Practices Updates - May 2026

May 2026 Tax & Business Update: EOFY Planning Starts Now 

Key Tax Dates for May 2026 

May is an important month for businesses to stay on top of their tax and reporting obligations. 

Key dates to keep in mind include: 

• 21 May 2026 – April monthly BAS lodgement and payment due. 

• 26 May 2026 – Quarter 3 activity statement lodgement and payment due for eligible businesses lodging electronically. 

• 28 May 2026 – Superannuation Guarantee Charge statement due if super for the March quarter was not paid correctly or on time. 

Businesses should also ensure their records are up to date as we approach the end of the financial year. Lodgement and payment dates may vary depending on your circumstances, so please contact us if you are unsure about your obligations. 

Payday Super myths you can ditch before 1 July 2026 

With less than 3 months until Payday Super begins, the ATO is reminding super funds and employers that preparation should already be underway. 

A common misconception is that Payday Super simply means receiving contributions more frequently. The changes also increase expectations around processing speed, accuracy, reporting quality, and responsiveness. 

The ATO highlighted that super funds should now be: 

• Testing SuperStream Contributions v3.0 upgrades 

• Preparing systems for shorter processing timeframes 

• Improving contribution rejection turnaround times 

• Ensuring MAAS and MATS reporting data is accurate and up to date 

The ATO also noted that fund responsiveness will directly impact employer compliance outcomes under the new regime. Businesses should review their payroll and super processes now to avoid compliance risks ahead of the 1 July 2026 commencement date. 

Providing car parking fringe benefits 

As the 2026 FBT compliance season continues, employers should review their car parking arrangements carefully, particularly given ongoing uncertainty around ‘special purpose car parks’ following the Toowoomba appeal case. 

Key areas employers should focus on include: 

• Maintaining accurate records of parking spaces, locations, and employee usage 

• Reviewing whether office relocations, renovations, or acquisitions have changed car parking arrangements 

• Assessing nearby commercial and special purpose car parks (such as shopping centres, hospitals, and universities) that may trigger FBT liabilities 

• Ensuring parking rates used for valuation are genuinely available to the public 

• Reviewing flexible work arrangements and whether alternative valuation methods may be more appropriate 

• Liaising with parking operators to access parking usage data where available 

• Monitoring parking rate changes near business premises 

• Reviewing whether certain parking reimbursements may instead be treated as expense payment fringe benefits 

The ATO has advised employers to continue following current guidance while awaiting the Full Federal Court decision in the Toowoomba appeal, which may significantly impact how certain car parking facilities are treated for FBT purposes. 

Excise and excise-equivalent warehouse licences register 

The ATO has updated the public Excise and Excise-Equivalent Warehouse Licences Register as of 30 April 2026. 

The register includes entities that hold: 

• An excise licence under the Excise Act 1901 

• A customs excise-equivalent warehouse licence under the Customs Act 1901 

Businesses can use the register to verify whether an entity holds a valid licence, including details such as the licence holder’s name, ABN, and licence type. 

This may be useful for businesses intending to work with excise licence holders or seeking warehousing and excise-related services as part of their operations or expansion plans. 

From 'hacks' to half-truths: ATO warns of tax time misinformation and reveals focus areas 

The ATO is warning taxpayers to be cautious of misleading tax advice circulating online ahead of tax time, particularly content promising larger refunds, shortcuts, or ‘tax hacks’. The ATO noted an increase in tax-related information being shared through social media, AI platforms, ‘finfluencers’, and informal sources such as family and friends. Assistant Commissioner Anita Challen reminded taxpayers that while AI tools can be useful, they may provide inaccurate or outdated information that does not reflect Australian tax law. The ATO also confirmed that taxpayers remain responsible for the accuracy of their tax returns, even where third-party advice or AI tools were used. Taxpayers working from home may continue using either the actual cost method or the fixed rate method of 70 cents per hour. 

The ATO also encouraged taxpayers to review their superannuation details ahead of Payday Super commencing from 1 July 2026. Contact Lynden Group if you would like assistance with tax return preparation, deduction reviews, or tax compliance obligations. 

Canada-Australia tax treaty to be modernised 

The Australian and Canadian governments have committed to modernising the Canada-Australia Tax Treaty to facilitate greater investment, including joint investments, in nation-building projects in both countries. Both countries have agreed to prioritise the negotiations. 

ATO responds to impacts of high fuel costs 

The ATO has announced temporary support measures for eligible businesses affected by ongoing high fuel costs until 30 June 2026. Support may include more flexible payment plans, longer payment terms, remission of general interest charges and penalties in certain circumstances, and assistance with varying PAYG instalments where taxable income has reduced. The ATO has encouraged businesses experiencing financial pressure to engage early, continue lodging on time, and seek assistance if they are unable to meet their tax obligations.  

Contact Lynden Group if you would like assistance reviewing your tax obligations, exemptions, or property-related compliance requirements. 

Email: info@lyndengroup.com