TITLE: Australian Tax Update: Trust Tax Inquiry, GST Combination Food Rules, SMSF Penalties and October Due Dates
Here are three Australian tax and compliance developments to know today, plus key October due dates. Use this update to check your records, GST classifications and payroll processes before upcoming reporting deadlines.
Proposed trust tax faces a Senate inquiry, keep decisions on hold
Treasury’s proposed 30% minimum tax on discretionary trusts, announced in the May budget, is not yet law. The Greens have confirmed they will seek a Senate inquiry into the proposed carve-out for small firms. Economics spokesman Nick McKim said the government had “watered down its own position before the legislation has even reached parliament.”
Treasurer Jim Chalmers is expected to introduce the legislation on Wednesday 14 October. However, with the Greens pushing for an inquiry and the Coalition opposing the proposal, the measure is not expected to pass before at least late 2026.
The potential costs are substantial. Wilson Asset Management and CPA Australia estimate that the 210,000 business trusts Treasury expects to be affected could face between $8 billion and $13.3 billion in advice and restructuring costs. State stamp duty on asset transfers could add more. Chalmers is in talks with the states about possible relief for businesses required to restructure. Business groups also point out that trusts are used for legitimate purposes, including asset protection and succession planning.
Read the reporting from AAP and the Australian Financial Review.
What to do: Don’t make an allocation or restructuring decision based on a proposal that has not passed Parliament. Keep current trust, asset and transaction records, so costs and compliance consequences can be assessed if the legislation proceeds. This applies whether your business operates in Sydney, Melbourne, Brisbane, Perth, Adelaide or regional Australia.
ATO consults on GST treatment of combination food. Review products sold together
The ATO opened consultation on 7 October on Draft GST Determination No. GSTD 2024/1DC, covering supplies of combination food.
The draft clarifies that a food product is taxable combination food if it contains a separately identifiable taxable food. A combination food may be visually identifiable and sufficiently joined with other components at the time of sale. Classification is determined at the point of supply.
The draft also sets out a low-risk treatment for certain cereal products:
- Cereal products containing 15% or less combination foods by weight, excluding packaging, are treated as low risk.
- Cereal products containing more than 15% combination foods are not treated as low risk.
This matters to food, grocery and online sellers bundling taxable and GST-free items. Breakfast cereals, mixed snack packs and bundled hampers may need careful review. A change to product composition or packaging can affect the GST outcome at the point of supply.
The ATO’s advice-under-development page lists an expected completion date of October 2026. It does not specify a formal public closing date for comments. See the draft determination and the consultation reporting from Bloomberg Tax.
What to do: Review food products that combine taxable and GST-free items. Check product ingredients, weights, packaging and how each item is supplied. Keep evidence that supports the GST treatment reported on your BAS. If a product’s classification is unclear, use the ATO consultation process to raise the question.
SMSF audit information penalties upheld, verify every return detail
The Administrative Review Tribunal has affirmed penalties against trustees in QQCS, CZMV, JRFK, PJXX and WHVG and Commissioner of Taxation [2026] ARTA 2159.
The fund’s 2015 to 2018 annual returns named an auditor who had not audited the fund, recorded an audit completion date and stated that an unqualified opinion had been given. No audit had been carried out. The ATO was told this by the named auditor. The trustee who prepared the returns admitted knowing that audit reports did not exist, but said they lodged the returns to prevent the fund from being made non-complying.
The Commissioner found the trustees had made a false or misleading statement. All trustees were held jointly and severally liable, including those who had left administration of the fund to one person. The penalties were imposed on the basis that the fund intentionally disregarded a taxation law. ART general member Joanne Dunne said intentional disregard requires dishonesty and actual knowledge that a false or misleading statement is being made, which can be inferred from the facts and circumstances.
What to do: Check that auditor names, audit completion dates and opinions in lodged returns match the signed audit reports. Keep those reports on file and correct inaccurate information before the ATO contacts you. A passive or uninvolved role in fund administration does not, by itself, remove a trustee’s exposure to joint and several penalties. Read the report from SMS Magazine.
October compliance dates: plan lodgments and payroll checks
Put these dates in your compliance calendar. Confirm the dates that apply to your own reporting arrangements.
- 21 October 2026: Lodge and pay the September 2026 monthly BAS.
- 28 October 2026: Standard due date for the July to September 2026 quarterly BAS, also known as the Quarter 1 activity statement. Eligible electronic lodgers and registered-agent clients may have later lodgment dates, so confirm the date that applies to you.
- 28 October 2026: This is not a Payday Super payment deadline. Since 1 July 2026, super contributions must reach each employee’s fund within seven business days of payday. However, the ATO treats unpaid July to September quarter super shortfalls by 28 October as a compliance risk indicator under PCG 2026/1. Reconcile contributions against each payday, not only at quarter end. See the ATO’s guidance on Payday Super payment deadlines and PCG 2026/1.
- 31 October 2026: Tax professionals must add new clients to the lodgment program by this date. It falls on a Saturday and is not extended.
What to do: Match BAS and payroll records to your accounting data before lodgment. For employers in Sydney, Melbourne, Brisbane, Perth, Adelaide and regional Australia, build a payday-by-payday super reconciliation into routine payroll checks. This helps identify missing or delayed contributions earlier.
ATO credit card payments continue until 30 June 2027
The pause on the ATO’s planned ban on direct credit card payments for tax and super obligations continues until 30 June 2027. Confirm the payment methods available for your account and review any scheduled direct debit or card arrangements before that date. Check the ATO’s current guidance for updates on payment options.