[4205] Are you carrying on a business?
Title
Draft Taxation Ruling
Are you carrying on a business?
Purpose
This draft Ruling will set out the Commissioner’s view on the indicators that are relevant when determining whether an individual is in business.
Expected completion
October 2026
Contact
Madeleine Phillips, Small Business
[4229] Loans for Division 7A purposes
Title
Decision impact statement
Decision impact statement on Commissioner of Taxation v Bendel [2026] HCA 18
Purpose
This Decision impact statement provides taxpayers and advisers with guidance to inform their decisions about trust distributions and the operation of Division 7A of the Income Tax Assessment Act 1936 before the end of the 2025–26 financial year.
It explains that the effect of the High Court's decision is that no loan will arise for the purposes of Division 7A where a private company beneficiary does nothing in respect of its entitlement to income from a trust. However, any dealing with those funds that amounts to either a payment or loan to, or forgiveness of a debt of, a shareholder of that corporate beneficiary or their associate, may attract the operation of the rules on unpaid present entitlements in Subdivision EA.
Further, if the entitlement arose from a reimbursement agreement, the integrity measure in section 100A of the Income Tax Assessment Act 1936 may apply to tax the trustee at the top marginal rate.
Comments
The Decision impact statement on Commissioner of Taxation v Bendel [2026] HCA 18 published on 26 June 2026. Comments period closed on 24 July 2026.
Contact
Simon Haines, Tax Counsel Network
Phone: 08 7422 2955
[4252] Long-term construction contracts
Title
Final Practical Compliance Guideline
Application of Part IVA to property development agreements involving long-term construction contracts – ATO compliance approach
Purpose
This Guideline will set out our proposed compliance approach to long-term construction contract arrangements (projects that span a period of greater than one year) in the property and construction industry.
This Guideline accompanies Taxpayer Alert TA 2026/1 Contrived property development arrangements between related parties that defer recognition of income and exploit tax losses.
Expected completion
Late 2026
Comments
Draft Practical Compliance Guideline PCG 2026/D2 Application of Part IVA to property development arrangements involving long-term construction contracts – ATO compliance approach published on 1 April 2026. Comments period closed 15 May 2026.
Contact
Dean Karlovic, Private Wealth
Phone: 03 9285 1686
[4278] Whether the sale of subdivided lots amounts to embarking on a business of developing land or venturing the land into a profit-making scheme
Title
Decision impact statement
Decision impact statement on Commissioner of Taxation v Morton [2026] FCAFC 31
Purpose
This Decision impact statement confirms that the decision in this case does not represent any departure from the Commissioner’s approach to property development issues. Taxation Rulings TR 97/11 Income tax: am I carrying on a business of primary production? and TR 92/3 Income tax: whether profits on isolated transactions are income continue to articulate our view and the relevant analytical framework. Existing case law and relevant legal principles concerning whether a taxpayer is carrying on a business and undertaking a profit-making undertaking or plan will continue to apply to matters involving property development issues in accordance with this existing ATO guidance.
Comments
The Decision impact statement on Commissioner of Taxation v Morton [2026] FCAFC 31 published on 5 June 2026. Comments period closed on 3 July 2026.
Contact
Wendy Chen, Tax Counsel Network
Phone: 02 9685 8681