Practice Updates - March 2026

FBT lodgment due date is approaching on 31 March 2026. 

With the Fringe Benefits Tax (FBT) year ending on 31 March 2026, employers should review whether any work vehicles have been made available to employees for private use and whether this gives rise to an FBT liability. If an FBT return is required, it is generally due by 21 May 2026, or 25 June 2026 where a registered tax agent lodges electronically. 

Businesses that make vehicles available to employees, their family members or associates may be required to lodge an FBT return and pay FBT. The ATO has recently highlighted common compliance issues, including failing to lodge FBT returns, incorrectly assuming dual cab utes are exempt, claiming incorrect vehicle exemptions, not apportioning private and business use, and failing to maintain proper records such as valid logbooks. These mistakes can lead to audits, penalties, interest charges, and potential reputational damage.  

With the ATO increasingly using data and analytics to identify non-compliant employers, businesses should ensure they correctly assess vehicle benefits and maintain accurate records to meet their FBT obligations. 

Check out our latest article about the FBT Year End here. 

Small Business Superannuation Clearing House to close on 1 July 2026 

The ATO has announced that the Small Business Superannuation Clearing House (SBSCH) will permanently close on 1 July 2026 as part of the upcoming Payday Super reforms. Employers currently using SBSCH should begin planning their transition to an alternative super payment service well before the deadline to avoid disruption. Key steps include selecting a new payment method, switching to the new system as soon as possible, and downloading any existing super contribution records from SBSCH before it closes. Payday Super is due to start from 1 July 2026, so employers should make sure their systems and processes are ready well in advance.

Employers' late payment offset will no longer be available 

The late payment offset (LPO) for super guarantee (SG) payments will be phased out as part of the Payday Super reforms. The final quarter in which employers can use the LPO is the period ending 31 March 2026, with SG contributions due by 28 April 2026.  

Employers can still claim the LPO for late payments made up to 30 June 2026 when lodging a Super Guarantee Charge (SGC) statement. From 1 July 2026, Payday Super will require employers to pay super at the same time as each payroll cycle, and late payments will automatically be applied to the oldest outstanding super liability. To avoid penalties and compliance issues, employers should ensure SG contributions are paid in full, on time, and to the correct super fund. 

Reportable Tax Position 2026 instructions 

The Australian Taxation Office (ATO) has released the instructions for completing a Reportable Tax Position (RTP) Schedule for 2026. The RTP Schedule is a schedule that must be completed with the annual income tax return for companies with either:  

• total business income of $250m or more in the current year, or  

• total business income of $25m or more in the current year and part of an economic group with total business income of $250m or more in the current year.  

The schedule requires disclosure of certain positions across 3 categories - Category A covering positions adopted in the company tax return that are about as likely to be correct as incorrect or less likely to be correct than incorrect, Category B covering uncertain tax positions recognised in financial statements, and Category C covering certain reportable arrangements. 

Right to occupy under deceased’s will for main residence exemption 

The Australian Taxation Office (ATO) has released draft guidance TD 2026/D1 explaining when a person has the right to occupy a deceased person’s home for the purposes of the capital gains tax (CGT) main residence exemption. Under the rules, any capital gain or loss may be disregarded if the property was the main residence of someone who had a right to live in the dwelling under the deceased’s will from the date of death until the ownership interest ends. Importantly, the right to occupy must be explicitly granted in the will itself. If a trustee or executor allows someone to live in the property using a general discretionary power under the will, this will not qualify as a right to occupy under the will for CGT exemption purposes. 

WET determination for New Zealand producer rebate finalised 

Treasury has finalised the A New Tax System (Wine Equalisation Tax) (New Zealand Producer Rebate Claim Lodgment) Determination 2026. 

This determination allows New Zealand participants to claim a wine tax credit for a producer rebate on eligible (rebatable) wine within four years from the time the credit arises, provided they were entitled to the producer rebate under subsection 19-5(2) of the A New Tax System (Wine Equalisation Tax) Act 1999. 

The determination gives eligible New Zealand wine producers greater flexibility in deciding when to lodge their rebate claims. In particular, claims do not need to follow Australian GST lodgment cycles. 

This instrument repeals and replaces the Wine Equalisation Tax New Zealand Producer Rebate Claim Lodgment Determination (No. 34) 2016, which would otherwise expire on 1 April 2026. 

The new determination has the same substantive effect as the previous one it replaces. 

Global Information Returns can now be shared between Australia and other jurisdictions 

The GloBE Information Return Multilateral Competent Authority Agreement (GIR-MCAA) is a multilateral agreement designed to facilitate the automatic exchange of GloBE Information Returns (GIR) between tax authorities as an administrative tool supporting the implementation of Pillar Two.  

For the GIR-MCAA to be effective between two jurisdictions, both must sign the agreement and notify the OECD Co-ordinating Body Secretariat of their intention to send and/or receive GIR information, confirming they have the necessary legal and operational frameworks in place.  

Australia signed the GIR-MCAA on 28 January 2026. With the first GIR lodgments due by 30 June 2026, this means that Australia is now able to share domestic filings of GIRs and receive international exchanges of GIR information with those other participating countries. 

Proposed income tax return lodgment requirements for 2026 

The Australian Taxation Office (ATO) has issued two draft legislative instruments in respect of lodging income tax returns for the 2026 year: 

• Draft Taxation Laws (Requirement to Lodge a Return for the 2026 Year) Instrument 2026, which specifies which persons are required to lodge an income tax return for the 2026 year. This also sets out the requirements for franking returns, venture capital deficit returns, ancillary fund returns, returns, and statements for self-managed superannuation funds and community charity returns. 

• Draft Income Tax Assessment (Requirement for Parents Liable for or Entitled to Child Support to Lodge a Return for the 2026 Year) Instrument 2026, which requires certain parents liable for or entitled to child support to lodge an income tax return for the 2026 year. 

Comments on both draft instruments close 13 March 2026. 

We will keep you updated as further practical guidance or developments become available. 

Speak with Lynden Group today to safeguard your business, minimize penalties, and stay ahead of ATO recovery action.   

Office: 03 91157406   

Direct: 03 85481843