Quality Advice Rewards Results

The ATO has released Practical Compliance Guideline PCG 2025/5: Personal services businesses and Part IVA of the Income Tax Assessment Act 1936. It provides guidance on the ATOs compliance approach to the application of Pt IVA of ITAA 1936 to arrangements where personal services income (PSI) of an individual is derived through an entity that is conducting a personal services business for the purposes of Div 86 of ITAA 1997. In particular, it provides guidance on “alienation arrangements”, including when the ATO would consider they have a “low” or “higher” risk of Pt IVA applying and the likelihood of the ATO reviewing those arrangements. It also contains various examples to illustrate the ATO’s approach.

The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Bill 2025 has been passed by the Senate and awaits Royal Assent. Among other things, the Bill proposes to extend the $20,000 instant asset write‑off by 12 months until 30 June 2026. It will allow small businesses (with an aggregated annual turnover of less than $10m) to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use on or before 30 June 2026.

ASIC has advised that it is inviting the superannuation and investment management sectors to have their say on changes to stamp duty and portfolio holdings disclosure requirements. This follows a targeted review of superannuation investment disclosure requirements announced in August 2025. ASIC is proposing the following: (a) Stamp duty be disclosed as an average amount over seven years, rather than an annual sum, in fees and costs summaries. The proposal would require a change to ASIC Corporations (Disclosure of Fees and Costs) Instrument 2019/1070; and (b) Class order relief for superannuation trustees, aligning portfolio holdings disclosure obligations for internally-managed private debt with externally-managed private debt. Submissions due by 20 February 2026.