Tax Office Update

The Australian Tax Commissioners have laid out their compliance focus for the 2025–26 year. If you own assets or are considered wealthy by the ATO – watch out as you are on their radar.

We have revised our focus areas for 2025–26 to indicate where we will direct our compliance and engagement efforts for privately owned and wealthy groups.

Recently the ATO outlined the key priorities for this financial year, common mistakes they’re seeing, and topics they want to better understand to shape future engagement.

Why these areas matter

Private groups are becoming larger, more diverse, and more internationally active, and many face succession and wealth-transfer decisions as owners age. These changes increase tax complexity. Repeated compliance problems often arise from weak governance, inadequate internal controls, or poor-quality advice.

Key compliance priorities for 2025–26

•             Use of business funds for personal or group purposes: Close focus on Division 7A arrangements and treatment of lifestyle assets.

•             Succession planning and wealth transfers: Tax consequences when restructuring, disposing of assets, transferring wealth, or using arrangements intended to minimise tax.

•             Industry and activity risks: Higher scrutiny for property and construction, private equity, and international dealings.

•             Core tax obligations: Correctly reporting income, sales and capital gains; meeting eligibility rules for concessions and entitlements; timely lodgement of returns and payment of tax debts. Matching income to BAS where appropriate.

Expectations of private groups

Privately owned and wealthy groups are expected to pay the correct amount of tax and meet superannuation obligations. They have access to resources and advisers, so they are expected to lead by example and help keep the system fair. Tailored support will be offered through tax performance programs, but deliberate non-compliance and avoidance will attract consequences.

As more details are released Appleby Accountants will update this site.

Feel free to contact Steven Marsten and the team at Appleby Accountants on 07 3876 6211.

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