Daily Australia Tax Update: 25 September 2026, Operation Tonberry Hits Melbourne, Foreign Resident CGT Changes Start 1 October & 52,000 Community Tip-Offs

by Ariful | Sep 25, 2026 | Australia Updates

TITLE: Australia Tax Update: ATO Operation Tonberry, Foreign Resident CGT Changes and Key Compliance Dates

Australia tax update at a glance

• The ATO conducted more than 25 unannounced visits to Melbourne CBD fast-food outlets, restaurants and cafés on 22 and 23 September under Operation Tonberry.
• The ATO received more than 52,000 community tip-offs about suspected tax evasion and related non-compliance during FY2025–26.
• Foreign resident CGT changes start on 1 October 2026, including a new notification requirement for certain transactions valued at AU$50 million or more.
• The foreign resident principal asset test will move from a point-in-time test to a 365-day testing period.
• Payday Super contributions must reach an employee’s nominated fund within seven business days of payday, subject to specific exceptions.
• Consultation on the ATO’s draft software royalty compliance guideline, PCG 2026/D4, closes on 2 October 2026.
• The proposed 30% minimum tax on discretionary trusts from 1 July 2028 is not law.

Australia’s tax compliance environment is becoming more active and more data-driven.

Today’s key developments affect hospitality businesses, ecommerce sellers, digital companies, growing SMEs and Australian entities within international groups. The main message is simple: maintain accurate records, pay employees and superannuation correctly, and prepare early for changes taking effect on 1 October 2026.

Strengthen your records as Operation Tonberry targets Melbourne businesses

The ATO has announced that it conducted more than 25 unannounced visits to fast-food outlets, restaurants and cafés in Melbourne’s CBD.

The visits took place on 22 and 23 September 2026. The ATO is investigating suspected:

• Cash-in-hand payments.
• Unpaid superannuation.
• Undeclared or under-reported income.
• Reporting failures.
• Record-keeping breaches.

The operation follows more than 52,000 community tip-offs received during FY2025–26. Around 83% were considered suitable for further review. More than 360,000 tip-offs have been received since July 2019.

Building and construction, cafés and restaurants, and hairdressing and beauty services were among the most reported industries. Hospitality businesses accounted for more than 2,500 tip-offs.

The ATO has said that non-compliance gives an unfair advantage to businesses that do the right thing. Tip-offs can be made anonymously through the ATO’s official tax evasion reporting channels.

Use this compliance checklist

Whether you operate in Melbourne, Sydney, Brisbane, Perth or elsewhere in Australia, review your records now:

1. Reconcile every sales channel.
   Match point-of-sale receipts, ecommerce platforms, payment processors and bank deposits. This helps prevent unexplained differences in your BAS and income tax records.
2. Record all cash sales.
   Cash payments must be recorded in the same way as card and online payments. This supports accurate GST reporting and reduces audit risk.
3. Check payroll and PAYG withholding.
   Confirm that employee wages, PAYG withholding and reporting are complete and accurate.
4. Verify superannuation payments.
   Make sure contributions reach the employee’s fund within the required time.
5. Keep source documents.
   Retain invoices, receipts, payroll records, bank statements and platform reports. Clear records help you respond quickly if the ATO asks questions.

The enforcement message applies beyond hospitality. Australian ecommerce sellers, SaaS businesses, agencies and other digital companies should also ensure that sales from Shopify, Amazon, eBay, Etsy, WooCommerce and other platforms flow correctly into their accounting records.

Prepare for foreign resident CGT changes before 1 October

Foreign resident CGT changes begin on 1 October 2026 following Royal Assent of the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026.

The changes are important for international groups, foreign investors and Australian entities involved in reorganisations, acquisitions or disposals.

Under the new rules, a foreign vendor providing a declaration that an asset is not an indirect Australian real property interest must notify the ATO where the disposal, including related transactions, has a value of AU$50 million or more.

Purchasers must also consider whether they reasonably believe the declaration is false at any time between receiving the declaration and settlement. A declaration should not be treated as automatically conclusive if later information raises concerns.

The ATO’s foreign resident CGT update explains the main changes.

Track asset values across the full 365-day period

The principal asset test will change from a point-in-time test to a 365-day testing period before the relevant CGT event.

This means foreign resident sellers may need evidence showing the entity’s asset composition and values throughout the previous year. A last-minute change to the balance sheet may not be enough to change the tax outcome.

The legislation also introduces a Commonwealth definition of real property that covers:

• Land.
• Rights and interests relating to land.
• Assets fixed to land.
• Certain leases and licences.
• Relevant water rights and infrastructure interests.

The reforms do not apply retrospectively to disposals that settled before 1 October 2026. However, transactions settling on or after that date require careful review of the new rules.

A temporary 50% CGT discount will also apply to eligible non-individual foreign residents disposing of certain renewable energy assets. This is a specific concession and should not be treated as a general return of the CGT discount for foreign residents.

The ATO has indicated that additional guidance will be published before 1 October. The ATO has also registered a consolidated PAYG withholding variation legislative instrument for foreign resident capital gains withholding.

Take these steps before settlement

If your Australian entity is part of a UK, US, Canadian, European or other international group:

• Identify disposals or restructures that may settle on or after 1 October.
• Review whether the transaction involves Australian real property or an indirect interest.
• Check whether related transactions could take the total consideration to AU$50 million or more.
• Preserve valuation evidence covering the previous 365 days.
• Document the basis for any vendor declaration.
• Build ATO notification steps into the transaction timetable.

Review home-based business arrangements before 1 July 2027

Running a business from home can create uncertainty around the main residence exemption, deductible expenses and future capital gains tax treatment.

Commentators have highlighted additional valuation issues ahead of changes scheduled to begin on 1 July 2027. Business owners operating from a home may need to establish the portion used for business and maintain evidence supporting the relevant valuation.

Do not assume that every home office creates the same CGT outcome. The treatment depends on how the space is used, whether it is set aside exclusively for business and the facts of each arrangement.

Daily Australia Tax Update: 23 September 2026, ATO R&D Transparency Report Published, Payday Super Cash Flow Pressure & CGT Reform Study Findings

by Ariful | Sep 23, 2026 | Australia Updates

Whether your business operates from Sydney, Melbourne, Brisbane, Perth, Adelaide or elsewhere in Australia, today’s tax update has several practical compliance points to review.

The ATO has published its latest R&D tax incentive transparency report. Payday Super is creating cash-flow pressure for many SMEs. New analysis has examined the future impact of CGT and negative gearing reforms. Software royalty arrangements also remain under scrutiny.

Here is what Australian businesses need to know on Wednesday, 23 September 2026.

Review your R&D records as the ATO makes claims more visible

The ATO has published its annual R&D tax incentive transparency report for the 2023–24 income year.

More than 13,400 companies claimed the incentive, covering almost $17 billion in qualifying R&D expenditure. The claimant breakdown was:

• 51% small businesses.
• 31% privately owned and wealthy groups.
• 18% public and multinational groups.

The report is published under a legal requirement in the Taxation Administration Act 1953. Its purpose is to improve transparency, public accountability and voluntary compliance.

The practical message is straightforward: R&D claims are now more visible.

The ATO uses review and audit systems to test whether claims meet the relevant eligibility and substantiation requirements. This means your claim should be supported by clear evidence, not only a year-end calculation.

Make your R&D claim audit-ready

Review these records now:

1. Eligible activities: document the technical uncertainty, experimentation and outcomes connected with each activity.
2. Project records: retain development plans, testing notes, prototypes, technical reports and staff records.
3. Expenditure evidence: reconcile payroll, contractor, materials and other eligible costs to your accounting records.
4. Apportionment workings: explain how shared costs, software, premises and staff time were allocated.
5. Registration and claim consistency: make sure the information submitted to the Department of Industry, Science and Resources aligns with the tax claim lodged with the ATO.

The Treasury consultation on better targeting the R&D Tax Incentive closes on 28 September 2026. The report and the consultation make this a sensible time to review your documentation before future claims are prepared.

Prepare for Payday Super cash-flow pressure

Payday Super began on 1 July 2026. Under the new framework, employers must ensure superannuation guarantee contributions are received by the employee’s super fund within seven business days after payday, with enough information for the fund to allocate the contribution.

The ATO’s Payday Super guidance confirms that this is a timing change. It does not increase the underlying superannuation rate.

However, the cash leaves your business earlier and more frequently than under the previous quarterly payment cycle.

Recent SME reporting indicates that around three-quarters of small and medium businesses are experiencing cash-flow impacts. Many businesses were not fully prepared for the transition, with July acting as a particular pressure point.

This can affect ecommerce brands, digital agencies, SaaS businesses, retailers and other employers with weekly or fortnightly payrolls. A business may be profitable but still experience a liquidity gap when customer receipts arrive later than payroll and super payments.

Protect working capital with a Payday Super checklist

Use the following process for every pay cycle:

• Create a separate super cash reserve. Transferring the expected obligation into a dedicated account helps prevent the funds being used for inventory, suppliers or operating costs.
• Map the payment timetable. Record payday, clearing time, fund receipt and allocation dates. Add a buffer for weekends, public holidays and rejected payments.
• Monitor rejected transactions daily. A rejected payment can create a compliance issue if it is not corrected quickly.
• Forecast at least 13 weeks ahead. Include wages, super, GST, supplier payments, loan repayments and expected customer receipts.
• Compare payroll timing with customer collections. This will show whether the pressure is temporary or caused by a wider working-capital problem.
• Keep payroll data accurate. Incorrect employee details or fund information can delay allocation and create avoidable follow-up work.

Do not wait for the quarterly BAS or year-end accounts to reveal a problem. Ongoing bookkeeping and payroll reconciliation will show whether each payment has been processed, received and allocated.

Treat CGT and negative gearing reforms as future compliance dates

New analysis published today has examined how the legislated CGT and negative gearing changes may affect investors.

The ABC analysis reports that 43% of analysed housing investments could pay less tax under the changes, while 53% could pay more overall. A separate analysis suggests that around half of property investors may pay more tax.

These findings are not uniform. The result will depend on the investment, ownership structure, income position, acquisition date and future disposal circumstances.

The reforms are legislated to start on 1 July 2027. They are not in force for current 2025–26 returns. No filing position should be changed based only on media analysis.

For compliance purposes, you should:

• Record the proposed start date in your tax calendar.
• Keep acquisition, ownership and financing records organised.
• Review how trusts, companies and other structures may be affected when further official guidance is available.
• Continue applying the current rules to current reporting periods unless the ATO or legislation states otherwise.

This is a monitoring item, not a reason to take immediate investment action.

Monitor the proposed super changes for workers under 18

The Superannuation Legislation Amendment (Fair Super for Young Workers) Bill 2026 is currently before the Senate Economics Legislation Committee.

The committee is due to report on 17 November 2026. The Financial Services Council and Business Council of Australia have called for a delay and further Treasury consultation.

For employers with junior, casual or seasonal staff, the key point is simple: this is a proposal, not law.

Do not change your payroll settings solely because the Bill is under review. Instead:

• Monitor the committee process.
• Keep junior employee records accurate.
• Ask your payroll provider how legislative changes will be implemented if the Bill passes.
• Wait for Royal Assent and a confirmed start date before changing your payroll systems.

This approach avoids unnecessary rework and keeps your payroll records consistent with the law currently in force.

Review software royalty arrangements before year-end

Software royalty arrangements remain an ATO focus area.

The ATO has previously issued guidance on arrangements where Australian customers pay for the right to use software owned by a related offshore entity. The key issue is whether the payments are royalties that may be subject to Australian royalty withholding.

This can affect:

• Australian businesses that pay a related offshore entity for software or licence rights.
• SaaS businesses and technology groups with cross-border arrangements.
• Businesses that have restructured intellectual property ownership offshore.

The ATO has identified arrangements where the royalty characterisation of payments was not adequately considered or documented. Under the Income Tax Assessment Act 1936 and Australia’s tax treaties, a royalty paid to a non-resident may be subject to withholding tax unless a specific exemption or treaty rate applies.

The practical compliance actions are:

• Review agreements with related offshore entities to confirm how payments are characterised.
• Check whether withholding tax has been applied at the correct rate.
• Retain transfer pricing documentation that supports the arrangement.
• Consider voluntary disclosure if you identify a past underpayment, as this may reduce penalties.

This is not a new rule, but it remains an active ATO review area. Arrangements that have been in place for several years may still be reviewed.

Software, super and substantiation remain the key focus areas

The common thread across today’s updates is documentation and timing.

For R&D claims, the ATO has made the claimant population more visible. For Payday Super, the compliance obligation is now more frequent and time-sensitive. For CGT and negative gearing, the changes are legislated but not yet in force. For the under-18 super proposal, no action is required until the law passes. For software royalties, the focus is on correct characterisation and withholding.

There are also two near-term dates to note: the Treasury R&D consultation closes on 28 September 2026, and the Senate committee report on the Fair Super for Young Workers Bill is due on 17 November 2026.

For current reporting periods, continue applying the law as it stands. For future periods, keep your records organised and monitor official guidance.

If you need assistance with any of these areas, contact your registered tax agent or adviser. The information in this update is general in nature and should not be relied on as tax advice for your specific circumstances.