply. Starting now gives you more time to get your records together. See HMRC’s Self Assessment deadlines.
4. Q4 Amazon margins: Reforecast every unit
Amazon UK’s festive peak fulfilment fees apply to selected orders from 15 October 2026 to 14 January 2027. The announced average additions are around £0.12 per small or standard parcel item and £0.07 per large or extra-large envelope item. Oversize, Low-Price FBA and items delivered to buyers in other EU countries are excluded.
Amazon’s separate 1.5% fuel and logistics surcharge also applies to fulfilment fees. It is calculated on those fees, not on your selling price. Peak storage rates can increase for many categories; check the current rate card for your products rather than relying on a blanket estimate.
Amazon’s published Black Friday Week Prime-badge inbound dates were 21 October for European facilities and 28 October for UK facilities. Confirm product and account-specific requirements in Seller Central.
For Amazon FBA accounting in the UK, model each item’s referral fee, fulfilment and peak fees, fuel surcharge, storage, removals, promotions, VAT and settlement timing. A product can show a healthy sales forecast while cash margin shrinks after fees, promotions and delayed settlements.
5. Pricing and fee data: Reconcile on a fixed schedule
Seasonal deals and promotions can change the amount you actually receive per sale. Schedule a monthly fee reconciliation and compare expected charges with Amazon’s transaction, settlement and fee reports.
Investigate unexpected fulfilment, storage, removal or promotion charges in Seller Central. Where you identify eligible overcharges or lost inventory, submit the relevant claim and record any reimbursement or inventory adjustment in your books. A regular reconciliation helps prevent small discrepancies from accumulating through peak season.
6. US filings and imports: Check your records now
Foreign-owned US LLCs treated as disregarded entities, and certain foreign corporations with reportable transactions, may need to file Form 5472 with a pro forma Form 1120. For a calendar-year 2025 filer with a valid extension, 15 October 2026 is the final extended deadline. This is not a universal Form 5472 deadline; it depends on the filing entity and its return deadline.
A foreign-owned US disregarded entity cannot e-file Form 5472. IRS instructions permit fax or post for this filing. The IRS lists fax 855-887-7737 or mail to: Internal Revenue Service, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201. Missing or incomplete filings can trigger a $25,000 penalty per form, with further $25,000 penalties for each 30-day period the failure continues after IRS notice. If filing late, submit promptly and include a signed reasonable-cause statement explaining the circumstances and corrective steps. Review the IRS Form 5472 instructions.
For US importers of record, keep your physical address, email, telephone and EIN, SSN or CBP number accurate. Incomplete or inaccurate Form 5106 information can put your importer record at risk. Your customs broker’s Power of Attorney must be executed directly between you and the broker. See CBP’s Form 5106 guidance.
7. US sales tax and FIRPTA: Separate the obligations
Q4 order growth can push you over a state’s economic nexus threshold. Marketplace collection does not automatically remove your own registration, return or record-keeping obligations. FBA inventory in a state can also create physical nexus, depending on state rules.
Check state registration status, filing frequency and nexus tracking regularly. FIRPTA withholding relates to certain US real-property disposals by foreign persons; it is separate from sales tax and income tax reporting and should be handled under its own rules and timelines.
by Ariful | Oct 12, 2026 | Australia Updates
TITLE: ATO Credit Card Payments Extended to 2027, 5% PAYG Instalment Factor Confirmed
ATO credit card payments continue until 30 June 2027
The ATO will continue accepting direct credit card payments for tax liabilities until 30 June 2027, extending the previously planned 30 November 2026 cut-off. The federal government has funded the transition period. The ATO had estimated that continuing the service could cost close to $200 million a year, while business groups are still seeking clarity on merchant fee relief. Read the ATO payment options and the extension announcement.
For quarterly BAS lodgers, the 28 April 2027 quarterly BAS is the last one due within the extended direct-card payment window. The June 2027 quarter BAS is due on 28 July, after direct ATO credit card payments end. After 30 June 2027, credit card payments will only be available through third-party payment providers, subject to their terms and fees.
Keep the payment change separate from the card surcharge rules. The surcharge ban took effect on 1 October 2026 and remains in force. It restricts businesses from passing covered card-payment costs on to customers; it does not itself end the ATO’s temporary acceptance of credit card payments. The timing and business impact were reported by Nine and the Australian Financial Review.
What to do: Review your business’s BAS payment process now. If you rely on card payments to manage cash flow, plan an alternative before the extension ends and check any processing fees before paying.
Check whether the 5% PAYG instalment factor applies to you
The ATO has confirmed a 5% GDP adjustment factor for relevant 2026–27 PAYG and GST instalments, up from 4%. It applies to eligible taxpayers using the instalment amount method who pay quarterly or twice yearly, for income years starting on or after 1 April 2026. It is not a blanket increase for every taxpayer or every tax liability. See the ATO’s 2026–27 GDP adjustment factor and PAYG instalment information.
If you have a substituted accounting period that began on 1 January, 1 February or 1 March 2026, the 4% factor continues to apply. The change also does not affect taxpayers using the rate method or paying annually.
If your actual business or investment income has fallen, you may be able to vary an instalment. Estimate your full-year tax position carefully before doing so. Varying too low can lead to an instalment penalty and general interest charge on a shortfall. The ATO explains how to vary PAYG instalments. Longer term, the ATO is also working on dynamic PAYG instalments as a potential simplification measure.
What to do: Compare your latest sales, expenses and profit forecast with the assumptions behind your instalment. Keep the working papers so you can explain a variation if required.
Keep reported income consistent as bank checks are explored
The ATO has confirmed it is exploring potential taxpayer-data sharing with banks as part of a wider response to AI-enabled financial fraud. Banks have been seeking ways to verify income on loan applications using ATO-held data. This remains at the discussion and scoping stage; no new business reporting obligation has been legislated. See The Mandarin’s report.
For business owners and sole traders, the practical step is straightforward: make sure the income and turnover figures you report to the ATO align with the figures you provide to lenders, insurers and platforms. Differences can have legitimate explanations, but clear records help you reconcile them.
Watch for an ATO ruling on whether an activity is a business
The ATO’s advice-under-development program lists a draft ruling, “Are you carrying on a business?”, for release in October 2026. The consultation timetable may change, so treat it as forthcoming guidance rather than a final ruling. Check the ATO’s advice-under-development list.
The distinction may matter if you earn income from online selling, a side hustle, gig work or content creation. Whether an activity is a business or a hobby can affect how income is treated and whether ABN, GST registration or BAS reporting obligations apply to you.
Keep records that show how you operate. A useful checklist includes:
- A business plan or records of your commercial goals.
- Relevant licences or registrations.
- A separate business bank account.
- Marketing activity and evidence of efforts to attract customers.
- Repetitive or regular sales and transactions.
- Consistent income, expense and BAS reporting where applicable.
Good records help you explain the business character of your activity and support accurate reporting.
October 2026 Australian tax and super checklist
Mark these dates whether your business operates in Sydney, Melbourne, Brisbane, Perth, Adelaide or regional Australia. Confirm your own obligations and any later due date with the ATO or registered tax agent.
- 21 October: Lodge and pay your September 2026 monthly BAS.
- 28 October: Standard due date for the July–September 2026 quarterly BAS. Eligible electronic lodgers and registered-agent clients may have later lodgment dates, so confirm the date that applies to you.
- Payday Super: The July–September quarter is a useful first full-quarter reconciliation point since Payday Super began on 1 July 2026. This is not a single quarterly deadline for the new regime: super contributions must reach each employee’s fund within seven business days of payday. Check the ATO’s Payday Super payment deadlines.
- 31 October: Lodge the 2026 income tax return for all entities if you are not using a registered tax agent. If you use a registered tax agent, you may have a later lodgment date — confirm it with your agent. This is also the due date for lodging and paying the Superannuation Guarantee Charge (SGC) statement for the July–September 2026 quarter if you have missed any super obligations.
Keep your business compliant through the transition
These changes land at different times and affect different taxpayers, so it helps to treat them separately rather than as one combined adjustment. Credit card payment acceptance runs to 30 June 2027, the 5% GDP factor applies from 1 April 2026 for eligible instalment method taxpayers, and any bank data-sharing arrangement is still at the scoping stage.
If you operate a growing SME, an online store or a side business, check your payment methods, review your PAYG instalment position, and keep clear records that back up the numbers you report. Speak with a registered tax agent if you are unsure how any of these apply to your situation.
