Australia: Tax Authorities

On 29 May 2026, the Queensland Court of Appeal handed down its decision in Commissioner of State Revenue v Special Situations Investing Group III, Inc [2026] QCA 98, allowing the Commissioner's appeal against the decision of Bradley J in Special Situations Investing Group III, Inc v Commissioner of State Revenue [2025] QSC 345.

The 2026-27 Federal Budget faces the challenge of balancing ambition with caution amid geopolitical and economic uncertainty. With rumoured reforms to capital gains tax discounts, trust taxation, and negative gearing on the table, businesses are seeking clarity on policy settings that could fundamentally reshape investment structures and tax planning strategies. Will the government pursue transformative reform or opt for measured adjustments to strengthen national resilience?

Australia's proposed capital gains tax reforms may inadvertently undermine government efforts to strengthen sovereign defence capability and innovation. As the nation faces increasing global instability and supply chain vulnerabilities, changes to the CGT regime could discourage investment in defence-focused startups precisely when such investment is most critical to national security objectives.

The NSW Supreme Court's decision in ISPT Pty Ltd v Chief Commissioner of State Revenue addresses whether a taxpayer's acquisition of a 19.46% interest in a private landholding unit trust must be aggregated with a previously acquired 75.8% interest obtained when the trust was still a public landholder.

Higher fuel prices are flowing through to transport costs, supplier pricing, and operating expenses. For many SMEs, this is resulting in margin compression...

The Australian Government has released draft legislation proposing significant and retrospective changes to foreign resident capital gains tax rules, dramatically expanding what constitutes taxable Australian real property. These changes will apply to past transactions dating back to 2006, existing investments, and future deals, with only limited transitional relief for renewable energy assets until 2030.

This case helpfully lists a number of recent cases in which the court has explored the issue of the potential for 'double dipping'.

In this edition of It depends, partners Scott Hay-Bartlem and Clinton Jackson bring the latest updates on the government's proposed tax on large super balances, including the introduction of indexation.

The YTL decision provides much needed judicial guidance on how Division 855 is applied for foreign resident investors selling shares or membership interests.