September Tax & Accounting Update
Topics Covered
Discretionary trusts & the proposed 30% minimum tax
The exposure draft on the 30% minimum trust tax is out.
It introduces a 30% minimum tax on discretionary trusts, alongside a new electable regime and restructuring options. It's a subject that every accountant is talking about.
Here's what you're actually dealing with:
The rules are technical and dense, and they change key considerations, such as how franking credits are dealt with in a trust, in ways that we haven't had to navigate before.
The "way out" isn't free. The electable regime can get a trust out of the 30% minimum tax, but it's inflexible, and the consequences aren't always obvious upfront.
Restructuring isn't a quick fix either. It brings real compliance costs, and it's not a decision to rush.
Big pieces are still unresolved including how the tax will actually be collected.
Stayed tuned – we will keep you updated ahead of it’s rollout in 2028.
Things to consider in Preparing your 2026 Tax Return
We have prepared 4 checklists to help guide you in providing the right documentation to ensure a smooth and efficient lodgement of your 2026 Tax Return.
Whether you are lodging an individual return, or entities such as Trust or SMSF – we’ve got a guide for you.
Company Directors – changes are coming
If you are a Director of an Australian company, you must be actively involved in overseeing the company’s affairs and there are changes coming in 2027.
Under current company compliance requirements, you are responsible to:
ensuring timely reporting and payment of their company’s tax and super obligations
maintain an Australian business number (ABN) contact and associate details on the Australian Business Registry.
From 1 July 2027 new laws will also require companies to provide director identification numbers to ASIC.
The changes will:
reduce the risk of fraud and identity misuse
improve the accuracy of company records
make it easier to identify company directors
improve the quality and usability of registry information.
Take a few minutes now to make sure your details are correct:
check your company details are up-to-date
confirm all current directors are listed
update any incorrect names, addresses or contact details
Penalties may apply if records are not maintained. If company liabilities are not paid by the due date, director penalties may apply.
Manage your Director ID (ABRS)
SMSF and property – preparing for a smooth audit
For many SMSF trustees, property is one of the most significant assets held by their SMSF. Unlike personally owned assets, there is a legal requirement that all SMSF assets are valued each 30 June.
Trustees are responsible for determining the market value of fund assets. After your annual financial statements are prepared your fund auditor will need to see objective and supportable evidence that backs up how you have arrived at the market value.
Trustees have the option to use a qualified independent valuer for this and should consider this where an asset represents a significant part of the fund’s value or might be difficult to value.
Where trustees choose not to use an independent valuer, they will need to be able to support asset valuations with evidence from multiple sources. For property this may include:
Recent comparable sales – Generally at least 3 and the properties should be genuinely comparable in terms of size and location.
A real estate agent appraisal that also includes comparable sales.
income yields for commercial property (generally not sufficient evidence on its own).
The ATO includes some helpful guidance on this in their Guide to valuing SMSF assets.
Where an SMSF holds property that meets the business real property (BRP) definition it is possible that this property can be leased to a business that is operated by a member or a related party of the SMSF. However, the fact that an arrangement like this is permitted does not mean the fund trustees can charge a non-market rate of rent.
When a rental arrangement is entered into with a related party of the super fund, that arrangement should be on arm’s length (commercial) terms and this should be supported by a rental appraisal. An easy way to think about this is – do all the lease terms reflect an arrangement that would be agreed to if the tenant was an unrelated third party?
To evidence that a related party arrangement is on arm’s length (commercial) terms an auditor should be provided with;
A properly documented lease;
A rent appraisal when the lease was first entered into;
Evidence that the arrangement is operating based on the terms of the lease; and
Evidence that where a prior lease term has expired the terms have been reset to market value – backed up by a new rent appraisal.
Although your financial year 2026 SMSF audit might not be taking place for some months, the process can be much smoother where SMSF trustees are proactive and start to compile this evidence in advance, rather than waiting for the auditor’s request.
AML Obligations Reminder (Anti-Money Laundering)
We are proactively updating our client onboarding processes due to expanded Australian AML/CTF regulations that came into effect at the commencement of the 2027 financial year.
Under these new laws, tax accountants are required to meet the same stringent compliance and identity verification standards as major financial institutions.
When we handle corporate services—such as company formations, trust structures, or fund management—we are legally obligated to thoroughly verify client identities upfront. Securing these details during onboarding ensures full regulatory compliance, mitigates financial risk, and prevents onboarding delays for your business.
For more Information:
If any of the above raises questions for you or your business, please contact our office.
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