Legislation update: Amending rules to Australia’s Domestic Top-up Tax registered; Payday Super regulations referred to Senate Committee for inquiry; OECD publishes economic report on potential chal...
In the past week, there have been two developments of direct relevance to the tax treatment of property development arrangements (PDA).The first is the Full Federal Court’s decision in Commissioner of Taxation v Morton [2026] FCAFC 31.The case concerned a long-term farmer who, after farming on the relevant land became uneconomic, entered into a PDA with an independent third-party developer to d...
With the release of the Australian Taxation Office's (ATO) draft Law Companion Rulings (LCRs) LCR 2026/D1–D4, employers now have a full view of the regulatory framework that will underpin Payday Super from 1 July 2026.
The draft rulings are comprehensive but, at a high level, they tell a clear story: Payday Super represents a structural shift toward real-time superannuation compliance, w...
Energy and Natural Resources, and Renewables (ENR) sector is one of the most critical sectors in the rapidly changing global economy. Organizations face new challenges from evolving market conditions, shifting industry practices, and complex global value chains.
As a spotlight on this sector continues to grow, transfer pricing is one of the key tax areas that is starting to get increase scruti...
Australia and the European Union (EU) have finalised a landmark Free Trade Agreement, slashing tariffs and opening significant new opportunities for exporters, importers and investors.
Highlights
Australia has secured a landmark Free Trade Agreement (FTA) with the European Union (EU), marking the successful conclusion of 8 years of negotiations.
Announced on 24 March 2026, the Australia-EU...
In a world where geopolitical tensions and economic shifts are unfolding rapidly, there’s little time for business leaders to react - they are expected to anticipate disruption and act early.
Given the current geopolitical environment, this event will be focused on the topic of the impact of conflict upon economies and business.
Date: Tuesday 31 March 2026
Time: 4PM AEDT
Locati...
In Tabcorp Maxgaming Holdings Limited v Commissioner of Taxation [2026] FCAFC 30 the Full Court has confirmed the decision of the Federal Court that Tabcorp was not entitled a deduction under the TOFA rules as a result of the circumstances in which its gaming license expired in 2012.
The background to the case is set out in our earlier article on the Federal Court Decision.
See related articl...
The United States (US) Supreme Court, on 20 February 2026, held that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were not legally authorised.
Consequently, US Customs and Border Protection (CBP) is developing new functionality in its Automated Commercial Environment (ACE) system to automate the process to refund these tariffs.
Executive summary
IEEPA tarif...
The monthly Consumer Price Index (CPI) data, released this week, reveals the economy had started to bounce back slightly in February from the recent resurgence in inflation, but the recovery is expected to be short lived.
The figures might seem like a glimmer of good news, but unfortunately bears little significance.
The oil crisis shock ricocheting through the economy right now is expected t...
Commissioner of Taxation v Ho [2026] NSWSC 247 is a rare example of the NSW Supreme Court granting a stay of tax recovery proceedings, notwithstanding the clear legislative policy permitting the Commissioner to recover assessed tax immediately, even where Part IVC proceedings are on foot.
The case is particularly noteworthy because the Court stayed the recovery proceedings, rather than adoptin...
The 31 December 2025 reporting cycle represents the first wave of mandatory AASB S2 reporting in Australia.
Early reporters highlight a focus on robust practices and compliance, particularly in governance and the integration of climate in risk management, signalling first-year efforts on establishing a base report ahead of deeper strategic and quantitative maturity.
All assurance opinions to ...
As employers prepare for the transition to Payday Super from 1 July 2026, a key consideration will be the effect on employees paid under Total Remuneration Package (TRP) arrangements, where superannuation is included in the total package value.
Under TRP arrangements, employer Superannuation Guarantee (SG) obligations are met from the TRP.
Because of the requirement under Payday Super that SG...
The US Federal Open Market Committee (FOMC) – the policy setting arm of the Federal Reserve – decided to pause on rate cuts for its second consecutive meeting.
The fed funds target held steady in the 3.5 percent to 3.75 percent range. The decision was accompanied by only one dissent.
Governor Stephen Miran dissented for the fifth consecutive meeting in favour more cuts.
The firs...
Australia's labour market weakened in February, with the Australian Bureau of Statistics (ABS) recording a higher-than-expected lift in joblessness.
The unemployment rate increased to 4.3 percent on a seasonally adjusted basis, according to the ABS, up from 4.1 percent the prior month and above consensus estimates of 4.1 percent.
That lift was driven by a surge in the number of people looking...
The Tax Ombudsman (Ombudsman) released a report, on 2 March 2026, following a review into the Australian Taxation Office's (ATO's) management of remission of the general interest charge (GIC).
Key takeaways
The Ombudsman's report identified concerns from taxpayers, advisors and industry bodies concerning the communication of GIC remission decisions and taxpayer's review rights, as well as i...
KPMG would like to invite you to attend our Insurance Tax Update event.
We will update you on various direct, indirect and international tax matters impacting the insurance industry.
Date: Thursday, 30 April 2026
Time: 9:00am - 10:00am AEST
Location: Webinar
Register here
The recent decision in Commissioner of Taxation v Hicks (No 2) [2026] FCAFC 14 (Hicks (No 2)) offers clarity on the circumstances in which indemnity costs may be awarded under Rule 25.14 of the Federal Court Rules 2011 (Cth) (Rule 25.14) where a party rejects an offer of compromise.
See related article: City Beach surfs past the application of Part IVA, section 45B in the Full Federal Court
F...
The Commissioner of Taxation's (Commissioner) special leave application to appeal the unanimous Full Federal Court decision of Geocon Land Holdings No. 5 Pty Ltd v Commissioner of Taxation [2025] FCAFC 172 (Geocon) was, on 12 March 2026, refused with costs.
In this article, we examine the implications of the Geocon decision and what it means for refunds of GST overpaid in the context of Divisi...
Key observations
The signing of two trade deals; the EU-India and the EU-Mercosur, may see small economic payoff in the near term, due to limited bilateral trade volumes and lengthy tariff phase in schedules.
Europ's manufacturing sector may finally be turning a corner, with early signs of a fragile recovery emerging from a period of pronounced weakness. Fiscal support in major economies ap...
The New Zealand Government's Taxation (Annual Rates for 2025-26, Compliance Simplification, and Remedial Measures) Bill has been reported back from the Finance and Expenditure Select Committee (FEC).
We summarise below the highlights from the revised Bill and reflect on various submissions as discussed in the Departmental Report to the Committee.
What has changed?
The policy proposals, as s...
On 28 February 2026, the US-Israeli campaign against Iran has triggered a high-risk conflict environment across the Gulf. The situation is still very fluid.
Australian industries are impacted in different ways, and here is a summary of some of the key issues identified by our Geopolitics team.
Energy prices are volatile, but the shock is unlikely to be long-term
Analysts are predicting ele...
This joint KPMG and Thomson Reuters webinar will be hosted by Hayley Lock (Partner, KPMG Workforce Advisory), Sam Gathercole (Senior Manager, KPMG Workforce Advisory), and Amesh De Silva (Product and Proposition Manager, FBT, Thomson Reuters).
Date: Tuesday, 17 March 2026
Time: 12PM AEDT
Location: Webinar
Register here
Designed for tax, finance, HR, and payroll professionals, our speci...
With the Australian Taxation Office and State Revenue Offices intensifying their compliance and enforcement and Payday Super launches in July 2026, managing your employment tax obligations has become increasingly fast-paced and transparent, and therefore more governance-focused.
So, while this webinar will give you all the latest updates, we'll also share our insights on employment tax governa...
United States (US) payroll employment dropped by 92,000 in February after a modest downward revision to 126,000 payroll gains last month.
The three-month moving average on job gains fell to 6,000 in February from 50,000 in January.
The economy shed jobs in the fourth quarter of 2025 when more than 150,000 federal workers rolled off the payrolls on 1 October.
Public sector payrolls shed 6,000...
In Commissioner of Taxation v S.N.A Group Pty Ltd [2026] FCAFC 10, the Full Federal Court set aside the primary judge's conclusions in a decision from July 2025, finding payments between related entities were not deductible.
Background facts
S.N.A Group Pty Ltd (SNA) and ATPR Pty Ltd (ATPR) (together, taxpayers), together with CLAARS Pty Ltd (CLAARS) as trustee for the Henry Trust and PAC R...
Australia's latest gross domestic product (GDP) data contained some welcome news, with the economy growing by 0.8 percent in the December quarter, faster than expected.
This translates to 2.6 percent annual growth for 2025, which is somewhere close to trend.
GDP per capita also increased by 0.4 percent over the quarter to end up 0.9 percent higher for the year.
However, a closer look under t...
While there have been significant Pillar Two developments at the Organisation for Economic Co-operation and Development (OECD) level, there has also been a number of Australian updates.
These include:
finalised rules for exemptions from filing Australian Pillar Two returns;
Australia signing the Pillar Two Multilateral Competent Authority Agreement on the Exchange of GloBE Information (GIR...
Banking taxes sit at the centre of Europe's financial system - driving stability, shaping policy, and directly influencing how banks compete and grow.
With nearly half of European Union (EU) member states introducing new bank taxes since 2022, and wide variation in how those taxes are designed and applied, the tax landscape has become a defining force in how institutions manage risk, deploy ca...
Global forecast
Global growth is projected to hold at 3.4 percent in 2026 before decelerating to 3.2 percent in 2027.
The pace for 2027 would mark the slowest growth rate since the pandemic concluded. Inflation is expected to continue moderating and return to central bank targets.
All considered, the global economy weathered the tariff storm better than many feared, in part due to the initia...
The United States (US) Supreme Court (SCOTUS), on 20 February 2026, held that the US President cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs (also referred to as customs "duties").
The Court ruled 6-3 that the statute, which authorises the US President to "…regulate... importation" of property to address an unusual or extraordinary threat, does not...
The Hong Kong Financial Secretary delivered the 2026-2027 budget on 25 February 2026.
While the budget does not propose any changes to profits tax rates for 2026-2027, it does include proposals related to profits tax, salaries tax, and other taxes such as property tax, stamp duty, and hotel accommodation tax.
Profits tax
standard tax rate for corporations remains at 16.5 percent, and for u...
The Federal Government has released the Treasury Laws Amendment (Payday Superannuation) Regulations 2026 (Payday Super Regulations), providing the long-awaited details supporting the transition to Payday Super from 1 July 2026.
The Government has advised that these regulations are designed to ensure operational efficiency, as employers move from quarterly Superannuation Guarantee (SG) payments...
Japan's February election results reflect the intersection of two powerful geopolitical forces: growing economic disenchantment within societies, and intensifying competition and mistrust between states.
Those forces shaped the election outcome, and they now shape Japanese Prime Minister Sanae Takaichi's policy priorities, and in an economy as large and financially integrated as Japan's, those...
The Organisation for Economic Co-operation and Development (OECD), on 20 January 2026, held a public consultation in Paris to gather stakeholder input on the tax challenges arising from global mobility and remote work.
A consistent message emerged: existing tax and social security frameworks are overly complex, poorly aligned across jurisdictions, and no longer fit for modern working patterns....
For Australian customs purposes the value of imported goods is typically calculated by the 'transaction value'.
That is, the price actually paid or payable in the contract of sale for the importation of the goods into Australia, plus price related costs.
Transfer Pricing adjustments
In circumstances where a purchaser and vendor are related parties, the importer may be required to demonstrate...
The United States' (US) trade deficit expanded 32.6 percent in December to $70.3 billion, much more than market expectations for a lateral move.
High-frequency trade data had shown more import activity at the tail end of the year.
The deficit in dollar terms increased US$17.3 billion after a US$24.3 billion expansion in November.
That is the second largest two-month change in the trade defic...
Artificial intelligence (AI) related issues have emerged as the number one challenge facing Australian business leaders for the year ahead and beyond, according to KPMG Australia's annual 'Keeping us up at Night' survey.
For the first time, the survey of 274 C-Suite executives and board members across a range of industries found concerns linked to AI and associated technologies were named as t...
Our Guides to financial statements help you to prepare financial statements in accordance with IFRS Accounting Standards by illustrating one possible format.
Our Guide to annual financial statements – Illustrative disclosures for investment funds is based on a fictitious tax-exempt open-ended single-fund investment company, which is not a first-time adopter of IFRS Accounting Standards.
...
The year opened with its first tax controversy to reach the High Court steps, with the Commissioner of Taxation (Commissioner) filing a special leave application on 2 January 2026 to challenge the Full Federal Court's decision in Commissioner of Taxation v Hicks [2025] FCAFC 171.
Delivered on 3 December 2025, Derrington, Feutrill and Hespe JJ unanimously dismissed the Commissioner's appeal in ...
While unemployment rates provide a high‑level snapshot of labour market conditions, geographical, industry and skills differences are also critical in shaping the overall state of Australia's labour market.
KPMG's analysis examines these industry and regional dynamics to better understand the forces influencing labour demand and supply. Our detailed assessment highlights the underlying factors...
