Australia’s tax compliance environment is becoming more active and more data-driven.
Today’s key developments affect hospitality businesses, ecommerce sellers, digital companies, growing SMEs and Australian entities within international groups. The main message is simple: maintain accurate records, pay employees and superannuation correctly, and prepare early for changes taking effect on 1 October 2026.
Australia tax update at a glance
- The ATO conducted more than 25 unannounced visits to Melbourne CBD fast-food outlets, restaurants and cafés on 22 and 23 September under Operation Tonberry.
- The ATO received more than 52,000 community tip-offs about suspected tax evasion and related non-compliance during FY2025–26.
- Foreign resident CGT changes start on 1 October 2026, including a new notification requirement for certain transactions valued at AU$50 million or more.
- The foreign resident principal asset test will move from a point-in-time test to a 365-day testing period.
- Payday Super contributions must reach an employee’s nominated fund within seven business days of payday, subject to specific exceptions.
- Consultation on the ATO’s draft software royalty compliance guideline, PCG 2026/D4, closes on 2 October 2026.
- The proposed 30% minimum tax on discretionary trusts from 1 July 2028 is not law.
Strengthen your records as Operation Tonberry targets Melbourne businesses
The ATO has announced that it conducted more than 25 unannounced visits to fast-food outlets, restaurants and cafés in Melbourne’s CBD.
The visits took place on 22 and 23 September 2026. The ATO is investigating suspected:
- Cash-in-hand payments.
- Unpaid superannuation.
- Undeclared or under-reported income.
- Reporting failures.
- Record-keeping breaches.
The operation follows more than 52,000 community tip-offs received during FY2025–26. Around 83% were considered suitable for further review. More than 360,000 tip-offs have been received since July 2019.
Building and construction, cafés and restaurants, and hairdressing and beauty services were among the most reported industries. Hospitality businesses accounted for more than 2,500 tip-offs.
The ATO has said that non-compliance gives an unfair advantage to businesses that do the right thing. Tip-offs can be made anonymously through the ATO’s official tax evasion reporting channels.
Use this compliance checklist
Whether you operate in Melbourne, Sydney, Brisbane, Perth or elsewhere in Australia, review your records now:
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Reconcile every sales channel.
Match point-of-sale receipts, ecommerce platforms, payment processors and bank deposits. This helps prevent unexplained differences in your BAS and income tax records. -
Record all cash sales.
Cash payments must be recorded in the same way as card and online payments. This supports accurate GST reporting and reduces audit risk. -
Check payroll and PAYG withholding.
Confirm that employee wages, PAYG withholding and reporting are complete and accurate. -
Verify superannuation payments.
Make sure contributions reach the employee’s fund within the required time. -
Keep source documents.
Retain invoices, receipts, payroll records, bank statements and platform reports. Clear records help you respond quickly if the ATO asks questions.
The enforcement message applies beyond hospitality. Australian ecommerce sellers, SaaS businesses, agencies and other digital companies should also ensure that sales from Shopify, Amazon, eBay, Etsy, WooCommerce and other platforms flow correctly into their accounting records.
Prepare for foreign resident CGT changes before 1 October
Foreign resident CGT changes begin on 1 October 2026 following Royal Assent of the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026.
The changes are important for international groups, foreign investors and Australian entities involved in reorganisations, acquisitions or disposals.
Under the new rules, a foreign vendor providing a declaration that an asset is not an indirect Australian real property interest must notify the ATO where the disposal, including related transactions, has a value of AU$50 million or more.
Purchasers must also consider whether they reasonably believe the declaration is false at any time between receiving the declaration and settlement. A declaration should not be treated as automatically conclusive if later information raises concerns.
The ATO’s foreign resident CGT update explains the main changes.
Track asset values across the full 365-day period
The principal asset test will change from a point-in-time test to a 365-day testing period before the relevant CGT event.
This means foreign resident sellers may need evidence showing the entity’s asset composition and values throughout the previous year. A last-minute change to the balance sheet may not be enough to change the tax outcome.
The legislation also introduces a Commonwealth definition of real property that covers:
- Land.
- Rights and interests relating to land.
- Assets fixed to land.
- Certain leases and licences.
- Relevant water rights and infrastructure interests.
The reforms do not apply retrospectively to disposals that settled before 1 October 2026. However, transactions settling on or after that date require careful review of the new rules.
A temporary 50% CGT discount will also apply to eligible non-individual foreign residents disposing of certain renewable energy assets. This is a specific concession and should not be treated as a general return of the CGT discount for foreign residents.
The ATO has indicated that additional guidance will be published before 1 October. The ATO has also registered a consolidated PAYG withholding variation legislative instrument for foreign resident capital gains withholding.
Take these steps before settlement
If your Australian entity is part of a UK, US, Canadian, European or other international group:
- Identify disposals or restructures that may settle on or after 1 October.
- Review whether the transaction involves Australian real property or an indirect interest.
- Check whether related transactions could take the total consideration to AU$50 million or more.
- Preserve valuation evidence covering the previous 365 days.
- Document the basis for any vendor declaration.
- Build ATO notification steps into the transaction timetable.
Review home-based business arrangements before 1 July 2027
Running a business from home can create uncertainty around the main residence exemption, deductible expenses and future capital gains tax treatment.
Commentators have highlighted additional valuation issues ahead of changes scheduled to begin on 1 July 2027. Business owners operating from a home may need to establish the portion used for business and maintain evidence supporting the relevant valuation.
Do not assume that every home office creates the same CGT result. The outcome can depend on the entity structure, ownership of the property, the area used and the nature of the business activity.
Where the position is unclear, an ATO private ruling may provide greater certainty.
A company operating from a home may also pay rent for the portion used for business. That rent may be deductible against the company’s business income, but the arrangement must be documented and commercially supportable.
Organise your home-based business records
Keep:
- A floor plan showing the business area.
- Measurements and usage calculations.
- Lease or ownership documents.
- Rent, utilities and other expense records.
- Evidence supporting the business use of the space.
- Valuation information where relevant.
This is particularly important for digital agencies, consultants, SaaS operators and ecommerce businesses managed from home in Sydney, Brisbane, Perth and regional Australia.
Pay Super on time under the new seven-day rule
Payday Super requires super guarantee contributions to reach an employee’s nominated fund within seven business days after payday.
The contribution is considered on time when it is received by the fund, not merely when you submit the payment. The day wages are paid is treated as day zero.
You must ensure that both the payment and the necessary employee data reach the fund so the contribution can be allocated correctly. If the payment is late, the super guarantee charge may apply.
Some circumstances allow a longer payment period, such as certain first contributions for new employees. Confirm the applicable rule rather than assuming the standard seven-day period applies in every case.
The ATO’s Payday Super payment deadline guidance provides further information.
Improve your payroll process
- Set payroll cut-off dates earlier.
- Confirm employee fund details before payday.
- Track payment and allocation confirmations.
- Allow for weekends, public holidays and processing delays.
- Reconcile the payroll report to the super fund receipt.
- Keep evidence showing when the fund received the contribution.
This process matters for employers with Australian staff, including international groups employing teams through an Australian subsidiary.
Note these upcoming October deadlines
Several additional dates require attention:
- 1 October 2026: Tax Practitioners Board sanctions powers begin.
- 1 October 2026: The card surcharge ban begins.
- 2 October 2026: Consultation closes on the ATO’s draft PCG 2026/D4 software royalty compliance guidance.
- 31 October 2026: Updated PAYG withholding annual reports for non-residents are due.
PCG 2026/D4 concerns the ATO’s compliance approach to royalty characterisation for payments connected with intermediation or distribution arrangements. It is particularly relevant to digital businesses and international groups making cross-border software or intellectual property payments.
Separately, the proposed 30% minimum tax on discretionary trusts from 1 July 2028 remains a proposal. Draft legislation is still under consultation, and it has not become law. Do not record or report it as an enacted tax obligation.
What Australian businesses should do today
Use this short action list:
- Reconcile September sales across all platforms and payment providers.
- Check payroll, PAYG withholding and Payday Super timing.
- Review any foreign resident transaction settling from 1 October.
- Preserve valuation evidence for Australian property-related entities.
- Review software and royalty payment arrangements.
- Record the 1 October, 2 October and 31 October deadlines.
- Keep evidence for every GST, payroll and tax calculation.
Accurate bookkeeping is the foundation for every one of these tasks. Your business data should support BAS preparation, payroll reporting, tax calculations and year-end accounts without requiring a last-minute reconstruction.
Frequently asked questions
What is Operation Tonberry?
Operation Tonberry is an ATO compliance operation involving unannounced visits to more than 25 fast-food outlets, restaurants and cafés in Melbourne’s CBD on 22 and 23 September 2026. The ATO is investigating suspected cash-in-hand payments, unpaid superannuation, undeclared income and reporting or record-keeping breaches.
Do the foreign resident CGT changes apply to disposals that already settled?
No. The changes do not apply retrospectively to disposals that settled before 1 October 2026. However, disposals settling from 1 October must be reviewed under the new rules, including the 365-day principal asset testing period.
When is Payday Super considered paid on time?
A contribution is generally on time when it reaches the employee’s nominated super fund within seven business days after payday. Submitting the payment is not enough if the fund does not receive and allocate it within the required period.
Keep your Australian compliance process organised
Tax compliance is becoming an ongoing operational responsibility rather than a task to complete only at quarter-end or year-end.
Sterlinx Global operates as a Global Tax Compliance Suite. You provide your business data, and we complete bookkeeping, tax calculations, GST and BAS filings, payroll support and year-end accounts through an ongoing compliance process.
Our Full Compliance Suite is available for entities in Australia, the UK, Ireland, the USA and Canada. For eligible European jurisdictions, we provide modular VAT-only support, including VAT registration and filings.
If your Australian business, ecommerce brand, digital company or international group needs structured support, contact Sterlinx Global to discuss your compliance requirements.
