[4146] Positions in relation to shares or interest in shares [updated]
Title
Draft Taxation Determination
Income tax: imputation: identification of which shares or interest in shares a ‘position’ is in relation to
Purpose
This draft Determination will set out the Commissioner’s preliminary view in identifying the relevant shareholdings when applying the integrity rules under Division 1A of former Part IIIAA of the Income Tax Assessment Act 1936.
Expected completion
To be advised
Comment
This draft Determination will not be progressing at this time. This entry will be moved to the 2026 completed issues page in September 2026.
Contact
Jay Gao, Public Groups
Phone: 02 9374 5168
Title
Draft Practical Compliance Guideline
Arrangements that may reduce your economic exposure to a subset of your shares or interest in shares and impact on your franking credit tax offsets
Purpose
This draft Guideline will set out our proposed compliance approach in allocating resources to consider the application of Division 1A of former Part IIIAA of the Income Tax Assessment Act 1936 to arrangements where taxpayers have used financial derivative instruments to reduce the economic exposure to their Australian shares.
Expected completion
To be advised
Comment
This draft Guideline is no longer being developed. This entry will be moved to the 2026 completed issues page in September 2026.
Contact
Jay Gao, Public Groups
Phone: 02 9374 5168
[4205] Are you carrying on a business?
Title
Draft Taxation Ruling
Are you carrying on a business?
Purpose
This draft Ruling will set out the Commissioner’s view on the indicators that are relevant when determining whether an individual is in business.
Expected completion
Mid 2026
Contact
Madeleine Phillips, Small Business
[4229] Loans for Division 7A purposes
Title
Decision impact statement
Decision impact statement on Commissioner of Taxation v Bendel [2026] HCA 18
Purpose
This Decision impact statement provides taxpayers and advisers with guidance to inform their decisions about trust distributions and the operation of Division 7A of the Income Tax Assessment Act 1936 before the end of the 2025–26 financial year.
It explains that the effect of the High Court's decision is that no loan will arise for the purposes of Division 7A where a private company beneficiary does nothing in respect of its entitlement to income from a trust. However, any dealing with those funds that amounts to either a payment or loan to, or forgiveness of a debt of, a shareholder of that corporate beneficiary or their associate, may attract the operation of the rules on unpaid present entitlements in Subdivision EA.
Further, if the entitlement arose from a reimbursement agreement, the integrity measure in section 100A of the Income Tax Assessment Act 1936 may apply to tax the trustee at the top marginal rate.
Comments
The Decision impact statement on Commissioner of Taxation v Bendel [2026] HCA 18 published on 26 June 2026. Comments period closed on 24 July 2026.
Contact
Simon Haines, Tax Counsel Network
Phone: 08 7422 2955
[4240] Income tax – our approach to occupancy expenses and home-to-work travel expenses
Title
Decision impact statement
Decision impact statement on Commissioner of Taxation v Hall [2026] FCAFC 43
Purpose
This Decision impact statement outlines the ATO’s response to Commissioner of Taxation v Hall [2026] FCAFC 43, which concerns whether rental payments and home-to-work travel expenses were deductible under section 8-1 of the Income Tax Assessment Act 1997. The Full Federal Court held that the rental outgoings were of a private and domestic character and, therefore, not deductible and that the car expenses were merely incurred by the taxpayer to get ‘to’ work and were not ‘on’ work. The decision does not represent a departure from established principles concerning section 8-1.
Comments
The Decision impact statement on Commissioner of Taxation v Hall [2026] FCAFC 43 published on 17 June 2026. Comments period closed on 17 July 2026.
Contact
Kheng Vinh, Tax Counsel Network
[4252] Long-term construction contracts [updated]
Title
Final Practical Compliance Guideline
Application of Part IVA to property development agreements involving long-term construction contracts – ATO compliance approach
Purpose
This Guideline will set out our proposed compliance approach to long-term construction contract arrangements (projects that span a period of greater than one year) in the property and construction industry.
This Guideline accompanies Taxpayer Alert TA 2026/1 Contrived property development arrangements between related parties that defer recognition of income and exploit tax losses.
Expected completion
Mid to late 2026
Comments
Draft Practical Compliance Guideline PCG 2026/D2 Application of Part IVA to property development arrangements involving long-term construction contracts – ATO compliance approach published on 1 April 2026. Comments period closed 15 May 2026.
Contact
Dean Karlovic, Private Wealth
Phone: 03 9285 1686
[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
To be advised
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 closes on 28 August 2026.
Contact
[4278] Whether the sale of subdivided lots amounts to embarking on a business of developing land or venturing the land into a profit-making scheme
Title
Decision impact statement
Decision impact statement on Commissioner of Taxation v Morton [2026] FCAFC 31
Purpose
This Decision impact statement confirms that the decision in this case does not represent any departure from the Commissioner’s approach to property development issues. Taxation Rulings TR 97/11 Income tax: am I carrying on a business of primary production? and TR 92/3 Income tax: whether profits on isolated transactions are income continue to articulate our view and the relevant analytical framework. Existing case law and relevant legal principles concerning whether a taxpayer is carrying on a business and undertaking a profit-making undertaking or plan will continue to apply to matters involving property development issues in accordance with this existing ATO guidance.
Comments
The Decision impact statement on Commissioner of Taxation v Morton [2026] FCAFC 31 published on 5 June 2026. Comments period closed on 3 July 2026.
Contact
Wendy Chen, Tax Counsel Network
Phone: 02 9685 8681
[4284] Income tax – approach to characterising a genuine redundancy payment
Title
Decision impact statement
Decision impact statement on Commissioner of Taxation v Baya Casal [2026] FCAFC 11
Purpose
This Decision impact statement explains the Full Federal Court’s decision in Commissioner of Taxation v Baya Casal [2026] FCAFC 11 concerning when a payment qualifies as a genuine redundancy payment under section 83 175 of the Income Tax Assessment Act 1997. The decision confirms that the test is one of fact and degree, requiring an evaluative and holistic assessment of whether a position has genuinely ceased to exist. It also confirms that reductions in hours and remuneration are relevant considerations in this assessment, although they are not determinative.
Comments
The Decision impact statement on Commissioner of Taxation v Baya Casal [2026] FCAFC 11 published on 27 May 2026. Comments period closed on 26 June 2026.
Contact
Kate Power, Tax Counsel Network
[4287] Standard deduction for work-related expenses [updated]
Title
Draft Law Companion Ruling
Standard deduction for work-related expenses
Purpose
This draft 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
August 2026
Contact
Shaun Thomas, Individuals & Intermediaries