[4042] Ordinary meaning of the term 'employee'
Title
Addendum to Taxation Ruling
Taxation Ruling TR 2013/1 Income tax: the identification of 'employer' for the purposes of the short-term visit exception under the Income from Employment Article, or its equivalent, of Australia's tax treaties
Purpose
TR 2013/1 provides guidance on how to determine who is an 'employer' for the purposes of the short-term visit exception under the Income from Employment Article, or its equivalent, of Australia's tax treaties. We are currently reviewing it and have issued a draft update to reflect the decisions of the High Court in Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1 and the Full Federal Court in JMC Pty Ltd v Commissioner of Taxation [2023] FCAFC 76.
Expected completion
To be advised
Comments
For more information, see the Decision impact statement on Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd [2022] HCA 1 and the Decision impact statement on JMC Pty Ltd v Commissioner of Taxation [2023 FCAFC 76].
The draft update to TR 2013/1 published on 29 April 2026. Comments period closed on 12 June 2026.
Contact
Title
Final Superannuation Guarantee Ruling
Superannuation guarantee: work arranged by intermediaries
Purpose
This final Ruling will replace Superannuation Guarantee Ruling SGR 2005/2 Superannuation guarantee: work arranged by intermediaries, which will be withdrawn. However, the Commissioner’s view has not changed.
On 17 June 2026, we published Draft Superannuation Guarantee Ruling SGR 2026/D1 Superannuation guarantee: work arranged by intermediaries. This Draft Ruling aligns with Taxation Ruling TR 2023/4 Income tax and superannuation guarantee: who is an employee? and High Court and Full Federal Court decisions on the meaning of 'employee' and 'employer'. Due to several structural and additions, we published a new draft ruling rather than an update to SGR 2005/2.
SGR 2026/D1 explains, for superannuation guarantee purposes, how to identify the employer in tripartite working arrangements involving an end-user, an intermediary and a worker. It clarifies that the employer is identified by first determining whether a contract for the performance of work exists and between which parties and then assessing whether an employment relationship arises under the common law or extended definitions in section 12 of the Superannuation Guarantee (Administration) Act 1992.
SGR 2005/2 will be withdrawn when SGR 2026/D1 is finalised.
Expected completion
To be advised.
Comments
SGR 2026/D1 published on 17 June 2026. Comments period closed on 31 July 2026.
Contact
[4181] Better targeted superannuation concessions [new]
Title
Draft Law Companion Rulings
Better targeted superannuation concessions
Purpose
Better targeted superannuation concessions is a new measure that commenced on 1 July 2026. It introduced a new tax (Division 296 tax) on individuals with a total superannuation balance that exceeds the large superannuation balance threshold. The tax applies to a portion of earnings on the individual’s superannuation interests, determined by the extent to which their total superannuation balance exceeds the threshold.
These draft Rulings seek to provide clarity and certainty to individuals, superannuation funds and other stakeholders on the following aspects:
- total superannuation balance
- total superannuation balance value
- relevant superannuation earnings for prescribed interests
- relevant superannuation earnings for interests that are not prescribed interests.
Expected completion
December 2026
Contact
Elias Allaoui, Superannuation and Employer Obligations
Phone: 03 9946 9242
[4200] Administration of penalties that apply where employers or superannuation funds fail to comply with event-based reporting obligations
Title
Final Law Administration Practice Statement
Administration of penalties for failure to comply with Single Touch Payroll reporting obligations
Purpose
Event-based reporting regimes were introduced in 2018 for employers (STP) and for superannuation funds (member account transactions and attributes). The information reported through these reporting regimes has a range of applications across the tax and super systems, and their effectiveness can be reduced as a result of:
- incorrect and incomplete reporting
- reporting in an incorrect format (such as reporting in the original STP format rather than the STP Phase 2 format used since 2022)
- failure to report at all.
There is a need to provide guidance for ATO staff on the administration of penalties that may apply to employers or superannuation funds that fail to meet their reporting obligations.
Expected completion
To be advised.
Comments
Draft Law Administration Practice Statement PS LA 2026/D2 Administration of penalties for failure to comply with Single Touch Payroll reporting obligations published on 12 March 2026. Comments period closed 24 April 2026.
Contact
Title
Final Law Administration Practice Statement
Administration of penalties for failure to comply with superannuation member account reporting obligations
Purpose
Event-based reporting regimes were introduced in 2018 for employers (STP) and for superannuation funds (member account transactions and attributes). The information reported through these reporting regimes has a range of applications across the tax and super systems, and their effectiveness can be reduced as a result of:
- incorrect and incomplete reporting
- reporting in an incorrect format (such as reporting in the original STP format rather than the STP Phase 2 format used since 2022)
- failure to report at all.
There is a need to provide guidance for ATO staff on the administration of penalties that may apply to employers or superannuation funds that fail to meet their reporting obligations.
Expected completion
To be advised.
Comments
Draft Law Administration Practice Statement PS LA 2026/D1 Administration of penalties for failure to comply with superannuation member account reporting published on 12 March 2026. Comments period closed 24 April 2026.
Contact
[4253] Payday Super [updated]
Title
Final Law Companion Rulings
Payday Super
Purpose
Payday Super is a new measure that commenced on 1 July 2026. It is a significant reform to the superannuation guarantee system that broadly aligns the payment of superannuation with the payment of employees' salary and wages. These Rulings seek to provide clarity and certainty to employers, digital services providers, superannuation funds and other stakeholders on the following aspects:
- qualifying earnings
- eligible contributions
- the new superannuation guarantee charge, and
- the application and transitional provisions.
Expected completion
Finalisation of Draft Law Companion Ruling LCR 2026/D1 Payday Super: qualifying earnings is pending the outcome of the appeal process from the Federal Court's decision in Department of Education v Commissioner of Taxation [2026] FCA 898. Our views on the Federal Court's decision are set out in the Interim decision impact statement on Department of Education v Commissioner of Taxation [2026] FCA 898, which published on 5 August 2026.
Comments
The following Final Law Companion Rulings published on 5 August 2026:
- LCR 2026/1 Payday Super: application and transitional provisions
- LCR 2026/2 Payday Super: eligible contributions
- LCR 2026/3 Payday Super: calculation and assessment of the superannuation guarantee charge.
Contact
Scott Sargent, Superannuation and Employer Obligations
Phone: 07 3213 3823
Title
Final Law Administration Practice Statement
Exceptional circumstances determinations
Purpose
This Practice Statement provides guidance to ATO staff when deciding whether to exercise the Commissioner’s power to make an exceptional circumstances determination under new subsection 18C(4) of the Superannuation Guarantee (Administration) Act 1992. With Payday Super, where an employer falls under an exceptional circumstances determination, they have a longer time than the usual 7 business days to make on-time super guarantee contributions to their employees’ super funds during the relevant qualifying earnings days covered by the determination.
Expected completion
October 2026
Comments
Draft Law Administration Practice Statement PS LA 2026/D3 Payday Super: exceptional circumstances determinations published on 27 May 2026. Comments period closed on 1 July 2026.
Contact
Scott Sargent, Superannuation and Employer Obligations
Phone: 07 3213 3823
Title
Draft Superannuation Guarantee Determination
Multiple employment relationships with the same person
Purpose
This Determination reflects the Commissioner’s longstanding view on the application of the superannuation guarantee charge to multiple employment contracts with the same employer, updated for the Payday Super measures applying from 1 July 2026.
ATO Interpretative Decision ATO ID 2006/321 Superannuation Guarantee Charge (SGC): two employment contracts, which sets out that longstanding view, will apply to 30 June 2026.
This Determination will apply from 1 July 2026, coinciding with the commencement of the Payday Super measures.
Expected completion
To be advised.
Contact
Scott Sargent, Superannuation and Employer Obligations
Phone: 07 3213 3823
Title
Final Superannuation Guarantee Determination
Superannuation guarantee: working out the payments in respect of a person’s labour under a contract referred to in subsection 12(3) of the Superannuation Guarantee (Administration) Act 1992 (SGAA)
Purpose
This Determination:
- sets out the Commissioner’s view on the interpretation and operation of paragraph 10A(1)(d) of the definition of qualifying earnings in the SGAA
- outlines what payments made under a contract referred to in subsection 12(3) of the SGAA are in respect of the person’s labour, and
- sets out how to work out what part of a payment is in respect of the person’s labour where the payment relates to both labour and non-labour components.
Superannuation Guarantee Determination SGD 96/2 Superannuation guarantee: how can an employer work out the value of the labour component of a contract that is wholly or principally for a person's labour under subsection 12(3) of the Superannuation Guarantee (Administration) Act 1992?, which sets out the Commissioner’s views on the equivalent limb of the definition of ‘salary or wages’ under the former quarterly superannuation guarantee regime, will be withdrawn but will continue to have application to periods ending on or before 30 June 2026.
This Determination will apply from 1 July 2026, coinciding with the commencement of the Payday Super measures.
Expected completion
To be advised.
Comments
Draft Superannuation Guarantee Determination SGD 2026/D1 Superannuation guarantee: working out the payments in respect of a person’s labour under a contract referred to in subsection 12(3) of the Superannuation Guarantee (Administration) Act 1992 published on 2 September 2026. Comments period closes on 2 October 2026.
Contact
Scott Sargent, Superannuation and Employer Obligations
Phone: 07 3213 3823
[4294] Limited recourse borrowing arrangements [new]
Title
Draft and final updates
Post-2026 legislative amendments to limited recourse borrowing arrangements
Purpose
The following PAG products are being updated to include changes arising from the 2026 parliamentary amendments to the limited recourse borrowing arrangements (LRBA) provisions for regulated superannuation funds:
- Draft update to Self Managed Superannuation Funds Ruling SMSFR 2012/1 Self Managed Superannuation Funds: limited recourse borrowing arrangements – application of key concepts
- Draft update to Self Managed Superannuation Funds Ruling SMSFR 2009/1 Self Managed Superannuation Funds: business real property for the purposes of the Superannuation Industry (Supervision) Act 1993
- Addendum to Self Managed Superannuation Funds Ruling SMSFR 2009/2 Self Managed Superannuation Funds: the meaning of ‘borrow money’ or ‘maintain an existing borrowing of money’ for the purposes of section 67 of the Superannuation Industry (Supervision) Act 1993
- Addendum to Taxation Determination TD 2016/16 Income tax: will the ordinary or statutory income of a self-managed superannuation fund be non-arm’s length income under subsection 295-550(1) of the Income Tax Assessment Act 1997 (ITAA 1997) when the parties to a scheme have entered into a limited recourse borrowing arrangement on terms which are not at arm’s length?
- Update to Law Administration Practice Statement PS LA 2023/1 Self-managed superannuation funds – rectification directions for contraventions of the Superannuation Industry (Supervision) Act 1993
- Update to Practical Compliance Guideline PCG 2016/5 Income tax – arm’s length terms for Limited Recourse Borrowing Arrangements established by self-managed superannuation funds.
The LRBA amendments were passed on 25 June 2026 as part of the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and received Royal Assent on 26 June 2026.
Broadly, the amendments modify the definition of an acquirable asset to exclude real property that is not business real property. As a result, LRBAs used to acquire real property are limited to acquisitions of business real property only.
The amendments apply to LRBAs entered into on or after 10 August 2026 in relation to property acquisitions made on or after that date. Existing arrangements are not affected.
The target audience for these updates are self-managed super funds and other stakeholders to whom the LRBA provisions apply. The updates have effect from 10 August 2026.
Expected completion
October 2026
Contact
Bonita Tsang, Superannuation and Employer Obligations
Phone: 03 8632 4968
PAGSPR@ato.gov.au