Great Expectations: New Reporting and Reforms

As we step into 2026, taxpayers can anticipate another busy year for compliance, with several new reporting obligations and reforms being introduced.

Payday Super While most employers should already have progressed to a similar model by now, this is the reform that will impact all businesses to some extent. Summary: A substantial overhaul of the employer contribution system. A broader scope of application, a 7 business days deadline for contributions to be received after salary/wage payment, a new penalties regime. Risks: An approaching start date of 1 July 2026, a failure by most clearing houses to meet statutory requirements, the closure of the ATO small business superannuation clearing house by 30 June 2026.

Pillar II Reporting With the forms finally released last month by the ATO, it is time for large businesses to report, starting with the year ended December 2024. Summary: A global minimum tax of 15%, imposed via 3 interlinked taxing mechanisms on members of international groups with at least € 750m. Australian entities or permanent establishments can be taxed 1) themselves (DMT), 2) on behalf of foreign subsidiaries (IIR), 3) on behalf of foreign sister/cousin entities (UTPR). Risks: A very complex hybrid legislation implementing in Australia concepts created by the OECD. While most groups will fall within the transitional exemptions, these need to be closely tested and monitored, and reporting remains mandatory.

CbC Public Reporting With the forms finally released last month by the ATO, it is time for large businesses to report, starting with the year ended December 2025. Summary: A report on global profits, number of employees, accrued tax, paid tax, and explanation of permanent tax differences. Imposed on CbC groups with at least AUD 10m turnover from Australian sources. Risks: A number of countries need to be reported on individually to Australia (incl. HK & Singapore). The report will be made public.

Division 296 There is still a lot of uncertainty around these delayed and modified measures. Summary: Additional taxation on superannuation balances exceeding $3m (30% instead of 15%) and $10m (40% instead of 15%). No longer aiming to tax unrealised gains. Risks: Unknown – legislation is still being edited, and implementation would only start from 1 July 2026 (i.e. no tax until after 30 June 2027).

New obligations and reforms highlight the importance of being proactive and prepared. Oceade delivers comprehensive tax and accounting solutions, and support for businesses navigating complex tax environments. We will reach out to each of our clients individually to ensure that they are ready and equipped to face these changes.

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