Legislation update: Bill to simplify and streamline business regulation introduced to Parliament; Productivity Commission opens inquiry on reducing regulatory barriers to business dynamism; New hom...
ATO advice and guidance; Consultation opens on abolishment of additional tariffs; PBO issues guide on the 2026-27 Budget; CFR issues regulatory reform implementation roadmap
The Federal Court (Jackman J), on 11 May 2026, allowed the taxpayer's appeal in Shell Energy Holdings Australia Limited v Commissioner of Taxation [2026] FCA 577.
The case concerned the market value of Shell Australia Limited's (SAL) 34.27 percent shareholding in Woodside Petroleum Limited (WPL) as at 20 January 1997.
The market value was required because the shares were originally pre-CGT as...
KPMG Australia's full 2026 Federal Budget analysis can be found here.
See related podcast: Podcast episode 77: Federal Budget 2026 - From policy announcements to practical impact
What's in the budget?
Amendments to the Pillar Two legislation to implement the side-by-side package agreed by the OECD on 5 January 2026.
Funding for the ATO to continue delivery of the counter‑fraud strategy, strengthen powers to address fraud, and undertake targeted compliance activity.
Time-limited concession within the foreign resident CGT regime for certain renewable energy investmen...
KPMG's Federal Budget executive summary
The Budget forecasts aggregate deficits in the underlying cash balance over the forward estimates period to 2029-30 of $150.5 billion. Federal Government net debt is expected to be $767.8 billion in 2029-30, or 21.9% of GDP.
Encouragingly, unemployment is expected to remain relatively steady at no more than 4.5 percent over the period to 2029-30. Thos...
The Organisation for Economic Cooperation and Development (OECD), on April 30, 2026, released the global minimum tax (GMT) implementation toolkit and the GMT frequently asked questions.
These are the first updates since the publication of the side-by-side package in January 2026.
The toolkit is primarily aimed at tax administrations implementing the GMT but may help businesses in two ways:
...
The Western Australia 2026-2027 Budget was delivered by the Treasurer Rita Saffioti on Thursday 7 May 2026.
While the Budget has been framed in a highly uncertain global economic environment arising from the Middle East conflict, the state's economy continues to perform strongly.
The domestic economy grew by 3.5 percent in 2025 outplacing national growth with further expansion forecast.
A ge...
The Payment Times Reporting (PTR) Regulator has released its inaugural Compliance Update (April 2026), signalling a clear escalation in enforcement activity.
Entities are now facing real consequences for non-compliance with the Payment Times Reporting Scheme.
The Regulator has provided a summary of enforcement actions taken to date:
497 warning letters for late reports;
109 warnings for m...
The Reserve Bank of Australia (RBA) Board has lifted the cash rate by a further 0.25 percent, the Central Bank's third consecutive increase this year, taking the cash rate to 4.35 percent, a level not seen since November 2023.
The latest rise will unfortunately not come as a huge surprise to many economists and the broader Australian public.
RBA officials have spent much of the time since the...
Both Victoria and the Northern Territory delivered their budgets for 2026-27 on Tuesday 5 May 2026.
Both budgets reflect minimal disruption to an already disrupted economy, with few changes to existing taxation and revenue settings.
Welcomed measures for property developers and investors are the further extension of the off-the-plan stamp duty concession in Victoria, and the further extension...
With Europe's tax landscape evolving at speed, asset managers, banks and insurers are facing a level of change and scrutiny that is reshaping how they operate across the region.
Designed for Heads of Tax, Tax Directors, senior Finance leaders and other financial services decision makers, join our KPMG specialists as they share fresh insights on the tax initiatives poised to have the greatest i...
The United States' (US) real GDP improved to 2.0 percent annualised growth in the first quarter from 0.5 percent in the fourth quarter. The outcome was slightly below market expectations of 2.3 percent. The GDP deflator, a measure of inflation, rose 3.6 percent after rising 3.7 percent in the fourth quarter.
Consumer spending contributed half of the strength in economic activity, rising 1.6 pe...
The Australian Taxation Office (ATO) has finalised the updates to Practical Compliance Guideline PCG 2019/1 Transfer pricing issues related to inbound distribution arrangements (PCG 2019/1) which outlines its compliance approach to 'inbound' Australian distributors.
The final PCG 2019/1 implemented all the changes that were proposed in PCG 2019/1DC and applies to income years ending after 22 A...
Without reform, and amid the world conflict and rising fuel costs, close to half (47 percent) of mid-market business leaders forecast no real growth for their organisations for the remainder of 2026.
This year's KPMG Mid-Market Pre-Budget Pulse Check surveyed over 150 mid-market businesses and found only 6 percent of respondents were optimistic about their growth prospects, predicting more tha...
We are supportive of the Federal Government's aim to improve the certainty of, and address inconsistent outcomes in, the foreign resident capital gains tax (CGT) rules. We acknowledge the need to clarify the foreign resident CGT rules on a prospective basis, consistent with previous Government announcements and consultations.
In considering reforms that affect foreign investment, it is critica...
The Iran war and closure of the Strait of Hormuz triggered an energy price spike and renewed uncertainty.
The shock collided with fresh United States (US) trade-policy volatility after the Supreme Court overturned emergency tariffs.
The administration has fast-tracked investigations into new, more durable tariffs by August, while using temporary measures to keep many emergency tariffs in plac...
The world has been plunged into another economic crisis with the escalation of conflict in the Middle East that has shut the Strait of Hormuz, effectively reducing global oil supply by about 20 percent.
Fundamentally, the challenge with this current crisis relates to how long will the conflict with Iran last, and how quickly will oil markets return to "normal".
The oil futures market has been...
KPMG's Deals Tax and Tax Controversy practice will host a webinar to address the proposed non-resident CGT reforms.
See related article: Changes to Australian capital gains tax rules for foreign residents – draft legislation released
The proposed amendments significantly expand Australia's capital gains tax (CGT) base and go well beyond what had previously been announced.
Date: Frida...
The United Kingdom’s HM Revenue and Customs (HMRC), on 9 April 2026, published draft regulations on the Carbon Border Adjustment Mechanism (CBAM).
This is HMRC's second UK CBAM consultation of 2026.
The first sought views on draft legislation setting out the administrative requirements of this new indirect tax, along with provisions outlining the CBAM rate and carbon price relief (which...
The latest labour force data shows labour market outcomes consistent with expectations, with the unemployment rate remaining stable at 4.3 percent and net employment growth of nearly 18,000.
Nearly 53,000 full time new jobs were also created over the month, more than covering the fall of around 35,000 part time roles.
The big driver of macroeconomic outcomes in the near term is how the Reserv...
China's economy reached total output of RMB 140 trillion in 2025, with real GDP growth meeting the official 5.0 percent target.
Yet, the headline numbers only tell part of the story.
KPMG's latest China Economic Monitor unpacks the underlying dynamics.
Overview
Exports grew 5.5 percent year-on-year and the trade surplus hit a record USD 1.2 trillion. Growth was increasingly driven by hig...
AI is no longer a future concept for tax functions.
It is already being used—sometimes well, sometimes not so well - and its impact is accelerating. The conversation is shifting from "what can AI do?" to "how do we use it safely, consistently, and at scale?"
Tax leaders are now facing a clear challenge: how to move from experimentation to real, defensible value, while meeting regulatory...
The United States' (US) consumer price index (CPI) jumped 0.9 percent in March, the fastest monthly increase since nearing the peak of the pandemic in June 2022.
The index jumped 3.3 percent from a year ago, its hottest annual pace since May 2024.
The three-month annualised pace, which better tracks momentum, rose 5.6 percent from 3.2 percent in February.
Every measure is in the wrong direct...
Energy and Natural Resources, and Renewables (ENR) sector is one of the most critical sectors in the rapidly changing global economy.
Organisations 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 scrut...
The March Quarter 2026 edition of KPMG's Super Tax News covers the latest key superannuation tax updates including:
Division 296 Bills – passage through the Senate without amendments;
Division 296 – Release of draft regulations for public consultation;
Low Income Superannuation Tax Offset (LISTO) Changes;
Senate Committee's Report on the Operation of the Capital Gains Tax Disc...
With Europe's tax landscape evolving at speed, asset managers, banks and insurers are facing a level of change and scrutiny that is reshaping how they operate across the region.
Designed for Heads of Tax, Tax Directors, senior Finance leaders and other financial services decision makers, join our KPMG specialists as they share fresh insights on the tax initiatives poised to have the greatest i...
What is new?
New thin capitalisation rules applicable to infrastructure investments in New Zealand have been announced with the release this week of an Amendment Paper to the Taxation (Annual Rates for 2025-26, Compliance Simplification, and Remedial Measures) Bill, currently before Parliament.
As well as the thin capitalisation changes, the Amendment Paper includes several other remedial mea...
Global growth is projected to fall to 2.7 percent in 2026 and 3 percent in 2027 from 3.4 percent in 2025. The pace for 2026 would mark the slowest growth rate sincethe pandemic concluded. Inflation is expected to reach 4.8 percent in 2026 before cooling to 3.6 percent in 2027.
That compares to 3.4 percent in 2025. The war has renewed inflation concerns, which rise along with risks of demand de...
Last week, the Federal Government announced significant changes to both the fuel excise rate and the road user charge, in response to the rise in global fuel prices.
These changes effect a 32 cent per litre (or 61 percent) reduction to the fuel excise rate during the period from 1 April 2026 to 30 June 2026.
Whilst this delivers immediate cash flow relief at the bowser for both business...
KPMG invites you to our next Banking and Finance Tax Update on Thursday 23 April 2026.
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 ...
United States (US) February retail sales increased 0.6 percent, slightly above expectations for a 0.5 percent rise.
Excluding autos, retail sales advanced by a solid 0.5 percent, surpassing the consensus estimate of 0.3 percent.
Early tax refunds and a return to more seasonable weather encouraged shoppers to open their wallets.
Sales at motor vehicles...
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...
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...
Global workforce mobility remains a key issue for multinational groups, both from the perspective of retaining and attracting talent and in responding to the increased flexibility now expected by employees.
These developments have driven a significant transformation in how international workforces are managed. In many regions, remote work has increased substantially in recent years, both in sc...
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...
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...
Tax Controversy Compass is a webinar series by KPMG for multinational enterprises with cross-border operations in the Asia Pacific region, bringing together relevant KPMG experts from various jurisdictions in the region to provide perspectives on emerging tax risks and dispute trends in a fast-evolving tax controversy landscape.
Date: Thursday, 26 Mar 2026
Time: 1PM AEDT
Location: Webinar
...
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...
