[4270] Dynamic pay as you go instalments – general interest charge on excessive variation
Title
Final Practical Compliance Guideline
Dynamic pay as you go instalments: general interest charge on excessive variation – ATO compliance approach
Purpose
This Guideline outlines the Commissioner’s practical compliance approach to the application of a general interest charge on excessive variations of pay as you go (PAYG) instalments under Subdivision 45-G of Schedule 1 to the Taxation Administration Act 1953 if taxpayers use the Dynamic PAYG instalment method.
Expected completion
Late 2026.
Comments
Draft Practical Compliance Guideline PCG 2026/D3 Dynamic pay as you go instalments and general interest charge on excessive variation – ATO compliance approach published on 24 June 2026. Comments period closed on 28 August 2026.
Contact
[4287] Standard deduction for work-related expenses [updated]
Title
Final Law Companion Ruling
Standard deduction for work-related expenses
Purpose
This final Ruling provides an overview of how the standard deduction for work-related expenses operates, as contained in section 25-130 of the Income Tax Assessment Act 1997.
Expected completion
December 2026.
Comments
Draft Law Companion Ruling LCR 2026/D5 The standard deduction for work-related expenses published on 26 August 2026. Comments period closed on 9 October 2026.
Contact
Shaun Thomas, Individuals & Intermediaries
[4304] Capital gains tax and negative gearing reforms [new]
Title
Capital gains tax and negative gearing reforms guidance
Purpose
In the 2026–27 Budget, the Government announced changes to the capital gains tax (CGT) rules for some taxpayers, to start from 1 July 2027. The changes will operate within the existing rules about CGT that are principally contained in Parts 3-1 and 3-3 of the Income Tax Assessment Act 1997. The Government has introduced these reforms in stages. The Treasury Laws Amendment (Tax Reform No.1) Act 2026 contains the first stage (Tranche 1) and the Treasury Laws Amendment (Tax Reform No.3) Bill 2026: CGT Adjustments (Tranche 2) contains the second stage.
We are proposing to provide guidance setting out the Commissioner’s views on and approach to key aspects of the new CGT and negative gearing reforms contained in Tranches 1 and 2.
The high-priority topics we intend to resource immediately are guidance on:
- the cost base indexation rules applying to individuals and trusts under the CGT reform
- the transitional rules for post-CGT assets of individuals and trusts and pre-CGT assets held on 1 July 2027
- how capital gains and losses are calculated and the CGT method statement is applied under the changes.
We continue to engage with stakeholders on the high-priority topics to develop specific public advice and guidance products. We encourage stakeholders to provide specific practical examples that demonstrate issues raised by the changes, including reference to the relevant provisions and analysis of their potential application.
Title
Draft Law Companion Ruling
Capital gains tax reforms: cost base indexation
Purpose
This draft Ruling provides guidance on the operation of the cost base indexation rules to work out an asset’s cost base and the amount of capital gain made on a CGT event that happens to it. It also explains the rules that give effect to this change for trust capital gains.
Expected completion
Late 2026 – early 2027
Contact
Elena Stamatovska, Tax Counsel Network
Title
Draft Law Companion Ruling
Capital gains tax reforms: transitional rules for start date assets
Purpose
This draft Ruling is about the changes to replace the CGT discount with cost base indexation and to remove the exemption for pre-CGT assets. It provides guidance on the way those changes are made by having a rule that treats assets held at the start date as having been sold just before that time and reacquired immediately after. It explains which assets the rule applies to, how it works and the consequences.
Expected completion
Late 2026 – early 2027
Contact
Elena Stamatovska, Tax Counsel Network
Title
Draft Law Companion Ruling
Capital gains tax reforms and negative gearing: capital gains and the method statement, and new residential dwellings
Purpose
This draft Ruling provides guidance on the way to identify, classify and calculate capital gains and losses and how to apply the method statement to calculate the net capital gain. It also provides guidance on when a dwelling is a new residential dwelling.
Expected completion
Late 2026 – early 2027
Contact
Yvonne Matheson, Tax Counsel Network