Practice Updates - November 2026

2025-26 individual tax returns for self-preparers: the deadline has passed 

The lodgment deadline for self-preparers was 11:59 pm on Monday 2 November 2026. If you’ve lodged, make sure any tax owing is paid by 21 November. 

If you haven’t lodged, please contact us as soon as possible. Lodging late doesn’t change the payment due date, and penalties can reach $1,820. If you’re in financial difficulty, we can help you discuss support options with the ATO. 

Family trust GIC remission offers extended 

Since August 2025, the ATO has offered to favourably consider remitting up to 80% of the general interest charge (GIC) on family trust distribution tax (FTDT) liabilities. The offer applies where trustees and electing entities proactively self-review, notify the ATO and pay the liability. Following feedback that these reviews take time, the ATO has extended the offer by six months, to 30 June 2027. 

FTDT is imposed at 47% on distributions made outside the family group of the specified individual named in a family trust election. The ATO’s guidance highlights three areas: 

• Elections: Review whether existing family trust and interposed entity elections are still needed. Variations and revocations are only possible in limited circumstances and time frames. 

• Family group: Confirm who falls within the family group, including corporate beneficiaries, particularly when making year-end distribution decisions. 

• Records: Keep records of all elections, family group members and distributions for at least five years after the final lodgment obligation. 

  
  

NFP self-review return penalties 

Self-assessing not-for-profits with an active ABN were required to lodge their 2025–26 NFP self-review return by 31 October 2026. The ATO has started issuing failure-to-lodge penalties to organisations that have not responded to repeated reminders about overdue returns. 

The ATO has also pointed NFPs to its tax, super and registry responsibilities checklist ahead of AGM season. The checklist covers director ID requirements, governing documents, and updating authorised contacts when committee members change. 

Foreign resident CGT reforms now in effect 

The foreign resident capital gains tax (CGT) reforms enacted by the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026 commenced 1 October 2026. For vendors selling shares or units worth $50m or more and seeking to make a declaration to the purchaser that the shares are not indirect Australia real property interests (IARPI), there is now a requirement to also notify the Commissioner of Taxation, in the approved form, within a specified timeframe. If the notification is not made to the Australian Taxation Office (ATO) as required, the purchaser will be unable to rely on the non-IARPI declaration and will have a foreign resident CGT withholding obligation. The ATO has released the approved form - Notice to the Commissioner of a non-indirect Australian real property interest (non-IARPI) vendor declaration form-for this notification, along with instructions on how to complete and submit it. 

Working overseas doesn’t automatically end Australian residency 

Moving overseas does not by itself mean a person stops being an Australian tax resident. Those who remain residents must continue to lodge an Australian tax return each year. They must declare all foreign employment income, including exempt income, even where tax was withheld overseas. 

Other obligations also continue: 

Study loans: HELP, VSL, and AASL repayment obligations remain. An overseas travel notification is required within 7 days of leaving when the person intends to be away for 183 days or more. 

Medicare levy surcharge: The surcharge may apply if private hospital cover is cancelled, and income exceeds the threshold. Travel insurance and overseas health cover do not count as hospital cover, and exempt foreign employment income is included in the income test. 

Capital gains tax:  

• A rented-out former home can generally be treated as a main residence for up to six years. 

• Becoming a foreign resident can trigger a deemed disposal of certain assets. 

• Foreign residents may also lose access to the main residence exemption. 

SMSFs: Trustees travelling for extended periods should check the fund still meets the definition of an Australian super fund. 

ATO no longer accepting credit card payments after 30 June 2027 

The ATO originally announced that it would stop accepting credit card payments after 30 November 2026. The original announcement was made on 1 October 2026, but on 9 October the federal government provided transitional funding and the date moved to 30 June 2027.  

The change follows the recent ban on card surcharges for Visa, Mastercard, American Express and eftpos payments from 1 October 2026.

Key points: 

• Until 30 June 2027: The ATO will continue accepting credit card payments for tax obligations. 

• After 30 June 2027: Taxpayers who want to keep paying by credit card can use third-party payment providers. The ATO encourages anyone considering this to look carefully at the fees, charges, and processing timeframes involved. These providers charge the taxpayer’s card and pay the ATO on their behalf, usually for a fee. 

• Other payment options: Free and low-fee methods such as debit card and bank transfer remain available. 

• Scams: The ATO advises checking the credentials of any third-party provider before sharing information or making a payment. 

• Support: The ATO is consulting stakeholders on how to support taxpayers in financial hardship and alternatives for those unable to use other payment methods.  

  
  

Businesses that currently pay BAS or other tax debts by credit card may want to factor the change into their cash flow planning. The April–June 2027 quarterly BAS, due 28 July 2027, will be the first one affected. 

This is a good time to review your margins, POS settings, invoice templates and website pricing. Our team can help you model the impact and update your pricing without losing profit. 

Email: info@lyndengroup.com.au