Australia: Tax Authorities

Directors face automatic personal liability when companies fail to pay superannuation on time, but understanding the critical difference between "lockdown" and "non-lockdown" penalties can mean the difference between remission through administration and unavoidable personal debt.

The Federal Court of Australia has clarified the operation of section 707-145 of the Income Tax Assessment Act 1997, determining that a head company's choice to cancel the transfer of tax losses must be made in relation to the joining year. The judgment in Evolution Mining Limited v Commissioner of Taxation provides critical guidance on the timing requirements for cancelling automatic loss transfers in consolidated groups, confirming that choices made in later income years are ineffective.

Victoria's Vacant Residential Land Tax has expanded statewide from 2025, introducing progressive tax rates of up to 3% on properties left unoccupied for more than six months annually. Property owners across Victoria now face strict notification requirements and substantial penalties, with rates escalating based on consecutive years of vacancy.

The 2026 Federal Budget introduces a fundamental shift in Australia's tax treatment of pre-CGT assets, ending decades of tax-free capital growth from 1 July 2027. This change, combined with broader property tax reforms including the removal of negative gearing on existing properties and the 50% CGT discount...

Victoria, the Northern Territory, Western Australia and Tasmania have delivered their FY2026-27 budgets which include revenue initiatives relating to land tax and stamp duty.

Commercial property acquisitions in Australia involve significant financial exposure and long-term commitment. Whether the asset is a warehouse, retail premises, shopping centre or office building...

Update on Division 296 tax - the tax on large superannuation balances.

This is an interim update while the ATO is currently awaiting the outcome of their broader review of taxpayer relief provision.

Early legal input at the structuring stage often makes the difference between a development model that withstands regulatory scrutiny and one that becomes costly to unwind.