Business

October 2025

December 2025

Targeted consultation is underway.

To seek feedback on draft web guidance to ensure that it is clear, fit-for-purpose, and effectively addresses the key GST considerations relevant to developers and operators of build-to-rent residential developments.

Modern build-to-rent developments have evolved and include different occupancy arrangements, physical characteristics and operating models to traditional rental accommodation.

We are developing web guidance to provide guidance on the main GST issues that developers and operators of build-to-rent residential developments need to consider, including GST treatment of the supply of accommodation, entitlement to GST credits, treatment of supplies and adjustments.

Industry feedback will help us ensure the web guidance is practical, addresses industry needs, and that any technical gaps or unintended impacts are identified before finalisation. Consultation will assist us to deliver effective public guidance that will provide greater certainty for taxpayers on how to practically apply the existing law and ATO view in their build-to-rent developments.

• GST Stewardship Group
• Property and Construction Stakeholder Relationship Forum

Tanya O’Callaghan, International Support and Programs
Tanya.O’Callaghan@ato.gov.au

October 2025

November 2025

Targeted consultation is underway.

To seek comments from the industry body representing credit unions and domestic banks as to high-risk arrangements which are designed to improperly claim item 16, reduced input tax credits (RITCs).

The taxpayer alert aims to address the observed risk that some credit unions are using contrived, artificial arrangements or avoidance schemes to claim a 75% RITCs under item 16 of subsection 70-5.02(1) of the GST Regulations. The RITCs are claimed in respect of acquisitions that are made through an interposed entity (procurement company) owned by 2 or more credit unions.

The arrangements typically involve a procurement company, wholly owned by 2 or more credit unions, which is interposed between a credit union and a third-party supplier. The arrangements typically involve:

• the procurement company entering into an arrangement for the acquisition of goods and services as the recipient of the supply
• the procurement company on-suppling the same goods and services to the credit union
• the credit union treating the on-supplied acquisitions as reduced credit acquisitions and claiming RITCs under item 16.

The target audience is limited to the credit union industry which currently has under 30 participants.

The PAG is intended to apply to all tax periods retrospectively where there are currently contrived or artificial arrangements in place as well as to discourage future behaviours.

• Industry representatives
• Customer Owned Banking Association
• Australian Banking Association

Alice Hu, Frontline Risk and Strategy
Alice.Hu@ato.gov.au

May 2025

June 2026

Consultation is underway.

To identify, co-design, test and deliver contemporary digital solutions that will support progress towards a future digitalised tax experience for small businesses.

The ATO has a significant program of work underway to help small businesses get their tax right.

Central to this program of work is the creation of a digital tax experience where small businesses have access to digital tools, services and resources. We are progressing exploration of administrative initiatives to inform, test and evidence opportunities within a digitalised tax experience for small businesses. This is a key focus area of our 2024–25 corporate plan.

Stakeholder engagement is required to support co-design, development and implementation of these initiatives. Consultation will assist us to deliver contemporary digital solutions to enable a digital tax experience for small business.

• Professional associations
• Industry representatives and experts
• Stewardship groups
• Digital service providers
• Small businesses
• Financial institutions

Melinda Balkin, Small Business
Melinda.Balkin@ato.gov.au

February 2024

December 2025

Consultation is underway.

To explore opportunities to help small businesses calculate their pay as you go (PAYG) instalments based on current financial performance extracted from business accounting software.

The Modernisation of PAYG instalment systems measure was announced by the government in March 2022 in the Budget 2022–23 (PDF 3.83MB)External Link. Under the measure, companies can choose to have their PAYG instalments calculated based on current financial performance, extracted from business accounting software, with some tax adjustments. The intent is to improve alignment between PAYG instalment liabilities and profitability, and support companies in managing cash flows.

Small businesses can use software to manage their business operations and meet their tax obligations. The ATO is exploring how data within a small business’s natural digital accounting system could be leveraged to enable the calculation of PAYG instalments based on current financial performance, without the need for legislative change.

This is part of Improve small business tax performance, one of the key focus areas in the ATO corporate plan 2023–24. The ATO is collaborating with partners to build a digital-first tax ecosystem to enable seamless tax reporting from business source systems.

• Tax professional associations
• Digital service providers
• Financial technology providers
• Tax and BAS agents
• Small businesses

Melinda Balkin, Small Business
Melinda.Balkin@ato.gov.au