Private Groups Stewardship Group key messages 24 March 2026

Action items table
Action item 20250319-2	Private Equity
Description	Consider opportunities for additional public advice and guidance (PAG) in relation to private equity and arrange an out-of-session discussion on potential topics.
Responsibility	ATO
Status	Open We are continuing to progress our private equity program of work, including consideration of new PAG. Once the program matures and reaches a suitable stage for discussing potential PAG topics, we intend to arrange an out-of-session discussion or include an item for discussion at a group meeting in 2026.

Action item 20260324-1	Modernisation of Tax Administration Systems (MTAS) feedback
Description	Members to provide further feedback, via PrivateGroupsStewardshipGroup@ato.gov.au, on the impact of label and validation changes in the updated trust return, particularly for trusts with over 200 beneficiaries.
Responsibility	Private Groups Stewardship Group (PGSG) members
Status	Open

Action item 20260324-2	General interest charge (GIC) remission guidance
Description	Consider more detailed guidance for advisors about the updated GIC remission process for taxpayers and tax professionals.
Responsibility	ATO
Status	Open

Action item 20260324-3	GIC communication feedback
Description	PGSG members to provide feedback via PrivateGroupsStewardshipGroup@ato.gov.au on effective approaches to communicating the updated GIC remission requirements to tax professionals and taxpayers.
Responsibility	PGSG Members
Status	Open

Action item 20260324-4	Family Trust Distributions Tax
Description	PGSG members to email their technical questions and viewpoints surrounding Family Trust Distributions Tax to the external co-chair, who will collate and forward to PrivateGroupsStewardshipGroup@ato.gov.au
Responsibility	PGSG Members
Status	Open

Environmental Scan

The Top 500 findings report was published on 27 November 2025, providing a comprehensive overview of the ATO's assurance and compliance results. It highlights practical steps Top 500 groups can take to demonstrate they are meeting their tax obligations as well as outlines the key focus areas and priorities for 2026.

Tax Practitioner Board compliance priorities

The TPB released its compliance priorities in December, focusing on tax practitioners who:

Help clients avoid paying tax debts or engage in illegal phoenix activities, undermining employee entitlements and creditors' rights.
Put clients into schemes designed to avoid tax, such as artificially shifting profits to low-tax jurisdictions, hiding income or assets in secrecy havens illegally, and misusing research and development concessions.
Facilitate shadow economy activities.
Encourage clients to overclaim work-related expenses.
Engage in activities that exploit vulnerable Australians.
Fail to meet their personal tax obligations.

Board of Tax red tape reduction review

The written submissions for this review closed on 15 December 2025. The final report is expected to be provided to government by 30 June 2026.

ATO strategy

In February 2025, Rob Heferen, the Commissioner of Taxation released a new Who we are purpose and vision, providing a clear statement of why we exist and what we are striving to achieve. The ATO strategy will build on this foundation by defining the aspirations and shifts required to deliver a fair, efficient and sustainable tax system into the future. Creating a clear line of sight from our purpose and vision through to the shifts and actions that will realise our aspirations.

The importance of an enterprise-wide strategy was reinforced in the 2025 Australian Public Service Commission Capability Review (PDF 817KB)External Link of the ATO, which confirmed that while our workforce is highly skilled and committed, we need a shared strategic perspective and a unifying plan to guide our efforts. As a result, the development of this strategy is a committed action under the ATO’s response to the review, Our Performance Evolution (PDF 598KB)External Link.

The ATO Strategy will not replace our Corporate Plan, which sets out our committed deliverables and priorities for the year ahead. Instead, the strategy will focus on the longer-term direction and the opportunities we have to strengthen the system and our administration. The ATO Strategy will be underpinned by taxpayer segment strategies.

Modernisation of Tax Administration Systems

On 18 December 2024, as part of the 2024–25 Mid-Year Fiscal and Economic OutlookExternal Link, the government announced it will provide funding support to deliver the Modernisation of Tax Administration System (MTAS) program.

The MTAS program is a multi-year program designed to improve trust and beneficiary income reporting and make the process simpler and improve accuracy. It will stream-line the way the ATO matches and uses data, increase the amount of information that can be pre-filled, and allow most trust tax returns to be lodged electronically. These changes will support greater transparency, reduce the time and cost of meeting tax obligations, and improve the overall experience for trustees, beneficiaries and tax agents.

Program timeline:

Phase 1 deliverables were deployed on 1 July 2024.
Phase 2 deliverables are planned for deployment on 1 July 2026 and 1 July 2027.

The ATO is consulting with stakeholders including digital service providers (DSPs), tax professionals, impacted industry bodies and taxpayers throughout development and implementation.

This consultation will focus on the MTAS program changes to explore the implications for tax agents and trustees to identify opportunities to support them through the transition.

Members commended the changes, noting that they are predominately favourable and will make workflows easier to understand for agents.

Members queried whether the trust return could function as an approved form for family trust elections noting the potential legislative and timing constraints. The ATO took this query on notice.

Members also highlighted the need for a clear distinction between accounting and tax concepts in the development of the new labels, supported by instructions that minimise the risk of misinterpretation and misreporting—particularly in relation to capital gains and unpaid present entitlements. Members provided the example of unpaid present entitlements being converted to loans and whether that would need to be reported under the proposed changes. The ATO noted this feedback.

For trusts with more than 200 beneficiaries, members suggested considering the use of existing beneficiary reporting mechanisms as an alternative or supplementary approach considering the proposed trust return changes. The ATO noted the feedback.

In relation to communicating the changes, members emphasised the importance of early, clear and concise communication to support tax agents in fee discussions with their clients.

Taxpayer relief provisions and request process changes

Since March 2025, the ATO has been working on a review of the administrative settings around concessions including lodgment and payment deferrals, payment arrangements, shortfall interest charge (SIC) remission, general interest charge (GIC) remission and failure to lodge (FTL) penalty remission, with a view to ensuring that:

there are clear and contemporary administrative settings designed to meet intended legislative outcomes, and
it is easier for taxpayers and their representatives to identify their eligibility for concessions, and circumstances in which concessions will not be available.

In September 2025, we developed a set of guiding principles to describe the ATO’s overarching approach to concessions. These principles were also shared externally as part of our public consultation to gather feedback on our approach.

We received approximately 30 submissions from taxpayers, representatives, advocate groups and associations. The feedback received covered some consistent themes, including:

Consistency – in particular a desire to see consistent application of the concessions policies and procedures from ATO staff.
Transparency – this was a particularly strong focus of professional associations, seeking more visibility of the policies that guide staff.
Flexibility – people wanted the ATO to be more flexible in accommodating individual circumstances, this was commonly raised in relation to payment plans.
Role of agents – there was desire to see greater recognition of the role of tax practitioners in supporting taxpayers to understand and apply for concessions.
Vulnerability – people wanted greater clarity on how we would consider clients experiencing vulnerability, and how our policies would accommodate those more dynamic and complex scenarios.

Following public consultation, we refined the principles and added a principle of transparency in response to the submissions. The updated principles are:

Fairness - we will promote equity by balancing fairness to
- the taxpaying community who have lodged and paid on time by not advantaging those who haven’t
- all taxpayers by considering their specific circumstances, including any vulnerability they are experiencing.
Conditionality - some concessions may come with conditions or expectations. This might mean some taxpayers will be required to demonstrate continued efforts to lodge and pay on time, or catch up on overdue obligations, as part of an agreement to grant a concession.
Context - when considering concessions, we will consider any previous decisions, including concessions that have already been provided. We will also consider any changes in individual circumstances since that decision.
Engagement - when we are making decisions about concessions, taxpayers who proactively engage with us and who show they are willing to comply will be considered more favourably. This means there will be more flexibility if taxpayers come to us early when they think they might have trouble lodging or paying.
Exclusions - taxpayers who knowingly and deliberately avoid their obligations may not have access to concessions. This means that when taxpayers do the wrong thing or attempt to gain an unfair advantage, may not be able to benefit from concessions that are available to those who do the right thing or who make an honest mistake.
Transparency – we will be transparent in how we make decisions by clearly explaining the processes, policies, and frameworks we have relied on. We will show how individual circumstances have been considered and provide clear reasons for our decision.

Leveraging the feedback received through this consultation, from internal stakeholder engagement and the insights from our current state analysis, we have a set of proposed policy and process shifts that give effect to the draft principles and achieve the desired future state.

The key tenets of our desired future state include:

Tailored guidance – taxpayers and their representatives should be able to test their eligibility for a concession through an online tool. The tool should provide prompts and guidance on the evidence so that applications can be complete and accurate the first time.
No wrong door – regardless of the channel a taxpayer uses to contact us about a concession, their details should be captured in a consistent form and processed by a dedicated team.
Consolidated policies and settings – the policies guiding our administration of concessions should be consolidated in one place to ensure consistency and transparency.
The responsibility to understand the law – the obligation to identify the appropriate concession should rest with the ATO. Taxpayers should only need to describe their circumstances, and the ATO should determine which discretion(s) or concessions(s) is most suitable and lawful.
Clear expectations of behaviour – we should clearly communicate the behaviours expected of taxpayers before and after receiving a concession. This ensures support reaches those genuinely in need while protecting the integrity of the system.

Members suggested that, as part of the future conceptual design of the form, it would be preferable for it to be equally accessible to self‑represented tax agents and lawyers, noting that transitional periods can sometimes result in loss of access to the tax agent portal. The ATO noted this feedback.

Members also observed that there may be insufficient guidance available to the market in relation to GIC matters. ATO noted this feedback.

The ATO highlighted that success in relation to GIC remission would not be measured by approval rates, but rather by outcomes such as reductions in duplicate applications, complaints, and similar issues.

Proposed changes to private groups tax performance programs

We are considering changes to the Next 5,000 and Medium & Emerging (M&E) private groups tax performance population programs to improve the taxpayer compliance process.

The Next 5,000 program commenced with a focus on undertaking streamlined assurance reviews across the population to provide assurance that the right amount of tax was being reported and paid. This program has now evolved to be largely risk focussed. The M&E private groups program continues to implement a risk-based approach to compliance activities.

Given the similarities in current approach between the M&E and Next 5,000 population programs, we are combining these programs into one Private Wealth (PW) Tax Performance Program. Having a single PW Tax Performance Program covering groups that are now in the M&E and Next 5,000 populations will result in benefits including greater consistency in our compliance approach across the privately owned and wealthy groups population and better align the timing of our risk-based compliance activities with our communications to market.

We expect these changes will improve the private group taxpayer experience with their ATO compliance interactions.

Members queried what has prompted this change to the tax performance population groups. The ATO explained that the tax issues and risks that attract our attention are similar across Next 5,000 and M&E programs and the changes aim to reduce duplication of workflows and ensure taxpayers can expect the same ATO approach and processes whether they are part of the M&E or the Next 5,000 populations.

Members also queried whether the changes would result in a reduction of ATO staff engaging in compliance work. The ATO advised that staffing resources overall will not be affected by this proposed change.

Members noted that different economic groups will have different capacities to interact with the ATO which will need to be considered as part of these changes.

Member-raised issues

Members asked about the ATO's approach to the application of Division 149 in the context of discretionary trusts pending outcomes in current litigation matters.

The ATO advised that we will be taking the opportunity to modernise our current guidance in IT 2340 once current litigation matters are determined. We will continue to progress ongoing reviews and private binding ruling requests in accordance with the views expressed in IT 2340 - noting that we do not consider that it permits pre-capital gains tax assets within a discretionary trust to be maintained when a new discretionary object not contemplated by the original trust deed pre-September 1985 is subsequently added.

Members queried the ATO's approach in cases were involving beneficiaries not yet born prior to September 1985. The ATO advised that our views in relation to those circumstances will be informed by the outcomes of current litigation matters and any impacted reviews or private binding ruling requests will be placed on hold pending the outcome of those matters.

Concerns were raised about the impacts of the Family Trust Distributions Tax, particularly where liabilities have arisen from administrative or technical mistakes rather than deliberate avoidance. The unlimited amendment period arising from the self-executing nature of the law - which also compounds the impact of GIC in relation to outstanding liabilities, was highlighted as the primary issues of concern.

Members raised the current GIC amnesty and urged the ATO to consider extending the amnesty. The ATO agreed to consider providing taxpayers with a further 6 months, to 30 June 2027 to avail themselves of the opportunity to make a voluntary disclosure. The ATO also agreed that if a taxpayer advises they will be making a voluntary disclosure before a review is commenced, in anticipation of notifying the liability later, they can still be eligible for a GIC remission of up to 80% upon payment of the outstanding liability.

Another concern raised by members was the perceived lack of clarity about the ATO's interpretation of relevant legislative provisions about the validity of retrospective elections and variations of elections. The ATO advised members that we continually review existing web guidance and make necessary updates to ensure that the ATO's views are clear, current and visible. We also invited members to provide examples for us to consider where they believe more interpretive advice would be helpful.

Members suggested a potential national education roadshow outlining key technical issues and the ATO’s position. The ATO acknowledged this feedback and noted that we will actively consider this suggestion.

PAG and litigation updates

Members discussed recent public advice and guidance and litigation impacting the private wealth market, including:

Tax Determination TD 2025/D3 Income tax: when does a private or public ancillary fund 'provide' a 'benefit'?
Taxpayer Alert TA 2025/3 Arrangements to improperly access deductions for donations of 'barter credits'
Taxpayer Alert TA 2026/1 Contrived property development arrangements between related parties that defer recognition of income and exploit tax losses
Web content- non-widely held trusts and the franking tax offset
Web content- reporting significant global entity status for large private groups
Commissioner of Taxation of the Commonwealth of Australia v Bendel & Anor
Commissioner of Taxation v Merchant & Anor Case No S 157/2025; Merchant & Anor v Commissioner of Taxation S 158/2025
Commissioner of Taxation v Hicks
Commissioner of Taxation v S.N.A Group Pty Ltd

Attendees

Attendees list
Organisation	Attendee
ATO	Louise Clarke (Co-Chair)
ATO	Grant Brodie, Individuals and Intermediaries
ATO	Kasey Macfarlane, Private Wealth
Accru Felsers	Brett Cox
Alvarez & Marsal	Dang Kha
Balmoral Australia	Sharon Clark
BDO	Michael Anderson
Chartered Accountants Australia & New Zealand	Karen Liew
EY	Priyanka Subramanyam
HLB Mann Judd	Gaurav Chitnis
John Fairfax Group	Rob Jackson
KPMG	Belinda Cheesewright
Law Council of Australia	Neil Brydges
Moore Australia	Varun Kumar
Mutual Trust	George Psarrakos
Piper Alderman	Megan Bishop
Pitcher Partners	Alexis Kokkinos
Tax Bar Association	James Strong
The Tax Institute	Jonathan Ortner (Co-Chair)
William Buck	Tim Lyford

Guest attendees

Guest attendees list
Organisation	Attendee
ATO	Adrian Zuccarini
ATO	Glenn Cooper
ATO	Laura Bagnato
ATO	Nicholas Bell
ATO	Sonia Corsini

Apologies list

Organisation	Member
ATO	Jenny Lin, Private Wealth
CPA Australia	Jenny Wong
Law Council of Australia	Tuan Van Le