Budget tax changes and new draft crypto guidance
The major development this month is the passage of a Bill through Parliament which deals with a range of measures, including the loss carry back tax offset and the permanent increase in the instant asset write off threshold to $20,000. However, the Bill was amended to also include some key modifications to the negative gearing reforms that apply from 1 July 2027.
We also look at some draft ATO guidance on the taxation of specific crypto asset transactions: TR 2026/D1 looks at issuing and receiving airdropped crypto assets while TD 2026/D2 looks at crypto wrapping contracts.
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Inside this month, Ann Dai (Tax Adviser), Michael Carruthers (Tax Director), and Amy Yan (Associate Tax Director) bring you:
The ATO is reminding super funds of their obligations under the new Payday Super regime.
Allocation timeframes
Under Payday Super, super funds must now allocate or return super contributions within 3 business days. This timeframe does not include the day the contribution is received.
‘Business day’ means any day that is not a Saturday, Sunday or public holiday in the fund’s location. For example, if a contribution is received on a Monday, then the fund has until Thursday to allocate or return it.
SMSFs will still have 28 calendar days after month-end to allocate or return the contribution received.
Payroll software
Practitioners should check whether their clients' payroll software supports Payday Super and the New Payments Platform (NPP), which enables faster payments to funds (businesses may need to contact their bank to update accounts for NPP payments). By now, many providers should offer:
These features help reduce errors and ensure super is paid in full, on time, and to the right fund. Where a provider doesn't offer these functions or can't confirm availability, clients should consider alternatives on the Super Product register (noting the register isn't exhaustive).
Missed payments
Clients who didn't pay their June quarter super on time should act immediately, as this may result in a quarterly debt. If the employee's fund didn't receive the full contribution by 28 July, clients should have lodged a SGC statement by 28 August and paid the SGC to the ATO, not the fund.
Any payments received on or after 29 July will be automatically allocated under Payday Super, even if intended for the June quarter shortfall.
The late payment offset (LPO) is not available for this final quarterly payment.
The ATO has issued website guidance on their motor vehicle registries data-matching program protocol.
The ATO uses data from state and territory motor vehicle registries to identify vehicles that have been sold, transferred or newly registered with a value of $10,000 or more.
The data can be used to identify potential undeclared income, capital gains and business transactions, as well as discrepancies between information reported to the ATO and vehicle ownership or transfer records. Practitioners should therefore ensure clients properly account for vehicle transactions and consider the relevant income tax, CGT and GST implications, particularly where vehicles are used in business or disposed of for consideration.
The ATO's current published protocol covers motor vehicle registry data for the 2016–17 to 2024–25 financial years.
Practitioners should remind clients that vehicle transactions may be cross-checked against ATO records, making accurate reporting and appropriate documentation of vehicle acquisitions, disposals and business use important.
The ATO has issued a draft ruling that looks at the income tax consequences for an Australian resident taxpayer of issuing or receiving crypto assets as the result of an airdrop.
An airdrop generally occurs when crypto assets are distributed to a holder’s wallet at no direct cost.
The draft ruling considers three key scenarios for both the issuer and the recipient of the asset.
1. Airdrops received in the course of a crypto trading business
Where the recipient is carrying on a business of trading crypto assets, the market value of the airdropped asset is assessable as ordinary income under section 6-5. This applies even where the airdrop may otherwise appear to be a gift or windfall.
Where the issuer is also carrying on a business of crypto asset trading and holds the relevant assets for sale or exchange in the ordinary course of that business, the assets will generally be treated as trading stock under Division 70.
2. Airdrops received in exchange for goods or services
Where an airdropped asset is provided in return for goods or services supplied by the recipient, the money value of the asset is assessable income under section 6-5, regardless of whether the recipient is carrying on a business.
For the issuer, the costs of acquiring or creating crypto assets distributed in exchange for goods or services may be deductible under section 8-1, subject to the usual requirements.
3. Airdrops received by retail investors
Where an individual is not carrying on a business of crypto trading, and the airdrop is not provided in return for services or otherwise connected with an income-producing activity, the market value of the asset will generally not be ordinary income when received. Instead, CGT event A1 will generally occur when the taxpayer later disposes of the asset.
For the issuer, CGT event A1 occurs when the asset is distributed. Where there are no capital proceeds, as is generally the case with an airdrop, the issuer is taken to have received the market value of the asset at the time of the event.
The draft ruling also considers situations where an individual receives an airdrop without their knowledge or consent. Even where the recipient does not carry on a crypto trading business, a capital gain may arise when the asset is subsequently disposed of. Where costs are incurred to remove or rectify unwanted assets in a wallet, those costs may form part of the asset's cost base in determining the resulting capital gain or loss.
The ruling also provides guidance on valuing airdropped assets, distinguishing a crypto trading business from a hobby, and applying the rules to practical examples.The ATO has issued a number of finalised Law Companion Rulings providing guidance on the operation of the Payday Super reforms, which commenced on 1 July 2026.
LCR 2026/1 explains how the application and savings provisions operate under the Superannuation Guarantee (Administration) Act 1992 following the introduction of Payday Super.
The ruling also covers the transitional arrangements supporting the move from the quarterly SG system to Payday Super. These provisions are designed to address potential timing differences, existing arrangements and overlapping obligations that may arise during the transition.
LCR 2026/2 provides guidance on the requirements for contributions to qualify as eligible contributions under the new Payday Super rules.
The ruling outlines the criteria a contribution must satisfy to be an eligible contribution and the relevant timeframes within which contributions must be received.
LCR 2026/3 provides an overview of how the superannuation guarantee charge (SGC) is calculated and assessed following the Payday Super amendments.