Our Employment Taxes Update series is an exclusive event tailored for the Corporate, NFP and Government sectors. In each session, our experts will delve deeper into the ever-evolving world of employment taxes, offering you a unique opportunity to stay well informed to empower your organisation to navigate the complexities of the current tax landscape with confidence.

Session details

Session 1: Payday Super – What you need to know ahead of 1 July

A significant reform to superannuation means the super guarantee will need to be paid in line with salary and wages from 1 July 2026. With the ATO taking a proactive compliance approach, this change will require updates to your payroll processes, systems and internal controls to ensure you remain compliant.

This session will help you understand what these changes mean for your business. Get insights into the broader implications, learn a practical roadmap to help you prepare and walk through the latest compliance details released by the ATO.

Hear from Paul Hum, Tax Director and Employment & Payroll Tax Specialist, who has guided organisations through complex payroll reviews and regulatory changes.

Session 2: FBT update

In this session, our experts Jason Ch’ng and Rahul Sanghani will provide you with an update on:

• New and topical developments including:
  • Grandfathering provisions for Plug-in Hybrid Electric VehiclesCourt case – benefits provided to owners
  • ATO compliance activity including employee contributions
• FBT recap and savings opportunities for cars, dual cabs, carparking, entertainment, exemptions, combining business & personal travel and exemptions & rebates for not-for-profits
• Use of FBT software to streamline FBT Return preparation process.

Date

Session 3: Employee share schemes and reporting obligations, incentives, ESAS

This informative session will provide the benefits of employee share schemes, including different plan structures, designs and alternatives, tax reporting obligations and the employee shares scheme start-up concessions. Kurt Tiam of Dentons Australia Limited will join our tax expert Justin Batticciotto for a discussion on how to design and implement an effective ESS plan and the key terms to consider.

Session 4: Employee vs contractor

Our tax expert Paul Hum and Vanessa Priest will walk through the latest employment tax and income tax developments, including how the rules treat contractors and what this means for your business. We will touch on current audit activity, the Fair Work and common law changes affecting employee vs contractor assessments, and the practical issues we see when clients get reviewed.

We will also discuss the Commissioner’s updated personal services income guidance, providing context that may assist you when negotiating terms or engaging labour‑based contractors.

We will demonstrate how technology can support better contractor governance, from improving data matching to strengthening review processes and reducing manual work.

This session will provide the latest developments in legislation and case law, regulator practices and leveraging technology to assist with compliance.

Who should attend?

• Tax managers and their support staff
• Human resource management/remuneration and benefits managers
• Other staff interested in employer tax compliance, such as CFOs, financial controllers, CEOs and directors

Expert speakers

Stephen O’Flynn
Director
SW

Paul Hum
Director
SW

Vanessa Priest
Director 
SW

Kirsty McDonnell
Director
SW

Rahul Sanghani
Associate Director 
SW

Jason Ch’ng
Head of Tax Information Solutions
SW

Justin Batticciotto
Associate Director 
SW

The post Employment Taxes Update series 2026 appeared first on SW Accountants & Advisors.

The Taxpayer was successful in arguing that the leased electricity infrastructure situated on owned and leased land did not constitute “real property situated in Australia (including a lease of land)” and accordingly the shares disposed were not “taxable Australian property” (TAP). However, the Commissioner has already lodged an appeal of this decision.  

Case background 

YTL Power, a Malaysian based company, and a foreign resident, sold their shares in ElectraNet in February 2022. ElectraNet an Australian resident company, operated South Australia’s electricity transmission network on land that is leased and land that it owned.  

The disposal of shares in ElectraNet triggered a $948 million capital gain which the ATO sought to tax. Under Australian law, foreign residents are only subject to CGT on gains from TAP. In YTL Power’s case, it was agreed that the gain would be taxable only if YTL Power’s ElectraNet shares was an “indirect Australian real property interest” under Item 2 of section 855-15. This essentially required ElectraNet’s underlying assets to be mainly Australian real property under the principal asset test in section 855-30. 

In raising the income tax assessments, the Commissioner considered the leased assets to be “indirect Australian real property interest” and therefore Taxable Australian Real Property (TARP). The Commissioner’s arguments centred on the proposition for Division 855 to be interpreted in the broader context of its predecessor provisions Division 136, to determine what is real property. Further, the Commissioner argued that ‘real property’ in Division 855 takes on its ordinary meaning. 

The Taxpayer argued that the network assets were legally severed from the land and should be classified as personal property, not real property. On this basis, the share should be non-TAP (NTAP) and not subject to income tax in Australia. 

Federal Court decision 

Hespe J agreed with the Taxpayer that the term ‘real property’ in Division 855 aligns with common law. This makes the state legislative severance rules critical in classifying the asset as real property or personal property. Importantly, this case was decided based solely on South Australian legislation. This could mean the same types of assets situated in another state may be real property depending on the state specific legislation. 

In reaching this conclusion, Hespe J noted that the inclusion of ‘a lease of land’ in the definition of TARP indicates that ‘real property’ in this context has its technical legal meaning, which by itself would not cover leasehold interests. It followed that if a right or asset isn’t literally an interest in land (under property law), it shouldn’t be swept in by a broad ‘ordinary’ meaning. 

We expect the Commissioner will appeal the decision given the amount of revenue at stake. 

The broader ATO position on Division 855 

Based on anecdotal evidence, the Australian Taxation Office (ATO) appears to have changed its view on whether infrastructure assets such as solar and wind infrastructure are considered to be real property, having previously regarded such assets as non-TAP. The ATO is also in a dispute with Newmont Canaca FN Holdings ULC regarding whether mining assets are real property. In Newmont, the Court rejected the Commissioner’s broad approach to the meaning of real property in another win for foreign resident taxpayers. 

Changes to Division 855 announced in the 2024-25 Federal Budget were expected to broaden the scope of the provisions. However, in the Commissioner’s view, the proposed amendments to Division 855 merely clarified the scope of assets within the capital gains tax (CGT) net rather than broadened the type of assets that are caught by Division 855. Whilst the decision in YTL Power was influenced by specific South Australian legislation, the case supports the position that non-resident entities disposing of shares in companies owning infrastructure assets might not be subject to capital gains in Australia.  

Importantly, comments made by Hespe J raise serious questions whether even the proposed amendments to Division 855 from the 2024-25 Federal Budget will be effective given the majority of Double Tax Agreements use the term immovable property rather than the extended meaning of real property in Division 855. Whilst the start date for the proposed amendments have already been pushed out, we would expect there to be further delays. 

Practical considerations for taxpayers 

In light of this decision, taxpayers should consider the below practical steps. 

Review asset classifications 

Documentation and valuation 

Be prepared for ATO’s approach 

Stay within anti-avoidance boundaries 

In summary, YTL Power clarifies the boundaries of what is taxable for foreign investors and should prompt a careful look at how your Australian investments are structured and defined in law. The case reinforces that clear, proactive planning, and understanding of legal definitions can prevent unintended tax exposure. 

How SW can help 

SW’s Corporate Tax team is experienced in advising foreign investors, infrastructure operators, and multinational groups on the evolving Australian tax landscape, particularly where complex asset classifications or cross-border issues arise.  

In light of the YTL Power decision and the uncertainty surrounding Division 855 reforms, we can support you by: 

Whether you are planning a transaction, reviewing existing investments, responding to ATO scrutiny, or reassessing your tax governance framework, our team can help you navigate these developments with confidence. 

Reach out to your SW advisor for support from our Corporate Tax team. 

Contributors

Rahul Sanghani

Ned Galloway

The post Watt a relief! Capital gains relief for foreign investors in energy sector appeared first on SW Accountants & Advisors.

The ATO’s aim, in publicising its programs and focus areas, is to encourage taxpayers to identify and address risks and to improve voluntary compliance.

This presents an opportunity for private groups to review their governance frameworks, validate tax positions, and ensure readiness for future interaction with the ATO.

Private wealth group demographics

The ATO estimates there are about 284,000 private wealth groups in Australia. These groups are divided into three categories, and each category is reviewed differently as part of the ATO’s compliance programs:

ATO focus areas for private wealth groups for the 25/26 income year 

Tax governance – a major (and increasing) priority  

Tax processes are likely to be more centralised and concentrated in private groups than in public groups. Nonetheless, the ATO expects privately owned and wealthy groups to maintain a documented tax governance framework that clearly outlines roles, responsibilities, and escalation protocols for tax issues.  

Aspects that the ATO are likely to focus on in this context include: 

• processes for active identification, monitoring, and management of tax risks 

• decision-making in relation to tax matters supported by documentation and specialist advice 

• alignment of frameworks and processes with the ATO’s justified trust framework. 

Claiming of CGT concessions  

A number of CGT concessions are flagged for attention by the ATO as being risk areas. These include:  

• eligibility for the CGT discount 

• groups that inappropriately seek to access the small business restructure rollover provisions 

• eligibility for other small business CGT concessions that are claimed  

• arrangements where capital gains are distributed to foreign beneficiaries of trusts and capital gains are disregarded.  

The ATO will be looking to ensure that eligibility conditions for the above concessions are met and appropriate documentation to support or evidence the concessions is maintained.    

Various issues relating to trusts  

Trusts are widely used in private groups and the ATO has indicated a particular interest in the following matters:  

• section 100A – distributing to lower-taxed beneficiaries where there is a reimbursement agreement under which a person or entity other than the beneficiary effectively obtains the use or benefit of the relevant funds 

• application of trustee beneficiary non disclosure tax where there are circular trust distributions 

• distributions made by trusts that have made a family trust election or interposed entity election outside the relevant ‘family group’ that may trigger family trust distribution tax 

• eligibility to claim franking credit tax offsets where distributions are made to newly incorporated company beneficiaries that may not meet the 45 day holding rule.  

Division 7A  

Division 7A is predictably a key area of focus of the ATO. In particular, they are monitoring common risk areas, including: 

• failure to make required minimum yearly repayments

• non-complying (or non-existent) loan agreements 

• arrangements designed to circumvent Division 7A with guarantees of third-party loans by private companies. 

Other issues on the hit list 

The ATO has also shown interest in several areas, including: 

• lifestyle assets, which potentially raise various tax issues (for example, lifestyle assets being treated as business related, rather than person use assets, Division 7A and GST issues) 

• succession planning – the ATO are interested in mechanisms employed in relation to intergenerational wealth transfer where business restructures or transfers of assets are involved. 

Property and construction industry 

The property and construction industry remains a focus for the ATO.  

Areas of focus including: 

• capital vs revenue treatment  

• GST and margin scheme 

• Non-arm’s length dealings within entities in the same private group to reduce their taxable income 

• Failure to lodge or report sales or income (particularly subcontractors) as identified by the ATO through the TPAR. 

Other industries 

Other industries of focus include the following:  

• tax advisers and professional firms 

• private equity transactions and activities  

• retail operations 

• cross-border transactions 

• crypto assets  

• use of tax-exempt or concessionally taxed entities (super funds and not-for-profit entities, including ancillary funds). 

How SW can help 

The ATO is increasingly active in conducting reviews and audits of private groups. Being aware of these key focus areas is essential. Preparing in advance helps private groups manage risks effectively and maintain strong governance, which can minimise potential issues and ensure compliance. 

SW have deep experience in advising private groups on tax governance frameworks, processes, and the various areas of interest highlighted above. We also have extensive experience in managing ATO reviews and audits.  

Please contact us should we be able to assist in ensuring that your group is well prepared for any ATO review.

Contributor

Shu En Hwang

The post Private groups – ATO identifies key focus areas for FY25 & FY26 appeared first on SW Accountants & Advisors.

Join us in Sydney for our in-depth Pillar Two seminar, delivered by SW tax experts Daren Yeoh (Partner and Corporate & International Tax Director), Kirsty McDonnell (Tax Director), Antony Cheung (Associate Director). This interactive session will provide practical guidance on the OECD’s Global and Domestic Minimum Tax regime, equipping in-scope groups with the latest updates, compliance considerations, and real-world insights to help navigate the evolving global tax landscape.

This seminar will explore the following topics:

• Quick recap of the Pillar Two requirements
• Update on recent developments including the political understanding between the G7 Group and the US Government and the European High Court of the undertaxed profits rule
• Issues specific to the non-for-profit and funds management sector
• Implications for financial reporting and financial audits
• The impact of Australia being a jurisdiction subject to the undertaxed profits rule
• Key considerations for performing the Transitional Safe Harbour Calculations
• Case study walkthrough to assist with preparing for Pillar Two implementation including lodgements of Pillar Two Returns
• ATO public update on domestic forms

SW Speakers

Daren Yeoh
Partner and Corporate & International Tax Director

Kirsty McDonnell
Director, Tax

Antony Cheung
Associate Director, Tax

The post Practical Guidance on Complying with the Global and Domestic Minimum Tax (Pillar Two) Regime appeared first on SW Accountants & Advisors.

Our seminar was delivered in an interactive online format with SW Tax experts Daren Yeoh, Yang Shi, Kirsty McDonnell and Paul Hum. Our speakers equipped you with invaluable insights into the latest developments and emerging tax issues impacting corporate and international groups.

This seminar explored the following topics:

• An update on Pillar Two
• The Debt Deduction Creation Rule
• Notable recent tax cases including the Pepsi’s case
• Changes to the non-resident CGT regime
• Recent ATO rulings and guidance
• Developments in transfer pricing
• Other tax update

SW Speakers

Daren Yeoh
Partner and Corporate & International Tax Director

Kirsty McDonnell
Director, Tax

Yang Shi
Director, Tax

Paul Hum
Director, Tax

The post Corporate and International Tax update appeared first on SW Accountants & Advisors.

For the eighth year, we are delivering an interactive 5-part seminar series to aspiring and emerging leaders in the Property and Real Estate Credit Funds Management sectors, with direct access to leading industry experts and their experience, strategic industry insights and pitfalls, and key issues ranging from structuring, debt and equity through to legal and compliance.

Facilitated by our property funds specialists, featuring content developed alongside industry, each session featured practical working considerations and discussions with market leaders.

Series speakers

Industry speakers

• David Omond | KM Property Funds
• Charlie Renney | Hall & Wilcox
• Greg Sugars | Preston Rowe Paterson
• Bruce Corrin | CDC Property Consultancy
• Tim Slattery | ASA Real Estate Partners
• Adam Murchie | Forza Capital
• Georgia Liu | CBA
• Kevin Said | AUS Finance Group

SW speakers

Simon Tucker
Director, Tax 
SW

Rami Eltchelebi
Partner, Assurance and Advisory Services
SW 

Stephen O’Flynn
Director, Tax
SW

Abi Chellapen
Director, Tax 
SW

Sejla Kadric
Director, Business & Private Client Advisory 
SW

Luke Fernandes
Director, Tax
SW

Shaneel Kumar
Associate Director, Corporate Finance
SW

James Serpell
Associate Director, Assurance and Advisory Services 
SW

Contact us

If you have any queries or would like more information, please contact the Marketing team via marketing@sw-au.com.

The post Emerging Property Fund Managers’ Series appeared first on SW Accountants & Advisors.

Our seminar will be delivered in an interactive format with SW expert Daren Yeoh, Tax Director, Antony Cheung, Senior Tax Manager, Yang Shi, Tax Director and Christine Krause, Director, Audit & Assurance Services. Our speakers will equip you with invaluable insights into the latest developments in corporate and international income tax.

This seminar will explore the following topics:

• Updates on Corporate and International Income Tax: Stay ahead with in-depth discussions on recent changes, including revisions to the thin capitalisation regime, debt creation rules, Pillar 2 implications, and nuances in dealing with intangibles.
• Transfer pricing update: Gain clarity on changes to the CbC reporting requirements, ensuring you’re well-prepared for any forthcoming adjustments.
• Analysis of Develops in Case Law and ATO rulings: Delve into notable developments in case law and ATO Rulings to enhance your understanding of current legal precedents and their implications for corporate tax practices.
• Other changes: Gain insights into the recent changes affecting corporate groups, including the updates to the Payment Times Reporting Scheme (PTRS).

SW Speakers

Daren Yeoh
Partner and Corporate & International Tax Director

Yang Shi
Partner and Transfer Pricing Director

Christina Krause
Partner and Audit and Assurance Services Director

Antony Cheung
Senior Tax Manager

The post Corporate Tax Update appeared first on SW Accountants & Advisors.

Our experts provided an update on:

• New and topical developments including recent car parking case and ATO FBT compliance activity
• FBT recap and hot topics – including changes to hybrid electric vehicles and NFP exemption
• Global mobility – including flexible remote working arrangements and key employer considerations
• Payday superannuation
• Fair work changes – implications on employee v contractors
• Latest developments in payroll tax and audit activity
• Wage theft laws
• TASA change impact on clients

Expert speakers

Stephen O’Flynn
Director
SW

Paul Hum
Director
SW

Sam Morris
Director 
SW

Kirsty McDonnell
Director
SW

Vanessa Priest
Director 
SW

Justin Batticciotto
Associate Director 
SW

Rahul Sanghani
Associate Director 
SW

The post Employment Taxes Update 2025 appeared first on SW Accountants & Advisors.

He specialises in the Funds Management, Agribusiness, and Retail sectors, supporting clients to navigate regulatory change, investor expectations, and cross-border complexities. Luke has developed particular expertise in advising on agricultural investment structures, helping funds and investors optimise returns through effective tax strategies that address income tax, withholding tax, MIT/AMIT eligibility, and ESG-linked opportunities such as carbon credits.

Before becoming a Partner, Luke worked in the Business and Private Client Advisory division where he established a strong reputation as a trusted adviser to private family groups and mid-market businesses, leading numerous business consulting projects and tax engagements.

As Manager of the Financial Services Industry Group, Luke regularly presents to market participants and industry bodies. He leads our fund tax and accounting webinars, has delivered training to the Property Council of Australia, and spoken at Property Funds Association events.

Luke is also committed to community and professional development. He is an active member of the firm’s Community Opportunities Together Committee and has mentored many team members to manager roles across professional services and industry.

Luke’s experience includes: 

• Advising funds on structuring agricultural and real asset investments to achieve optimal tax outcomes for domestic and offshore investors
• Providing strategic tax advice on M&A transactions across agribusiness, funds management, and retail
• Advising on structuring for Australian and multinational groups, including inbound investment
• Delivering ongoing tax compliance services for listed and unlisted groups.

The post Luke Fernandes, Partner appeared first on SW Accountants & Advisors.

Mr. Duane Rogers, CEO and Partner of SW congratulates Luke on his appointment, stating, “Luke’s dedication and commitment to our clients and team have been exemplary. His involvement in mentoring, training, and participation in our Financial Services, Agribusiness, and Automotive industry groups showcases his leadership. Completing his Master of Tax Law recently further underscores his expertise in his field.”

National Head of Tax, Ms. Sam Morris adds, “Luke is recognised for his ability to navigate complex and technical issues with a personable approach that leads to excellent results. He is a problem solver and has significantly contributed to staff engagement, retention, and development.”

Since joining the firm in 2012 from BDO, Luke has moved from the Business and Private Client Advisory division to the Tax division. With 16 years of experience, he has built a strong reputation as a trusted advisor in Funds, Agribusiness, Automotive, and private family groups. As Manager of the Financial Services Industry Group, Luke has led property tax and accounting webinars and delivered technical training to the Property Council of Australia’s members. He regularly presents at the Property Funds Association Next Gen networking sessions in Melbourne and Sydney.

Luke is also an active member of the Agribusiness group and the firm’s Community Opportunities Together Committee, where he leads the Movember initiatives. He is dedicated to developing junior team members, mentoring many to achieve manager roles.

SW’s commitment to growth is demonstrated by our focus on senior leaders, creating pathways and an environment for their success. Mr. Rogers notes, “We invest in supporting great talent, equipping them with the tools to provide exceptional advice and support to clients and staff, and to become long-term leaders in the firm. I am confident Luke will add significant value in his new role.”

Luke’s promotion follows the appointments of Trent Godden-Minette, Kirsty McDonnell, Vanessa Priest, and Christine Krause earlier this year. SW now boasts 41 partners across Brisbane, Melbourne, Sydney, and Perth.

The post Media release | SW announces new partner promotion – Luke Fernandes appeared first on SW Accountants & Advisors.