USA Update: September 2026 State Sales Tax Deadlines Shift to 21 September, What International Sellers Must File Today

by Ariful | Sep 21, 2026 | US Updates

US Sales Tax Deadline: 21 September 2026

If you collect US sales tax, Monday 21 September 2026 is a critical filing and payment deadline in many jurisdictions. The usual 20th-of-the-month deadline fell on Sunday, so a large group of states moved the deadline to the next business day.

This applies to international ecommerce sellers, Amazon FBA operators, Shopify merchants, digital businesses, and US importers of record. It may cover monthly returns, prepayments, quarterly returns, or related payments depending on your filing frequency.

Do not assume every state uses 21 September. Several states have different dates.

File today if your state uses the 20th-of-the-month deadline

The following states and jurisdictions generally move their standard 20th-of-the-month sales tax deadline to Monday 21 September 2026 because 20 September fell on a Sunday:

Alabama
Arizona
Arkansas
Colorado, including most home-rule city returns
District of Columbia
Georgia
Hawaii General Excise Tax
Idaho
Illinois
Indiana, for early monthly filers
Kentucky
Louisiana, where parish deadlines generally align
Maryland
Michigan
Minnesota
Mississippi
Nebraska
Nevada
New Jersey, for monthly prepayments; returns are generally filed quarterly
New York, for monthly and quarterly returns
North Carolina, where monthly prepayment filers must also remit a prepayment towards the next month’s liability
Oklahoma
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Virginia
West Virginia
Wisconsin, for early monthly filers

Your filing obligation depends on the frequency assigned to your account. A monthly seller may be filing an August return. A quarterly seller may be filing a return covering the previous quarter. Some states may require a prepayment rather than the full return.

Check the relevant state revenue department before submitting. For example, New York’s 2026 filing calendar explains the state’s monthly and quarterly sales tax filing dates, while Colorado’s sales tax guidance sets out its filing rules and weekend adjustments.

Do not treat 21 September as a nationwide deadline

Several states follow different dates in September. Your compliance calendar should include the following deadlines:

Maine: 15 September
Florida: 18 September
Ohio: 23 September
Kansas, New Mexico, Vermont and Washington: 25 September
California, Connecticut, Iowa, Massachusetts, Missouri, North Dakota, Utah and Wyoming: 30 September
Wisconsin: 30 September for standard monthly filers
Alaska: generally 30 September for remote seller returns in participating local jurisdictions

California also has a separate 24 September prepayment deadline for certain accounts. Its monthly August sales and use tax return is generally due on 30 September. The California Tax and Fee Filing Due Dates page confirms these dates.

North Dakota’s monthly August sales, use and gross receipts tax return and payment are due on 30 September, according to the state’s official 2026 deadline schedule.

If you missed a deadline earlier this month, submit the return and payment as soon as possible. Late filing can lead to penalties, interest, or compliance notices.

Marketplace collection does not remove your filing obligation

All 45 states with a statewide general sales tax plus the District of Columbia have marketplace facilitator laws. Amazon, Etsy and similar platforms may collect and remit sales tax on transactions processed through their marketplaces.

However, marketplace collection does not automatically eliminate your own filing obligations.

You may still need to:

Maintain an active sales tax registration.
File a zero return where no tax is payable.
Report marketplace sales separately from direct sales.
Make required prepayments.
File quarterly or annual returns.
Report sales made through your own website.
Account for wholesale, B2B and other non-facilitated transactions.

Your Shopify store is not automatically covered simply because Amazon collects tax on your Amazon orders. Direct-to-consumer sales may create separate collection and reporting obligations.

Alaska, Delaware, Montana, New Hampshire and Oregon do not have a statewide sales tax. Alaska is different because local jurisdictions may impose their own remote seller and marketplace collection requirements.

Complete this checklist before the end of today

Use the following process to reduce the risk of a missed return.

List every state and local jurisdiction where you are registered.
This prevents you from relying on a general national calendar.
Confirm your filing frequency.
Check whether the account is monthly, quarterly, annual, or subject to prepayments.
Separate marketplace and direct-channel sales.
Reconcile Amazon, Etsy and other platform reports with Shopify, WooCommerce, wholesale and B2B invoices.
Review exempt and resale transactions.
Keep valid exemption certificates and resale documentation. This supports the figures on your return.
Check import and fulfilment records.
If you are the importer of record, review customs entries, warehouse movements, use tax exposure and inventory destinations.
Submit the return, even if the liability is zero.
A zero return may still be required. Filing it protects your account from an apparent non-filing notice.
Schedule or make the payment.
Filing without paying the balance can still result in interest and collection action.
Save evidence of submission.
Keep confirmation numbers, payment references, filed returns and reconciliation workpapers.

We can support this process through ongoing bookkeeping, sales tax calculations, filing preparation and compliance delivery. You provide the business data. We keep the compliance work moving throughout the year.

Worked example: a UK-owned Amazon FBA seller with a US LLC

Imagine a UK company owner operates a US single-member LLC. The LLC sells household products through Amazon FBA and Shopify.

Amazon collected and remitted sales tax on many marketplace transactions. The seller therefore assumes there is nothing to file.

That assumption may be incorrect.

The seller should first review the states where the LLC is registered or has a filing account. Suppose the business has filing obligations in Texas, Illinois, New York and California.

The September action could look like this:

Texas: file and pay the relevant August return by 21 September.
Illinois: file and pay the relevant monthly return by 21 September.
New York: file and pay the relevant monthly or quarterly return by 21 September.
California: make the 24 September prepayment if applicable, and file and pay the monthly August return by 30 September.

The seller then finishes the process by:

Filing any zero returns required in states where only marketplace sales were made.
Keeping all confirmation numbers and reconciliation workpapers.

That final step often matters most during a later audit.

Daily Australia Tax Update: 20 September 2026. August BAS Due Tomorrow, Card Surcharge Ban Starts 1 October & Trust Tax 47% Warning

by Ariful | Sep 20, 2026 | Australia Updates

TITLE: Australian Tax and Compliance Update: BAS Deadline, Card Surcharge Ban and Trust Tax Changes

Lodge and pay your August BAS by Monday 21 September

If your business reports GST monthly, your August 2026 BAS is due on Monday 21 September 2026. You must lodge the statement and pay any amount owing by the same date.

The ATO’s BAS due-date guidance confirms that monthly BAS obligations are generally due on the 21st day of the following month.

Before submitting, check:

Sales and GST collected for August.
Business purchases and eligible input tax credits.
Imports and international payment fees.
Payroll, PAYG withholding and instalment amounts.
Marketplace, payment gateway and currency-conversion reports.

Do not assume that using a registered BAS agent creates an extension for a standard monthly BAS. The August statement remains due on 21 September.

Late lodgment may trigger a failure-to-lodge penalty. Unpaid tax can also attract the ATO’s general interest charge. The Commonwealth penalty unit is now $364 for offences committed from 1 July 2026, increasing the cost of some compliance failures.

Remove card surcharges before the 1 October ban

From 1 October 2026, Australian businesses will generally no longer be able to add a surcharge when customers pay by eftpos, Visa, Mastercard or American Express.

The change applies to:

Physical card payments.
Online checkout payments.
Credit, debit and prepaid cards.
International cards.
Mobile wallets and other digital payment channels using covered card networks.

The Reserve Bank of Australia’s payment reform guidance confirms the new no-surcharge framework. Existing rules continue until 30 September, but a surcharge must currently remain within the cost of accepting that payment method.

Update your checkout and accounting systems

You should remove card surcharge settings from your:

Shopify, WooCommerce and other checkout systems.
Marketplace payment settings.
Invoicing software.
Payment gateway rules.
Receipts and customer terms.

You may still charge a genuine booking, service or handling fee where it applies independently of the customer’s payment method. Do not relabel a card surcharge as a general fee if it is only charged when a customer pays by card.

For accounting purposes, merchant processing fees will continue as business expenses. If an Australian payment provider charges GST, you may be able to claim an input tax credit where the normal requirements are met.

From 1 October:

Stop recording card surcharge income as a separate revenue stream.
Continue recording merchant processing costs.
Build payment costs into your overall pricing.
Review GST coding for product, service and platform fees.
Reconcile payment-provider settlements to your accounting records.

For an Australian e-commerce business in Sydney, Melbourne or Brisbane, this is both a checkout issue and a margin issue. Update your pricing model before the ban starts so the change does not create unexpected losses.

Treat the proposed trust tax as a planning deadline, not current law

Treasury consultation on the proposed 30% minimum tax for certain discretionary trusts closed on 18 September 2026. The proposal is intended to apply from 1 July 2028, subject to final legislation.

The ATO’s current guidance on the proposed minimum tax explains that the measure is aimed at in-scope discretionary trusts, including some family-owned trading structures.

The proposed alternative arrangements may include:

Restructuring out of the discretionary trust model during a proposed transition period.
Electing into an excluded election trust arrangement.
Locking in nominated beneficiaries and fixed distribution proportions.

The 47% warning needs careful interpretation. The proposal does not create a separate 47% trust tax. The figure generally relates to the highest individual marginal tax rate, including Medicare levy. If a beneficiary’s personal tax rate is higher than the 30% trustee-level tax, additional tax may still arise.

An election can also reduce future flexibility. If circumstances change, fixed beneficiaries and fixed proportions may no longer reflect how the family-owned business operates. That is why trustees should preserve distribution records, beneficiary information and trust accounts now.

Do not treat the proposal as enacted law. Monitor the final legislation and keep your trust compliance records ready.

Bendel changes the UPE position, but not all Division 7A risks

The High Court decision in Commissioner of Taxation v Bendel [2026] HCA 18 held that an unpaid present entitlement, or UPE, is not automatically a loan or financial accommodation for Division 7A purposes.

The High Court judgment and the ATO’s decision impact statement provide the current position.

The ATO has accepted the decision and is withdrawing or revising its previous guidance in TD 2022/11. However, Bendel does not make every trust distribution risk-free.

Division 7A issues may still arise where:

The trust makes payments or loans to shareholders or associates.
UPE funds are actively used for private benefits.
A company releases or deals with an entitlement.
The arrangement involves other forms of financial accommodation.
Subdivision EA applies to payments or benefits involving a corporate beneficiary.

Treasury is considering whether a legislative response is required. Private groups should therefore retain historic trust distribution records and monitor whether any future law changes could affect existing arrangements.

Expect stronger ATO action on missing lodgments

The ATO reports that non-lodgment prosecutions connected with shadow economy activity increased by more than 80% over two years. Court-imposed fines exceeded $2.7 million.

This enforcement activity affects more than cash businesses. It is relevant to any Australian company that repeatedly misses:

BAS lodgments.
Income tax returns.
PAYG withholding reports.
Superannuation obligations.
Other required business statements.

USA Update: IRS Confirms Year-End Guidance on US-Inventory Income Sourcing, What International Sellers Must Know

by Ariful | Sep 20, 2026 | US Updates

TITLE: IRS Guidance on US Inventory Sold Abroad: What International Sellers Need to Know

Why the IRS timing matters for international sellers

If your business produces inventory in the United States but sells it through a foreign branch or overseas operation, the timing of this IRS update matters.

On Friday 18 September 2026, an IRS official reportedly said that the IRS hopes to issue guidance by the end of 2026 on sourcing income from inventory produced in the United States and sold outside the country. The guidance is expected to explain how the 2025 One Big Beautiful Bill Act changes interact with existing foreign tax credit rules.

This is an important development for international sellers, US LLC owners, Amazon FBA businesses, and companies using US inventory or fulfilment networks.

The guidance is not final yet. Until it is published, you must continue to apply the existing sourcing framework and keep clear records that support your position.

The key issue is not simply where your customer is located.

The US tax analysis can depend on:

Where the inventory was produced.
Where the sale was managed and completed.
Whether the business maintains a foreign branch or fixed place of business.
Whether a US office, warehouse, or other facility contributes to the sale.
Whether the inventory was produced or purchased.
How the income is allocated for foreign tax credit limitation purposes.

The IRS guidance project appears in the IRS 2025–2026 Priority Guidance Plan. The plan refers to guidance on income from inventory produced in the United States and sold outside the United States through a foreign branch.

The September announcement confirms the expected timing. It does not replace the current rules or create a filing extension. You should therefore prepare your 2026 records using the rules available today, while building a process that can be updated when the final guidance arrives.

What changed under Section 904(b)(6)?

Before the 2025 legislation, income from selling inventory produced in the United States was generally treated as US-source income for the relevant foreign tax credit limitation analysis, even where the sale took place through a foreign branch.

The 2025 law added Section 904(b)(6). The new provision allows a taxpayer to treat up to 50% of income from the sale of US-produced inventory as foreign-source income for foreign tax credit limitation purposes.

The rule applies where:

The taxpayer is a US person.
The inventory was produced in the United States.
The inventory was sold outside the United States.
The taxpayer maintains an office or other fixed place of business in a foreign country.
The income from the sale is attributable to that foreign location.

The change applies to taxable years beginning after 31 December 2025.

This is a targeted rule. It applies for the Section 904 foreign tax credit limitation. It does not automatically change the source of the income for every other US tax purpose.

The statutory baseline is available in Section 904 of the Internal Revenue Code. The IRS and Treasury guidance should clarify how the new rule operates alongside existing inventory sourcing regulations.

Continue using the existing sourcing framework

Until the new guidance is issued, your business must still consider the established rules under IRC Section 865 and Treasury Regulation Section 1.865-3.

These rules are particularly relevant where a nonresident maintains an office or other fixed place of business in the United States.

Produced inventory may use a 50/50 or books-and-records method

Under Treasury Regulation Section 1.865-3, income from produced inventory attributable to a US office may generally be allocated using:

The 50/50 method; or
An eligible books-and-records method.

Under the 50/50 method, 50% of the gross income, gain, or loss is allocated to the US office or fixed place of business. The remaining 50% is allocated to production activities and sourced under the applicable production rules.

The books-and-records method requires more detailed support. Your records must show, in good faith and without being influenced by tax considerations, how income relates to sales activities and production activities. You must also maintain the supporting explanation and records when the return is filed.

Purchased inventory is treated differently

If the inventory is purchased rather than produced by the nonresident seller, all income from sales attributable to the US office is generally treated as properly allocable to that US office.

That means you cannot automatically apply a 50/50 split to purchased inventory.

Foreign offices can affect the result

The regulations also contain an exception for certain inventory sold for use, disposition, or consumption outside the United States where a foreign office materially participates in the sale.

This is why you should document the actual functions performed in each location. Do not rely only on the location of your customer, warehouse, or marketplace account.

How this affects Amazon FBA and international sellers

Many businesses use Amazon FBA, third-party logistics providers, or US fulfilment centres. However, FBA activity alone is not a blanket safe harbour or automatic US office determination.

The analysis is fact-specific.

You should consider:

Whether your business owns or controls inventory in the United States.
Whether you are the importer of record.
Who arranges customs clearance and transportation.
Whether Amazon or another provider performs only logistics functions.
Whether your business has employees, agents, or contractors carrying out sales activities in the United States.
Where pricing, contracting, customer management, and sales decisions are made.
Whether you maintain a foreign branch with genuine operational activity.

For UK sellers, this issue should sit alongside your wider ecommerce accounting and tax records. Your US activity may also need to be reviewed separately from UK VAT, customs, corporation tax, and year-end reporting.

A business can have US sales without meeting the conditions for the new Section 904(b)(6) treatment. Similarly, a US LLC owner may have reporting obligations that are separate from the foreign tax credit analysis.

For example, a foreign-owned US disregarded LLC may need to consider Form 5472 reporting and the related Form 1120 filing process. Form 5472 penalties can be significant, so do not assume that inventory sourcing is your only US compliance responsibility.

Worked example: a foreign branch selling US-produced inventory

Assume a US corporation:

Produces goods in a US factory.
Sells those goods to customers in Germany and France.
Uses a properly established German branch to manage European sales.
Earns $300,000 of gross income from the relevant inventory sales.
Pays $45,000 of foreign income tax on the related foreign activity.

Under the new Section 904(b)(6) rule, the corporation may potentially treat up to $150,000, or 50% of the $300,000 income, as foreign-source income

UAE Business Setup & Strategy Spotlight

by Ariful | Sep 19, 2026 | UAE Updates

TITLE: How to Set Up a UAE Business in 2026: Mainland, Free Zone, Tax, VAT and Compliance Guide

The UAE remains a strong entry point for digital businesses, international sellers, SaaS companies, agencies and growing SMEs. However, the right structure depends on your customers, activities, staffing, banking needs and compliance obligations.

This guide explains how to approach UAE business setup in 2026, from choosing mainland or free zone registration to managing corporate tax, VAT, UBO reporting, e-invoicing and cross-border transactions.

Choose the right UAE structure before you incorporate

Your first decision is not simply about the lowest licence fee. It is about how you will trade.

Mainland company

A mainland company is usually the most flexible option if you plan to:

Sell directly to UAE customers.
Contract with government departments.
Operate from commercial premises.
Employ a larger local team.
Provide services across the UAE.

Foreign investors can own up to 100% of many mainland companies, although strategic activities may require additional approvals or ownership conditions. Mainland licences are issued by the relevant emirate’s economic department, such as Dubai’s Department of Economy and Tourism.

Free zone company

A free zone company can suit a digital or international business that prioritises:

100% foreign ownership.
International trading.
Technology, software or professional services.
Flexible office arrangements.
Streamlined incorporation.

A free zone licence does not automatically provide unrestricted access to the UAE mainland market. You may need a distributor, branch, mainland company or additional permit to serve customers directly onshore.

Offshore company

An offshore structure is generally used for holding assets, intellectual property or international investments. It is usually unsuitable if you need:

UAE residence visas.
A physical operating office.
Direct UAE trading.
Local employees.
Normal operating payment processing.

Do not choose offshore simply because it appears tax-efficient. Banks, payment providers and tax authorities will examine the company’s actual activity, ownership and management.

Match the licence to your real business activity

Select your activity before choosing a jurisdiction. The licence should reflect how you earn revenue, not just the name of your website.

Common categories include:

Commercial licence: trading goods, import and export, and certain e-commerce activities.
Professional or services licence: consulting, software development, marketing, design and agency work.
Industrial licence: manufacturing, assembly, warehousing or production.
Technology or digital activity: SaaS, software platforms, IT services and web development.
Regulated activity: financial services, fintech, crypto, healthcare or other sectors requiring additional approval.

Keep your activity list accurate. An incorrect licence can create banking delays, contractual problems and questions over whether your income qualifies for UAE corporate tax treatment.

Compare free zones by business model

The best free zone is the one that supports your operating model.

DMCC: A recognised Dubai location for international trading, technology, fintech and premium digital businesses. Review the official DMCC business setup process.
IFZA: Often considered by smaller digital businesses that want a Dubai presence, flexible packages and a broad range of professional activities.
Meydan Free Zone: A practical option for lean digital businesses, online service providers and early-stage companies seeking a streamlined setup.
Dubai Internet City: A technology-focused business ecosystem suited to software, digital services and technology companies that value a specialist environment.
ADGM: A stronger fit for financial services, regulated fintech, investment structures and businesses that need Abu Dhabi’s specialist legal and regulatory environment.
KEZAD: More suitable for manufacturing, logistics, warehousing, hardware or industrial operations than for a purely digital consultancy.

The UAE Government’s free zone guidance provides a useful starting point. Always confirm current activity lists, office requirements, visa quotas and regulatory approvals directly with the relevant authority.

Follow a structured setup process

Use this checklist to avoid delays:

Define your activities and customer base.
This determines your licence, structure and market-access requirements.
Choose mainland, free zone or offshore.
Base the decision on trading rights, substance, visas and banking rather than headline pricing.
Reserve the trade name.
Check naming rules before preparing incorporation documents.
Submit shareholder and director information.
Authorities typically request passports, proof of address, business details and, in some cases, a business plan.
Secure the required office arrangement.
Mainland companies may need a registered lease. Free zones may accept a flexi-desk or shared office, depending on the licence.
Obtain the trade licence and establishment card.
These documents support visa applications and other operational registrations.
Apply for visas and Emirates IDs where needed.
This is important if founders or employees will live and work in the UAE.
Register for corporate tax and VAT when required.
Do not wait until a filing deadline approaches. Early registration helps you build an accurate compliance calendar.
Open banking and payment accounts.
Prepare ownership charts, contracts, invoices and evidence of business activity to support the KYC process.

Understand UAE corporate tax before claiming a 0% rate

For ordinary taxable persons, UAE corporate tax is generally:

0% on taxable income up to AED 375,000.
9% on taxable income above AED 375,000.

A free zone company is not automatically tax-free. A Qualifying Free Zone Person may access 0% corporate tax on qualifying income, while non-qualifying income can be taxed at 9%. For a QFZP, the AED 375,000 band does not generally apply to non-qualifying income.

You should separately track:

Qualifying and non-qualifying revenue.
UAE and international customers.
Related-party charges.
Intellectual property income.
Mainland activities.
Direct and indirect costs.

Small Business Relief may be available where revenue is within the applicable AED 3 million limit and the business meets the relevant conditions. It is an election, not an automatic exemption. Businesses connected to large multinational groups or otherwise excluded under the rules may not qualify.

Corporate tax returns and payments are generally due within nine months from the end of the relevant tax period.

Daily Australia Tax Update: 19 September 2026. August BAS Due Monday, Software Royalty Consultation Nears Close & Treasury Tax Reform Submissions Due 28 September

by Ariful | Sep 19, 2026 | Australia Updates

TITLE: Australia Tax Deadlines September–October 2026: BAS, Software Royalties, Treasury Submissions and FBT Changes

What to Action Now

This Australia tax update highlights the deadlines and regulatory changes you need to manage today. The immediate priority is the BAS lodgment deadline on Monday 21 September 2026. Software businesses also have until 2 October to comment on new ATO royalty guidance, while Treasury tax reform submissions are due by 28 September.

If you operate an ecommerce brand, SaaS business, agency or growing SME in NSW, Victoria, Queensland, Western Australia or South Australia, use this checklist to stay organised.

Lodge your August BAS by Monday 21 September

Monthly reporters must lodge and pay their August 2026 business activity statement by Monday 21 September 2026. This includes reporting obligations for GST, PAYG withholding and other amounts shown on your BAS.

Check the ATO guidance on BAS due dates and the ATO September 2026 due dates page.

Before lodging, reconcile:

Marketplace sales from Amazon, eBay, Etsy, Shopify, TikTok Shop and other platforms.
Payment processor settlements from providers such as Stripe, PayPal and Square.
GST collected on domestic Australian sales.
GST-free exports and sales to customers outside Australia.
Refunds, returns and chargebacks.
GST credits on eligible business purchases and imports.
Currency conversions and cross-border transaction fees.

Do not rely only on the net amount paid into your bank account. Marketplaces and payment processors may deduct fees, refunds and reserves before settlement. Reconciling gross sales to settlement reports helps you identify the correct GST treatment and avoid incomplete reporting.

Quarterly reporters for the July–September 2026 quarter generally have until 28 October 2026 to lodge and pay. Quarterly BAS lodged online or through a registered tax agent may qualify for an additional two weeks. This additional deferral does not apply to the October–December quarter.

Missing the deadline can result in the general interest charge (GIC) on unpaid amounts and potential failure-to-lodge penalties. Lodge on time, even if you need to resolve an accounting issue separately.

Review software royalty arrangements before the consultation closes

The ATO’s final Taxation Ruling TR 2026/2 and draft Practical Compliance Guideline PCG 2026/D4 address software royalties and intermediation payments.

The consultation closes on 2 October 2026. Submissions can be sent to IntangiblesArrangements@ato.gov.au.

The developments are particularly relevant if your business:

Provides SaaS or cloud-based software.
Licences software to Australian customers.
Resells software or digital products.
Pays overseas software suppliers.
Uses cross-border distribution or intermediation arrangements.
Receives income under a software platform or reseller model.

The key compliance question is how payments should be characterised. A software-related payment may have different tax and withholding consequences depending on whether it relates to the use of copyright, access to software, distribution rights, technical services or another commercial arrangement.

PCG 2026/D4 proposes a risk framework using green, lower-risk and higher-risk zones. Review your contracts, invoices, payment flows and supporting records against the final ruling and draft guidance.

Do not assume that describing a payment as a “subscription” or “service fee” settles its tax treatment. Keep evidence showing what the customer or supplier actually receives. This will make your ongoing Australian tax compliance more defensible.

Read the ATO update on software royalties and draft guidance.

Prepare Treasury submissions due on 28 September

Several consultations connected with the 2026–27 Budget remain open until 28 September 2026.

The exposure materials for the Treasury Laws Amendment (Tax Reform No. 5) Bill 2026 cover:

A redesigned Innovative Business CGT Concession, including a proposed 50% CGT discount for early-stage investors in eligible innovative businesses.
Simplification and changes to the R&D Tax Incentive.
Proposed changes to venture capital tax incentives and the entities eligible for VCLP and ESVCLP investment.
Draft changes allowing entities to opt into monthly PAYG instalments, regardless of their base assessment instalment income, from 1 July 2027.

If your business is developing software, investing in innovation or preparing R&D claims, gather relevant project, expenditure and eligibility records now. The proposals may affect how you track activities and support future claims.

Treasury is also consulting on a proposed 30% minimum tax for discretionary trusts from 1 July 2028. However, that consultation closed on 18 September 2026. It is no longer an open submission opportunity, but trust structures should continue to be monitored as the government considers the next legislative steps. See the ATO trust reform information.

Update payroll processes for FBT changes from 1 April 2027

Employers should prepare for changes to salary-sacrificed work-related benefits from 1 April 2027.

Under the announced changes:

The otherwise deductible rule will no longer apply to salary-sacrificed work-related expenses covered by the fixed-rate standard deduction, including home office, home phone and internet, and self-education expenses.
Work-related items such as portable electronic devices, computer software, protective clothing, briefcases and tools of trade will no longer be FBT-exempt when provided through salary sacrifice.
Employers may provide more than one eligible work-related item in an FBT year without losing the exemption where the items are not salary sacrificed.

Review salary packaging arrangements, payroll coding and employee benefit records before the change takes effect. Early preparation will reduce the risk of incorrect FBT calculations during the 2027 FBT year.

Read the ATO’s FBT changes guidance.

Prepare for stronger TPB sanctions from 1 October

The Tax Practitioners Board’s expanded sanctions powers begin on 1 October 2026.

The reforms include:

New civil and criminal penalties

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