Welcome
This meeting's agenda continues to build upon the group's focus on the large market reporting compliance costs and includes several items to address specific issues raised by members.
Board of Taxation
The Board of Taxation provided an update on 2 reviews in progress:
- The Red Tape Reduction review, which remains on track for the final report to be delivered to the Treasurer by the due date of 30 June 2026.
- The statutory review of the operation of the new thin capitalisation rules, which has a due date of 31 January 2027. The deadline for written submissions closed on 18 May and we are now compiling the information ahead of public consultation later this year.
Large market reporting review
Following discussion at the March meeting, the Australian Taxation Office (ATO) produced a paper for members to support a shared understanding of the various reporting regimes for large businesses. Members shared feedback and further comments with the ATO about the scope of information provided through legislative reporting requirements and separately through compliance programs. In particular, the discussion focused on reporting requirements involving both structured data under reporting regimes and unstructured data under the Justified Trust program. The ATO took on action items to consider matters raised by members regarding reporting requirements and relevant materiality thresholds, and to consider opportunities to refine compliance approaches.
Corporate Tax Association benchmarking survey
Results from the latest Corporate Tax Association (CTA) benchmarking survey were provided. This survey is undertaken annually with CTA members and seeks to understand:
- the volume of resources that are devoted to large tax functions
- what work is being undertaken within those tax functions, including the investment and nature of work taken in relation to ATO Justified Trust Programs
- the quality of the relationships and interactions with the ATO
- how tax functions are using artificial intelligence (AI).
Reporting updates
The ATO provided an update to members on recent changes to:
- the Reportable Tax Position (RTP) schedule, including rollout of the RTP for collective investment vehicles and superfunds
- the International Dealings Schedule instructions for the labels about the debt deduction creation rules
- an optional streamlined reporting method for Local File Part B.
eInvoicing for businesses
Members were given an update on the uptake of eInvoicing by businesses, highlighting the key role large businesses play in driving the adoption of eInvoicing across the supply chain. While uptake of eInvoicing remains available to all businesses using a voluntary adoption model, the ATO are currently focused on scaling up adoption with an aim to increase productivity and payment efficiency.
Treasury
Treasury provided updates on a range of measures announced in the recent Budget.
Payday Super
The ATO provided an overview of the guidance materials that have been released to support employers prepare for Payday Super and noted resources currently under development to demonstrate what paying super looks like under the new regime.
Practical Compliance Guideline PCG 2026/1 has been published regarding the first year ATO compliance approach to Payday Super.
The draft practice statement on the Payday Super legislative instrument is open for public consultation until 26 June 2026.
Members also queried timing of technical amendments to ensure individuals do not exceed their concessional contributions cap in 2026–27 because of the transition to Payday Super, which the ATO advised is yet to be confirmed.
Taxable payments annual reporting
Members were provided an update on the increasing ATO focus on taxable payments annual reporting obligations, notably to address issues around late and non-lodgment.
Public country-by-country reporting
An update on the implementation of the public country-by-country reporting regime was given. As lodgments are received and taxpayers seek to engage with the ATO about technical issues, the ATO are working to ensure instructions are updated for clarity.
Note: due to early closure of the meeting, members did not have an opportunity to raise questions. An agenda item will be included at a future meeting for further discussion.
Attendees
|
Organisation |
Attendees |
|---|---|
|
ATO |
Michelle Sams (Co-chair), Public Groups |
|
ATO |
Fiona Knight, Public Groups |
|
ATO |
Lara Cavanough, Public Groups |
|
ATO |
Michael Ingersoll, Public Groups |
|
Australian Energy Producers |
Michael Fenner |
|
BHP |
Andrew Cornish |
|
Big 4 Representative |
Alex Lamb |
|
Board of Taxation |
Paul Korganow |
|
Business Council of Australia |
Pero Stojanovski |
|
Chartered Accountants and Australia New Zealand |
Mark Bradford |
|
Coles Group |
Adalene Pandeli |
|
Corporate Tax Association |
Paul Suppree |
|
Insurance Australia Group |
Sarah Pang |
|
Law Council of Australia |
Judith Taylor |
|
Microsoft |
Reagan Gruenthal |
|
National Australia Bank |
Steve Southon (Co-chair) |
|
Origin Energy |
Catherine Feng |
|
Property Council of Australia |
Robert Ward |
|
Rio Tinto |
Jasmine Leonard |
|
Telstra |
Kelly Heezen |
|
Treasury |
Susan Bultitude |
|
Uber |
Kelvin Ng |
Guest attendees
|
Organisation |
Attendees |
|---|---|
|
ATO |
Isaac Callaway, Public Groups |
|
ATO |
Kelly Collins, Enterprise Solutions and Technology |
|
ATO |
Mark Stockwell, Enterprise Solutions and Technology |
|
ATO |
Shane Moore, Superannuation and Employer Obligations |
|
ATO |
Stephanie Long, Public Groups |
Apologies list
|
Organisation |
Members |
|---|---|
|
CPA Australia |
Jenny Wong |
|
ResMed |
Christian Chan |
|
Treasury |
Diane Brown |
|
Treasury |
Marty Robinson |