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May 2026 – Practice Update

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May 5, 2026

ATO responds to high fuel costs

The ATO recognises that high fuel costs are affecting some businesses, and it will provide targeted support to eligible businesses that are unable to meet their payment obligations for three months, from 1 April 2026 to 30 June 2026.

In particular:

  • the ATO will provide streamlined access to more flexible payment plan arrangements, including longer payment terms, no upfront payment, and access to general interest charge (‘GIC’) remission where payment and lodgment conditions are met;
  • high fuel costs will be a relevant factor in consideration of additional requests for remission of GIC and other penalties; and
  • the ATO will provide support to vary pay as you go (‘PAYG’) instalments where there has been a reduction in taxable income.

Businesses can assess their eligibility and notify the ATO of their interest in accessing a tailored payment plan and intention to vary PAYG instalments through the ATO’s online services.  The ATO will then contact these businesses or their representatives with more information and next steps.

ATO is ‘clearing up’ some common Payday Super myths

With less than two months until Payday Super starts (on 1 July 2026), the ATO wishes to ‘clear up’ the following common misconceptions.

Myth: “There is nothing super fund trustees need to do before the start date.”

Fact: Super funds should have already taken steps to receive more frequent contributions and meet shorter processing timeframes.  System updates and testing should be underway, including implementing and testing for “SuperStream Contributions v3.0′ upgrades.

Myth: “Payday Super just means super funds will receive contributions more often.”

Fact: Payday Super raises expectations on speed, accuracy and responsiveness.  It is not just about frequency — it is about how quickly and accurately contributions are allocated or rejected, within a tighter timeframe.  Faster allocation and earlier rejection support employers to meet their obligations.

Myth: “Super fund actions do not impact employer compliance.”

Fact: Super fund actions directly influence employer outcomes.  They can support employer compliance by:

  • rejecting incorrect employer contributions within the required timeframe;
  • providing clear, timely error messaging; and
  • maintaining high quality reporting for member accounts, using consistent ABNs and member account numbers, and keeping member data up to date.

 ATO launches new app feature to stop scam calls

Taxpayers can now instantly confirm whether a call claiming to be from the ATO is genuine, with the launch of a new in-app security feature designed to shut down scammers.

The new verify call feature allows users to confirm, in real time, that they are speaking with the real ATO, not a fraudster.

Taxpayers are encouraged to download the ATO app and register their device.  Then, when they receive a call from someone claiming to be from the ATO, they can simply open the ATO app, login and select the verify call option.

Within 30 seconds, a notification should confirm it is an ATO call.  If it does not appear, users should treat it as a scam call and hang up.

Tribunal rejects claims for self-education expenditure

The Administrative Review Tribunal recently rejected an employee’s claims for self-education expenses, as they did not have a sufficient nexus with his current job and income-earning activities.

The taxpayer worked as an employee for a large company.  He claimed that his role evolved to include marketing and sales responsibilities during the 2022 income year, and that he was required to take courses in sales and marketing to help him perform his role.

The taxpayer sought to amend his tax return for the 2022 income year by claiming additional deductions for expenditure on online educational and training courses, related computer software and hardware, and membership fees.

The ATO disallowed these deductions, and the Tribunal affirmed the ATO’s decision.  The Tribunal noted that there was nothing in writing from the taxpayer’s employer requiring him to undertake sales and marketing activities, let alone take self-education courses in those areas.

The expenditure incurred by the taxpayer related to online content creation, affiliate marketing, and entrepreneurship, whereas the taxpayer’s work related to providing technical IT and computer services.  Therefore, the expenditure did not bear a sufficient nexus with the taxpayer’s income-earning activities for it to be deductible.

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances

 

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