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Outlining key tax considerations for a taxpayer once their aggregated group turnover is A$1 billion or more.

The ATO has released final guidance on the royalty characterisation of software distribution, intermediation and intellectual property arrangements through TR 2026/2 and draft PCG 2026/D4. The guidance clarifies when software-related payments may be treated as royalties and subject to royalty withholding tax, while introducing a practical compliance risk framework.

The Full Federal Court confirms that owner and beneficiary benefits in family businesses are not automatically subject to FBT, reinforcing the meaning of “in respect of employment” and providing guidance ahead of the 2026 FBT season.

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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.

On 30 October 2025, the Federal Court (Hespe J) handed down its decision in YTL Power Investments Limited v Commissioner of Taxation, finding for the Applicant and providing important guidance on the interpretation of ‘taxable Australian real property’ under Division 855 of the Income Tax Assessment Act 1997 (Cth) (ITAA 1997).

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 High Court of Australia has dismissed the Tax Commissioner’s (“the Commissioner”) appeals in FCT v PepsiCo, Inc [2025] HCA 30 (“PepsiCo”), ruling that payments made by Schweppes Australia to PepsiCo’s Australian subsidiary for concentrate did not constitute royalties, and that PepsiCo and Stokely‑Van Camp were not liable for royalty withholding tax or diverted profits tax for the 2018 and 2019 income years.

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.

The Australian Tax Office (‘ATO’) on 11 June 2025 updated its Practical Compliance Guide PCG 2018/9 on corporate tax residence to reflect key changes including aligning tax compliance residence disclosures to the Consolidated Entity Disclosure Statement (‘CEDS’) for financial reporting purposes.

On 19 February 2025, a pivotal Full Federal Court decision in respect of trust law and Division 7A was handed down by the Full Federal Court in Commissioner of Taxation v Bendel [2025] FCAFC 15 which has confirmed in favour of the taxpayer.

Division 93 of the GST Act sets a four year limit for claiming ITCs and FTCs. Missing this means losing the right to claim. The ATO's Ruling MT 2024/1 explains how this works and when claims are timely.