Tax News and Updates March 2026

1.

TPB reinforces importance of full disclosure during registration 

The Tax Practitioners Board (TPB) has reinforced the need for complete and accurate disclosure during agent registration following the conviction of a former practitioner for making a false statement in a renewal application.  

In the Board’s 2 March 2026 announcement, it was confirmed that the agent had answered "No" to a question about overdue obligations for controlled entities, even though several entities had outstanding tax lodgments at the time.  The TPB viewed this as a material misrepresentation that prevented it from properly assessing the agent’s eligibility for renewal. 

The TPB highlighted that it recognises practitioners may occasionally face compliance challenges or fall behind with obligations.  However, the Board stressed that transparency is vital to maintain integrity in the registration system and that honesty remains fundamental to public confidence in the tax profession.  The registration and renewal process depends on practitioners providing information that is true and correct at the time of lodgement. 
 

For advisers, the case underscores the importance of reviewing all associated entities before submitting a renewal application.  Practitioners should ensure they have a clear record of any outstanding lodgements or debts so that disclosures are accurate and complete.  Nondisclosure of a compliance issue is likely to attract disciplinary attention far more swiftly than the underlying issue itself. 

The TPB’s message is clear.  Integrity, candour and accurate reporting are essential to maintaining registration. The Board will take action where practitioners fail to meet these obligations, particularly where false or misleading information is provided in connection with registration. 

Tax Practitioners Board reinforces importance of full disclosure during registration | Tax Practitioners Board

2.

ATO insight into Deputy Commissioner Louise Clarke’s 2026 priorities for the private wealth sector 

Deputy Commissioner Louise Clarke has outlined the ATO’s priorities for the private wealth sector for 2026, with an emphasis on governance, succession planning activity and increasingly complex structures within large private groups.  She noted that the ATO oversees more than 284,000 private wealth groups controlling over four trillion dollars in assets, and that an ageing ownership base has resulted in a rise in restructures, reorganisations and business transitions.  These developments often involve private equity, cross border investment and detailed governance arrangements, which are all areas of heightened ATO interest. 
The ATO has also recently issued guidance targeting property sector arrangements, including a taxpayer alert addressing the use of long-term construction contracts to defer income. 

Clarke pointed to several important cases currently before the courts, including Bendel and Merchant, which are expected to provide clarity on trust and private group taxation issues.  She also referred to the recent SNA Group decision as a reminder that related party transactions must have proper documentation and commercial grounding. 

For practitioners, the ATO’s focus signals the need for robust tax governance and well documented decisions.  The transitional period for PCG 2021/4 has ended, meaning professional firm profit allocation arrangements must now be assessed under the full risk framework without concession.  Advisers working with private groups should expect closer attention to intragroup arrangements, succession planning steps and the tax consequences of business transitions. 

Overall, the ATO is signalling a shift toward closer scrutiny of behavioural patterns across private groups, not just technical positions.  Strong governance, accurate records and early engagement remain crucial for clients seeking to demonstrate low risk behaviour. 

Spotlight on Deputy Commissioner Louise Clarke | Australian Taxation Office

3.

Top 500 private groups urged to lodge and pay on time 

The ATO has reminded the nation’s largest private groups that timely lodgement and payment of taxes is a fundamental expectation and a core indicator of effective tax governance.  In its 24 February 2026 announcement, the ATO stated that repeated delays in lodgement can expose groups to penalties, interest charges and more intensive compliance activity.  Persistent lateness may also signal broader weaknesses in governance and internal controls. 

The ATO recommends that Top 500 groups adopt a single lodgement and payment calendar covering all entities within the group.  This type of control helps ensure visibility across deadlines, assigns clear responsibility for each obligation and assists with cash flow planning.  The ATO has stated that having such a calendar in place is one of the practical elements it looks for when assessing a group’s governance framework and its alignment with justified trust expectations. 
 
For advisers, the update serves as a reminder that most of the additional liabilities raised in the Top 500 program arise from simple and preventable errors, such as omitted income or incorrect deductions.  Strengthening governance processes can substantially reduce these errors and demonstrate proactive engagement with the tax system.  Clients should be encouraged to review their current oversight structures and implement documented controls where gaps are identified. 
 
The message is straightforward.  Large private groups are expected to maintain a high standard of governance, including timely and accurate reporting.  A failure to do so not only increase compliance risk but may also undermine the group’s ability to access streamlined assurance processes in the future. 

Top 500 private groups must lodge and pay on time | Australian Taxation Office

4.

SMSF trustees and the ATO’s approach to education directions 

The ATO has updated its guidance on education directions for SMSF trustees, focusing on situations where contraventions arise because trustees do not fully understand their obligations.  The October 2025 SMSF Newsroom update explains that an education direction requires a trustee to complete an approved course and is intended to address knowledge gaps that contributed to a breach of the Superannuation Industry (Supervision) Act or regulations.  The direction may be issued where the breach is not deliberate, fraudulent or serious in nature. 

The ATO’s practice statement clarifies that education directions are not appropriate where the trustee has already received one in the past, where the trustee is an experienced professional or where the breach involved wilful disregard of the rules.  In more serious circumstances, the ATO may impose administrative penalties, issue rectification directions or accept written undertakings in place of education.  Trustees who receive an education direction must complete the course and re-sign the trustee declaration within the specified timeframe. 

For advisers, this guidance highlights the importance of understanding both the nature and the context of SMSF breaches.  Trustees who are unfamiliar with the rules may receive an education direction as an opportunity to improve compliance, but trustees who repeatedly fail to meet their obligations or who engage in more serious conduct will not be afforded that leniency.  Advisers can help clients by identifying knowledge gaps early and encouraging proactive compliance. 

Overall, the ATO’s approach favours education in appropriate cases, but trustees must not assume this will always be available.  The guidance stresses that knowledge, attitude and conduct will all be assessed when determining the appropriate compliance response. 

Know what to expect from an education direction | Australian Taxation Office

5.

Commissioner of Taxation v Baya Casal: genuine redundancy clarified 

The Full Federal Court has provided important guidance on what constitutes a genuine redundancy for tax purposes in Commissioner of Taxation v Baya Casal [2026] FCAFC 11.  The employee in this case worked part time in a childcare centre and was offered alternative roles following a restructure that significantly reduced her hours and pay.  The Court found that these changes meant the original position had effectively ceased to exist, and the payment received upon termination qualified as a genuine redundancy under section 83 175 of the ITAA 1997. 

 
The decision confirms that the test for genuine redundancy is focused on whether the position itself continues, rather than the performance of the individual employee.  A role may be redundant even if some of the duties are redistributed to others, provided the overall attributes of the original position have changed to the point where it no longer exists.  The Court also considered changes to hours and remuneration relevant indicators when determining whether a position has ceased. 
 
For advisers, the case provides practical guidance when assessing the tax treatment of termination payments.  Employers who restructure should ensure that changes to roles, duties and hours are clearly documented so that the basis for redundancy is evident.  In addition, advisers should scrutinise whether any alternative role offered is genuinely comparable, because material differences will support a finding of redundancy even if a replacement position is made available. 

Casal reinforces the importance of examining the substance of a role rather than its title.  Where the essence of the position has been altered or broken up, redundancy treatment may be available.  Advisers should consider these principles carefully when advising on termination arrangements to ensure that the correct tax treatment is applied. 

Commissioner of Taxation v Baya Casal [2026] FCAFC 11 (20 February 2026)

6.

Important dates for tax agents

• 21 March 2026

Lodge and pay February 2026 monthly Business Activity Statement (BAS).  This applies to all monthly GST reporters, including monthly PAYG withholding reporters.

• 31 March 2026
  • Lodge tax returns for companies and super funds with total income over $2 million in the latest year lodged (excluding large and medium taxpayers), unless their return was due earlier. Payment for companies and super funds in this category is also due on this date.
  • Lodge tax return for the head company of a consolidated group (excluding large and medium) where a member had total income over $2 million, unless an earlier due date applies. Payment for companies in this category is also due on this date.
  • Lodge tax returns for individuals and trusts whose most recent return resulted in a tax liability of $20,000 or more (excluding large and medium trusts). Payment for these individual and trust taxpayers is due as stated on the notice of assessment.

7.

Tribunal decision on enterprise status and record-keeping for claiming GST credits

This Administrative Review Tribunal’s decision highlights key considerations when determining whether a taxpayer is carrying on an enterprise, the substantiation required for GST input tax credits, and when penalty uplifts are appropriate. The Tribunal found that the taxpayer was carrying on a dog breeding enterprise, noting that the activities demonstrated the necessary commercial character.

However, the Tribunal disallowed or reduced many input tax credit claims due to insufficient substantiation, and remitted the calculation of allowable ITCs to the Commissioner for reconsideration based on the evidence available.

The Tribunal also set aside the penalty uplift, concluding that the taxpayer had not acted recklessly, and therefore the 20% base penalty uplift should not apply.

Overall, the decision reinforces the importance of maintaining adequate documentation, relying on accurate authorities, and carefully analysing indicators of whether an enterprise is being carried on.