New in: July

Written By Paulina Fernandez

2026 Tax Time: Toolkit for Small Business

The ATO has released its Tax Time Toolkit for Small Business for the 2026 income year.

The Toolkit is intended to assist practitioners and their clients at tax time with meeting reporting obligations. The Toolkit includes links to resources, tools and calculators on topics such as:

  • home-based business expenses;

  • motor vehicle expenses;

  • travel expenses;

  • digital product expenses;

  • using business money and assets; and

  • pausing or permanently closing a business.

Ref: ATO website, Tax and Super Professionals, 29 May 2026

2026 Tax Time: Toolkit for Small Business

The ATO is reminding practitioners to ask clients whether they earn income through digital platforms or apps, as sharing economy income does not automatically pre-fill in tax returns.

Practitioners should check whether clients have earned sharing economy income from:

  • ride sourcing, taxi, limousine or delivery services;

  • short term accommodation or property sharing;

  • renting or hiring out assets (for example, vehicles, equipment or car parking);

  • creating or selling digital content, digital goods or online entertainment; or

  • task based, freelance or on demand services arranged through online platforms.

Under the Sharing Economy Reporting Regime ('SERR'), platforms report income earned through their services to the ATO. The ATO then uses this data to cross check whether income has been reported correctly.

Ref: ATO website, Tax and Super Professionals, 4 June 2026

ATO applying 'debts on hold' to accounts with payment plans

The ATO is advising practitioners how 'debts on hold' will be reflected in client account balances where a payment plan is already in place.

Editor: A 'debt on hold' is a tax debt the ATO has paused taking actions to collect.

Where a debt on hold is added to the account balance of a client who already has a payment plan, the client will have six months to either:

  • pay the debt on hold amount in full; or

  • set up a new payment plan for the debt on hold amount.

After that six-month period, the debt on hold may affect the client’s existing payment plan.

For debts on hold of $100 or more, the ATO will issue a letter to the practitioner or client before the amount is included in the client’s account balance. The ATO will also attempt to contact the client using the phone number listed on their account.

Debts on hold of less than $100 will be included in the account balance without a letterbeing issued.

Practitioners will see a notification in Online services for agents if a client has a debt on hold included in their account balance. The notification will also flag whether there is an existing payment plan.

Ref: ATO's Member Communication for Tax Practitioner Stewardship Group ('TPSG') and BAS Agent Advisory Group ('BASAAG'), 1 June 2026

Fundraising events and the DGR minor benefit rules

The ATO is reminding deductible gift recipients ('DGRs') that, while fundraising events (such as dinners, balls and auctions) can be a powerful way to raise funds, donors receiving something in return can affect whether their payment is tax-deductible.

A donation of money or property to a DGR is generally only a tax-deductible gift if the donor receives no material benefit in return. If the donor receives something of value, such as a ticket to a fundraising dinner, entertainment, or goods purchased at auction, the payment is treated as a contribution rather than a gift.

However, some contributions may still be partly tax-deductible where the minor benefit rules are satisfied.

Broadly, this is where a contribution is made by an individual to the DGR and relates to an eligible fundraising event, such as a dinner, ball, fete or auction held in Australia. The contribution must also be more than $150, and the GST-inclusive value of the benefit received must not exceed the lesser of 20% of the value of the contribution and $150.

If the rules are met, the donor may be able to claim a tax deduction for the value of their contribution less the GST-inclusive value of the benefit.

DGRs are responsible for working out the value of the benefit, based on comparable market prices or, where no comparable value is available, a cost-based approach.

Ref: ATO website, Not-for-profit newsroom, 16 June 2026

Paulina Fernandez