Australia: Tax Authorities

Australia's 2026-27 Federal Budget introduces sweeping tax reforms that fundamentally reshape investment planning, trust structures, and business operations. The replacement of the 50% CGT discount with indexed gains and a 30% minimum tax, restrictions on negative gearing to new builds only, and a 30% minimum tax on discretionary trusts create unprecedented challenges for property investors, professional services firms, and family businesses. Understanding how these three interconnected measures work togeth

US technology, pharma, and life science companies establishing Australian subsidiaries to access R&D tax incentives face complex international tax challenges. When intercompany agreements are drafted without proper coordination between US transfer pricing rules and Australian R&D Tax Incentive requirements, companies risk significant IRS exposure including platform contribution payment obligations, cost reallocations, and penalties that can exceed the intended tax benefits.

Partners Scott Hay-Bartlem and Clinton Jackson break down the critical tax distinctions between superannuation benefits paid during a member's lifetime versus death benefits distributed after passing. They explore timing considerations, beneficiary designation rules, and strategic estate planning approaches to optimize tax outcomes and ensure effective management of superannuation death benefits.

This is an interim update while the ATO is currently awaiting the outcome of their broader review of taxpayer relief provision.

Early legal input at the structuring stage often makes the difference between a development model that withstands regulatory scrutiny and one that becomes costly to unwind.

The Treasury Laws Amendment (Payday Superannuation) Bill 2025 and the Superannuation Guarantee Charge Amendment Bill 2025...

On 1 October 2025, the ATO finalised its guidance on the third party debt test (TPDT) for thin capitalisation purposes in Taxation Ruling TR 2025/2 (Ruling)...

Cases highlight the complexities associated with the determination of Australian tax residency, particularly for individuals with overseas business interests and changing residences.

Traditionally, tax compliance has been viewed as a retrospective process necessary to meet filing deadlines and ensure regulatory adherence. While timely compliance remains critical, today's business environment demands...