Session overview
This session covered key tax time developments, emerging risks and issues affecting tax practitioners, and the current debt environment. It also explored the importance of early engagement with clients experiencing payment difficulties, including the support options available to help clients manage their tax obligations. Dedicated time was included for live audience questions, giving you the opportunity to hear directly from ATO experts and gain practical insights on the topics that matter most to you and your clients.
Webinar recording
Watch the recording at a time that suits you and claim continuing professional educationExternal Link. Attendance certificates are not issued for viewing webinar recordings.
Media: ATO open forum session - July 2026
https://tv.ato.gov.au/media/bd1bdiur67trapExternal Link (Duration: 58:28)
Key insights from tax practitioner questions
Missed the forum? Here’s what was asked:
Tax Time 2026
Interest on early payment of tax not showing in pre-fill
ATO interest pre-fill data for the 2026 income year isn’t available yet, so you may notice details are missing or incomplete. If you’re preparing and lodging tax returns now, you can manually calculate ATO interest. If you’re waiting on the pre-fill data, keep an eye on our web content which we’ll update. We’ll also notify you once the data is available.
For more information refer to Calculate and report ATO interest.
Understanding 'tax ready' messages
The 'tax ready' message relates specifically to employment income information reported to the ATO through Single Touch Payroll (STP). It indicates that employer-reported salary and wage information has been received and is available for tax return preparation.
This message does not mean that all pre-fill information has been received or is available. Other information, such as bank interest, private health insurance details and other income statements, may be added to pre-fill later as it is received and validated.
We recognise that the term 'tax ready' can create the impression that all client information is available. Tax practitioners should not assume that a 'tax ready' message means all pre-fill information has been received. Before lodging a return, check that other relevant information, such as bank interest, private health insurance details and other pre-fill data, has been received and populated where applicable.
Duplicate STP wages appearing in pre-fill report
If a client has changed STP software providers during the year, the pre-fill report may display data from both the previous and current provider. This can result in duplicate salary and wage amounts and PAYG withholding appearing in the pre-fill report.
Where duplicate records are identified, tax practitioners should contact us to discuss remediation options. Alternatively, a request can be lodged through Online services for agents, which will be routed to the appropriate team for investigation and resolution.
Before lodging the return, practitioners should review the pre-fill information carefully and ensure any duplicate income and withholding amounts are addressed so the client's return reflects the correct figures.
Rental property information pre-fill
The ATO is always looking for opportunities to expand and improve pre-fill services to make tax time easier for taxpayers and tax practitioners. Rental property information is an area that would be valuable to pre-fill. However, any consideration of additional pre-fill information depends on the availability, quality and accuracy of data provided by third parties. Before information is included in pre-fill, the ATO needs to be confident it is accurate and can be relied upon by taxpayers and tax practitioners.
While pre-fill information can be adjusted where necessary, many taxpayers understandably assume ATO pre-fill data is correct. For this reason, the ATO places a strong emphasis on data integrity before expanding pre-fill capabilities. As more reliable third-party data becomes available, opportunities to broaden pre-fill services will continue to be explored.
The ATO understands this suggestion has been raised previously and recognises the potential benefits. However, there are no immediate plans to introduce further spouse-linking functionality at this time.
Linking spouses' tax returns
There are currently no plans to provide an option for spouses' tax returns to be linked for the purpose of automatically populating spouse income and related information.
A key consideration is that spouse relationships and circumstances can change from year to year, so information cannot always be assumed to remain the same across income years. While spouse details are linked when provided in a tax return, each return is still lodged and assessed separately.
Release of 2026–27 draft ATO forms
There is currently no confirmation that the release date for draft 2026–27 ATO forms will be brought forward.
We recognise that significant reforms and disclosure changes can create additional complexity for tax practitioners. A key priority will be providing practical guidance, updated forms and supporting information to help stakeholders understand and meet any new requirements.
While earlier access to draft forms may be beneficial, the ATO also needs sufficient time to implement legislative and system changes and ensure any forms and guidance released are accurate and fit for purpose. Releasing information earlier must be balanced against the need to provide complete and reliable content.
The feedback has been noted, and we will continue to consider opportunities to support tax practitioners through major reforms. Suggestions and practical insights from the profession remain valuable in shaping future guidance and support materials.
Processing time for trust returns with non-resident beneficiaries
The processing time for a trust tax return involving non-resident beneficiaries can vary depending on the complexity of the return and whether any additional verification or review is required.
Where a non-resident beneficiary receives a distribution and the trustee is required to pay tax on the beneficiary's behalf, processing may take longer than a standard trust return as additional checks may be needed to confirm the beneficiary details, distribution amounts and trustee assessment arrangements.
If the return has been lodged and is taking longer than expected, tax practitioners should check the status through Online services for agents. Where processing timeframes have been significantly exceeded or there are concerns about delays, tax practitioners can contact us for an update on the specific case. Providing the trust tax file number and lodgment details when contacting us will assist with investigating the matter.
Payment made but balance still showing as payable in myGov
In some cases, there can be a timing delay between a payment being made and the payment being processed and recorded in ATO systems. During this period, notices or messages may still be issued showing an amount as payable, even though the payment has already been made.
Where this occurs, correspondence may include advice that if payment has recently been made, no further action may be required. While this can be frustrating and may result in additional checks by tax practitioners, it is generally related to payment processing timeframes rather than an issue between myGov and ATO systems.
If a client receives a message indicating they owe tax after making a payment, tax practitioners should verify the account balance through Online services for agents to confirm whether the payment has been received and credited to the account.
$20,000 instant asset write-off extended for 2025–26
The government has extended the $20,000 instant asset write-off for the 2025-26 income year. Eligible small businesses with an aggregated annual turnover of less than $10 million can immediately deduct the business portion of the cost of eligible assets costing less than $20,000, provided the asset is first used or installed ready for use between 1 July 2025 and 30 June 2026.
The $20,000 threshold applies on a per-asset basis, meaning eligible businesses may be able to claim an immediate deduction for multiple assets, provided each asset meets the eligibility criteria. Assets costing $20,000 or more can generally be allocated to the small business depreciation pool and depreciated under the simplified depreciation rules.
For more information, see our guidance.
Debt environment
Options available when a payment plan request is declined
If a payment plan is declined, taxpayers may still have options available depending on their circumstances. Taxpayers experiencing vulnerability may be referred for further assessment, where alternative payment terms, longer repayment periods, or other support options may be considered.
It is important that taxpayers continue to engage with us, as unpaid debts remain payable, interest may continue to accrue, and firmer debt collection actions may be considered where no arrangement is in place.
Managing multiple tax debts and payment arrangements
Where a client has multiple outstanding debts and an existing payment arrangement is no longer sufficient, the best approach will depend on the client's individual circumstances.
Factors that may be considered include:
- is the client experiencing a short-term cash flow issue
- are there hardship or vulnerability factors affecting their ability to meet their obligations
- are there longer-term financial challenges impacting the viability of the business.
If penalties and interest have caused a debt to grow beyond what the client can realistically manage, tax practitioners should contact us to discuss the client's circumstances in detail. Different support options may be available depending on the nature of the debt, the client's capacity to pay, and their plans to return to compliance. Providing a clear picture of the client's circumstances, including what led to the debt, the impact on their business, and their ability to meet future obligations, can help identify the most appropriate pathway and support options.
Payment plans and director penalty notices (DPNs)
A payment plan may still be available after a DPN has been issued, depending on the circumstances. However, an agreed payment plan does not avoid personal liability for the director.
Once firmer debt recovery action has commenced, the ATO will consider factors such as the stage of the recovery process, the taxpayer's circumstances, compliance history and their capacity to address the outstanding debt.
Tax practitioners should contact the ATO to discuss their client's situation and available options, as outcomes are considered on case-by-case basis.
More broadly, the ATO is focused on helping taxpayers prevent debt issues through early engagement, forward planning and taking action as soon as payment difficulties emerge.
Seeking remission of late lodgment penalties
We recognise that significant life events, including relationship breakdowns, can affect a taxpayer's ability to meet their tax obligations. When considering requests for remission of penalties, it is important that sufficient information is provided about the circumstances and how they impacted the taxpayer's ability to lodge or pay on time.
In some cases, the initial information provided may not give a complete picture of the situation. Where further details are supplied, including the nature of the circumstances, the impact on the taxpayer's ability to meet their obligations, and any steps taken to address the situation, this can assist the ATO in making a more informed assessment.
The current framework relies on the Commissioner's discretion to remit penalties, having regard to the individual facts and circumstances of each case, as outlined in PS LA 2011/19. Penalty amounts themselves are prescribed by legislation and cannot be varied outside the framework established by law.
Requesting remission of small interest charge amounts
The ATO has introduced new remission request forms to support requests for General Interest Charge (GIC), Shortfall Interest Charge and Failure to Lodge penalty remissions. All GIC remission requests regardless of the size are required to be assessed using the criteria for remission as outlined in PS LA 2011/12. Tax practitioners are expected to use the relevant remission application form and submit it through Online services for agents.
Where practitioners are unable to use Online services for agents, they can contact the Registered Agent Phone Line and the ATO can complete the remission form on their behalf and refer the request for consideration. Remission requests can also be submitted by mail.
Client interactions
The ATO Charter sets out our commitment to treating taxpayers and their representatives with courtesy, consideration and respect. It also commits us to working with representatives, such as a registered tax practitioner, and providing support where people may be experiencing vulnerability or difficult circumstances.
If you believe your interaction with us did not meet the standards outlined in the ATO Charter, we encourage you to provide feedback or lodge a formal complaint. Complaints help us review our service, address concerns about staff conduct and identify opportunities to improve the client experience.
We treat all complaints seriously and aim to resolve them quickly and fairly. Making a complaint will not affect your relationship with us.
If you're not satisfied after making a complaint with us, you can contact the Tax OmbudsmanExternal Link for an independent investigation.
Offsetting credits against tax debt
The ATO will generally automatically offset credits against outstanding tax debts before issuing a refund. In your example, if the company has a $12,000 credit and an income tax debt of $5,000, the ATO would typically apply $5,000 of the credit to the tax debt and refund or retain the remaining $7,000, depending on the circumstances.
However, there are situations where the ATO may not automatically offset the amounts. This can occur if the debt is:
- due but not yet payable
- covered by a payment arrangement that is being complied with
- subject to a deferral of recovery action agreed to by the ATO
- related to director penalties.
In these circumstances, the ATO may choose to issue a full or partial refund rather than offset the credit against the debt.
It's also worth noting that businesses often have multiple tax accounts, and credits and debts can exist across different accounts. While offsetting is generally automated, timing differences between account processing or one of the exceptions above may prevent an immediate offset.
If your company has a $12,000 tax credit and a $5,000 income tax debt that has not been offset, it is likely that one of these exceptions applies or the accounts are still being processed.
Tax practitioners should encourage clients to contact the ATO or check their account through Online services for agents if they believe a credit has not been applied to an existing debt. This will help confirm the status of both the credit and outstanding liability and identify whether any further action is required.
As each case depends on the specific accounts and transactions involved, the ATO can provide advice on whether an offset is pending, whether further processing is required, or whether other factors are preventing the credit from being applied.