Our latest insights

In July 2025, we wrote about the Federal Court’s decision in S.N.A Group Pty Ltd v Commissioner of Taxation [2025] FCA 240, which was widely seen as a ‘commercial reality’ endorsement for inter entity service fee arrangements in closely held groups – where documentation is known to be imperfect.

From the introduction of Pillar Two to increased debt deduction limitations and public reporting obligations, the international tax landscape is shifting rapidly.

OECD announces the ‘Side-by-Side’ administrative guidance package

The Australian Pillar Two Rules align with the OECD’s initiative to ensure MNEs pay a minimum Effective Tax Rate (ETR) of 15 per cent globally.

On 10 November 2025, the Federal Court handed down its decision in Newmont Canada FN Holdings ULC v Commissioner of Taxation (No 2) [2025] FCA 1356.The case provides important guidance on the interpretation of ‘taxable Australian real property’ (TARP) under Division 855 of the Income Tax Assessment Act 1997 (Div 855).

On 24 September 2025, the ATO released PCG 2025/3 (‘the PCG’), setting out its compliance approach to arrangements where capital is raised to fund franked distributions. This was after their consultation on the draft PCG.

The Federal Court’s 2025 decision in Charles Apartments Pty Ltd v Commissioner of Taxation underscores the importance of substance over form, proper documentation, and income nexus in group financing arrangements under Australian tax law.

The Federal Court decision in Morton v Commissioner of Taxation [2025] FCA 336 (“the Morton case”) provides key guidance on the tax treatment of proceeds derived from land development arrangements. This is particularly relevant to landowners considering development partnerships with third-party developers.

The Federal Court’s decision in S.N.A Group Pty Ltd v Commissioner of Taxation [2025] FCA 240 provides critical judicial guidance on the deductibility of inter-entity service fees, especially within commonly controlled businesses.