Juggernaut Advisory

SMSF Consumer Protection: What the Proposed Reforms Mean

Team Juggernaut — Wed, 04 Nov 2026 03:59:08 +0000

SMSF consumer protection is the focus of proposed Government reforms aimed at strengthening safeguards for superannuation members and SMSF trustees.

The Government has announced a package of proposed reforms to strengthen consumer protections in the superannuation and financial systems. The proposals include a range of SMSF measures which may be particularly relevant to clients considering setting up a new SMSF in the future. Some of the proposed changes will impact existing SMSFs as well.

A brief outline of the proposals for SMSFs is below:

The ability for the ATO to prevent rollovers to new SMSFs where there are fraud, financial abuse or other misconduct concerns. Given rollovers are transacted via SuperStream, there may be additional steps to allow for the ATO to review the requested rollover prior to it occurring. This may potentially lead to delays to the rollover from the APRA regulated fund to the SMSF.
Mandatory trustee education prior to the set-up of a new SMSF. Education is good as it helps ensure that those considering an SMSF have knowledge of their duties and obligations, that is, they “know what they’re getting themselves into”. However, the question is whether such a requirement would be extended to existing trustees or require a refresh, like renewing a driver’s license.
A requirement for SMSFs to hold a uniquely identifiable bank account. Most SMSFs should already comply with this requirement. It’s a deemed covenant and operating standard. Further, the ATO’s website states that an SMSF needs its own bank account and that “you need to make sure the bank account is unique to the SMSF”.
Measures to improve the quality of SMSF investment strategies. SMSF trustees must formulate, review regularly and give effect to an investment strategy that has regard to the whole of the circumstances of the fund. This proposed change may require the SMSF trustee(s) to have a written investment strategy at the time of setting up a new SMSF.
Additional ATO visibility of financial adviser fees charged to new and existing SMSFs.
The ATO to provide greater visibility to SMSF trustees, in particular those with low balances, of their returns compared to members of APRA-regulated funds.
An increase in the SMSF supervisory levy from $259 per year to $295 per year. The levy has been $259 since the 2014–15 financial year.

It is not clear at this stage as to when these proposals are intended to apply from. We will monitor the situation and provide updates as more information comes to light.

The announced proposed measures also looked at the Compensation Scheme of Last Resort (CSLR). The CSLR is an independent, not‑for‑profit scheme set up after the Hayne Royal Commission to pay limited compensation, up to $150,000, to people who hold an unpaid AFCA determination where the responsible financial firm cannot meet the award, and all other avenues of recovery have been exhausted.

The scheme is funded by levies on parts of the financial services industry and operates only as a ‘last resort’ to help restore consumer trust when regulatory or private remedies have failed.

The CSLR is undergoing a major structural expansion to ensure its long-term viability following recent corporate collapses. For the first time, it is proposed that SMSFs will be brought into the CSLR levy net to help fund the safety net for consumers impacted by financial misconduct.

It is proposed that SMSFs are included as Tier 3 levy payers in the waterfall model in future years when a special levy is required. The total sector levy for SMSFs will be scaled relative to assets under management when compared to the broader superannuation trustees sub-sector, with a flat levy amount applying to all funds. The special levy formula, which currently sets a $100 minimum, will be amended to ensure appropriate treatment of SMSFs. Information currently at hand indicates that the special levy for SMSFs is not expected to exceed $20 per fund in income years when a special levy is required.

A consultation on the application of the waterfall framework for the 2026–27 CSLR special levy (around $170m) has recently been conducted by Treasury. We await the outcome and confirmation of the share allocated to SMSFs.

For further information:

If you have any questions in relation to any of the above, please contact us to discuss further.

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Electric Vehicle FBT Changes: What the $75,000 Threshold Means

Team Juggernaut — Tue, 03 Nov 2026 22:51:00 +0000

Electric vehicle FBT changes could affect the tax benefits available to businesses and employees, with vehicle value and commitment dates determining the level of exemption.

The existing full FBT exemption for eligible electric vehicles (EVs) is set to be reduced, with the timing of the relevant arrangement and the value of the vehicle determining how much of the concession remains available.

Draft legislation proposes a staged transition to a permanent 25% FBT discount, with changes to take place from 1 April 2027 and 1 April 2029. Although the changes are not yet law, businesses and employees considering an arrangement involving an EV should understand how the proposed rules could affect their costs.

What is changing

Currently, eligible battery electric and hydrogen fuel-cell vehicles can qualify for a full FBT exemption when provided to employees for private use, provided certain conditions are met. Plug-in hybrid vehicles generally no longer qualify for new arrangements from 1 April 2025, although certain existing arrangements are protected.

Under the proposed changes, the transition would operate as follows:

Until 31 March 2027: The existing full FBT exemption continues for eligible EVs, regardless of the cost of the vehicle.
From 1 April 2027 to 31 March 2029: Eligible EVs valued at $75,000 or less can retain the full exemption if the commitment to provide the vehicle is made before 1 April 2029. Vehicles valued above $75,000, but within the fuel-efficient luxury car tax threshold, would receive a 25% FBT discount.
From 1 April 2029: All eligible EVs within the relevant luxury car tax threshold would receive a 25% FBT discount, rather than a full exemption, for new commitments.

Existing arrangements are generally protected, subject to some transitional rules. However, changes to an arrangement may create a new commitment and affect its FBT treatment.

Why the timing matters

The proposed changes could affect the cost of providing a company vehicle or entering into a salary packaging arrangement, including a novated lease.

For example, an employee considering an eligible EV valued at $70,000 could potentially retain the full FBT exemption by entering into a qualifying commitment before 1 April 2029. By contrast, an eligible EV valued at $85,000 would generally move to the 25% discount for commitments made from 1 April 2027.

From April 2029, the full exemption would no longer be available for new commitments, regardless of whether the eligible vehicle is valued above or below $75,000.

Importantly, the $75,000 threshold is based on the vehicle’s relevant value for FBT purposes, not necessarily its advertised drive-away price. Buyers should confirm the applicable value before making a decision.

The date a vehicle is ordered or delivered may not, by itself, determine the outcome. The proposed rules focus on when a financially binding commitment to provide the vehicle is made. Changes to existing arrangements, including certain refinancing or employment changes, may also affect the concession.

What should businesses and employees do?

If you are considering an EV through your business or salary packaging, there are several practical steps to take:

Review your options early. If you are planning to purchase an EV or enter into a novated lease, consider how the proposed changes could affect the timing and overall cost.
Check the vehicle’s value. Confirm whether it falls at or below $75,000 and whether it meets the relevant luxury car tax threshold.
Confirm the commitment date. Speak with your employer or salary packaging provider to understand when the arrangement becomes binding and whether any proposed changes could affect its treatment.
Compare the total cost. Consider the purchase price, lease payments, running costs, and potential tax savings rather than choosing a vehicle based on the FBT concession alone.
Consider other tax implications. An FBT-exempt vehicle may still give rise to a reportable fringe benefits amount, which can affect certain income-tested obligations and entitlements.

Plan before committing

The proposed changes are intended to maintain support for EVs while gradually narrowing the scope of the full FBT exemption. For businesses and employees, the key consideration is how the vehicle’s value and the timing of the arrangement affect the available concession.

If you are considering an EV purchase or salary packaging arrangement and want to confirm how the proposed changes could impact your tax position, feel free to contact us. Reviewing the options now can help you understand the likely after-tax cost and make a decision that suits your financial and business circumstances.

If you have any questions in relation to any of the above, please contact us to discuss further.

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Monthly PAYG Instalments: What Businesses Need to Know

Team Juggernaut — Tue, 03 Nov 2026 01:46:00 +0000

Monthly PAYG instalments could become an option for more Australian businesses and individuals from 1 July 2027, potentially changing how they manage their tax payments and cash flow.

From 1 July 2027, more businesses and individuals who pay PAYG instalments are expected to have the option of reporting and paying monthly rather than quarterly. The ATO is also expected to gain the power to require certain taxpayers to pay monthly if they have a history of failing to meet their tax obligations.

Announced in the 2026–27 Federal Budget, these changes are currently the subject of draft legislation and are not yet law. However, they could affect how businesses manage their cash flow, so it is worth considering the potential impact ahead of time.

What is changing?

PAYG instalments are regular payments towards your expected annual income tax liability. They help spread the cost of tax throughout the year rather than leaving you with a larger bill when your tax return is assessed.

Currently, most taxpayers in the PAYG instalment system pay quarterly, while certain larger taxpayers must pay monthly. Under the proposed changes:

Monthly payments would become an option: Most taxpayers already paying PAYG instalments could elect to report and pay monthly from 1 July 2027.
The ATO could require monthly payments: Taxpayers with a demonstrated history of failing to meet their tax obligations could be forced to pay monthly.
Instalments could better reflect current performance: The changes form part of broader reforms intended to make PAYG instalments more responsive to current business performance, including through accounting software.

Monthly instalments would generally be due by the 21st of the following month, subject to the final rules.

The cash-flow implications

For many businesses, the main consideration will be whether monthly payments make managing cash flow easier or more difficult.

Potential benefits of monthly payments

Smaller, more frequent payments may be easier to budget for than larger quarterly amounts. This can be particularly helpful for businesses with steady monthly income, regular bookkeeping, and established monthly reporting processes.

More frequent payments may also help businesses monitor their tax position throughout the year. If instalments better reflect current earnings, there may be less risk of paying too much or too little during the year, although the final outcome will depend on how the rules operate and the taxpayer’s circumstances.

Potential drawbacks

Monthly payments mean money leaves the business more frequently. This could reduce flexibility for businesses with seasonal income, irregular customer payments, or tight working capital. Monthly reporting may also create additional administrative work, although accounting software could help automate parts of the process.

Quarterly payments may remain preferable for businesses that rely on retaining cash between payment dates. The right approach will depend on your income patterns, cash reserves, and existing accounting processes.

Who should pay attention?

Businesses and individuals with a history of late lodgments, overdue tax debts or repeated failures to meet their tax obligations should pay particular attention. If the proposed rules become law, the ATO could require affected taxpayers to move to monthly instalments, potentially adding pressure to their cash flow.

However, the changes are also relevant to taxpayers with a good compliance record. Moving voluntarily to monthly payments may help some businesses plan ahead, while others may be better off retaining their existing arrangements.

What should you do now?

Although the legislation is not final, there are practical steps you can take now:

Review your cash flow: Consider whether monthly payments would fit your income and expenses better than quarterly payments.
Check your accounting processes: Assess whether your bookkeeping and banking arrangements can accommodate more frequent payments.
Review your current instalments: Compare your instalments with your expected annual tax liability; we would be happy to discuss any significant differences with you.
Address compliance issues early: If you have outstanding tax debts or a history of missed deadlines, seek advice about managing your obligations and reducing the risk of further difficulties.

The key point is that monthly payments would change the timing of your tax payments, rather than change your underlying tax liability. Planning ahead can help you avoid unexpected cash-flow pressure and choose an approach that suits your business.

We will provide further updates as the rules are finalised. In the meantime, contact us if you would like to review your current PAYG instalments or assess how monthly payments could affect your cash flow.

If you have any questions in relation to any of the above, please contact us to discuss further.

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ATO Credit Card Payments: Withdrawal Delayed Until 2027

Team Juggernaut — Tue, 03 Nov 2026 00:26:00 +0000

ATO credit card payments will remain available until 30 June 2027, giving businesses more time to prepare for the withdrawal of this payment option.

If you use a credit card to pay the ATO, you have been given more time to prepare for the removal of this payment option, but this will not be available indefinitely.

In early October 2026, the ATO announced that it would stop accepting credit card payments after 30 November 2026. The decision followed the Reserve Bank’s ban on card surcharges from 1 October 2026. Without being able to recover these fees from cardholders, the ATO estimated it would face almost $200 million in annual costs.

The announcement raised concerns among small businesses that use credit cards to manage cash flow. Paying tax by card can provide extra time to settle a liability, particularly when income and expenses do not fall due at the same time. In response to this feedback, the Government provided transitional funding, allowing the ATO to continue accepting credit card payments until 30 June 2027.

The extension provides welcome breathing space, but businesses that rely on credit cards will still need to plan for an alternative.

What the change means for you

The extension does not cancel the planned withdrawal of direct credit card payments. From 1 July 2027, you will need to use another method to pay the ATO directly. Available alternatives include:

Debit card
BPAY
Bank transfer
Direct debit
Payment at Australia Post, where available
International money transfer services, where applicable

Some third-party payment providers may continue to offer ways to pay tax using a credit card after the deadline. However, these services may charge additional fees and take longer to process payments. Check the total cost, processing time, and payment conditions before relying on one.

The change will not affect everyone equally. In 2024–25, around 5% of small businesses and just over 2% of individuals used a credit card to pay the ATO. If you are among them, now is a good time to consider how you will manage tax payments once this option is withdrawn.

Why your payment method matters

Credit cards can help bridge short-term cash-flow gaps, but the convenience comes at a cost. Interest, annual fees, and other charges can erode the benefit, particularly if you regularly carry a balance. There is also a risk that a payment will not be processed in time, potentially leaving you with an overdue tax liability and additional interest.

Switching to BPAY, bank transfer or direct debit may provide a simpler and more predictable way to manage tax payments. The right option will depend on your circumstances, including when funds are available in your business account and whether you need to retain flexibility over payment dates.

Pay particular attention if you have an existing ATO payment plan linked to a credit card. The ATO has been contacting affected taxpayers, but you should check your own arrangements rather than assume they will continue unchanged. Confirm how future instalments will be paid and allow enough time to update the payment method before the deadline.

What you should do now

Use the extended timeframe to prepare rather than leaving the change until the last minute.

Review your current arrangements. Check whether you use a credit card for one-off tax payments, regular instalments, or an ATO payment plan.
Choose an alternative. Consider which payment method best suits your cash-flow cycle, taking account of fees and processing times.
Update recurring payments early. Make sure any new arrangements are in place well before 30 June 2027 and check that payments are processed successfully.
Review your cash flow. If you rely on the credit card interest-free period to manage tax liabilities, consider whether you need to set aside funds earlier or adjust your payment planning.
Seek advice if needed. If tax payments are putting pressure on your cash flow, speak with us early. We can help you review your position and consider practical ways to manage upcoming liabilities.

The extension to 30 June 2027 gives businesses more time to adjust, but it should not be mistaken for a permanent reprieve. Planning ahead can help you avoid unnecessary fees, missed payments, and last-minute disruption when the ATO’s direct credit card facility closes.

If you have any questions in relation to any of the above, please contact us to discuss further.

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Business Scams: 7 Ways to Protect Your Business

Team Juggernaut — Mon, 26 Oct 2026 03:54:24 +0000

Business scams pose a growing risk to businesses of all sizes, making it essential to recognise common threats and take steps to prevent fraud.

In addition to the many challenges of running a business, scammers present a growing (and formidable) risk.

Reports from government agencies show they’re having a hard time protecting businesses from scammers. For example, Australia’s investment watchdog, the Australian Securities and Investments Commission (ASIC), recently claimed to be taking down roughly 20 scam sites each day!

What can business leaders do to counter this threat?

First, let’s look at some typical examples of scams.

Phishing

Phishing occurs when scammers impersonate government agencies or large organisations like banks to trick business owners into revealing sensitive information. This can happen over email or text, and the recipient usually clicks a malicious link that seems legitimate. The fraudsters often prey on fears and uncertainty, sending out fake updates about safety measures or offering access to supposed government subsidies.

Compromised email accounts

Email phishing becomes more complicated when hackers access legitimate email accounts and send links or fraudulent payment requests. These emails are especially dangerous because they’re hard to distinguish from legitimate correspondence.

False billing

In this case, scammers send fake invoices, hoping busy administrators won’t notice they’re fake. Small businesses face significant risks, especially where one fraudulent payment could significantly impact cash flow.

Supply scams

Scammers can set up fake websites or social pages and sell non-existent products. Buyers seeking something urgently or that they think is scarce are particularly prone to this scam.

Overpayment scams

More rare, perhaps, but this involves scammers overpaying for goods using stolen credit cards or fake cheques. They then request a refund for the excess and, once the original payment fails, the business is left with the bill.

So, what can businesses do about scams? Here are 7 best practices.

Recognise that any person or business is a target. Scams are not only directed at small, unsophisticated businesses. Many vigilant, tech-savvy people have fallen victim. And the techniques scammers use continue to evolve.
Create a culture of suspicion. Verify the source of emails, SMS messages, or social media messages before responding or clicking on links, especially where sensitive information is involved. Be doubly suspicious when the sender implies urgency, a common technique used by scammers.
Train your employees to recognise and report suspicious activity. Anyone can be targeted.
Double-check payment requests, especially those involving new bank details. Set up processes that require multiple steps or involvement from multiple people before payments are executed.
Strengthen password policies, because weak passwords are a common entry point for scammers. Make sure all business accounts have strong, unique passwords and update them regularly.
Update software because outdated systems are easier targets for scammers, especially those engaging in phishing attacks.
Use online monitoring tools. Tools like Google Alerts can reveal unauthorised use of the business name online. Scammers often misuse legitimate business names to seem credible to other victims.

With no end to the threat of scammers in sight, it’s prudent for leaders to be extra cautious and adopt strategies like those mentioned above.

What should you be doing to protect your business from scammers?

If you have any questions in relation to any of the above, please contact us to discuss further.

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SMSF Investment Strategy: Why Regular Reviews Matter

Team Juggernaut — Mon, 05 Oct 2026 06:50:03 +0000

SMSF investment strategy reviews are an important part of managing an SMSF and ensuring the fund continues to meet its legal obligations and members’ retirement needs.

Superannuation law requires trustees of SMSFs to formulate, regularly review and give effect to an investment strategy that has regard to the whole of the circumstances of the fund. Although there is nothing in the law stating a timeframe that may define ‘review regularly’, it is commonly accepted that this would be at least annually. This aligns with comments on the ATO’s website where they expect reviews to occur at least annually.

Some trustees will undertake an annual review leading up to, or at the beginning of a new financial year, while others will undertake the review as part of reviewing the completed financial accounts from the previous financial year. Neither is the right or wrong option, and you must consider what is best for your situation.

Either way, you will need to be able to show your fund’s auditor that you have reviewed the investment strategy and documented any decisions made, whether it be recording changes deemed necessary or determining the existing strategy remains appropriate.

There may be other times that it is appropriate to review the investment strategy. These may include when:

There is a market correction;
A member joins or leaves the fund;
A member starts a pension in the fund.

An investment policy will generally be comprised of two parts:

Investment objective – this part outlines the fund’s objectives and expected outcomes. For example, an objective may be to achieve a certain level of return over a certain period. This would generally take into account the age of the members, their retirement needs and investment risk profile.
Investment strategy – this part outlines how the fund will achieve the stated objectives. For example, it may include investment asset ranges or specific assets that will be held.

When reviewing your fund’s investment strategy, consideration must be given to:

The risk of holding particular investments and their returns, with regard to the fund’s objectives and expected cash flow requirements;
Composition of investments and the risk of inadequate diversification;
Liquidity of investments, with regard to expected cash flow requirements;
Ability to discharge existing and prospective liabilities; and
Whether insurance cover for one or more members should be held by the fund.

Although these points need to be considered, it is up to the trustees to determine how they are applied, based on the circumstances of the fund.

As an example, you must consider the diversification of the fund’s assets, but that does not mean you are required to have a diversified investment strategy. Many funds hold just a property and a bank account, and this may be appropriate for those funds. However, the trustees should document what consideration they gave to diversification, why the lack of diversification is appropriate and why they have chosen these particular assets.

Likewise, there is no legal requirement to hold insurance cover for the members, but you do need to document that it has been considered.

As noted above, a member starting a pension may be a reason to review the fund’s investment strategy. This is due to the fact that this is likely to change the liquidity considerations and investment profile of the fund. When members are all in the pre-retirement growth phase, expenses are usually more predictable, and there isn’t a need for many funds to hold large cash reserves. Once members reach the point they are accessing their benefits, as either pension or lump sum payments (or both), cash flow, liquidity and a potential cash buffer become a more important consideration.

It is not uncommon that leading up to the end of any given financial year we will field enquiries and concerns from trustees that do not have the cash to satisfy even the minimum pension requirements for the year. While there may be several reasons for this, it should raise questions about the appropriateness of the fund’s current investment strategy and considerations as to whether a review of the asset holdings is warranted.

If we revisit the one property and one bank account funds mentioned earlier, this may have been a reasonable strategy during the growth phase, but does it remain so during the drawdown phase?

Although many people are comfortable with property and Australian investors in general have an affinity for the old bricks and mortar, this does not mean it is an appropriate investment in all circumstances. If the rental income from the property cannot support your retirement needs and minimum pension withdrawal requirements, something needs to change. This will hold true for any other investment that may not be easily sold, such as holdings in unlisted companies and trusts.

Reviewing your fund’s investment strategy and giving consideration to the needs of the members and the asset holdings of the fund should not be seen as just a tick-a-box legal requirement. You’ve worked hard to build your retirement wealth, and when the time comes, you want to be able to enjoy it. Having an appropriate investment strategy that will allow this is an important element of running an SMSF. Have you reviewed your strategy lately?

If you have any questions in relation to any of the above, please contact usto discuss further.

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Lost Super: How to Find and Claim Your Superannuation

Team Juggernaut — Thu, 01 Oct 2026 23:50:00 +0000

Lost super could be waiting for you, with more than $21 billion in lost and unclaimed superannuation currently held across Australia.

More than $21 billion in lost and unclaimed superannuation is currently sitting idle across Australia, according to the latest ATO figures. The average lost account holds around $41,000. Last year alone, the ATO reunited more than $1.1 billion with members.

That is real money that could be working harder for your retirement. Tax time is the natural moment to check whether any of it belongs to you.

How super becomes “lost”

Super generally becomes lost when an account becomes inactive, and the fund can no longer contact the member. Common triggers include:

Changing jobs and leaving an old account behind
Moving house or updating your phone number without telling the fund
Changing your name

When the fund cannot reach you, the account may be classified as lost. In some cases, the balance is eventually transferred to the ATO to hold until the rightful owner claims it. The money does not disappear; it simply sits waiting to be reunited with its owner.

A five-minute health check

Finding lost super is straightforward and free. The quickest way is through ATO online services via myGov:

Log in to myGov and open the ATO section.
Select Super, then Fund details.
You will see any active accounts plus any lost or ATO-held super linked to your tax file number.

You can also use the ATO app or call the automated lost super search line on 13 28 65. A paper form is available if you prefer.

Many people are surprised by what turns up from old accounts from early jobs, small balances that have grown over time, or larger amounts they had completely forgotten about.

Especially valuable if you are approaching retirement

For clients still decades from retirement, finding lost super is useful. For those at or approaching retirement age, it can be particularly meaningful. An extra $20,000 or $40,000 (or more) can make a noticeable difference to the size of the nest egg available to draw on. Even smaller amounts compound further once consolidated into a single active account that continues to earn returns and attract any future contributions.

One important practical warning before you consolidate

If you decide to roll multiple accounts into one preferred fund, check the insurance cover attached to each account first. Death, total and permanent disability, or income-protection cover that comes with a super account can sometimes end when the balance is rolled over. Losing that cover without realising it can leave a gap in your protection at the exact time you may need it most. Speak with your fund or adviser before consolidating so you understand exactly what will transfer and what will not.

The commercial upside is simple

Every dollar sitting in a lost or low-balance account is potentially earning less than it could, or incurring unnecessary fees. Bringing the money into one active account usually reduces fees, improves investment choice, and makes it easier to keep track of your overall position. The ATO’s reunification figures show that when people do the search, meaningful amounts are regularly returned.

The process takes only a few minutes and costs nothing. Given that more than $21 billion is currently waiting to be claimed, the odds that some of it belongs to you are higher than many people expect.

You can start the free search here:

https://www.ato.gov.au/forms-and-instructions/superannuation-searching-for-lost-superannuation

If you would like help interpreting what you find, or advice on whether consolidation makes sense in your circumstances (including the insurance check), just get in touch. A short conversation now can put money back into your retirement savings that might otherwise stay forgotten.

If you have any questions in relation to any of the above, please contact us to discuss further.

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Widow Tax Fixed: What the New Rules Mean for Property Owners

Team Juggernaut — Thu, 01 Oct 2026 22:54:00 +0000

Widow tax has been addressed through changes to the recent negative gearing and capital gains tax reforms, protecting certain property owners after death or relationship breakdown.

Federal Parliament has closed an unintended loophole in the recent negative gearing and capital gains tax reforms that became widely known as the “widow tax”. At the same time, the Government also fixed a technical issue that could have affected people who first use a main residence to generate rental income after Budget night on 12 May 2026.

What the problem was

As you might be aware, the tax rules have recently been changed to ensure that losses generated from residential rental properties from 1 July 2027 can be ‘quarantined’. This means that they can only be offset against income or capital gains generated from other residential rental properties. However, the changes won’t generally apply to properties that were purchased by the relevant taxpayer before 12 May 2026.

However, a problem could arise when an ownership interest in a property passes to someone as a result of the death of the original owner or because of a relationship breakdown, and this occurs after 12 May 2026. Under the original version of the new rules, that transfer could be treated as a new acquisition. This could have meant that a surviving spouse or former partner risked losing the protected negative gearing treatment that had applied to the property in the hands of the previous owner.

How it was fixed

The Government moved quickly once the issue was identified. Some new rules now specifically protect people who acquire a residential property interest from a spouse because of death or relationship breakdown. The rules can also potentially protect someone who inherits an additional ownership interest in a rental property from a co-owner who isn’t their spouse.

Case study 1 – the widow tax fix

Sarah and David bought a rental unit in 2019 as equal joint owners. The property has always been negatively geared, with annual rental losses of around $8,000 offset against their other income each year.

Under the original May 2026 reforms, the property was protected because it was acquired well before Budget night. However, if David had died and the property transferred fully into Sarah’s name, the additional 50% interest that Sarah inherited from David’s estate risked being treated as a new acquisition. Sarah could have lost the ability to claim the losses generated from this interest in the property against her other income.

With the updated rules now in place, that outcome is avoided. Because the transfer occurs due to the death of a spouse, Sarah keeps the original protected treatment and can continue offsetting the rental losses in the same way as before.

Former main residences

A related technical issue also needed fixing. Under the original rules, there was a risk that an existing main residence purchased before 12 May 2026 could lose its protected status if it was later first used to generate taxable rental income after that date. This was because of the interaction with a long-standing tax rule that can treat someone as if they had reacquired a former main residence when it is first used to produce income.

The Government has now passed legislation to correct this. The new rules specifically disregard that “first use to produce income” rule when determining the acquisition date for negative gearing purposes.

Case study 2 – renting out a former home

James bought his home in 2018 and has lived in it as his main residence ever since. In 2027, he decides to move in with his partner and rent the property out for the first time.

Under the original drafting of the 2026 reforms, first renting the property after 12 May 2026 risked resetting its acquisition date. That could have caused the property to be treated as a post-Budget night acquisition and subjected to the tighter negative gearing limits.

With the new rules now in place, that reset is disregarded for negative gearing purposes. Because James originally acquired the property before 7:30 pm on 12 May 2026, it keeps its original acquisition date. He can continue to offset any rental losses in the same way as if the property had always been an investment property acquired before Budget night.

Why these fixes matter

Both changes remove sources of unexpected cash-flow disruption. The “widow tax” fix protects people at a difficult personal time. The main residence clarification gives homeowners greater flexibility if their circumstances change and they later decide to rent out a property they already own.

What you should do now

If you own a jointly held investment property acquired before 12 May 2026, the “widow tax” fix provides reassurance that a future transfer on death or separation should not remove negative gearing rights, but the rules are still complex and it is always best to have the position checked.
If you own a main residence bought before 12 May 2026 and are considering renting it out in future, the new rule means the property should keep its original acquisition date for negative gearing purposes, but there could still be some complex CGT implications.
Keep clear records of the original purchase date and ownership history.

If either situation applies to you and you would like confirmation of how the amended rules work in your circumstances, contact us.

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Travel Records: Why They Matter for Australian Tax Affairs

Team Juggernaut — Thu, 01 Oct 2026 02:28:00 +0000

Travel records can become increasingly important for your Australian tax affairs if you spend significant periods outside Australia.

If you spend time outside Australia for work, family or personal reasons, your travel history could become increasingly important when it comes to your Australian tax affairs.

On 24 August 2026, the ATO gazetted its latest passenger movements data-matching program. Under the program, the Department of Home Affairs is expected to provide the ATO with travel information for around 115,000 individuals each year from the 2026–27 income year through to 2028–29.

The information may include an individual’s name, date of birth, arrival and departure dates, passport details and citizenship or visa status. The ATO can then compare this information with its own records to identify potential issues with tax residency, registration, lodgement, reporting and payment obligations.

For taxpayers who regularly travel overseas, one of the most important areas to consider is their tax residency position.

Why tax residency matters

Your Australian tax residency status can have a significant impact on how you are taxed.

For example, Australian residents are generally taxed on their worldwide income, while foreign residents are generally taxed only on their Australian-sourced income. Residency can also affect the tax-free threshold, Medicare levy obligations and capital gains tax (CGT) outcomes.

This means that where you have moved to or from Australia, or spent extended periods overseas, the exact dates you entered and left Australia can be important when preparing your tax return.

The ATO will now have access to passenger movement information from an independent government source. If the dates reported by a taxpayer do not appear to align with those records, this could potentially prompt the ATO to seek further information.

Importantly, spending time overseas does not automatically make someone a foreign resident for tax purposes. Tax residency is determined by considering a range of factors, including family circumstances, the strength of connections with Australia and someone’s intentions and behaviour. However, accurate travel records can be an important part of establishing the overall position.

When could your travel history matter?

There are several situations where keeping accurate travel records could be particularly useful.

Part-year residency

If you became or ceased to be an Australian tax resident during the year, the dates you arrived in or departed Australia may form part of the evidence supporting your residency position. They can also be relevant when determining whether a part-year tax-free threshold applies.

Working overseas

If you regularly travel overseas for work, your travel history may help establish when you were working in Australia and when you were overseas. This can be particularly relevant where your tax position involves foreign employment income, work-related travel or other overseas activities.

Selling an Australian property

If you have moved overseas and later sell an Australian property, your residency history can be relevant to the CGT treatment. An individual’s tax residency status can have a significant impact on whether the main residence exemption can apply on the sale of someone’s home, so keeping a clear record of when you were living in Australia and when you were overseas can be helpful.

What should you do?

There is no need to be concerned simply because you travel overseas. However, if you spend significant periods outside Australia, it is worth making sure your records are accurate and consistent.

As a practical starting point:

Keep a record of your arrival and departure dates for each trip, including the year in which the travel occurred.
Retain useful supporting records such as flight itineraries, boarding passes and passport records where available.
Let us know about significant periods spent overseas, particularly if you have moved overseas or are considering doing so.
Before lodging your tax return, check that the dates used in any residency calculation or other relevant tax treatment are accurate.

Good record-keeping is particularly important where your residency position is not straightforward. If there is a difference between the dates you have reported and the information available to the ATO, having supporting records can make it much easier to explain the position.

A small detail that could make a big difference

For most taxpayers, the ATO’s passenger movements data-matching program is unlikely to have any direct impact. However, for people who regularly travel overseas, have moved countries or have a residency position that is finely balanced, accurate travel records could become increasingly valuable.

Rather than waiting for the ATO to raise a query, it is worth discussing your circumstances with us if you have spent substantial time overseas during the year or plan to in the near future.

A few minutes spent checking your travel dates and residency position could help avoid unnecessary questions later and provide greater confidence that your tax return accurately reflects your circumstances.

If you have any questions in relation to any of the above, please contact us to discuss further.

The post Travel Records: Why They Matter for Australian Tax Affairs appeared first on Juggernaut Advisory.

SMSF Property: How to Prepare for a Smooth Audit

Team Juggernaut — Mon, 14 Sep 2026 06:03:23 +0000

SMSF property can be one of the most significant assets in a fund, making accurate valuations and supporting evidence important for a smooth annual 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. This can be a simple process for assets that have a ready market, like listed shares; however, the process for other assets like property can be more onerous.

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. Typically, 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.
Net 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.

If you have any questions in relation to any of the above, please contact us to discuss further.

The post SMSF Property: How to Prepare for a Smooth Audit appeared first on Juggernaut Advisory.