Practice Updates - November 2025

ATO strengthens support for taxpayers facing vulnerability 

The ATO has introduced a new Vulnerability Framework to better support taxpayers who experience vulnerability when engaging with the tax system. 

Key updates include: 

• A stronger commitment to identifying and assisting people facing hardship, mental-health issues, housing instability, or other circumstances that affect their ability to meet tax and superannuation obligations. 

• Improved internal capability – the ATO is enhancing systems and processes so staff can recognise vulnerabilities and provide tailored support, rather than a one-size-fits-all enforcement approach. 

• Ongoing collaboration with community and advocacy sectors to ensure transparency and accountability in the Framework’s rollout. 

This initiative marks a shift toward greater empathy and flexibility in how tax obligations are managed when taxpayers are under strain. 

ATO refreshes private group focus areas for 2025-26 

The ATO has updated its key compliance priorities for privately-owned and high-wealth groups in 2025–26. 

Focus areas include: 

• Timely registration, lodgement, and payment of tax obligations; accurate reporting; capital-gains treatment; trust affairs; and correct handling of Division 7A arrangements and lifestyle assets. 

• Heightened scrutiny of specific sectors such as property and construction, private equity, professional services, cross-border dealings, and GST refund fraud. 

• Increased attention on succession planning and wealth transfers in ageing family groups, as well as asset movements in new or overseas markets. 

The ATO emphasises that all private groups must maintain proper documentation to substantiate their tax positions. Inadequate record-keeping may attract enforcement action. 

Auditing SMSFs with crypto assets - What should SMSF trustees do to meet these reporting standards? 

The ATO has reminded self-managed super fund (SMSF) trustees to ensure their crypto-asset holdings meet superannuation and reporting standards. 

To stay compliant, SMSF owners should: 

• Confirm crypto investments are allowed under the trust deed and align with the fund’s investment strategy. 

• Hold crypto assets in the fund’s name only, using a separate digital wallet. 

• Report at market value each 30 June using reputable exchange data. 

• Keep clear ownership and valuation evidence for audit purposes. 

If ownership or valuation cannot be verified, the auditor may qualify the report or lodge a contravention notice. 

Payday Super legislation introduced 

The Government has introduced Payday Super legislation into Parliament, proposed to commence 1 July 2026 (subject to passage). 

Under the new rules, employers must pay superannuation guarantee (SG) at the same time as salary and wages, SG contributions must reach employees’ funds within 7 business days of payday. 

For super funds: 

• The deadline to allocate or return unallocated contributions will reduce from 20 days to 3 business days. 

• SuperStream standards will be updated to enable faster payments via the New Payments Platform (NPP) and to improve error messaging. 

• A new Member Verification Request (MVR) service will help employers confirm fund details before making contributions. 

All funds, including SMSFs and non-regulated funds using SuperStream, must ensure the systems are ready by 1 July 2026. 

FBT and festivities: what employers need to know 

As the festive season approaches, the ATO reminds employers to review fringe benefits tax (FBT) implications for staff celebrations and gifts.  Ensure you: 

• Keep detailed records of costs and attendees. 

• Differentiate between entertainment and non-entertainment expenses. 

• Apply minor-benefit exemptions where eligible. 

Proper planning can help avoid unexpected FBT liabilities. 

New ATO Data-Matching Programs 

The ATO continues to enhance data-matching programs to detect incorrect reporting, fraud, and under-compliance. 

• Rental Income Data Matching:  Letters will be sent to taxpayers where ATO data suggests rental income was omitted or where returns are outstanding for specific years. 

• Offshore Merchant Data Matching:  The ATO will acquire merchant-transaction data from the Big Four banks (ANZ, CBA, NAB and Westpac) for the 2025 to 2027 income years, covering approximately 9,000 offshore merchants annually. 

When mismatches occur, the ATO may contact tax agents or clients to clarify discrepancies. 

Transparency of beneficial owners of unlisted companies and trusts

The Government is proceeding with a public, Commonwealth-operated register of beneficial ownership for unlisted companies — a major step to improve transparency and corporate accountability. 

Currently, company registers record only legal shareholders under the Corporations Act 2001, which can obscure the individuals who ultimately control or benefit from a company. 

The reform will require disclosure of true owners, helping regulators and the public see who controls or profits from entities operating in Australia.  The Government has allocated $207 million (2025–26 to 2026–27) to strengthen ASIC’s company register and prepare for integration of ownership data. Public consultation and detailed policy work will commence from early 2027, alongside development of a similar framework for trusts. 

These measures build on recent reforms to improve disclosure for listed companies, reinforcing Australia’s commitment to tax integrity and transparency. 

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