by Ariful | Aug 22, 2026 | US Updates
TITLE: U.S. Importer of Record Data: Act Before 18 September 2026 to Avoid Cargo Delays
If you import goods into the United States, check your Importer of Record data now. From 18 September 2026, U.S. Customs and Border Protection (CBP) will immediately void Importer of Record (IOR) numbers linked to inaccurate or incomplete information.
This affects international sellers, non-resident importers, DDP arrangements, Amazon FBA sellers, and businesses using third-party fulfilment centres.
The rule is set out in CBP’s Federal Register notice, 91 FR 53627, published on 19 August 2026. It is the first concrete implementation step under Executive Order 14411, signed on 3 June 2026.
Act before 18 September to prevent cargo delays
A voided IOR number is invalid for all purposes. This includes making entry for imported merchandise.
In practical terms, your cargo may stop at the port because CBP cannot accept an entry using that IOR number. The notice does not provide an automatic cure or grace period before the number becomes invalid.
You may then face:
- Delayed cargo release.
- Additional storage and demurrage charges.
- Missed customer delivery deadlines.
- Disruption to Amazon, Shopify, or marketplace fulfilment.
- Emergency customs and logistics costs.
- Rework with your customs broker and freight forwarder.
Do not assume that a long-standing IOR number is safe. CBP is reviewing both new and existing importer records.
Verify every field on CBP Form 5106
CBP Form 5106, also called the Importer Identity Form, records the information used to identify your business as an IOR.
CBP requires the information to be accurate, complete, current, and directly connected to the IOR.
Check these details:
- Legal name of the importer.
- EIN, SSN, or CBP-assigned importer number.
- Mailing address.
- Physical business address.
- Telephone number.
- Email address.
The physical address is now particularly important.
Use the actual business location
Your physical address must be the actual location of the business or individual acting as the IOR.
It must not be:
- A registered agent’s address.
- A customs broker’s address.
- A freight forwarder’s address.
- A post office box.
- A business service centre.
- A fulfilment provider’s address that is not your business location.
- Another person’s or company’s address.
For example, suppose your UK company imports stock into the United States under a non-resident importer structure. If your Form 5106 lists your U.S. customs broker’s office as the physical address, that information may be defective.
Replace it with the address that genuinely belongs to the IOR. CBP’s notice states that the principal’s home address may be used where it is the physical address associated with the business or individual.
Use importer-owned email and phone details
The email address and phone number must belong to the IOR.
Do not list:
- Your customs broker’s shared inbox.
- Your freight forwarder’s telephone number.
- An accountant’s personal email.
- A former agent’s contact details.
- A fulfilment centre’s customer service number.
This requirement matters because CBP sends a voiding notice to the email address most recently submitted by the IOR.
If that email belongs to a broker, former agent, or inactive employee, you may not receive the warning. You might only discover the problem when a shipment is stopped.
Confirm your customs broker has a direct power of attorney
Your customs broker must hold a valid power of attorney (POA) executed directly with the IOR.
Under 19 CFR 111.36(c)(3), the broker must execute the POA directly with the importer of record. It cannot be executed through a freight forwarder or another third party.
Check that:
- The POA names the correct legal entity.
- The signatory has authority to act for that entity.
- The POA was agreed directly between you and the broker.
- The broker is authorised to submit Form 5106 information.
- Any old or replaced POA has been reviewed.
- Your broker can contact you directly for verification.
A forwarder or logistics provider may introduce you to a broker. It cannot replace the direct legal relationship required between the IOR and the broker.
This is not just an administrative detail. CBP expects brokers to exercise due diligence and avoid transmitting information they know, or should know, is false or misleading.
Understand the liability behind inaccurate data
Incorrect information can create more than a shipment delay.
The Federal Register notice refers to possible consequences under several laws:
- 18 U.S.C. § 1001: knowingly and wilfully making a materially false statement to the U.S. government can lead to fines or imprisonment.
- False Claims Act, 31 U.S.C. § 3729: inaccurate information material to duties or other amounts payable to CBP may create civil liability, including treble damages and applicable civil penalties.
- 19 U.S.C. § 1641: customs brokers may face penalties, suspension, or revocation for certain violations involving inaccurate information, inadequate due diligence, or other customs business failures.
These provisions do not mean that every innocent clerical error will result in prosecution. They do mean that you should correct known inaccuracies promptly and retain evidence showing how you verified your records.
Do not ask a broker or agent to “use an address that works” if it is not your genuine business address.
Check these international seller structures first
Some business models have a higher practical risk of outdated or third-party IOR information.
Non-resident importers
You may be a non-resident importer if your overseas company owns the goods and assumes responsibility for entry into the United States.
Review your records if a U.S. broker created your IOR account years ago. Confirm that the overseas company is correctly identified and that the physical address belongs to that company or its principal, where permitted.
DDP arrangements
Under Delivered Duty Paid arrangements, the overseas seller may remain responsible for import clearance, duties, and taxes.
Do not assume that your logistics provider is the true importer. Identify who is legally acting as the IOR for each shipment and confirm that the Form 5106 information matches that party.
Third-party fulfilment centres
A fulfilment warehouse may store and dispatch your inventory. It is not automatically your business address.
If your IOR record uses the fulfilment centre’s address, ask your customs broker to review the entry structure and update the importer information where necessary.
Ecommerce marketplace sellers
Amazon, Shopify, eBay, Etsy, and other platforms may coordinate fulfilment or shipping. They do not automatically remove your customs obligations.
If you sell from the UK into the United States, review your import records alongside your wider compliance processes. Our guides on Amazon FBA from the UK to the USA and ecommerce shipping and taxation provide useful background.
Complete this pre-18 September checklist
Use the following checklist before the enforcement date.
1. Identify every active IOR number
List each IOR number u
by Ariful | Aug 21, 2026 | US Updates
Treasury and the IRS have issued proposed regulations clarifying how certain property sales affect Foreign-Derived Deduction Eligible Income (FDDEI), formerly known as Foreign-Derived Intangible Income (FDII).
The proposed rules under REG-117130-25 exclude income and gain from the sale or other disposition of intangible property and property subject to depreciation, amortisation, or depletion from Deduction Eligible Income (DEI). The exclusion generally applies to transactions occurring after 16 June 2025.
This update matters if your US corporation sells intellectual property, brand assets, machinery, equipment, or other business property to foreign buyers.
The key USA tax update in brief
The Federal Register proposed regulations clarify the following:
- Income and gain from qualifying intangible property sales is excluded from DEI.
- Income and gain from sales of depreciable, amortisable, or depletable property is also excluded.
- Excluded income cannot form part of FDDEI.
- Ordinary-course inventory sales generally remain eligible if the other FDDEI requirements are met.
- Leases and licences are not treated as sales for this exclusion.
- The rules include deemed sales, deemed dispositions, and transactions subject to Section 367(d).
- Taxpayers may rely on the proposed rules if they apply them fully and consistently.
- Comments must be submitted by 5 October 2026.
The proposed regulations are expected to be finalised by 4 January 2027. However, the underlying statutory exclusion already applies to relevant dispositions after 16 June 2025.
Understand what has changed under Section 250
Section 250 allows an eligible domestic corporation to claim a deduction for qualifying foreign-derived income. For tax years beginning after 31 December 2025, the deduction is generally 33.34% of FDDEI, subject to the applicable rules and limitations.
The new exclusion targets income from selling property that represents an underlying business asset or intangible value. It prevents a corporation from claiming the FDDEI deduction on a foreign sale of property that was used or held as a business asset.
The proposed regulations create the term “excluded property sales income.” This includes income and gain from the sale or other disposition of:
- Intangible property under Section 367(d)(4).
- Property that is, or has been, subject to depreciation under Section 167.
- Property subject to amortisation.
- Property subject to depletion under Section 611.
This classification depends on the property and the seller’s tax treatment. It does not depend only on whether the asset is fully depreciated or whether the buyer is located outside the United States.
Separate inventory sales from business asset sales
Do not treat every foreign sale of physical property as excluded.
The proposed rules distinguish between:
- Ordinary inventory sales, which generally remain eligible.
- Sales of property used in the seller’s business, which may be excluded.
For example, a US manufacturer may sell products that it has always held as inventory. Those sales can remain within DEI and may qualify for FDDEI if the products are sold to a foreign person for foreign use.
However, if the manufacturer sells machinery that it used in its own production facility, the gain may be excluded. That machinery was a depreciable business asset in the seller’s hands.
This distinction is essential for ecommerce groups, manufacturers, software companies, and digital businesses with mixed revenue streams.
Worked example: a fully amortised brand asset sold to a foreign buyer
Assume a US domestic corporation owns a trademark connected to its online brand.
The company acquired the trademark several years ago and fully amortised its tax basis. The adjusted basis is now zero. In 2026, the company sells the trademark to an unrelated foreign corporation for $500,000.
The transaction produces:
- Sale proceeds: $500,000
- Adjusted tax basis: $0
- Taxable gain: $500,000
- Buyer: Foreign corporation
- Transaction date: 2026
The buyer’s foreign location does not make the gain FDDEI. Because the trademark is intangible property under the relevant Section 250 rules, the $500,000 gain is treated as excluded property sales income.
The corporation must therefore remove the gain from DEI. It cannot include the gain in FDDEI and cannot claim the Section 250 deduction on that amount.
For illustration, if the transaction had otherwise generated qualifying FDDEI and the 33.34% rate applied, the potential deduction on $500,000 would have been $166,700 before other limitations. Under the proposed rules, that deduction is unavailable because the gain is excluded from DEI.
The same principle can apply to a fully depreciated machine. A zero adjusted basis does not make the asset eligible. If the machine was of a character subject to depreciation in the seller’s hands, the gain from its foreign sale is excluded.
A licence may be treated differently from a sale
The proposed regulations preserve an important distinction between a sale and a licence.
A transaction that is genuinely a licence under general federal income tax principles is not treated as a sale for this specific exclusion. Income from a qualifying foreign licence may therefore remain within DEI and potentially FDDEI.
For example:
- A non-exclusive, revocable licence of software may remain eligible.
- A lease of equipment may remain eligible.
- An agreement transferring substantially all rights in a trademark or copyright may be treated as a sale, even if the contract calls itself a licence.
This is why you must review the legal and tax substance of the arrangement. The label on the contract is not decisive.
The proposed regulations also clarify that a sale of a copyrighted article, such as a copy of software or digital content, is not automatically a sale of intangible property. A sale of the underlying copyright is different from a sale of a copy.
What this means for UK and international sellers
A UK company selling products into the United States does not automatically claim the Section 250 deduction. FDDEI applies primarily to eligible US domestic corporations and certain individuals making a Section 962 election.
However, the update still matters if your international structure includes:
- A US C corporation.
- A US subsidiary purchasing or selling intellectual property.
- A US LLC taxed as a corporation.
- A UK parent with a US corporate subsidiary.
- A cross-border ecommerce group transferring brand rights or operating assets.
- A digital business with US and UK entities.
A London-based ecommerce company may sell inventory to US customers through a US subsidiary. Ordinary inventory revenue may be treated differently from the sale of the brand, warehouse equipment, or software rights used by the business.
Your US LLC’s tax classification also matters. An LLC taxed as a partnership or disregarded entity does not claim the Section 250 corporate deduction in the same way as a domestic C corporation.
Separately, if your business acts as one of the us importers of record, customs responsibilities, im
by Ariful | Aug 20, 2026 | Australia Updates
TITLE: Australia Tax Update: OSfA Review, Standard Deduction, Tax Cuts and 2026–27 Rates
Australian businesses have several important tax and compliance developments to review today.
The Tax Ombudsman has criticised weaknesses in the Australian Taxation Office’s Online Services for Agents portal. The ATO has clarified when the new $1,000 standard deduction begins. Personal income tax cuts are now law. New 2026–27 rates also affect Division 7A and capital gains tax administration.
This update is relevant to ecommerce brands, digital businesses, fast-growing SMEs and international companies trading into Australia from the UK, USA, Canada, Europe and elsewhere.
Australia tax update at a glance
- OSfA agent satisfaction fell from 76% in 2022 to 63% in 2026.
- Almost 100 OSfA improvements remain in the ATO’s backlog.
- The $1,000 standard deduction does not apply to 2025–26 tax returns.
- The deduction applies from 1 July 2026, subject to eligibility and the applicable rules.
- The resident tax rate on taxable income between $18,201 and $45,000 falls to 15% from 1 July 2026.
- The same rate is legislated to fall to 14% from 1 July 2027.
- The 2026–27 Division 7A benchmark interest rate is 8.77% per annum.
- The 2026–27 CGT improvement threshold is $194,165.
Tax Ombudsman identifies serious OSfA service gaps
The Inspector-General of Taxation and Taxation Ombudsman has published a critical review of the ATO’s Online Services for Agents, known as OSfA.
OSfA is intended to give registered tax agents and their authorised staff a secure digital way to manage client tax affairs. However, the review found that the portal does not consistently provide the functionality agents need.
According to reporting by SmartCompany, the proportion of agents saying OSfA meets all or most of their needs fell from 76% in 2022 to 63% in 2026.
The review also identified several operational problems:
- Agents must call the ATO to complete transactions that should be available online.
- Almost 100 requested OSfA improvements remain in the ATO backlog.
- Some backlog items have been waiting since before 2022.
- Certain lodgements still depend on paper, PDF or manual processes.
- Franking credit refunds for some non-profit organisations remain difficult to complete digitally.
- Agents may need to request information manually even when the ATO already holds the relevant data.
These problems increase processing time. They can also increase compliance costs for Australian businesses in Sydney, Melbourne, Brisbane, Perth, NSW, Victoria and Queensland.
The Tax Ombudsman’s OSfA review is critical but also constructive. The ATO has accepted the review’s recommendations and committed to improving self-service, transparency and digital engagement with agents.
Prepare for portal delays
Do not rely on OSfA being available for every urgent transaction.
Build additional time into your compliance calendar. Keep copies of:
- Lodgement confirmations.
- ATO correspondence.
- Supporting schedules.
- Payment records.
- Requests submitted through OSfA.
- Notes of calls with the ATO.
- Reference numbers and promised follow-up dates.
This creates an audit trail if a digital transaction fails or a response is delayed.
Ecommerce and digital businesses should also avoid leaving GST, PAYG or income tax work until the final day. A portal delay can affect cash flow, reporting accuracy and filing deadlines.
The $1,000 standard deduction starts from 2026–27
The ATO updated its work-related expense guidance on 12 August 2026.
The key point is simple: the $1,000 standard deduction does not apply to your 2025–26 tax return.
For the 2025–26 income year, you must continue to claim actual deductible work-related expenses under the existing rules. The expense must relate directly to earning your income, and you generally need records to support the claim.
The new standard deduction applies from the 2026–27 income year, beginning on 1 July 2026. Review the ATO’s standard deduction guidance before preparing records or payroll information.
Keep records from 1 July 2026
Although the standard deduction may reduce the need to substantiate the standard amount itself, you should still keep records for actual deductible expenses from 1 July 2026.
Maintain:
- Receipts and invoices.
- Work-related travel records.
- Equipment and software invoices.
- Professional subscription records.
- Work-use calculations.
- Home-office running expense records.
- Evidence showing the connection between the expense and your income.
The standard deduction is not a tax rebate. It is a deduction that reduces taxable income. It also does not necessarily provide an additional $1,000 on top of other work-related deductions.
Do not treat rent or mortgage interest as automatically deductible
The new measure does not make private occupancy costs deductible.
Rent, mortgage interest, council rates, land tax and home insurance are generally private occupancy expenses. They are not automatically deductible merely because you work from home or operate an online business.
Limited exceptions may apply where part of a home has the character of a place of business. Apply the existing rules carefully. Keep evidence for any claim.
For Australian ecommerce operators and digital businesses, separate genuine business costs from private household expenses. This will reduce the risk of incorrect deductions and ATO review activity.
Personal income tax cuts are now law
The ATO confirms that personal income tax cuts have been legislated.
From 1 July 2026, the tax rate applying to taxable income between $18,201 and $45,000 falls from 16% to 15%.
From 1 July 2027, that rate falls again to 14%.
The tax-free threshold remains $18,200. The change affects individual resident income tax. It does not change the GST rate, the company tax rate or the tax treatment of business sales.
Review the ATO’s personal income tax cut guidance and update your internal calculations.
Update payroll and owner remuneration records
If your business employs staff or pays working directors, check that your payroll software reflects the relevant 2026–27 tax tables.
You should:
- Confirm the correct income year for each calculation.
- Review PAYG withholding settings.
- Check employee tax declarations.
- Update salary and bonus modelling.
- Reconcile payroll reports to the general ledger.
by Ariful | Aug 20, 2026 | USA Accounting
TITLE: 1099-K Threshold Restored and UNICAP 3PL Costs: What International Ecommerce Sellers Must Review for 2026
The IRS has restored the federal Form 1099-K threshold for third-party settlement organisations. At the same time, ecommerce businesses using US fulfilment centres need to review how they treat warehouse and handling costs under the UNICAP inventory rules.
These changes matter if you operate a UK Limited Company, USA LLC, Canadian Corporation, Australian entity, or another international business selling into the USA through Amazon, Shopify, eBay, Etsy, TikTok Shop, or your own website.
Check the new 1099-K threshold before you reconcile 2026 sales
For 2026, a third-party settlement organisation (TPSO) generally only needs to issue Form 1099-K when both conditions are met:
- Your gross reportable payments exceed $20,000.
- You receive more than 200 transactions during the calendar year.
The IRS confirmed that the One Big Beautiful Bill restored the previous federal threshold. This means the federal 1099-K threshold is not $600 or $2,500 for TPSO transactions in 2026.
However, the threshold applies only to third-party network transactions. It does not apply in the same way to payment card transactions.
Separate payment card transactions from marketplace payments
Credit card, debit card, and stored-value card transactions do not have a minimum reporting threshold. A payment processor may issue Form 1099-K for card payments regardless of the amount or number of transactions.
This distinction is essential for your ecommerce bookkeeping:
- Amazon marketplace payments may fall within the third-party network rules.
- PayPal and similar payment platforms may be treated as TPSOs.
- Direct Shopify payments processed through a card network may be reportable without a minimum threshold.
- A single platform may provide different reporting for card and third-party network transactions.
The IRS Form 1099-K instructions also state that the form reports gross payments. Fees, refunds, credits, shipping amounts, and other adjustments may not be deducted from the amount shown in Box 1a.
Do not treat the 1099-K figure as your net sales. Import the platform settlement report and reconcile:
- Gross sales.
- Refunds and returns.
- Marketplace commissions.
- Payment processing fees.
- Shipping charges.
- Advertising deductions.
- Reserve balances.
- Currency conversion differences.
- Transfers to your UK or international bank account.
This process will prevent you from overstating income or recording a platform payment twice.
Protect your international seller records from US reporting errors
A UK ecommerce company may not receive a US Form 1099-K in every situation. The outcome depends on the payment provider, the address and tax status held on the account, and whether the business is treated as a US or foreign payee.
The 2026 IRS instructions include exceptions for certain payments made by US payers to foreign payees with foreign addresses when appropriate documentation is held. A US address, US bank account, or information suggesting that the payee is a US person may change the reporting position.
Keep your tax documentation current. Depending on the entity and payment arrangement, this may include a completed W-8 form, such as Form W-8BEN-E for an eligible foreign company.
You should also keep evidence showing:
- The legal entity receiving the payments.
- The country of incorporation.
- The tax identification details provided to each platform.
- The settlement account owner.
- The payment processor used.
- The sales channel connected to each payout.
- The conversion method used for foreign currency.
This is particularly important for UK Limited Companies using Amazon FBA or Shopify across the UK, USA, Canada, Australia, and Europe.
Our record-keeping guide explains why consistent records are essential when your business uses multiple platforms and currencies.
Review state reporting before assuming $20,000 is the only threshold
Federal reporting does not always tell the whole story. States can apply separate information-reporting requirements, and a state may request a copy of a 1099-K even where the federal threshold is not met.
For example, Massachusetts requires reporting for certain TPSO payments of $600 or more to a payee with a Massachusetts address, regardless of the number of transactions. This can create a state-level reporting obligation below the federal $20,000 and 200-transaction test.
Illinois has separate requirements for transmitting certain 1099-K information to the Illinois Department of Revenue. Its guidance refers to payees with an Illinois address and a threshold involving more than four transactions and cumulative payments exceeding $1,000, alongside federal filing conditions.
New Jersey also requires copies of certain Form 1099 information returns where payments reach $1,000 or more, or where New Jersey tax was withheld. This is a state filing requirement. It should not automatically be treated as a separate federal 1099-K issuance threshold.
Review your nexus and customer or payee information if your business has activity connected with:
- Massachusetts.
- Vermont.
- Maryland.
- Virginia.
- The District of Columbia.
- Montana.
- North Carolina.
- New Jersey.
- Missouri.
- Illinois.
State rules can change. Check the relevant revenue department guidance before preparing your 2026 information returns. A platform’s federal form does not replace your responsibility to maintain complete sales and tax records.
Calculate 3PL costs correctly under the UNICAP rules
The second major issue concerns inventory accounting. Under IRC Section 263A, businesses that acquire property for resale may need to capitalise direct costs and certain indirect costs into inventory.
For an ecommerce seller, this can include costs charged by an off-site fulfilment provider, such as:
- Storage and warehousing.
- Receiving and put-away.
- Picking and packing.
- Internal movement of goods.
- Repackaging.
- Handling and fulfilment activities.
These are often called 263A 3PL costs. If your business is subject to UNICAP, you generally cannot deduct all qualifying storage and handling costs immediately. Instead, you allocate the relevant costs to inventory and recover them through cost of goods sold when the products are sold.
This can affect your:
- Closing inventory balance.
- Cost of goods sold.
- Gross profit.
- Taxable income.
- Year-end accounts.
- Stock valuation reports.
Do not simply post every Amazon FBA or third-party logistics invoice to “fulfilment expenses” without checking your applicable inventory method.
Test the small-business exception before capitalising every warehouse charge
A small-business taxpayer may be exempt from Section 263A if it meets the Section 448(c) gross receipts test and is not a tax shelter.
For taxable years beginning in 2026, the inflation-adjusted average annual gross receipts threshold is $32 million, measured over the relevant three-tax-year period. Aggregation rules may require related entities to be considered together.
If you qualify, Section 471(c) may allow you to use an alternative inventory method. For example, you may be able to:
- Treat inventory as non-incidental material
by Ariful | Aug 19, 2026 | EU VAT Updates
TITLE: Key Tax and Super Compliance Updates for Australian Businesses: August 2026
Australian businesses face several important compliance developments this week. The ATO is increasing scrutiny of alcohol excise remission claims, proposed SMSF reforms could strengthen consumer protection, and the 28 August TPAR deadline is approaching quickly.
Cross-border businesses should also review the updated transfer-pricing guidance for inbound distribution arrangements. This update is particularly relevant to Australian ecommerce and digital businesses with related entities overseas.
ATO targets misuse of the alcohol manufacturers remission scheme
The ATO has announced stronger compliance action against businesses attempting to exploit the Alcohol Manufacturers Remission Scheme.
From 1 July 2026, the scheme provides a remission of excise on the first $400,000 of eligible alcohol entered for home consumption in Australia by an eligible manufacturer during each financial year. The increase from the previous $350,000 cap is intended to support genuine small and emerging alcohol manufacturers.
However, the ATO is concerned that some operators may be using artificial structures or minimal manufacturing activity to claim the concession. The focus is now moving towards whether businesses are genuinely manufacturing eligible alcohol and operating independently.
The ATO’s scrutiny is increasing for:
- New excise licence applicants.
- Businesses in their first two years of operation.
- Businesses using shared premises or equipment.
- Arrangements involving common owners, directors or key personnel.
- Businesses claiming remission without evidence of genuine manufacturing activity.
- Operators that appear to be diluting or blending alcohol rather than carrying out the required manufacturing processes.
The ATO has also indicated that targeted reviews will examine whether businesses continue to meet the legal and economic independence requirements of the scheme.
Maintain accurate excise records from day one
If your business manufactures eligible alcohol in Australia, maintain a complete audit trail for every claim. This should include:
- Production and batch records.
- Details of raw materials and alcohol inputs.
- Evidence of fermentation or distillation activity.
- Excise returns and remission calculations.
- Inventory movements.
- Sales and distribution records.
- Equipment ownership or lease documents.
- Premises agreements.
- Agreements with contract manufacturers.
- Records supporting legal and economic independence.
Do not claim the remission simply because your business holds an excise licence. The records must demonstrate that the activity, product and business structure meet the relevant requirements.
The ATO remission scheme guidance explains the eligibility and claiming framework. The compliance crackdown is also reported in this SmartCompany article.
Review your records now to reduce the risk of incorrect claims, recovered excise and potential penalties.
Proposed SMSF reforms would increase setup and reporting requirements
The Australian Government announced proposed SMSF reforms on 19 August 2026. These measures are not yet enacted rules, and no commencement date has been announced.
The proposed changes would give the ATO power to prevent a rollover into an SMSF where there is a well-founded suspicion of consumer harm. The proposed power is intended to help interrupt scams, fraud and other harmful practices before a member transfers retirement savings.
The proposed reforms would also introduce several additional requirements for trustees and newly established SMSFs.
These include:
- Basic knowledge requirements for SMSF trustees.
- A uniquely identifiable bank account for each SMSF.
- A pre-written investment strategy.
- Disclosure by newly established SMSFs of whether an adviser helped establish the fund.
- Disclosure of establishment-related adviser fees.
- An increase in the SMSF supervisory levy from $253 to $295.
- A possible Compensation Scheme of Last Resort levy of no more than $20 per leviable period.
These are announced proposals. They should not be treated as current obligations until legislation is passed and commencement rules are confirmed.
Prepare for stronger trustee documentation
If you operate an SMSF or are considering establishing one, keep your fund’s governance documents organised. Review:
- Trustee appointment documents.
- The fund’s investment strategy.
- Bank account ownership and identification.
- Member and rollover documentation.
- Adviser engagement records.
- Adviser fee disclosures.
- Trustee meeting minutes and decisions.
- Evidence supporting investment decisions.
Business owners in NSW, Victoria, Queensland and other Australian states should separate their company compliance records from SMSF records. Your company’s bookkeeping, GST and payroll information should not be mixed with SMSF administration.
The proposed reforms are reported in the Australian Financial Review announcement coverage. Monitor further Treasury, ATO and legislative updates before changing your processes.
Lodge your TPAR electronically by 28 August 2026
The Taxable Payments Annual Report for the year ended 30 June 2026 is due on 28 August 2026.
The TPAR may apply if your business paid contractors for services in covered industries, including:
- Building and construction.
- Cleaning.
- Courier and road freight.
- Information technology.
- Security, investigation and surveillance.
- Certain government-related contracting activities.
The ATO requires TPAR lodgment electronically. Paper lodgments are no longer accepted.
Before submitting, check:
- Contractor names and ABNs.
- Contractor addresses and business details.
- Total payments made during the financial year.
- GST amounts included in reported payments.
- Payments made through related entities or trading divisions.
- Whether employees have been incorrectly included.
- Whether payments that were fully subject to PAYG withholding have been excluded where appropriate.
- Whether your business needs to lodge a non-lodgment advice instead.
Use the ATO’s August due-date guidance and TPAR lodgment instructions.
Do not wait until 28 August. Early review gives you time to correct missing ABNs, reconcile contractor payments and resolve software or access issues.
Review cross-border arrangements under updated PCG
