by Ariful | Oct 29, 2026 | UK Updates
TITLE: Australia’s Budget Tax Bills Pass the House, but the Senate Has Not Had Its Say
The House of Representatives has passed Australia’s final budget tax bills. But the Senate has not yet had its say, and negotiations could still change what businesses, founders and trustees need to prepare for.
The government is aiming to pass the package in the third week of November 2026. Until then, treat the measures as proposals, not law.
Track what passed the House on 29 October
On Thursday 29 October, the House passed three bills:
- The Treasury Laws Amendment (Tax Reform No. 3) Bill 2026, covering the proposed capital gains tax (CGT) overhaul and related trust rules.
- The Income Tax Rates Amendment (Minimum Tax on Discretionary Trusts) Bill 2026, proposing a 30% minimum tax on certain discretionary trust income.
- The Treasury Laws Amendment (Tax Reform No. 4) Bill 2026, covering the startup CGT concession and changes to the R&D Tax Incentive.
You can follow the official Parliament bill record. The Australian Financial Review’s report sets out the Senate negotiations now in focus.
House passage is an important step, but it does not make these proposals law. The Senate can pass them, reject them or amend them.
Prepare for three Senate pressure points
The government needs the Greens’ support, and the party is seeking changes to the package. Its demands include extending the proposed 15-year refundable R&D offset period for hi-tech and biotech ventures. It also wants fossil fuel companies excluded from R&D rebates, a package reported to be worth about $350 million a year.
On trusts, the Greens oppose exempting all distributions to registered charities and deductible gift recipients from the proposed minimum tax. That leaves the trust provisions open to further debate.
Crossbench MPs are also pressing for changes. Independent Monique Ryan has argued that both the proposed 10-year and 15-year R&D caps are arbitrary and that there should be no limit. Kate Chaney has raised concerns from medical research leaders.
Independent Allegra Spender wants a different CGT model for business assets: retain indexation for property but apply a 40% discount to businesses and other assets. She argues the proposed inflation-based approach could disadvantage risk-taking businesses. Former Reserve Bank board member Jillian Broadbent supports her position.
Prime Minister Anthony Albanese said the government believes it has “got the measures right”. Whether that position holds through Senate negotiations remains to be seen.
Watch the biotech R&D debate closely
The May 2026 budget initially proposed limiting the refundable R&D tax offset to a company’s first 10 years. Following industry opposition, the proposal was extended to 15 years for eligible therapeutic-goods R&D.
That extension still concerns biotech companies. Developing medicines and vaccines can take 20 to 30 years, with an average development period of about 17 years. AusBiotech is asking senators to remove or extend the proposed 15-year limit, warning that later-stage clinical trials, R&D and manufacturing could move offshore to places such as Singapore and New Zealand.
The stakes can be substantial. The AFR reported that Australian company Gamma Vaccines estimated phase 2 trials for its universal flu vaccine at about $100 million and phase 3 trials at about $400 million. The company said raising that funding in Australia without the R&D tax rebate would be virtually impossible.
For more on the package’s startup and R&D provisions, read our earlier Australia tax update on the startup CGT bill. You can also review AusBiotech’s Senate campaign.
Keep the proposed dates in view
If passed in their current form, the bills set out different start dates:
- CGT changes: proposed to apply from 1 July 2027.
- Minimum tax on certain discretionary trusts: proposed to apply from 1 July 2028.
- R&D changes: proposed to apply from 1 July 2028.
The proposed trust minimum tax would generally be paid by the trustee, with non-refundable offsets for eligible non-corporate beneficiaries. The detail matters: a non-refundable offset is not the same as a cash refund. For a further update on the trust proposal, read our earlier report on the discretionary trust bills.
Use the waiting period to organise your records
You do not need to act as though the bills are already in force. You can, however, prepare so that a final version is easier to implement.
- Trustees: Map your expected distributions and beneficiary types. Review whether an excluded election trust (EET) election could be relevant, but wait for the final legislation and confirmed election rules before making decisions.
- Businesses and founders: Keep clear records of asset transactions, share issues and other information needed to assess potential CGT treatment.
- R&D claimants: Track eligible project costs, evidence and claim periods. If your business relies on refundable offsets, model how a 10-year or 15-year limit could affect future cash flow.
- Everyone affected: Watch for amendments and the Senate Economics Legislation Committee report, due 13 November 2026. Public submissions on the trust bills closed on 29 October, and hearings are scheduled for the following week. Kalkine Media’s report outlines some of the issues raised by accountants and family businesses.
This is a planning window, not a signal to apply proposed rules early. Keep your records current and check the final bill text before changing your compliance processes.
FAQs
When will the Senate vote on Australia’s budget tax bills?
The government is aiming for passage in the third week of November 2026. The Senate Economics Legislation Committee’s report on the trust bills is due on 13 November, before the expected vote.
What is the proposed 30% minimum tax on discretionary trusts?
The bill, which passed the House but is not yet law, proposes a 30% minimum tax on certain discretionary trust income from 1 July 2028. Eligible non-corporate beneficiaries would receive non-refundable offsets for trustee tax paid.
What does the proposed 15-year R&D cap mean for biotech companies?
The proposed refundable offset would be available for up to 15 years for eligible therapeutic-goods R&D, rather than 10 years generally. The industry is asking senators to extend or remove the cap, citing long development timelines and the risk that research and manufacturing could move offshore.
Is the proposed CGT discount change law yet?
No. The House passed the CGT bill on 29 October 2026, but the Senate has not. The proposal would introduce a new approach to CGT for assets held from 1 July 2027, subject to the Senate’s decision and any amendments.
by Ariful | Oct 29, 2026 | USA Accounting
TITLE: Louisiana Clarifies Sales Tax Exemption Rules for Digital Tools and SaaS
Louisiana has clarified when businesses can claim a sales tax exemption for digital tools. For UK and EU SaaS, app, digital product and ecommerce sellers serving customers in Louisiana, the message is practical: commercial use alone does not make software exempt.
The final rule, LAC 61:I.4405, was adopted on 20 October 2026 and published in the October Louisiana Register at LR 52:1837. It explains exemptions under La. R.S. 47:305.12. That guidance matters if you license software or sell digital products to customers in New Orleans, Baton Rouge, Shreveport, Lafayette or elsewhere in Louisiana.
Know what Louisiana taxes before you review exemptions
Since 1 January 2025, Louisiana sales and use tax has applied to digital products, prewritten computer software access services, including SaaS, and information services under Act 10 of the 2024 Third Extraordinary Session.
The state sales tax rate is 5%. Applicable parish and local taxes may increase the total rate, so your systems need to use the customer’s correct Louisiana location rather than applying one statewide total. Check the Louisiana Department of Revenue’s rate information and its digital products guidance when reviewing your product catalogue.
The rule calls digital products, computer software, SaaS access services and information services “digital tools.” It does not create a general exemption for business software. Instead, it clarifies specific exemption routes and what their conditions mean.
Don’t treat back-office software as production software
The commercial production exemption applies only when a digital tool is:
- Purchased exclusively for commercial purposes;
- Used directly in producing goods or services for sale; and
- Used to produce goods or services that are themselves subject to sales and use tax or insurance premium tax.
The final rule draws a sharp distinction between tools that directly contribute to making a taxable product or service and tools that simply help run the business.
Accounting, inventory management, project management, scheduling, communication, performance tracking and analytical software are specifically identified as not used directly in production. A subscription does not become exempt merely because your business uses it to support sales or improve productivity.
For example, a SaaS platform that manages your team, records orders or monitors performance is generally not exempt under the commercial production rule. A tool directly integrated into manufacturing a taxable product may qualify, but the production and taxability tests still need to be met.
This distinction is important for digital businesses. Don’t assume a platform is exempt because it helps deliver your service. Review what the software actually does, what you sell, and whether the output is taxable under Louisiana law.
Separate a self-created product from the tools used to make it
The rule also clarifies the exemption for certain digital products created solely for your own business needs and not offered for sale. Examples include an in-house workflow automation tool, a proprietary content management system, an internal brand style guide or employee training videos.
However, the exemption for the product you create does not automatically cover the software used to create it. If you buy SaaS access to develop an internal training video, for example, the video may qualify for the self-created product exemption while the SaaS subscription remains taxable.
Keep records that distinguish the internally created item from the purchased tools, subscriptions and services used to produce it. This will help you support the treatment applied to each charge.
Check whether a specific industry exemption applies
The rule also addresses exemptions for qualifying licensed healthcare facilities and providers, and for FDIC-insured financial institutions and their affiliates.
Healthcare-related digital tools may qualify when used for storing or transmitting healthcare information, or diagnosing or treating a medical condition. The rule includes tools that monitor and protect the transmission and storage of patient information.
The financial institution exemption applies to qualifying tools used for specified functions, including storing, transmitting, processing or analysing customer and account information, and supporting transactions, lending, investment, security or compliance processes.
These exemptions depend on both the buyer’s status and the tool’s qualifying use. If you sell to a buyer claiming an exemption, request a properly completed Louisiana Department of Revenue exemption certificate. Louisiana’s guidance states that a dealer who does not obtain a properly executed certificate may be liable for the tax.
Check your Louisiana sales threshold and registration
An out-of-state or remote seller must assess its Louisiana sales when it sells taxable digital products, tangible personal property or taxable services for delivery into the state. Under La. R.S. 47:301(4)(k)(i), the relevant gross revenue includes those categories delivered into Louisiana. The collection obligation applies when that revenue exceeds $100,000 during the previous or current calendar year.
If your business meets the threshold, review registration with the Louisiana Sales and Use Tax Commission for Remote Sellers. The Commission is Louisiana’s central body for collecting and remitting sales and use tax from remote sellers. You can also check the Louisiana Department of Revenue for official tax guidance and filing information.
Do not wait until year-end to review the threshold. Reconcile Louisiana sales regularly, including digital subscriptions, apps, online products, taxable services and tangible goods. This makes it easier to identify when registration and collection are required.
Review exclusions, invoices and customer location
Not every technology-related charge is a taxable digital product or information service. Louisiana guidance excludes web hosting, cloud storage, data transfer fees, data processing, including payment processing, and internet access. Proprietary information gathered or compiled for a specific client’s exclusive use is also excluded from the definition of information services.
Review your product descriptions and billing structure carefully. If a transaction combines a taxable digital product with other items for one lump-sum price, the entire charge may be taxable under the bundled transaction rules. Separately state genuinely non-taxable support or consulting charges where appropriate. Clear invoices make it easier to apply the correct treatment and keep supporting records.
For digital sales, use the purchaser’s receipt location to source the transaction. If that location is unknown, Louisiana’s guidance points to the purchaser’s address in your business records, then the address associated with the payment instrument, and finally the address from which the digital product was first available for transmission. Capture and retain reliable location data at checkout to support the rate applied.
Put the rule into your compliance workflow
Use this checklist when reviewing digital product and SaaS sales into Louisiana:
- Confirm whether each product or service falls within Louisiana’s taxable digital products, software access services or information services definitions.
- Assess any exemption claim against the specific conditions in LAC 61:I.4405, including the production, self-created product and industry rules.
- Obtain and retain properly executed exemption certificates where a buyer claims an exemption.
- Monitor Louisiana gross revenue against the $100,000 threshold throughout the year.
- Register with the Louisiana Sales and Use Tax Commission for Remote Sellers if the threshold is met.
- Apply the correct state and local rate using the purchaser’s receipt location and reliable address data.
- Keep clear invoices that separately state taxable and non-taxable charges, and retain records supporting each treatment.
by Ariful | Oct 28, 2026 | Australia Updates
Around 2 million Australians who prepare their own tax returns have yet to lodge for 2025–26. The Australian Taxation Office (ATO) says the deadline is 11:59pm local time on Monday 2 November 2026. Missing it could result in a failure-to-lodge penalty.
The ATO had received around 9 million returns by mid-October, according to its 18 October reminder. If you have not lodged, use the remaining time to check your records, complete your return accurately and submit it before the deadline.
Mark 2 November as your self-lodgment deadline
The usual self-preparer deadline is 31 October. In 2026, that date falls on a Saturday, so the deadline moves to the next business day: Monday 2 November.
You can lodge through myTax. The ATO says a straightforward return takes an average of eight minutes to lodge, with pre-fill helping to gather much of the information. Still, do not treat the extra days as a reason to leave everything until the last minute. Rushing can lead to missing details or making mistakes.
Before submitting, review your income, deductions and any pre-filled information. The ATO has warned against lodging before data is ready: it reported that more than 595,000 returns were adjusted after early lodgment in 2026. Pre-fill is typically complete by late July, but you should still check it against your own records. See the ATO’s update on adjusted returns.
Lodge on time to reduce the risk of a penalty
The ATO’s failure-to-lodge penalty is $364 for each 28-day period, or part of one, that a return is overdue. For individuals, it is capped at five penalty units, or $1,820. Penalties can be multiplied for medium and larger entities.
A penalty is not necessarily automatic. The ATO generally tries to warn you by phone or in writing first. It also generally does not penalise isolated minor delays where you have a good lodgment history, or where a refund is due. If the ATO issues a penalty, you will receive a notice, and payment will be due at least 14 days later. Read the ATO’s failure-to-lodge penalty guidance for details.
If you cannot lodge by 2 November, contact the ATO or your registered tax professional promptly to discuss support options. Acting early gives you a chance to explain your circumstances rather than letting the deadline pass without contact.
Do not put off lodgment because you expect a bill
If you self-lodge, your tax bill is generally due on 21 November 2026. Delaying your return does not move that payment date. Lodge on time so you can understand what you owe and plan for the payment.
Not everyone is sure whether they need to lodge. Retirees and lower-income earners may assume they do not. But if tax was withheld from your income, lodging may help you claim a refund, even if you earned below the tax-free threshold. Selling an investment property can also create a lodgment obligation.
If you are not required to lodge, submit a non-lodgment advice to tell the ATO. Don’t simply leave the return or advice undone.
Check that your tax preparer is registered
Registered tax professionals must lodge overdue prior-year returns for existing clients and add new clients to their client list by 31 October. Their clients may have a later lodgment date under the agent program. If you are not on an agent’s client list by then, the 2 November self-lodgment deadline applies.
The ATO says it has stopped more than 10,000 returns suspected of being prepared by unregistered preparers this tax time, with more than $170 million in deduction claims. Be wary of anyone who guarantees a refund, encourages inflated deductions or claims they can fast-track ATO processing.
You are making a legal declaration that your return is true and correct. The ATO says people using an unregistered preparer do not have access to safe harbour provisions available when using a registered tax professional. Before engaging someone, check the Tax Practitioners Board register and look for the registered tax practitioner symbol. You can also report suspected unregistered activity to the TPB.
For further Australia tax context, read our 22 October update on the ATO’s warning about undeclared income.
Sterlinx Global is a Global Tax Compliance Suite for businesses, including Australian entities. Depending on your requirements, our ongoing compliance delivery can include bookkeeping, tax calculations, GST filings and year-end accounts. You provide your business data; we help keep compliance work moving through a structured process.
Book a call with our team to discuss compliance support for your business.
FAQs
What is the deadline if I do my own tax return?
Lodge by 11:59pm local time on Monday 2 November 2026. The usual 31 October deadline falls on a Saturday, so it moves to the next business day.
What happens if I lodge late?
The ATO may charge $364 per 28-day period, or part of one, up to $1,820 for an individual. It usually tries to warn you first and may not penalise a minor one-off delay if you have a good lodgment history.
When is my tax bill due if I self-lodge?
It is generally due on 21 November 2026. Lodging late does not move the payment date.
Can a registered agent still help me after the deadline?
An agent must have added you to their client list by 31 October for you to access their extended program dates. If you are not on an agent’s list, the 2 November self-lodgment deadline applies.
by Ariful | Oct 28, 2026 | European VAT
TITLE: Budget Day: Marketplace VAT, E-Invoicing and Tribunal Lessons for VAT-Registered Businesses
Budget Day is here. Before Chancellor John Healey’s statement, expected around 12:30pm, this edition sets out what is known and what to watch for in the published documents.
Important: Marketplace VAT changes are still proposals unless confirmed in today’s Budget documents and, where required, legislation. A speech alone may not provide the full detail.
Marketplace VAT: prepare for a decision, not a rumour
The government’s consultation on extending online marketplace VAT liability closed on 18 August. A formal response has not been published as of this morning.
Reports in the Telegraph and Guardian on 14 October suggested the Chancellor was considering requiring marketplaces to collect VAT on certain UK domestic sales. The reported proposal could apply to marketplace sales above a threshold linked to the £90,000 VAT registration threshold. Reports estimated the measure could raise around £1 billion a year, potentially supporting business rates relief for high-street businesses.
These are press reports, not confirmed Budget measures. The consultation explored different options, including a minimum platform threshold and possible protections for businesses below the VAT registration threshold. It also said individual non-business sellers, such as people selling their own second-hand items, would not be in scope. The standard £90,000 VAT registration threshold remains unchanged unless official documents say otherwise.
If marketplace collection were introduced, the platform might account for VAT on affected sales, while your own-site and other non-marketplace sales would remain your responsibility. For a registered seller, that could change how marketplace transactions appear in VAT records and affect cash flow. The exact treatment would depend on the final rules.
Use this checklist to prepare
- Map your sales channels. Separate marketplace transactions from sales through your own website or direct invoices. This makes it easier to identify which transactions could be affected.
- Check your VAT registration position. HMRC’s registration guidance says you generally need to register if taxable turnover exceeds £90,000 over 12 months, or you expect it to exceed that amount in the next 30 days.
- Model the margin and cash-flow impact. Test different scenarios for platform sales, VAT treatment, fees and pricing. This will help you understand where any change could affect your margins.
- Reconcile marketplace reports to your VAT returns. A reliable baseline will help you identify differences and keep a clear audit trail if collection responsibilities change.
- Read the documents, not just the speech. Check the Budget policy papers and Red Book for the government’s response, scope, thresholds and any proposed start date.
E-invoicing roadmap: prepare your systems early
The UK government has committed to mandatory e-invoicing for VAT invoices from 2029. The existing consultation response states that this applies to VAT invoices, typically used for B2B and B2G transactions. The government has also identified Peppol as the core interoperability network and said that a roadmap is due at Budget 2026.
The roadmap should clarify details that matter to finance teams, including:
- Whether the data standard will use Peppol BIS Billing 3.0 or a UK-specific specification.
- How rules will apply to simplified invoices, self-billing, cross-border supplies and other edge cases.
- Whether smaller businesses will receive a later start date or other transition support.
- Which providers can operate as Access Points, and how they will be approved.
- How legacy systems, transition arrangements and penalties will be handled.
- Whether invoice data could be reported to HMRC in future.
The government’s consultation response describes a decentralised approach and says real-time reporting will not be introduced alongside the 2029 mandate. That does not settle what may happen later, so check today’s roadmap for any confirmed changes.
Start an e-invoicing readiness inventory now. List your accounting software, ERP or finance system, current invoice formats and the customer data you collect. A PDF attachment alone is not a structured e-invoice. For cross-border businesses, this groundwork also matters because EU VAT in the Digital Age rules are due to introduce digital reporting for intra-EU cross-border B2B transactions from 1 July 2030. Review the European Commission’s ViDA overview alongside the UK roadmap.
Tribunal watch: keep evidence and appeal records complete
Unatrade: a till receipt may not support your input VAT claim
In Unatrade Ltd v HMRC [2026] UKFTT 1438 (TC), a trader claimed more than £151,000 in input VAT on luxury watches bought for export. The company held till receipts and bank statements, but generally lacked VAT invoices meeting the requirements of regulation 14 of the VAT Regulations 1995. The records did not provide required information such as adequate customer details and the VAT rate or amount.
HMRC used its discretion under regulation 29(2) to accept alternative evidence for part of the claim, allowing 10%. The tribunal dismissed the appeal and found the allowance was not unreasonable. You can read the tribunal decision.
The practical lesson: A receipt is not automatically a valid VAT invoice. For supplies over £250, a full VAT invoice is generally required. If your business makes large or frequent repayment claims (for example, through export or arbitrage activity) check that your evidence shows the supply, VAT charged and payment before claiming. HMRC’s alternative evidence guidance describes a discretion, not an automatic substitute for a valid invoice.
Foy Wealth: a review notification can affect appeal timing
In Foy Wealth Ltd v HMRC [2026] UKFTT 1061 (TC), HMRC had compulsorily registered the company and raised a VAT assessment of £958,578 plus a £143,786 penalty. The company requested a statutory review but said it never received notification of the review’s conclusion.
The tribunal held that a deemed conclusion of a review is not itself a “conclusion date” under section 83G(7) of the VAT Act 1994. Without notification from HMRC, no conclusion date had occurred, the 30-day appeal period had never started, and the appeal filed in January 2026 was in time. The substantive appeal will now proceed, and it has not yet decided whether the company owed the assessed VAT or penalty. Note that this was a decision on the papers, so it does not bind other tribunals, and it is not a general rule that any unanswered HMRC correspondence keeps appeal rights open indefinitely.
The practical lesson: keep dated records of review requests and HMRC acknowledgements. If a conclusion letter appears to be missing from an old review, check the position before assuming an appeal deadline has passed. Read
by Ariful | Oct 27, 2026 | UK Updates
TITLE: Australia’s Startup Tax Bill Reaches Parliament with Looser Innovation Test
Check how the proposed startup concession has changed
The Bill’s Innovative Business CGT Concession (IBCC) would give eligible founders, employees and investors a 50% CGT discount on qualifying equity investments. Its most significant change is a lower predominant-activity threshold.
Under the September draft, more than 75% of at least two of a company’s assets, employees and income had to relate to qualifying innovative activities. The Bill lowers this to more than 50% of at least two measures. It also allows contractors and other service providers to count in the workforce measure, and assets held for future qualifying use to count.
The test would generally use the most recently completed financial year. A new company without a prior income year could rely on reasonable expectations about its qualifying activities during its first year. Companies could also pivot between qualifying innovations without automatically losing eligibility. A response to concerns raised by the technology sector.
Other changes include reducing the required intention to continue qualifying activities from five years to three after registration. That is separate from the proposed three-year investor holding period. A company could give an irrevocable notice that it will stop issuing IBCC-qualifying equity, while preserving a pathway for existing holders, provided it continues to satisfy the activity test for three years after the notice.
The long-term activity period falls from 20 to 18 years and is rewritten to avoid automatic disqualification. A public register would show registration status, suspensions and certain rulings. Transitional provisions are also intended to prevent existing companies from being unnecessarily retested.
The September draft’s $50 million turnover ceiling, Australian workforce and asset requirements, 15-year company eligibility window and three-year investor holding period remain. The proposed $10 million lifetime cap remains scrapped. Some transactions, including scrip-for-scrip deals and certain restructures, remain excluded.
See the Parliament bill page for the introduced legislation. For background on the lead-up, read our 23 October Australia tax update.
Review the R&D and other tax measures in the package
The Bill also includes changes beyond startup CGT. Schedule 2 would reshape the R&D Tax Incentive, including:
- Increasing core R&D offset rates by up to 50%.
- Raising the turnover threshold for refundable offsets from $20 million to $50 million and lowering the R&D intensity threshold.
- Extending refundable offset access to up to 15 years for eligible therapeutic-goods, biotech and medtech firms.
- Requiring a Research Service Provider or Cooperative Research Centre partnership for claims below $50,000, with exceptions.
- Giving a Treasury Minister, in consultation with the Industry Minister, power to prescribe activities integral to core R&D.
The Government expects the R&D changes to lift investment by young firms by $400 million a year. However, technology-sector concerns remain about the treatment of supporting activities. Startup Daily reported that one frontier AI company attributed 70% of its eligible expenditure to supporting activities. Further consultation, including on clinical manufacturing, is promised for early 2027.
Schedule 3 expands venture capital incentives, with key thresholds unchanged from the September draft; it also clarifies carried-interest rules involving trusts. Schedule 4 would let quarterly PAYG instalment payers elect monthly payments, while allowing the Commissioner to require monthly reporting from taxpayers with a history of non-compliance.
Schedule 5 changes electric-car FBT settings. The full 100% discount would continue for eligible electric cars valued up to $75,000 from 1 April 2027 to 31 March 2029. From 1 April 2029, a 25% discount would apply to qualifying cars up to the fuel-efficient luxury car tax threshold.
Watch the House vote and Senate negotiations
Treasurer Jim Chalmers delivered the second reading speech in the House of Representatives on Tuesday. The vote, initially expected that day, was pushed to Wednesday 28 October. The published second reading speech sets out the Government’s case for the measures.
Shadow Treasurer Tim Wilson criticised the short notice, saying the Bill had been flagged just before midnight and his briefing came on Tuesday morning. The Nightly’s report covers the criticism and delay.
Labor has a House majority, but Senate support is not assured. The Greens have threatened to withhold support for the R&D changes unless oil and gas companies are excluded from around $350 million in annual tax credits. Because the measures are bundled together, Senate negotiations could affect the startup concession and other parts of the package too.
Prepare your records, but don’t assume the rules are final
Keep share registers, issue and transfer documents, investor agreements, financial-year accounts, workforce records and evidence of innovation activities. For R&D claims, retain project cost records and supporting invoices. These records will help you assess eligibility if the Bill becomes law.
Do not treat the proposed IBCC as a confirmed tax outcome or apply it to a transaction before checking the final legislation. It is also separate from the broader CGT overhaul in Tax Reform No. 3, which is set to apply from 1 July 2027.
Sterlinx Global operates as a Global Tax Compliance Suite, supporting international businesses with bookkeeping, tax calculations, filings and year-end accounts. You provide your business data; we manage compliance delivery on an ongoing basis. Book a call with our team to discuss structured compliance support.
FAQs
Has the Australian startup CGT concession become law?
No. The Bill has been introduced in Parliament, but its provisions are proposed and may change before enactment.
What is the main change to the innovation test?
The Bill lowers the proposed threshold from more than 75% to more than 50% of at least two measures: assets, employees and income. Contractors and service providers can count in the workforce measure.
Is the IBCC part of the broader CGT overhaul?
No. The IBCC is a separate proposed concession. The broader CGT overhaul under Tax Reform No. 3 is scheduled to apply from 1 July 2027.
What is happening with the R&D Tax Incentive in the same Bill?
The proposed changes would increase core R&D offset rates by up to 50%, widen refundable offset access for young firms and eligible biotech and medtech firms, and add a ministerial power to prescribe activities integral to core R&D.
