The Tax Ombudsman made three recommendations to the ATO to help modernise its digital services, cut admin burden, and make it easier for agents to support their clients.
The amendment extends the original timeframe for the proposed transitional 50 percent CGT discount for certain foreign residents who dispose of Australian renewable energy assets by 10 years.
Global forecast
Global growth is expected to cool to 2.9 percent in 2026 before improving to 3.2 percent in 2027 from 3.4 percent in 2025, on a purchasing power parity basis. The forecast is unchanged while the uncertainty surrounding the Strait of Hormuz is ongoing.
Global inflation is expected to reach 4.4 percent in 2026 and 3.9 percent in 2027, up from 3.8 percent in 2025. Some inflationa...
The European Commission (EC), on 24 June 2026, published a tax simplification package, which includes ambitious proposals to amend several corporate tax directives through a Tax Omnibus directive and a proposal to recast the Directive on Administrative Cooperation (DAC).
The proposals are aimed at simplifying EU tax rules, reducing compliance burdens for businesses, and strengthening the compe...
KPMG China has released Q3 edition of the 2026 China Economic Monitor.
The report points out that China's real GDP grew 4.7 percent year on year in H1 2026, remaining within the government's 4.5 percent–5.0 percent annual growth target.
However, growth lost momentum in Q2. Real GDP growth eased to 4.3 percent, down 0.7 percentage points from Q1, while seasonally adjusted quarter-on-quar...
Australia's housing market is starting to look like two very different stories.
On one side, New South Wales and Victoria, where higher borrowing costs and waning confidence are putting the brakes on buyers and investors.
On the other, demand in Queensland, South Australia and Western Australia, is still holding strong where investors are still active.
Fresh housing finance data analysed by ...
Many tax disputes are resolved through settlement deeds rather than by a final decision of a court or tribunal.
While significant attention is often devoted to negotiating the substantive tax outcome, Egan v Commonwealth of Australia [2026] FCA 1104 is a reminder that courts attach considerable weight to the finality of the bargain ultimately recorded in the deed.
Once signed, it may be far e...
Labour market conditions in Australia held firm in June at historically strong levels, though declining vacancies and higher unemployment point to a gradual easing in labour market conditions in Australia.
Labour market conditions remained steady in the June quarter 2026, with the unemployment rate easing to 4.4 percent from a recent peak of 4.5 percent in April 2026, although it remained 0.1p...
The Federal Government, on 4 August 2026, released draft legislation which proposes to amend Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (the Act), the recently enacted legislation which makes changes to the capital gains tax (CGT) and negative gearing rules from 1 July 2027.
The draft legislation represents the first set of amendments to the enacted legislation, and includes the follo...
The Reserve Bank Board has left the cash rate unchanged at 4.35 percent for a second straight meeting.
The decision was no surprise, but we still believe the RBA has left the door open to another rate increase later this year.
The Board remains concerned that the economy is operating above its sustainable capacity, which means inflationary pressures are likely to persist.
One of the key chal...
With fewer than 100 days to go to the general election on November 7th, tax policy is shaping up to be a key differentiator between the parties. See our tax tracker which summarises the key announcements to date.
Labour, the Greens and Opportunity (formerly TOP) are all proposing broader structural changes, including a mix of capital gains tax, land tax, wealth and inheritance taxes to support...
Tax functions today are required to operate in an environment defined by continuous complexity.
Global tax policy is undergoing seismic shifts, regulatory requirements are expanding and organisations expect tax leaders to contribute more directly to enterprise strategy, risk management and transformation decisions.
As these demands intensify, a widening divide is emerging between tax function...
Demand and supply of workers are falling in tandem in the United States (US), a toxic mix for the Fed.
Payroll employment fell by 23,000 in July, after downward revisions to June. Private payrolls rose, but not enough to offset a 53,000 drop-in public-sector employment.
The losses in the public sector were concentrated in local education. Enrolments are falling, with 2026 marking the peak yea...
Tax governance has moved well beyond policy documentation. Tax administrators are no longer assessing tax outcomes alone; they are testing how those outcomes are produced, including where AI and automation are involved.
In this three-part article, we have firstly canvassed some of the perspectives of tax administrators in the use of AI, with our second article exploring practical consideration...
National house prices rose 5.5 percent and national unit prices rose by 6.6 percent over the year to the June quarter 2026, falling short of our earlier forecasts and showing a clear slowdown from the strong growth recorded in late 2025.
KPMG now expects weakness to persist through 2026, with national house values falling by 1.1 percent and national units rising by 2.2 percent.
This represent...
Join us for a special transfer pricing webcast where we will highlight key insights in a round robin format, covering the impact of AI on value chain, practical approaches to implementing and monitoring transfer pricing, methods for managing controversies in an increasingly digitalised and data-driven audit environment, transfer pricing considerations in corporate restructurings.
There will al...
The Organisation for Economic Cooperation and Development (OECD), on 15 July 2026, published the 2026 Economic Impact Assessment of the Global Minimum Tax (GMT) , providing new estimates of the expected effects of the Global Minimum Tax (GMT) and presenting preliminary evidence from its first year of implementation.
Compared to the initial economic impact assessment from 2024 the 2026 estimate...
In this webinar, our Pillar Two specialists across the globe share observations from the first wave of GIR filings, including emerging themes, trends and pain points we are seeing across groups and jurisdictions.
The webinar also explored selected technical issues that are coming to the fore in practice, and how these interact with recent and expected OECD guidance.
Suggested audience: Heads ...
This month's payment times reporting (PTR) update explores how organisations can strengthen the robustness and audit readiness of PTR frameworks amid increasing regulatory scrutiny.
The update highlights key areas that may attract regulator attention, including governance, methodology consistency, data traceability, supporting evidence and reporting controls, while introducing a practical matu...
The High Court has handed down its decision in Commissioner of Taxation v Bendel [2026] HCA 18 (Bendel), rejecting the Commissioner's long-standing attempt to treat unpaid present entitlements (UPEs) as "loans" for the purposes of Division 7A.That is a significant outcome. But it is not the sweeping reset some early commentary suggests. Rather, what the Court has done is more precise, and in ma...
The United Kingdom (UK) Government, on 13 July 2026, released draft legislation which would both implement the Organisation for Economic Cooperation and Development (OECD) Pillar Two 'Side-by-Side' package and update other aspects of the UK's multinational and domestic top-up taxes legislation (which implements Pillar Two generally in the UK).
The Side-by-Side package's safe harbours
The draf...
Australia's labour market has continued to demonstrate remarkable resilience, with strong job creation and rising workforce participation signalling ongoing demand for workers despite soft economic growth and continued cost-of-living pressures.
According to the latest Australian Bureau of Statistics data, the economy added 76,300 jobs in June, while the unemployment rate remained steady at 4.4...
Held under the Chatham House Rule, the discussion brought together policymakers, business representatives and civil society voices.
The article below summarises the personal views expressed and does not necessarily represent the position of any organisation, including KPMG International Limited or any KPMG member firm.
Executive summary
There was broad agreement that, despite imperfections...
United States' (US) retail sales rose 0.2 percent in June, the weakest pace since January.
May sales were revised higher. Sales excluding autos fell 0.2 percent. Sales are not adjusted for inflation.
Real retail sales increased 0.6 percent as the consumer price index (CPI) recorded its largest monthly drop since April 2020 due to falling oil prices.
Motor vehicle and parts dealers gained 1.9...
An uptick in the number of owner-occupiers across Western Australia, Queensland and Victoria has shown that the dream of homeownership remained alive even in tough housing market.
Since 2021, nearly 600,000 Australian households have become owner-occupiers, according to new analysis by KPMG Australia.
That number was sharply higher than the previous four-year period, when the number of new ow...
These events are specifically designed to keep banking and finance industry professionals up to date with current and emerging tax trends, and to share insights from our recent experience.
We will be offering both an in-person and online experience, and for those who can make it, we look forward to hosting you at our Sydney, Barangaroo offices for a buffet lunch.
Date: Thursday, 20 August 2...
Tax Controversy Compass is a webinar series by KPMG for multinational enterprises with cross-border operations, bringing together relevant KPMG specialists from New Zealand, Australia and Singapore to deliver jurisdiction-specific perspectives on emerging tax risks and dispute trends in a fast-evolving tax controversy landscape.
Date: Thursday, 30 July 2026
Time: 12:00pm – 1:00pm (AES...
The Australian Accounting Standards Board (AASB) has introduced a new financial reporting framework for not-for-profit (NFP) entities, removing special purpose financial statements (SPFS) for certain organisations and requiring general purpose financial statements (GPFS).
The amendments (set out in AASB 2026-2 Amendments to Australian Accounting Standards – Extending the Application of t...
The United States (US) consumer price index (CPI) fell 0.4 percent from May, aided by a 9.7 percent drop in prices at the gas pump.
Energy prices were weak across the board with the exception of natural gas prices.
A temporary détente which opened the Strait of Hormuz helped fuel those declines, which have since reversed course on renewed tensions between the two foes.
Food prices edg...
The June Quarter 2026 edition of KPMG's Super Tax News covers the latest key superannuation tax updates including:
2026-27 Australian Federal Budget – CGT reform and changes to negative gearing;
Division 296 – Final amended regulations now registered;
Changes announced as a result of transition to Payday Super;
Changes to superannuation rates and thresholds – 1 July 2026...
KPMG Australia (KPMG) welcomes the opportunity to provide a submission in response to the consultation on the Innovative Business CGT Concession (IBCC).
We welcome the introduction of the IBCC as a means of encouraging early investment in innovative activity.
We recommend the key refinements outlined below to ensure the measure provides effective support:
The IBCC should be designed so the...
Consumer credit in the United States (US) edged down less than 0.1 percent in May; the first decline since November 2024.
On an annual basis, consumer credit expanded 2.1 percent, the slowest pace in the last six months.
A decline in revolving credit was nearly offset by an increase in non-revolving debt.
Revolving debt, made up primarily of credit cards, fell 4.7 percent in May after reachi...
The 2026–27 state and territory budget cycle is now complete.
This year the budgets generally reflect a cautious revenue environment, with most jurisdictions avoiding broad-based tax increases and instead focusing on measures specifically targeted at housing, cost-of-living and revenue compliance.
A clear theme across the budgets is the use of state tax settings to support housing suppl...
As trade policy changes continue to evolve, accelerate, pause and more, businesses worldwide have been experiencing disruption to supply chains and financial uncertainty over the past six months.
Does this now mark the beginning of a new period of stability, enabling more longer-term planning, or merely a new stage in this evolution of global trade.
Staying ahead of these changes is critical ...
The easing of the Iran conflict through the recent signing of a Memorandum of Understanding between the United States (US) and Iran has reduced, but not eliminated, one of the most significant risks facing the world economy so far in 2026.
The escalation of the Iran conflict earlier in the year drove a sharp spike in global oil prices, with spot prices rising above US$100 per barrel at their p...
KPMG International hosted an online roundtable in February 2026 as part of the Global Responsible Tax Program.
Participants from business, academia, policy and civil society discussed how tax systems might respond to the growing impact of artificial intelligence, robotics and automation on the economy and labour market and what role tax can and should play in meeting social and business goals....
At a time when the economy is experiencing labour shortages, increasing labour force participation amongst experienced older workers could boost GDP by $29 billion.
The opportunity to better utilise experienced older workers comes as Australia slips from 17th to 24th globally in workforce participation among 55–64-year-olds.
According to OECD data, Australia's labour force participation...
Global growth is expected to moderate to 3.0 percent in 2026 before rising to 3.3 percent in 2027 from 3.4 percent in 2025 on a purchasing power parity basis. The forecast has been upgraded since May on expectations of lower peak oil prices and resilience in the largest economies.
Global inflation is expected to rise more sharply than in our previous forecast, reaching 4.8 percent in 2026 and ...
Executive summary
As the market moves beyond the recent cycle of volatility, we are seeing clearer divergence across sectors.
Retail has strengthened, industrial remains underpinned by long-term demand drivers, while office continues to adjust to hybrid work and AI-driven change.
The next phase will be defined by how these structural shifts intersect with persistent interest rate and inflati...
The conflict in Iran has created ripple effects across energy, supply chains, and global markets.Executives should assess how these second‑ and third‑order effects impact investment timing, supply chain design, capital allocation, and risk posture — not just in theory, but in day‑to‑day operations.In this webinar, you'll gain insight into:the global economic and geopolitical shifts most likely ...
From tightening data expectations to the spread of real time digital reporting, indirect tax is moving rapidly up the corporate agenda.
Value Added Tax (VAT) and Goods and Services Tax (GST) are no longer seen only as compliance costs; they are now recognised as strategic issues that affect cash flow, risk, and the quality of financial data across the business.
The 2026 Indirect Tax Benchmark...
After months of tension, the United States (US) and Iran have reached a 14-point agreement aimed at de-escalating the conflict that has disrupted the Middle East and global markets since February.
US President Donald Trump signed the memorandum of understanding (MoU) at the G7 Summit in France, signalling a potential turning point in the conflict.
The deal opens the door to reopening the Stra...
