[4056] Decline in value of a depreciating asset
Purpose
This addendum clarifies that, having considered the statutory context and legislative history of the relevant provision, the Commissioner maintains their view that the ordinary meaning of the term ‘exploration or prospecting’ is as previously expressed.
Outcome
The addendum to Taxation Ruling TR 2017/1 Income tax: deductions for mining and petroleum exploration expenditure published on 11 March 2026.
[4072] When a private or public ancillary fund 'provides' a 'benefit'
Purpose
This Determination provides the Commissioner’s view on when private or public ancillary funds are taken to have provided a ‘benefit’ for the purposes of subsections 15(4) and 22(3) of the Taxation Administration (Public Ancillary Fund) Guidelines 2022 and Taxation Administration (Private Ancillary Fund) Guidelines 2019. Subsection 15(4) provides that annual distributions to eligible deductible gift recipients may be made by providing benefits, while subsection 22(3) prohibits benefits being provided to certain related entities.
Outcome
Taxation Determination TD 2026/3 Income tax: when does a private or public ancillary fund 'provide' a 'benefit'? published on 10 June 2026.
[4083] Rental properties
Purpose
This Ruling replaces Taxation Ruling IT 2167 Income Tax: rental properties – non-economic rental, holiday home, share of resident, etc. cases, family trusts cases (now withdrawn). It also provides the Commissioner's view on the application of section 26-50 of the Income Tax Assessment Act 1997, which is an integrity rule relating to the use of holiday homes.
To accompany this Ruling, we also published 2 Guidelines explaining our compliance approach regarding:
- apportionment of deductions on a ‘fair and reasonable’ basis where the integrity rule relating to holiday homes does not apply, and
- the integrity rule relating to holiday homes.
Outcome
Taxation Ruling TR 2026/1 Income tax: rental property income and deductions for individuals who are not in business and Practical Compliance Guidelines PCG 2026/2 Apportionment of rental property deductions – ATO compliance approach and PCG 2026/3 Application of section 26-50 of the Income Tax Assessment Act 1997 to holiday homes that you also rent out – ATO compliance approach published on 20 May 2026.
[4132] New residential premises – updates to reflect AAT decision
Purpose
Minor updates were made to Goods and Services Tax Rulings GSTR 2003/3 Goods and services tax: when is a sale of real property a sale of new residential premises? and GSTR 2009/4 Goods and services tax: new residential premises and adjustments for changes in extent of creditable purpose to reflect the favourable Administrative Appeals Tribunal (AAT) decision in Domestic Property Developments Pty Ltd as trustee for the Dals Property Trust and Commissioner of Taxation [2022] AATA 4436.
The updates reflect that the AAT:
- stated that the 5-year period during which premises have been used only for making certain input-taxed supplies (such that they are no longer be new residential premises) must be a continuous period and does not include periods when the premises are held for sale or marketed for sale
- confirmed our view that marketing premises for sale is a 'use' of premises.
However, the AAT clarified that the meaning of ‘used’ and ‘applied’ should not be interpreted consistently as a matter of course and that ‘used’ takes its ordinary meaning.
Outcome
Addenda to GSTR 2003/3 and GSTR 2009/4 published on 18 March 2026.
[4143] Transfer pricing issues related to inbound distribution arrangements
Purpose
This update is the first of the anticipated updates noted at paragraphs 14 and 42 of the Practical Compliance Guideline PCG 2019/1 Transfer pricing issues related to inbound distribution arrangements. It ensures the Guideline and profit markers for assessing transfer pricing risk remain relevant and up to date. The update also clarifies the scope of the application of the Guideline and reportable tax position schedule by introducing a 'white zone' for certain taxpayers.
Outcome
PCG 2019/1 was updated on 22 April 2026
[4186] GST and formula products
Purpose
This Determination outlines the Commissioner's view on when the supply of a formula product is GST-free under section 38-2 of the A New Tax System (Goods and Services Tax) Act 1999.
Outcome
Good and Services Tax Determination GSTD 2026/1 Goods and services tax: supplies of formula products published on 25 February 2026.
[4191] Significant global entities – ATO compliance approach for privately owned and wealthy groups
Purpose
Tailored guidance for large privately owned and wealthy groups on assessing and reporting significant global entity (SGE) status, including:
- SGE status reporting and record-keeping expectations
- practical examples of SGE self-assessment featuring common private group structures
- low-risk scenarios where SGE status reporting is unlikely to raise compliance concerns.
Outcome
Web guidance on Reporting significant global entity status for large private groups published on 29 January 2026.
[4203] Issuing education directions to trustees of self-managed super funds
Purpose
This Practice Statement provides guidance to ATO staff about whether to give a trustee or a director of a body corporate that is a trustee of a self-managed super fund an education direction under section 160 of the Superannuation Industry (Supervision) Act 1993.
Outcome
Law Administration Practice Statement PS LA 2026/1 Self-managed superannuation funds – education directions for contraventions of the Superannuation Industry (Supervision) Act 1993 published on 15 January 2026.
[4233] Income tax – work-related travel expenses [new]
Purpose
This Decision impact statement outlines the ATO’s response in relation to the Federal Court’s decision in this case, which determined that the taxpayer, an employee long-haul truck driver, was entitled to a deduction for work-related travel expenses claimed in respect of meals.
Outcome
The Decision impact statement on Commissioner of Taxation v Shaw [2026] FCA 197 published on 13 May 2026.
[4242] Superannuation reform: transfer balance cap [new]
Purpose
Law Companion Ruling LCR 2016/9 Superannuation reform: transfer balance cap was updated to further explain proportional indexation of the transfer balance cap and to clarify the status of superannuation income streams subject to a commutation authority. The update also clarifies how the general principles in this Ruling apply in the context of successor fund transfers and reflect the increase in the maximum allowable members made under the Treasury Law Amendment (Self-Managed Superannuation Funds) Act 2021.
Outcome
The addendum to LCR 2016/9 published on 15 July 2026.
[4246] Private rulings [new]
Purpose
Taxation Ruling TR 2006/11 Private rulings outlines the private rulings system. It was updated for currency and to address case law developments and reflect legislative changes to promoter penalty laws in Division 290 of Schedule 1 to the Taxation Administration Act 1953.
Outcome
The addendum to TR 2006/11 published on 22 July 2026.
[4253] Payday Super – ATO compliance approach for the first year
Purpose
This Practical Compliance Guideline sets out the ATO’s compliance approach for the first year of the payday super law in respect of investigating a superannuation guarantee shortfall for a qualifying earnings day that occurs from 1 July 2026 to 30 June 2027 inclusive.
Outcome
Practical Compliance Guideline PCG 2026/1 Payday Super – first year ATO compliance approach published on 28 January 2026.
[4269] International tax – approach to characterising a payment as a royalty, income derivation and diverted profits tax
Purpose
This Decision impact statement outlines the ATO’s response in relation to the High Court’s decision in this case, which set out that payments by an Australian bottler were not:
- made 'as consideration for' use of intellectual property and therefore not a ‘royalty’ for withholding tax purposes
- 'paid to' or 'derived by' the taxpayers for withholding tax purposes.
Furthermore, the diverted profits tax (DPT) did not apply for reasons that included there was no DPT tax benefit.
Outcome
The Decision impact statement on Commissioner of Taxation v PepsiCo Inc & Anor [2025] HCA 30 issued on 19 March 2026.
[4280] Assessable recoupment – amending penalty assessments – determination that no imputation benefit is to arise – onus of proof [new]
Purpose
This Decision impact statement outlines the ATO’s response to Ziegler v Commissioner of Taxation [2025] FCAFC 168, which considered the tax effect of various transactions undertaken by the taxpayer and associated entities following the settlement of earlier disputes with the Commissioner.
In particular, the court considered:
- whether a credit recorded on an income tax account was relevantly received as an assessable recoupment where a corresponding amount had been deducted from assessable income in an earlier income year
- the Commissioner’s duty to assess penalties and notify liability to penalties where a previously notified liability is considered incorrect
- the proper identification of ‘scheme’ and ‘purpose’ relevant to a determination made under paragraph 177EA(5)(b) of the Income Tax Assessment Act 1936 that no imputation benefit is to arise, and
- the statutory meaning of ‘excessive’ and the taxpayer’s onus of proof in Part IVC proceedings.
The court’s decision provides authoritative guidance on each issue and confirms key aspects of the Commissioner’s existing administrative practice.
Outcome
The Decision impact statement on Ziegler v Commissioner of Taxation [2025] FCAFC 168 published on 17 June 2026.