by Ariful | Oct 4, 2026 | Australia Updates
TITLE: ATO Compliance Changes October 2026: Credit Card Payments, PAYG Variations, Contractor Pre-Fill and Key Deadlines
Change your ATO payment method before 30 November
The ATO will stop accepting credit card payments after 30 November 2026. The change follows the national card surcharge ban that began on 1 October.
The ban covers surcharges on:
- EFTPOS cards.
- Visa and Mastercard cards.
- Credit cards.
- Debit cards.
- Prepaid cards.
If you have an ATO payment plan or direct debit arrangement linked to a credit card, you must update the payment method before the next instalment due after 30 November. The ATO is writing directly to affected taxpayers.
Available alternatives include:
- Direct debit from a bank account.
- Debit card payments.
- BPAY.
- Other approved electronic payment methods.
Update your arrangement early. A failed payment could place your payment plan into arrears and create additional interest or collection issues.
The ATO says only around 2.3% of tax payments were made by credit card in 2024–25. However, the change may still affect businesses that use credit cards to manage short-term tax cash flow.
The Australian Chamber of Commerce and Industry has criticised the decision. Treasurer Jim Chalmers has defended the broader surcharge ban, stating that it saves consumers approximately $1.6 billion each year.
The surcharge rules do not prevent legitimate separate charges such as booking fees, service fees, delivery charges or weekend and public holiday hospitality surcharges. A genuine fee for a separate service must not be disguised as a card payment surcharge.
Read the ATO’s credit card payment announcement and payment plan guidance.
Support every nil PAYG variation with evidence
The ATO is auditing taxpayers who vary PAYG instalments down to nil or significantly reduce them.
A nil variation can be valid. You may have a genuine basis if your business has ceased trading, suffered a substantial and documented loss, or expects no taxable income for the year.
However, you must be able to substantiate your estimate. Prepare and retain:
- Current management accounts.
- Revenue forecasts.
- Expense budgets.
- Cash-flow projections.
- Evidence of cancelled contracts or reduced trading.
- Records of carried-forward losses.
- Working papers showing how you calculated expected taxable income.
The risk arises when a taxpayer varies instalments to nil but later reports a material tax liability. The ATO is particularly interested in repeated or aggressive variations that defer tax payments and create a cash-flow benefit.
If your varied instalments are less than 85% of your final tax liability or the applicable benchmark, general interest charge may apply. Penalties may also arise where you did not take reasonable care or made a false or misleading statement.
Do not vary PAYG instalments simply because cash flow is tight. Review your forecast first. If income improves during the year, update the variation promptly. This approach gives you a defensible compliance record and reduces the risk of interest and penalties.
Follow the ATO’s guidance on varying PAYG instalments.
Check contractor income before lodging 2025–26 returns
The ATO is pre-filling contractor income reported through the Taxable Payments Annual Report in 2025–26 tax returns.
Around 700,000 sole traders and individual contractors are expected to have contractor income pre-filled. The data covers approximately $21 billion in reported payments.
The development affects contractors and businesses operating in industries such as:
- Building and construction.
- Cleaning.
- Courier and road freight.
- Information technology.
- Security and investigation services.
- Other businesses required to report contractor payments.
If you receive pre-filled income, compare it with your own accounting records. Check that:
- The payment amount is correct.
- GST has been excluded where required.
- The income belongs to the correct financial year.
- Duplicate payments have not been recorded.
- Any income missing from the pre-fill is added manually.
Pre-filled information does not remove your responsibility to report all assessable income. The ATO may now identify omissions or understatements more easily because payer data is matched directly to the contractor’s return.
Businesses paying contractors must also ensure their TPAR is accurate and lodged by the relevant deadline. Your reporting can now directly affect what appears in a contractor’s individual return.
Review the ATO’s Taxable Payments Annual Report guidance.
Prepare for the October compliance deadlines
October contains several important dates for Australian taxpayers and businesses.
21 October 2026: annual PAYG instalments
Annual PAYG instalment notices for the 2025–26 year are due on 21 October. If you use the rate method or vary the instalment, the relevant notice must also be lodged by this date.
Pay the amount shown by the ATO on time if no variation is required. This avoids unnecessary interest and follow-up activity.
28 October 2026: September quarterly BAS
The September quarter BAS and relevant quarterly PAYG or GST instalment notices are generally due on 28 October.
Complete your bookkeeping before the deadline. Reconcile sales, purchases, GST, payroll and marketplace settlements first. This reduces the chance of lodging an incorrect BAS and needing a later amendment.
31 October 2026: tax agent and reporting deadlines
For tax agents, 31 October is a hard deadline to lodge overdue prior-year returns and add new clients to secure relevant lodgment program due dates. The deadline is not extended simply because 31 October falls on a weekend.
For individual self-lodgers, the position is different. As 31 October 2026 falls on a Saturday, the 2025–26 individual tax return can generally be lodged by Monday 2 November 2026 without a late-lodgment penalty.
Certain in-scope multinational groups may also have their global and domestic minimum tax reporting due on 31 October. This applies to specific Pillar Two groups, including those with a first relevant fiscal year ending 30 April 2025. Check the ATO guidance for the full requirements.
by Ariful | Oct 4, 2026 | US Updates
TITLE: IRS Cybersecurity for Non-US Founders Running US LLCs and Corporations — 7-Step Checklist Before the 15 October 2026 Deadline
If you run a US LLC, C corporation, marketplace business or cross-border ecommerce operation from outside the United States, your US tax identity is a valuable target.
That identity may include your EIN, ITIN, IRS transcripts, Business Tax Account, state sales tax permits, importer records and sensitive forms such as Form 5472, Form 5471, Form 1120, Form 1120-F, FBAR and W-8BEN-E documentation.
On 2 October 2026, the IRS issued IR-2026-119, reminding taxpayers, businesses, tax professionals and Security Summit partners to protect tax data through simple daily security habits.
The timing matters. Some extended federal returns, including Forms 1040-NR, 1040, 3520 and 1120, have a 15 October 2026 extended filing deadline. A compromised account just before filing can delay submissions, block access to notices and create avoidable penalties.
Why IRS cybersecurity matters when you operate from abroad
You do not need to live in the United States to be targeted.
A UK, Ireland, Canada, Australia or EU-based founder may operate a US LLC, US C corporation or online store selling through Amazon, Shopify, eBay, Etsy, TikTok Shop or Walmart. You may also be one of the many US importers of record managing inventory, customs documentation and state sales tax registrations remotely.
A criminal who obtains your login details may be able to:
- Impersonate you when communicating with the IRS.
- Misuse your EIN or ITIN in fraudulent filings.
- Access transcripts, notices and payment history.
- Change payment or bank details through a compromised email account.
- Interfere with Form 5472, Form 5471 or Form 1120 filing processes.
- Disrupt an IRS payment plan or create confusion over balances due.
- Target your payroll records, W-2 information or contractor data.
- Expose W-8BEN-E, W-9, treaty and beneficial ownership documentation.
- Create problems with state sales tax filings or permits.
- Cause delays in matters involving FIRPTA withholding records.
An EIN is not normally “changed” by a hacker. The greater risk is EIN misuse: criminals use the number while pretending to be an authorised representative of your company. That can make your filings and IRS communications harder to control.
Recovery can also take longer when you are overseas. There is no IRS walk-in office in most countries. You may need to use the IRS international taxpayer services process or the international telephone line, rather than resolving the issue face to face.
Secure your US tax identity with this seven-step checklist
The IRS recommends strong passwords, multifactor authentication, updated software, scam awareness, protected records and secure networks. Use the following checklist to apply that guidance to your international business this week.
1. Lock down your IRS accounts before the filing deadline
Review access to your Business Tax Account, Individual Online Account and any Tax Pro Account used by your accountant or tax agent.
Use a strong, unique password and turn on MFA wherever it is available. Remove former employees, contractors and advisers who no longer need access. Check designated users and authorised representatives.
For eligible entities, Business Tax Account access can help you view balances, notices, transcripts, payments and EIN verification information. Protecting access now means you are less likely to lose critical records when a return or payment is due.
2. Get an Identity Protection PIN if you are eligible
An Identity Protection PIN is a six-digit number that helps prevent someone from filing a federal tax return using your SSN or ITIN.
Anyone with an SSN or ITIN who can verify their identity may be eligible. This is especially relevant for non-US founders who use an ITIN for US tax filing.
An IP PIN does not replace your EIN and does not secure a company account by itself. Treat your EIN, ITIN and IP PIN as confidential financial credentials. Never provide an IP PIN in response to an email, call or text. The IRS says it will never ask for your IP PIN through those channels.
3. Patch every device and use a password manager
Update laptops, phones, browsers, operating systems, antivirus tools and cloud accounting applications. Turn on automatic updates where possible.
Your accounting software, email account and marketplace dashboards may contain enough information to reconstruct your US tax identity. A password manager helps you create different passwords for your IRS, banking, ecommerce and payroll accounts.
This is particularly important for a remote team using shared systems across the UK, Ireland, Canada, Australia or the EU. A reused password can give a criminal access to multiple systems at once.
4. Never use public Wi-Fi for IRS or banking services
Avoid opening IRS accounts, bank accounts, payment platforms, accounting software or state sales tax portals on public Wi-Fi.
Use a trusted private network or a properly configured secure connection instead. This simple step reduces the risk of exposing login credentials, tax records or payment information while travelling or working from a hotel, airport or café.
5. Encrypt and back up your US tax records
Encrypt sensitive records at rest and during transfer. Store secure backups in a separate location so a lost laptop, ransomware incident or account lockout does not destroy your compliance history.
Your protected records should include, where relevant:
- Form 5472 and Form 5471 workpapers.
- Form 1120 and Form 1120-F filings.
- FBAR records and foreign account information.
- Federal and state sales tax returns.
- W-9 and W-8BEN-E documentation.
- Treaty documentation and beneficial ownership records.
- Importer of record and customs records.
- IRS notices, transcripts and payment confirmations.
Do not send unprotected tax files through ordinary email when a secure portal is available. Reliable backups help you continue filing even if access to an IRS or accounting account is temporarily blocked.
6. Train your team and contractors to verify changes
Businesses, payroll teams and HR departments should watch for phishing emails, fake invoices and W-2 or payroll schemes.
A criminal may compromise the mailbox of a founder, accountant, supplier or contractor and request a change to:
- Employee bank details.
- Contractor payment instructions.
- Supplier account information.
- Payroll data.
- IRS or state tax payment details.
Require a second verification through a known telephone number or an established secure channel. Do not rely on the phone number or link included in the suspicious message.
This control is essential for virtual teams and outsourced contractors. It can prevent a fraudulent payment and stop attackers from using your payroll records to target employees.
7. Create a written breach response plan
Tax and accounting professionals must create and maintain a Written Information Security Plan, or WISP, under the FTC Safeguards Rule. The IRS provides Publication 5708 as a practi
by Ariful | Oct 3, 2026 | Australia Updates
Claim New Loss Carry-Back Relief From 1 July 2026
The refundable tax offset for eligible company tax losses is now law. It applies to revenue losses arising in income years starting on or after 1 July 2026.
Your company may carry back a loss against tax paid in either or both of the two previous income years. The first claims will generally be made in your 2026–27 company tax return.
To qualify, your company must generally:
- Be a corporate tax entity.
- Not be a significant global entity. This generally means aggregated turnover is below $1 billion.
- Have lodged tax returns for the previous five income years, unless a return was not required.
- Have paid tax in one or both of the previous two income years.
- Have a franking account balance at the end of the loss year.
- Have a revenue loss rather than a capital loss.
- Choose to claim the offset. It is optional.
The offset is capped by your available franking account surplus. This means the tax refund may be lower than the loss itself. You can also choose to carry the loss forward instead, depending on your cash-flow and compliance position.
Review your 2026–27 forecasts now. Accurate bookkeeping, tax calculations and franking account records will help you test eligibility before preparing the company return. Read the ATO’s loss carry-back announcement and eligibility guidance.
Remove Card Surcharges Before PayPal’s Monday Deadline
Card network no-surcharge rules started on 1 October 2026 for eftpos, Visa, Mastercard, American Express and UnionPay. PayPal’s equivalent rule starts on Monday, 5 October 2026.
The changes are enforced through merchant contracts and card network rules rather than directly by the ACCC. They affect online checkouts, payment terminals, recurring billing systems and invoices where the customer pays by card.
Take these steps before your next trading day:
- Remove card surcharge settings from your ecommerce platform.
- Check PayPal, Stripe, Square and other payment provider configurations.
- Review pricing pages, checkout notices and customer invoices.
- Confirm that automatic surcharge rules are disabled.
- Reconcile payment processing fees separately in your accounting system.
You can still offer a genuine discount for cash or PayID payments. A genuine booking or service fee may also be permitted where it applies independently of the customer’s payment method.
Do not simply rename a card surcharge as a “service fee”, “booking fee” or “handling fee”. The ACCC warns that this may be misleading where the fee only applies to card payments.
The RBA estimates that interchange reforms could save merchants around $910 million each year. The government estimates consumers could save $1.6 billion annually. Your immediate priority is to update your systems and make your displayed prices accurate.
Replace ATO Credit Card Payments Before 30 November
The ATO will stop accepting credit card payments after 30 November 2026. The ATO says it is not appropriate to pass credit card merchant fees to the community.
Only 2.3% of tax payments were made by credit card in 2024–25, with approximately 60% of those payments made by large organisations. However, the decision is creating concern for small businesses managing uneven cash flow.
On 2 October, Pauline Hanson and Allegra Spender called for the decision to be reversed. The Australian Chamber of Commerce and Industry has also raised concerns. Industry Minister Tim Ayres defended the policy, while Opposition Leader Angus Taylor criticised its timing.
Regardless of the political debate, your payment arrangements need to work before the deadline. Move ATO payment plans and scheduled payments to an accepted method, such as:
- BPAY.
- Direct debit.
- Debit card.
- Another payment option approved by the ATO.
Update saved payment instructions now. This reduces the risk of a failed instalment, arrears, interest or payment-plan default. Read the ATO’s credit card payment announcement.
Lodge Around This Weekend’s ATO System Outage
ATO online services will be unavailable from 9:00pm AEST on Saturday, 3 October, until 12:00pm AEDT on Sunday, 4 October 2026.
The SBR1 and SBR2 production environments will be unavailable, and file transfers through ATO Online may be affected.
If you need to lodge a BAS, amend a return, submit a file or schedule a payment, complete it outside the maintenance window. Do not leave urgent compliance work until Sunday morning. Check the ATO system maintenance dashboard before attempting a submission.
Protect Your October Lodgment Dates
Because 31 October 2026 falls on a Saturday, self-lodgers of 2025–26 individual tax returns will generally have until Monday, 2 November 2026 to lodge without penalty.
However, the 31 October date is not extended for important tax agent requirements. Overdue prior-year returns must still be lodged by 31 October. New clients must also be added to an agent’s client list by that date to protect their lodgment program due date.
Allow up to three weeks for updated due dates to appear in ATO systems.
The PAYG withholding annual report for unfranked dividends, interest and royalties paid to non-residents is also due on 31 October. Check your payment records and withholding reports early so the deadline does not create a last-minute correction.
Review Super for Influencers and Contractors
The ATO has updated its guidance confirming that super guarantee may apply to payments made to:
- Social media influencers.
- Live streamers.
- Guest speakers.
- Performers and sportspeople.
- Yoga, Pilates and fitness instructors.
Super may apply even when the individual:
- Has an ABN.
- Calls themselves an independent contractor.
- Performs the work as a hobby.
- Is engaged for a one-off activity.
The main exception is where the payment is for a domestic or personal purpose. Super is generally not required where payment is made to a company, trust or partnership rather than directly to an individual.
Under Payday Super, qualifying contributions must reach the fund within
by Ariful | Oct 3, 2026 | US Updates
TITLE: US Digital Assets Tax: ADAPT Act, Form 5472 Deadline and What Overseas Sellers Must Do Before 9 November 2026
Congress has left Washington, and the Senate will not return until after the November midterm elections. That pause gives international sellers a short period of certainty: no federal tax legislation can pass between now and 9 November 2026. However, a new digital assets tax bill is waiting for lawmakers when they return.
Here is what you should monitor now, including the immediate Form 5472 deadline and other compliance actions.
What happened this week? Track the bill, not the headlines
The Senate adjourned late on 30 September 2026. The House adjourned earlier in September. Congress is currently scheduled to return on 9 November 2026.
Before leaving, Senate Finance Committee member Steve Daines introduced the Aligning Digital Assets with Principles of Taxation Act, known as the ADAPT Act. The proposal is S. 5616 and runs to 56 pages.
The bill mirrors the House Digital Asset Tax Certainty Act, H.R. 10357, which the House Ways and Means Committee approved on 16 September.
For now, your existing 2026 filing position does not change. The ADAPT Act is a proposal, not law.
What the ADAPT Act would change, and what it would not
The bill would modernise federal tax rules for digital assets. If enacted, it would introduce:
- A de minimis rule so smaller cryptocurrency transactions may not trigger recognised gains or losses.
- Mark-to-market accounting rules for digital asset brokers and dealers.
- A safe harbour that could allow digital assets to qualify for rules supporting foreign investment in US markets.
- Streamlined rules for charitable contributions of digital assets.
- Wash sale and constructive sale rules for digital assets.
These provisions could make crypto tax reporting for international sellers more predictable. They could also create new record-keeping requirements for businesses, founders, brokers and investors.
Do not change your current reporting approach based only on the bill. Wait for enacted legislation, effective dates and IRS instructions.
Why overseas sellers should care about digital assets tax
Check where validation income is sourced
The proposed source rules would treat income from digital asset validation activities (including staking, mining and similar activities) as:
- US-source income when derived by a US person.
- Foreign-source income when derived by a foreign person.
Consider an overseas founder of a US LLC who earns staking rewards personally or through a business structure. If enacted, the rule could provide a clearer framework for characterising those rewards. It would not remove the need to identify the correct taxpayer, maintain transaction records or review the entity’s existing US reporting obligations.
Keep records showing:
- Who performed the validation activity.
- Which wallet or account received the rewards.
- The date and value of each reward.
- Whether the activity was personal or connected to the business.
- The person’s US tax status during the relevant period.
Monitor the US trade or business question
The proposed trade-or-business safe harbour would cover foreign persons trading stocks, securities or commodities through US brokers or for their own account. It would provide protection from being treated as engaged in a US trade or business involving traded digital assets.
This matters because overseas founders and investors already monitor the engaged in a US trade or business, or ETBUS, question when considering potential 1040-NR or 1120-F filing obligations.
A non-US investor trading digital assets through a US broker may benefit from the proposed safe harbour if it becomes law. But the proposal does not automatically decide the position for an Amazon FBA seller.
An overseas Amazon FBA seller with inventory stored in a US fulfilment centre must still review the wider facts. Inventory location, business activity, agency arrangements and treaty positions can all matter. The latest OECD Model Tax Convention, released on 30 September with the November 2025 updates incorporated, is relevant context for permanent establishment, business profits and storage-exception arguments. It does not replace the applicable US treaty or determine your position automatically.
Your action list before 9 November
Use the congressional pause to complete practical compliance work.
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File Form 5472 by 15 October if you extended.
A 25%-or-more foreign-owned US single-member LLC or foreign-owned disregarded entity that filed Form 7004 must file Form 5472 with a pro forma Form 1120 by 15 October 2026. The minimum penalty for failing to file is USD 25,000 per year, with possible additional penalties for continued failure. Review the IRS Form 5472 instructions.
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Prepare Form 720 for 2 November.
The third-quarter 2026 Form 720 is due 2 November 2026. This includes the 1% remittance transfer excise tax deposits where applicable. Penalty relief under Notice 2026-52 remains available until final regulations are issued, subject to the notice’s conditions. Check the IRS Form 720 instructions.
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Reconcile all digital asset activity.
Match wallets, exchanges, payment processors and accounting records. Separate sales, swaps, staking, mining, fees and transfers. This will reduce errors if Congress enacts forward-looking or retroactive rules.
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Review your US trade or business facts.
Document your US inventory, fulfilment arrangements, brokers, agents, employees and operational activity. This helps you assess potential 1040-NR, 1120-F or related reporting requirements.
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Strengthen your security controls.
The IRS’s Cybersecurity Awareness Month reminder reinforces the need to protect tax data. Encrypt records, activate multi-factor authentication on QuickBooks, Xero and Amazon Seller Central, and maintain a written information security plan.
Frequently asked questions
Is the ADAPT Act law?
No. It is a proposed bill. It does not currently change your 2026 digital asset tax reporting or filing obligations.
Can Congress change the rules before 9 November?
Congress is currently scheduled to return on 9 November. No federal tax legislation can pass during the adjournment window, so rules not already enacted cannot change your filing position before then.
Does using a US broker automatically create a US trade or business?
No. The proposed safe harbour is not law, and using a US broker does not automatically resolve every ETBUS question. Your trading activity, business structure and other US connections still matter.
Does storing Amazon inventory in the US automatically create a permanent establishment?
No. The result depends on the facts, applicable treaty and domestic rules. Review your fulfilment arrangements and keep evidence supporting your position.
Keep your compliance ready for the next session
Use this period to complete filings, reconcile digital asset records and document your cross-border operations. When Congress returns on 9 November, the ADAPT Act may move quickly, and sellers who have already organised their records will be better positioned to respond.
by Ariful | Oct 2, 2026 | Australia Updates
ATO credit card payment ban faces growing backlash
The ATO will stop accepting credit card payments after 30 November 2026.
The ATO says it is not appropriate to pass credit card merchant fees to the community. Credit card payments represented approximately 2.3% of all tax payments in 2024–25. However, more than 60% of those payments came from privately owned and wealthy groups, public companies and multinationals.
The ATO’s announcement is available in its official media release.
The decision has triggered strong criticism on 2 October:
- Deputy Opposition Leader Jane Hume called the change “unfair” and urged the government to reverse it.
- Independent MP Allegra Spender said she would write to the ATO, highlighting the effect on small-business cash flow.
- One Nation leader Pauline Hanson also called for the decision to be reversed.
- ACCI chief executive Andrew McKellar described the policy as “a staggering double standard” and “unacceptable”.
- The ATO acknowledged on social media that the change “could make managing your cash flow harder.”
The practical issue is straightforward. Businesses and owner-directors that used credit card payment timing, rewards or short-term credit to manage tax liabilities will need to move to another payment method before the first payment due after 30 November.
Available alternatives may include:
- BPAY.
- Direct debit from a bank account.
- Debit card payments.
- Payment plans linked to an acceptable account.
- Other payment methods listed by the ATO.
Do not wait until the final week. Review your payment plans now to avoid a failed instalment, arrears or a payment-plan default.
Reversing the decision would also create a cost problem. Tax liabilities are set by law. If the ATO absorbed card acceptance fees, millions of dollars in merchant costs would ultimately be borne by the community. This is why the debate is not simply about whether the ATO can keep accepting cards. It is also about who pays the underlying cost.
For more reporting on the political and small-business reaction, see SmartCompany and the ABC report.
Card surcharge workarounds create compliance risks
From 1 October 2026, card surcharges are banned across eftpos, Mastercard, Visa, American Express and UnionPay. PayPal’s no-surcharge rule begins on 5 October 2026.
The changes apply when a separate fee is added because a customer chooses to pay by card. The Reserve Bank of Australia explains the payment network changes.
Businesses still incur payment processing costs. However, they must now recover those costs through compliant pricing structures rather than a separate card surcharge.
Some businesses are responding by:
- Increasing headline prices.
- Rounding menu prices, such as changing a $4.80 coffee to $5.00.
- Offering discounts for cash or PayID payments.
- Reviewing payment service provider fees.
- Removing card acceptance where commercially practical.
These approaches require careful implementation. The ACCC warns that relabelling a card surcharge as a “service fee”, “booking fee” or “handling fee” may be misleading if the fee only applies to card payments.
A genuine service or booking fee may still be permitted where it applies independently of the customer’s payment method. Do not simply rename an existing card surcharge. Review your checkout settings, invoices, receipts, menus, terms and customer communications.
The RBA estimates that interchange reforms could save merchants approximately $910 million a year. ACCI disputes the scale and distribution of those savings, while the federal government says consumers could save $1.6 billion annually.
The business.gov.au guidance recommends reviewing pricing, payment providers, systems and customer information. Completing that review now will reduce the risk of incorrect charges and customer disputes.
Submit ATO consultation responses before today’s deadline
Several ATO draft positions released on 4 September close for public comment today, 2 October 2026.
The relevant materials include:
PCG 2026/D4: Software royalty arrangements
The draft Practical Compliance Guideline addresses the ATO’s compliance risk framework for software royalty arrangements.
This is relevant to digital businesses paying overseas software vendors, SaaS providers and technology groups. Review contracts, licensing rights, support services, hosting arrangements and payment flows before deciding whether withholding obligations apply.
The ATO’s international issues consultation page contains the relevant material.
TD 2026/D2: Wrapping and unwrapping crypto assets
The draft Taxation Determination considers the CGT consequences of wrapping and unwrapping crypto assets through smart contracts.
Businesses and investors affected by these arrangements should preserve transaction records, wallet histories, acquisition costs, disposal values and smart-contract documentation. Comments can be sent to CryptoPagComments@ato.gov.au.
Read the ATO draft determination.
SGD 2026/D1: Contractor labour payments and Payday Super
The draft determination explains how to identify the labour component of contractor payments for Payday Super purposes.
It applies to payments made on or after 1 July 2026. Non-labour components such as equipment, materials and GST are excluded. If the labour component is not clearly identifiable, a reasonable market value may be used.
Keep records showing how the labour portion was calculated. The draft states that comments are due today, with submissions directed to PaydaySuperPAG@ato.gov.au.
Review the official draft determination.
The ATO is also closing comments on its draft guidance covering Payday Super and contractor payments, so affected businesses should finalise any submissions and confirm their payroll and contractor record-keeping processes are ready for the 1 July 2026 start date.
