Open forum 29 April

Session overview

This session focuses on superannuation, tax and rental property matters including:

• regulatory updates for self-managed super funds
• preparing for Payday Super
• meeting lodgment requirements
• what to expect from ATO compliance activities.

It also covers Tax Time 2026 system changes, distribution reporting updates, and common rental property considerations.

Webinar recording

Watch the recording at a time that suits you and claim continuing professional education.

 

Key insights from tax practitioner questions

Missed the forum? Here’s what was asked:

• Self-managed super funds (SMSF)
• Modernisation of Tax Administration Systems - Tax Time 2026 changes
• Investment property repairs, holiday homes, and record keeping checklist
• Annual review of PAYG withholding

Self-managed super funds (SMSF)

Circumstances where an existing SMSF bank account cannot be connected to the New Payments Platform

The only reason an SMSF is not connected to the New Payments Platform (NPP) is if the bank or financial institution is not yet reachable or has not yet connected to the NPP.

Supporting trustee understanding of obligations

The ATO has a program at registration that is focused on education for new trustees, in this program we prompt ATO education programs and encourage all trustees to complete the modules. We also send correspondence to all new trustees and subscribe trustees to our SMSF newsroom for real time updates and reminders.

Valuing property by an accredited market valuer

Our Guide to valuing SMSF assets (the ‘Guidelines’) provides guidance on what objective and supportable evidence we accept as supporting the market value of property.

Those Guidelines recommend engaging a qualified or accredited independent valuer where the property represents a significant proportion of the fund’s value or where the valuation of the property is likely to be complex (for example, if the property is unique and there are no comparable properties upon which to base the valuation).

Otherwise, the Guidelines suggest a number of ways trustees can obtain evidence of a property’s market value, which may include a valuation from an online service provider such as Domain or realestate.com.au. However, where an online valuation is the sole source of evidence relied upon, it should also identify the comparable sales used to support the valuation. See more at Guide to valuing SMSF assets.

Reporting financial abuse involving an SMSF

In these instances, there is no specific helpline for SMSFs but Personal crisis or financial hardship has all the relevant contact points.

There is also some SMSF specific information available that may assist trustees seeking help and support at Help and support for SMSFs.

Preservation age and accessing super

Accessing your super to retire explains when you can access your super, including information about preservation age. Your preservation age is the minimum age you must reach before you can access your super and it depends on your date of birth.

Concessional cap impacts during transition to Payday Super

Treasury is aware of the impact of the transition to Payday Super has on the concessional cap, and as advised in Minister Mullino’s press release, are considering the appropriate technical amendments so individuals are not unintentionally impacted. See Payday Super RegulationsExternal Link for more information.

Treatment of closely held employees and irregular payments

In situations where payments are irregular due to cash-flow constraints, it may be unrealistic for superannuation payments and Single Touch Payroll (STP) reporting to consistently align.

Managing changes to payroll and payment timing

There will be no change to the STP reporting concessions that exist for closely held payees. However, these concessions do not extend to payment of super guarantee contributions in Payday Super. To comply with the Payday Super requirements a contribution will need to be received by the employee's super fund (with all the necessary information to allocate the contribution to the employee's member account) within 7 business days after paying your employee.

There are circumstances where employers are allowed additional time to make contributions, but these are only for one-off or exceptional events. More information about payment due dates can be found at Payment deadlines for Payday Super.

The ATO understands that for some employers moving to Payday Super, this will be a significant change to business and payroll processes and, for that reason, will be using the first year of Payday Super as a time to assist employers to modify their practices to meet Payday Super obligations. Practical Compliance Guideline PCG 2026/1 Payday Super – first year ATO compliance approach addresses concerns that employers will not have had sufficient time to make changes to payroll systems and business processes ahead of 1 July 2026. Provided employers pay super on a payday basis and correct errors as soon as possible, they will not be the focus of our compliance action.

Our recently updated web content also provides information for employers about the change to Payday Super.

Allocating payments during the transition period

The ATO will allocate contributions paid between 1 July 2026 to 28 July 2026 to ensure the quarterly and payday super liabilities are addressed in the correct order. We recently updated our web content at Payday Super: How to manage super during the changeover.

Modernisation of Tax Administration Systems – Tax Time 2026 changes

Handling mismatches between trust and individual returns

The ATO will not automatically amend or issue correspondence requesting an update where the individual beneficiary tax return amount does not match the pre-filled amount. We will continue to apply our existing risk assessment processes and if there are material differences in what the trust has reported in the statement of distribution and what is reported as trust distribution income the beneficiary return, the taxpayer may be subject to an enquiry from the ATO.

Investment property repairs, holiday homes, and record keeping checklist

Repairs versus capital improvements – gas line replacement

The gas lines running from the meter to the hot water system and gas heating unit were replaced due to age. While new materials were used, there was no enhancement or upgrade to the property – only the restoration of its basic functionality.

Generally, a capital improvement changes the function or aesthetics beyond that of the original asset, whilst restoration of an asset to its original condition due to wear and tear is considered a repair.

In this case, the replacement of gas lines due to age would likely be considered a repair. However, if for example, the gas line replacement was to increase capacity or reroute lines to additional outlets, it would be a capital improvement. Also note that any work undertaken as an initial repair is treated as a capital expense.

Roof replacement – repair or capital works

A whole roof is generally made up of separate components such as corrugated sheets. Repairing damage to individual corrugated sheets would be considered a repair, while replacing the entire roof would generally be considered capital works. Also note that any work undertaken as an initial repair is treated as a capital expense.

Expenses for short-term rental properties where owners cover costs such as electricity and internet

The ATO is not currently considering any new disclosure fields.

However, these costs are still claimable to the extent they relate to a tenant’s use of the property, most likely as a sundry expense. If any such expense includes private use, it must be appropriately apportioned based on actual occupancy and floor area dedicated to tenanted use.

Rental pricing and genuine availability for rent

Rental occupancy is related to market demand. The rent set for a property should consider what the market is willing to pay for a given property rather than the costs incurred in holding and maintaining it. If these are out of step with each other, it is more likely to lead to the property remaining untenanted.

If a property is being advertised at above market rates and is not being tenanted for extended periods, it isn’t considered as being genuinely available for rent.

State legislation safety check compliance requirements and tax treatment

Irrespective of whether requirements are in place by state legislation, whether an incurred expense is a repair or capital improvement comes down to what work was carried out. Consider whether the work will simply restore the assets' function back to its original condition or if it will improve its function or aesthetic.

In most cases, the replacement of old switchboards is likely to improve the assets' function due to modern safety standards and would be considered a capital improvement. Whilst simply repairing or replacing worn parts would more likely be considered a repair.

Annual review of PAYG withholding

PAYG withholding cycles and WPNs

Holding a Withholding Payer Number (WPN) does not affect your client’s PAYG withholding payment cycle. The payment cycle is determined by the total amount you withhold in a financial year, not by whether your client operates under a WPN or an ABN. Changes to withholding cycle may occur for a range of reasons. Further information is available at Changing a withholding cycle and Changes to your PAYG withholding cycle.

In the absence of specific details about your client’s circumstances, you may contact us to discuss your client’s individual circumstances.