Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026

Contents

1Short title#

This Act is the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026.

2Commencement#

(1)Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

Commencement information
Column 1	Column 2	Column 3
Provisions	Commencement	Date/Details
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table	The day this Act receives the Royal Assent.	15 September 2026
2. Schedules 1, 2 and 3	The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent.	1 October 2026
3. Schedules 4 and 5	The day after this Act receives the Royal Assent.	16 September 2026
4. Schedules 6, 7 and 8	The first 1 January, 1 April, 1 July or 1 October to occur after the day this Act receives the Royal Assent.	1 October 2026

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

(2)Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3Schedules#

Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1 · Amendment of the Tax Agent Services Act 2009

Part 1 · Main amendments

Division 1—New Board powers to suspend registration #

Tax Agent Services Act 2009 #

1 Subsection 2-10(3)

After “can be”, insert “suspended or”.

2 Subsection 2-10(4)

After “civil penalties”, insert “, criminal offences, infringement notices and enforceable undertakings”.

3 Subsection 20-50(3)

After “section 30-25”, insert “or Division 40”.

4 Subsection 30-25(1) (note)

Omit “Note”, substitute “Note 1”.

5 At the end of subsection 30-25(1)

Add:

Note 2: The Board may also suspend your registration under Subdivision 40-A or under Subdivision 40-D (which is about interim suspensions).

6 Subsection 30-25(2)

After “suspension”, insert “under subsection (1)”.

7 Subsection 30-25(4)

After “suspended”, insert “under subsection (1)”.

8 Paragraph 30-25(4)(ac)

Omit “Termination”, substitute “Suspension and termination”.

9 Part 4 (heading)

Omit “Termination”, substitute “Suspension and termination”.

10 Division 40 of Part 4 (heading)

Omit “Termination”, substitute “Suspension and termination”.

11 Section 40-1

Repeal the section, substitute:

40-1What this Division is about#

Your registration may be suspended or terminated if an event occurs that affects your continued registration (see section 20-45), you cease to meet the tax practitioner registration requirements or you breach a condition of your registration.

If your registration is suspended, the Board must notify you of the action that you must take to lift the suspension.

If your registration is terminated, the Board may also determine a period during which you may not apply for registration.

The Board may also suspend your registration on an interim basis for a period of 90 days (which it may renew) if it is satisfied on reasonable grounds that you have engaged in certain serious misconduct and there may be a risk to your clients or it is in the public interest to do so.

12 Subdivision 40-A (heading)

Omit “terminating”, substitute “suspending or terminating”.

13 Section 40-5 (heading)

Omit “Termination”, substitute “Suspension or termination”.

14 Subsection 40-5(1)

After “Board may”, insert “suspend or”.

15 Subsection 40-5(1) (note)

After “Board may also”, insert “suspend or”.

16 Section 40-10 (heading)

Omit “Termination”, substitute “Suspension or termination”.

17 Subsection 40-10(1)

After “Board may”, insert “suspend or”.

18 Subsection 40-10(1) (note)

After “Board may also”, insert “suspend or”.

19 Section 40-15 (heading)

Omit “Termination”, substitute “Suspension or termination”.

20 Subsection 40-15(1)

After “Board may”, insert “suspend or”.

21 Subsection 40-15(1) (note)

After “Board may also”, insert “suspend or”.

22 At the end of Division 40

Add:

Subdivision 40-C · Notice and effect of suspension under Subdivision 40-A

Table of sections

40-30 Notice of suspension under Subdivision 40-A

40-35 Effect of suspension under Subdivision 40-A

40-40 Lifting a suspension under Subdivision 40-A

40-30Notice of suspension under Subdivision 40-A#

Notice must be given within 14 days

(1)If the Board suspends your registration under Subdivision 40-A, the Board must, within 14 days of the decision to suspend your registration, notify you in writing of:

(a)the decision and the reasons for the decision; and

(b)the action that you must take for the Board to lift the suspension.

However, a failure to notify does not affect the validity of the Board’s decision.

Note: The Board must cause notice of its decision to be published by notifiable instrument: see section 60-140.

Date of effect to be specified in notice

(2)The suspension takes effect on the day specified in the notice given under subsection (1). The day specified in the notice must be at least 14 days after the date of the notice.

Notifying the Commissioner

(3)The Board must also notify the Commissioner of the Board’s decision, the reasons for the decision and the actions required to lift the suspension.

40-35Effect of suspension under Subdivision 40-A#

(1)You must not provide *tax agent services during a period of suspension under Subdivision 40-A.

Note: If you provide tax agent services while suspended, you may contravene a civil penalty provision: see subsection (2) and Subdivision 50-A.

(2)While you are suspended under Subdivision 40-A, you are taken not to be a *registered tax agent or BAS agent, except for the purposes of:

(a)Part 2 (Registration); and

(b)Division 30 (Code of Professional Conduct); and

(c)section 60-25 (Appointment of Tax Practitioner Board members); and

(d)this Part.

40-40Lifting a suspension under Subdivision 40-A#

(1)If your registration has been suspended under Subdivision 40-A, you may apply to the Board for the suspension to be lifted.

(2)An application under subsection (1) must:

(a)state that the action mentioned in paragraph 40-30(1)(b) has been taken; and

(b)be accompanied by evidence of the action having been taken; and

(c)be accompanied by any documents that are required by the Board.

(3)The Board must lift a suspension of registration if satisfied that the action mentioned in paragraph 40-30(1)(b) has been taken.

(4)If the Board lifts a suspension of registration, the Board must, within 30 days of the decision to lift the suspension, notify you in writing of the decision.

(5)The lifting of a suspension takes effect on the day after the day on which notice under subsection (4) is given.

(6)The Board must also notify the Commissioner of the Board’s decision to lift a suspension, the reasons for it and the actions that were taken to lift it.

Subdivision 40-D · Interim suspension of registration

Table of sections

40-45 Interim suspension of registration

40-50 Notice of interim suspension

40-55 Effect of interim suspension

40-45Interim suspension of registration#

(1)If you are a *registered tax agent or BAS agent, the Board may suspend your registration if the Board is satisfied on reasonable grounds that:

(a)you have engaged in conduct that may constitute:

(i)an offence against a *taxation law; or

(ii)a contravention of a civil penalty provision that is in a taxation law; and

(b)having regard to the conduct, either:

(i)there is or may be a significant risk that one or more of your clients will suffer material loss or damage if your registration is not suspended; or

(ii)it is in the public interest to suspend your registration because there is or may be a significant risk to the revenue of the Commonwealth, the integrity of the tax system or the integrity of the tax profession.

(2)The period of suspension is 90 days or a lesser period determined by the Board.

(3)The Board is not required to observe any requirements of the natural justice hearing rule in exercising the power under subsection (1).

(4)The Board may extend the period of suspension for a further period or further periods of 90 days or less determined by the Board if:

(a)the Board is satisfied on reasonable grounds of the matters mentioned in paragraphs (1)(a) and (b); and

(b)an investigation under Subdivision 60-E about the conduct mentioned in subsection (1) has commenced.

(5)A decision under subsection (4) must be made not less than 7 days before the day on which the period of suspension ends.

(6)If, during the period of suspension, the Board makes a decision under subsection 60-125(2) in respect of the conduct, the suspension ends at the time the Board makes the decision.

40-50Notice of interim suspension#

Notice must be given within 7 days

(1)If the Board suspends your registration under this Subdivision, the Board must, within 7 days of the decision to suspend your registration, notify you in writing of the decision.

Note: Interim suspensions do not require notice of reasons.

(2)If the Board extends a period of suspension of your registration under this Subdivision, the Board must, within 7 days of the decision to extend the suspension, notify you in writing of the decision.

Suspension takes effect on day after notice is given

(3)The suspension takes effect on the day after the day on which notice under subsection (1) is given.

(4)However, a failure to notify under subsection (1) or (2) does not affect the validity of the Board’s decision.

Extension of suspension takes effect immediately

(5)An extension of a suspension takes effect immediately after the suspension period ends.

Notifying the Commissioner

(6)The Board must also notify the Commissioner of either or both of the following decisions and the reasons for it:

(a)a decision under this Subdivision to suspend your registration;

(b)a decision under this Subdivision to extend the period of a suspension of your registration.

40-55Effect of interim suspension#

(1)You must not provide *tax agent services during a period of suspension under this Subdivision.

Note: If you provide tax agent services while suspended, you may contravene a civil penalty provision: see subsection (2) and Subdivision 50-A.

(2)While you are suspended under this Subdivision, you are taken not to be a *registered tax agent or BAS agent, except for the purposes of:

(a)Part 2 (Registration); and

(b)Division 30 (Code of Professional Conduct); and

(c)section 60-25 (Appointment of Tax Practitioner Board members); and

(d)this Part.

23 Subsection 60-25(6) (note)

Omit “subsection 30-25(4)”, substitute “subsections 30-25(4), 40-35(2) and 40-55(2)”.

24 Subparagraph 60-125(2)(b)(ii)

Omit “terminate”, substitute “suspend or terminate”.

25 At the end of paragraph 60-125(2)(b)

Add:

; (vi) refer the matter to the Director of Public Prosecutions, the Australian Federal Police or a police force of a State or Territory for action in relation to possible criminal offences.

26 Subsection 60-125(2) (note 1)

Repeal the note, substitute:

Note 1: The Board must not do the following in relation to a failure to comply with the Code of Professional Conduct without conducting an investigation under this Subdivision:

(a) impose sanctions under Subdivision 30-B;

(b) apply to the Federal Court for a civil penalty order;

(d) accept an enforceable undertaking.

Note 2: The Board may do the following in relation to certain other contraventions of this Act with or without conducting an investigation under this Subdivision:

(a) apply to the Federal Court for a civil penalty order;

(b) issue an infringement notice;

(d) suspend or terminate registration under Subdivision 40-A;

(e) suspend registration under Subdivision 40-D;

(f) apply to the Federal Court for an injunction.

27 Subsection 60-125(2) (note 2)

Renumber as note 3.

28 Paragraph 60-125(8)(a)

After “subsection (2)”, insert “(other than a decision under subparagraph (b)(vi))”.

29 After paragraph 60-140(b)

Insert:

(c)a decision under Subdivision 40-A to suspend the registration of a registered tax agent or BAS agent;

(d)a decision under subsection 40-40(3) to lift a suspension under Subdivision 40-A;

(e)a decision under Subdivision 40-D to suspend the registration of a registered tax agent or BAS agent (interim suspension) or a decision under that Subdivision to extend an interim suspension.

30 After paragraph 70-10(ga)

Insert:

(gb)a decision under Subdivision 40-A to suspend registration of a registered tax agent or BAS agent;

31 Paragraphs 70-10(h) to (i)

Repeal the paragraphs, substitute:

(h)a decision under subsection 40-25(1) to determine a period during which an application for registration must not be made;

(ha)a decision under subsection 40-40(3) not to lift a suspension of registration;

(hb)a decision under Subdivision 40-D to extend an interim suspension;

(hc)a decision under section 45-5 to reject an application for approval to employ, or use the services of, a *disqualified entity;

(hd)a decision under subparagraph 60-125(2)(b)(v) that an entity, and certain information in respect of the entity, be entered on the register kept under section 60-135 for a period;

(i)a decision under subsection 60-125(4) to extend the period of time within which an investigation is to be completed.

32 Subsection 70-30(1)

Omit “subsections (1A) and (2)”, substitute “subsections (1A), (2) and (2B)”.

33 After subsection 70-30(2A)

Insert:

Powers to make interim suspension

(2B)The power to suspend the registration of a *registered tax agent or BAS agent under Subdivision 40-D:

(a)must not be delegated under paragraph (1)(a), (c) or (d) of this section; and

(b)may be delegated to a *committee under paragraph (1)(b) of this section only if:

(i)the committee has 3 members or more; and

(ii)all members of the committee are *Board members.

34 Subsection 90-1(1) (note to the definition of registered BAS agent)

Omit “services under section 30-25”, substitute “services, see sections 30-25, 40-35 and 40-55”.

35 Subsection 90-1(1) (note to the definition of registered tax agent)

Omit “services under section 30-25”, substitute “services, see sections 30-25, 40-35 and 40-55”.

Division 2—New civil penalty provisions and related matters #

Tax Agent Services Act 2009 #

36 At the end of subsection 30-15(2)

Add:

Note: Failing to comply with the Code of Professional Conduct is also a civil penalty provision: see section 50-31. However, the Board must not apply to the Federal Court for an order for a civil penalty order unless it has conducted an investigation under Subdivision 60-E: see subsection 50-35(4).

37 Section 50-1

After “or represent yourself as registered”, insert “You may also contravene a civil penalty provision if you are unregistered and you provide tax agent services and you make misleading statements to the Commissioner or the Board.”.

38 Section 50-1

Omit “You also contravene”, substitute “You contravene”.

39 Section 50-1

Omit “, or sign a declaration”, substitute “, sign a declaration”.

40 Section 50-1

Omit “or BAS agent.”, substitute “or BAS agent, or fail to comply with the Code of Professional Conduct.”.

41 After section 50-20

Insert:

50-21False or misleading statements made to Commissioner or Board by unregistered persons#

(1)You contravene this subsection if:

(a)you provide a service that you know, or ought reasonably to know, is a *tax agent service; and

(b)you are not a *registered tax agent or BAS agent; and

(c)you:

(i)make a statement to the Commissioner or Board; or

(ii)you prepare a statement that you know, or ought reasonably to know, is likely to be made to the Commissioner or Board by an entity; and

(d)you know, or are reckless as to whether, the statement:

(i)is false, incorrect or misleading in a material particular; or

(ii)omits any matter or thing without which the statement is misleading in a material respect; and

(e)if you provide the tax agent service as a legal service—either:

(i)you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that tax agent service; or

(ii)subject to subsection (3), the service consists of preparing, or lodging, a return or a statement in the nature of a return.

Note 1: Subdivision 50-C of this Act and Subdivision 298-B of Schedule 1 to the Taxation Administration Act 1953 determine the procedure for obtaining a civil penalty order against you.

Note 2: In some circumstances, it is an offence to recklessly make a false or misleading statement under sections 8K and 8N of the Taxation Administration Act 1953.

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

(2)You contravene this subsection if:

(a)you provide a service that you know, or ought reasonably to know, is a *BAS service; and

(b)you are not a *registered tax agent or BAS agent; and

(c)you:

(i)make a statement to the Commissioner or Board; or

(ii)you prepare a statement that you know, or ought reasonably to know, is likely to be made to the Commissioner or Board by an entity; and

(d)you know, or are reckless as to whether, the statement:

(i)is false, incorrect or misleading in a material particular; or

(ii)omits any matter or thing without which the statement is misleading in a material respect; and

(e)if you provide the BAS service as a legal service—either:

(i)you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that BAS service; or

(ii)subject to subsection (4), the service consists of preparing, or lodging, a return or a statement in the nature of a return.

Note 1: Subdivision 50-C of this Act and Subdivision 298-B of Schedule 1 to the Taxation Administration Act 1953 determine the procedure for obtaining a civil penalty order against you.

Note 2: In some circumstances, it is an offence to recklessly make a false or misleading statement under sections 8K and 8N of the Taxation Administration Act 1953.

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

(3)Subparagraph (1)(e)(ii) does not apply if you provide the *tax agent service as a legal service in the course of acting for a trust or deceased estate as trustee or *legal personal representative.

(4)Subparagraph (2)(e)(ii) does not apply if you provide the *BAS service as a legal service in the course of acting for a trust or deceased estate as trustee or *legal personal representative.

42 Subsections 50-30(3) and (4) (note 1)

Omit “section 50-40”, substitute “section 70-20”.

43 At the end of Subdivision 50-B

Add:

50-31Failure to comply with Code of Professional Conduct#

You contravene this section if:

(a)you are a *registered tax agent or BAS agent; and

(b)you fail to comply with the *Code of Professional Conduct.

Note: Subdivision 50-C of this Act and Subdivision 298-B in Schedule 1 to the Taxation Administration Act 1953 determine the procedure for obtaining a civil penalty order against you.

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

44 Subsection 50-35(2)

Repeal the subsection, substitute:

(2)If the *Federal Court is satisfied that you have contravened a civil penalty provision, the Federal Court may order you to pay to the Commonwealth, for each contravention, the pecuniary penalty that the Federal Court determines is appropriate, but not more than:

(a)if you are a *significant global entity—the maximum amount specified for a body corporate for the provision; or

(b)in any other case—the maximum amount specified for the provision.

45 At the end of section 50-35

Add:

Application for order for breach of Code of Professional Conduct

(4)The Board must not make an application under subsection (1) for an order in relation to a contravention of section 50-31 unless the Board is satisfied, after conducting an investigation under Subdivision 60-E, that you have failed to comply with the *Code of Professional Conduct.

46 Section 50-40

Repeal the section.

47 Subsection 90-1(1)

Insert:

civil penalty provision means a subsection, or a section that is not divided into subsections, of this Act that has set out at its foot the words “civil penalty” and one or more amounts in penalty units.

Division 3—New criminal offences, infringement notices and enforceable undertakings #

Tax Agent Services Act 2009 #

48 Part 5 (heading)

Repeal the heading, substitute:

Part 5 · Enforcement

49 At the end of Part 5

Add:

Division 51 · Criminal offences

Table of Subdivisions

51-A Conduct that is prohibited without registration

51-1What this Division is about#

This Division contains criminal offences.

It is a criminal offence to provide tax agent services or BAS services if you are unregistered and you provide them for a fee.

It is also an offence to advertise that you can provide such services if you are unregistered or to represent that you are a registered tax agent or BAS agent if it is untrue.

Subdivision 51-A · Conduct that is prohibited without registration

Table of sections

51-5 Providing tax agent services (other than BAS services) if unregistered

51-10 Providing BAS services if unregistered

51-15 Advertising tax agent services (other than BAS agent services) if unregistered

51-20 Advertising BAS services if unregistered

51-25 Representing that you are a registered tax agent or BAS agent if unregistered

51-5Providing tax agent services (other than BAS services) if unregistered#

Fault-based offence

(1)You commit an offence if:

(a)you provide a *tax agent service; and

(b)the tax agent service is not a *BAS service or a *tax (financial) advice service; and

(c)you charge or receive a fee or other reward for providing the tax agent service; and

(d)you are not a *registered tax agent; and

(e)if you provide the tax agent service as a legal service—either:

(i)you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that tax agent service; or

(ii)the service consists of preparing, or lodging, a return or a statement in the nature of a return.

Penalty: 200 penalty units or imprisonment for 40 months, or both.

(2)Strict liability applies to paragraphs (1)(c) and (d).

Exception

(3)Subparagraph (1)(e)(ii) does not apply if you provide the *tax agent service as a legal service in the course of acting for a trust or deceased estate as trustee or *legal personal representative.

Note: A defendant bears an evidential burden in relation to the matter in subsection (3): see subsection 13.3(3) of the Criminal Code.

51-10Providing BAS services if unregistered#

Fault-based offence

(1)You commit an offence if:

(a)you provide a *BAS service; and

(b)you charge or receive a fee or other reward for providing the BAS service; and

(c)you are not a *registered tax agent or BAS agent; and

(d)if you provide the BAS service as a legal service—either:

(i)you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that BAS service; or

(ii)the service consists of preparing, or lodging, a return or a statement in the nature of a return; and

(e)if the BAS service relates to imports or exports to which an *indirect tax law applies—you are not a customs broker licensed under Part XI of the Customs Act 1901.

Penalty: 200 penalty units or imprisonment for 40 months, or both.

(2)Strict liability applies to paragraphs (1)(b) and (c).

(3)Subparagraph (1)(d)(ii) does not apply if you provide the *BAS service as a legal service in the course of acting for a trust or deceased estate as trustee or *legal personal representative.

Note: A defendant bears an evidential burden in relation to the matter in subsection (4): see subsection 13.3(3) of the Criminal Code.

51-15Advertising tax agent services (other than BAS agent services) if unregistered#

Fault-based offence

(1)You commit an offence if:

(a)you advertise that you will provide a *tax agent service; and

(b)the tax agent service is not a *BAS service or a *tax (financial) advice service; and

(c)you are not a *registered tax agent; and

(d)if the tax agent service would be provided as a legal service—either:

(i)you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that tax agent service; or

(ii)the service would consist of preparing, or lodging, a return or a statement in the nature of a return; and

(e)if the tax agent service would be provided on a voluntary basis—you would not provide the service under a scheme that the Commissioner has approved by notifiable instrument made under section 70-53.

Penalty: 200 penalty units or imprisonment for 40 months, or both.

(2)Strict liability applies to paragraph (1)(c).

Exception

(3)Subparagraph (1)(d)(ii) does not apply if you would provide the *tax agent service as a legal service in the course of acting for a trust or deceased estate as trustee or *legal personal representative.

Note: A defendant bears an evidential burden in relation to the matter in subsection (3): see subsection 13.3(3) of the Criminal Code.

51-20Advertising BAS services if unregistered#

Fault-based offence

(1)You commit an offence if:

(a)you advertise that you will provide a *BAS service; and

(b)you are not a *registered tax agent or BAS agent; and

(c)if the BAS service would be provided as a legal service—either:

(i)you are prohibited, under a *State law or *Territory law that regulates legal practice and the provision of legal services, from providing that BAS service; or

(ii)the service would consist of preparing, or lodging, a return or a statement in the nature of a return; and

(d)if the BAS service relates to imports or exports to which an *indirect tax law applies—you are not a customs broker licensed under Part XI of the Customs Act 1901; and

(e)if the BAS service would be provided on a voluntary basis—you would not provide the service under a scheme that the Commissioner has approved by notifiable instrument made under section 70-53.

Penalty: 200 penalty units or imprisonment for 40 months, or both.

(2)Strict liability applies to paragraph (1)(b).

Exception

(3)Subparagraph (1)(c)(ii) does not apply if you would provide the *BAS service as a legal service in the course of acting for a trust or deceased estate as trustee or *legal personal representative.

Note: A defendant bears an evidential burden in relation to the matter in subsection (3): see subsection 13.3(3) of the Criminal Code.

(4)The Commissioner may, by notifiable instrument, approve a scheme for the purposes of paragraph (1)(e).

51-25Representing that you are a registered tax agent or BAS agent if unregistered#

(1)You commit an offence if:

(a)you represent that you are a *registered tax agent or BAS agent; and

(b)you are not a registered tax agent or BAS agent.

Penalty: 200 penalty units or imprisonment for 40 months, or both.

(2)Strict liability applies to paragraph (1)(b).

Division 52 · Infringement notices and enforceable undertakings

Table of Subdivisions

52-A Infringement notices

52-B Enforceable undertakings

52-1What this Division is about#

Under Part 5 of the Regulatory Powers Act, the Board may issue you with an infringement notice for the alleged contravention of certain provisions in this Act.

Under Part 6 of the Regulatory Powers Act, the Board may accept and enforce undertakings from you to comply with certain provisions of this Act.

Subdivision 52-A · Infringement notices

Table of sections

52-5 Infringement notices

52-5Infringement notices#

Provisions subject to an infringement notice

(1)The following provisions are subject to an infringement notice under Part 5 of the Regulatory Powers Act:

(a)subsections 50-5(1) and (2) (providing tax agent services if unregistered);

(b)subsections 50-10(1) and (2) (advertising tax agent services if unregistered);

(c)section 50-15 (representing that you are a registered tax agent or BAS agent if unregistered);

(d)section 50-17 (providing tax (financial) advice services if not registered);

(e)section 50-18 (advertising tax (financial) advice services if not registered or qualified);

(f)subsections 50-30(1), (2), (3) and (4) (signing of declarations etc.).

(2)Section 50-31 (failure to comply with *Code of Professional Conduct) is also subject to an infringement notice under Part 5 of the Regulatory Powers Act if a contravention of it is:

(a)constituted by a failure to comply with any of the following:

(i)subsection 30-10(2) (compliance with taxation laws in conduct of personal affairs);

(ii)subsection 30-10(3) (accounting to client for money or property held on trust);

(iii)subsection 30-10(6) (disclosure of client information);

(iv)subsection 30-10(8) (maintaining knowledge and skills);

(v)subsection 30-10(12) (advising client of rights and obligations);

(vi)subsection 30-10(13) (maintaining professional indemnity insurance);

(vii)subsection 30-10(14) (responding to Board requests and directions); or

(b)constituted by a failure to comply with subsection 30-10(17) (failure to comply with obligation determined under section 30-12) in relation to the following obligations determined under section 30-12:

(i)an obligation to maintain confidentiality in dealings with government;

(ii)an obligation to keep proper client records;

(iii)an obligation to keep clients informed; or

(c)constituted by a failure to comply with a provision of the Code of Professional Conduct that is prescribed by the regulations.

Note: Part 5 of the Regulatory Powers Act creates a framework for using infringement notices in relation to provisions.

Infringement officer

(3)For the purposes of Part 5 of the Regulatory Powers Act:

(a)a *Board member is an infringement officer in relation to the provisions mentioned in subsections (1) and (2); and

(b)a person authorised under subsection (4) is an infringement officer in relation to the provisions mentioned in subsection (1).

(4)The *Chair may, by writing, authorise a person who is an SES employee, or an acting SES employee, whose services are made available to the Board by the Commissioner to be an infringement officer in relation to the civil penalty provisions mentioned in subsection (1).

Note: The expressions SES employee and acting SES employee are defined in section 2B of the Acts Interpretation Act 1901.

Relevant chief executive

(5)For the purposes of Part 5 of the Regulatory Powers Act, the *Chair is the relevant chief executive in relation to the provisions mentioned in subsections (1) and (2).

(6)The relevant chief executive may, in writing, delegate to a *Board member the relevant chief executive’s powers and functions:

(a)under Part 5 of the Regulatory Powers Act in relation to the provisions mentioned in subsection (1); and

(b)under section 105 of the Regulatory Powers Act in relation to the provisions mentioned in subsection (2).

(7)The relevant chief executive may delegate to a person authorised under subsection (4) a power or function under section 105 of the Regulatory Powers Act in relation to the provision mentioned in subsection (1) or (2).

(8)A person who does either or both of the following must comply with any directions of the *Board or a *committee:

(a)issues an infringement notice in relation to a provision mentioned in subsection (2);

(b)exercises powers or performs functions under a delegation under subsection (6) or (7).

Infringement notices for provisions mentioned in subsection (2)

(9)An infringement officer must not issue an infringement notice under Part 5 of the Regulatory Powers Act to a person in relation to a provision mentioned in subsection (2) unless:

(a)the *Board is satisfied, after conducting an investigation under Subdivision 60-E, that the person has failed to comply with the *Code of Professional Conduct; and

(b)the failure relates to the provision for which the infringement notice will be issued.

Time limit for giving an infringement notice

(10)Despite subsection 103(2) of the Regulatory Powers Act, an infringement notice must be given under that subsection within 2 years (not 12 months) of the alleged contravention of a provision mentioned in paragraph (1)(a), (b), (c), (d) or (e).

Subdivision 52-B · Enforceable undertakings

Table of sections

52-10 Enforceable undertakings

52-10Enforceable undertakings#

Enforceable provisions

(1)The provisions of this Act are enforceable under Part 6 of the Regulatory Powers Act.

Note: Part 6 of the Regulatory Powers Act creates a framework for accepting and enforcing undertakings relating to compliance with provisions.

Authorised person

(2)For the purposes of Part 6 of the Regulatory Powers Act, each *Board member is an authorised person in relation to the provisions mentioned in subsection (1).

(3)An authorised person exercising powers or performing functions under subsection (2) must comply with any directions of the *Board or a *committee.

(4)An authorised person must not accept an enforceable undertaking under Part 6 of the Regulatory Powers Act from a person in relation to a failure to comply with the *Code of Professional Conduct unless:

(a)the *Board is satisfied, after conducting an investigation under Subdivision 60-E, that the person has failed to comply with the Code of Professional Conduct; and

(b)the failure relates to the provision for which the enforceable undertaking would be accepted.

Relevant court

(5)For the purposes of Part 6 of the Regulatory Powers Act, the *Federal Court is the relevant court in relation to the provisions mentioned in subsection (1).

50 After subparagraph 60-125(2)(b)(iii)

Insert:

(iiia)issue an infringement notice under Subdivision 52-A;

(iiib)accept an enforceable undertaking under Subdivision 52-B;

51 Section 70-15

Before “This Act”, insert “(1)”.

52 At the end of section 70-15

Add:

Civil penalties—significant global entities

(2)Despite subsection (1), the civil penalty that may be imposed on an individual who contravenes a civil penalty provision in the capacity of a trustee of a trust that is a *significant global entity must not exceed the maximum penalty that could be imposed on a body corporate for the same contravention.

53 Section 70-20 (heading)

Repeal the heading, substitute:

70-20Treatment of partnerships#

54 After the heading to section 70-20

Insert:

Continuity of partnerships

55 Section 70-20

Before “For the”, insert “(1)”.

56 At the end of section 70-20

Add:

Civil penalties

(2)If a partnership contravenes a civil penalty provision, each partner in the partnership, at the time of the conduct constituting the contravention, is taken to have contravened the civil penalty provision unless the partner proves, on the balance of probabilities, that the partner:

(a)did not engage in the conduct; and

(b)did not aid, abet, counsel or procure the conduct; and

(c)was not in any way knowingly concerned in, or party to, the conduct (whether directly or indirectly or whether by any act or omission of the partner).

(3)If a partnership contravenes a civil penalty provision, the civil penalty that may be imposed on each partner in the partnership:

(a)if the partner is an individual and paragraph (b) does not apply—must not exceed an amount equal to one-fifth of the maximum penalty that could be imposed on a body corporate for the same contravention; and

(b)if the partner is an individual and the partnership is a *significant global entity—must not exceed the maximum penalty that could be imposed on a body corporate for the same contravention; and

(c)in any other case—must not exceed the maximum penalty that could be imposed on a body corporate for the same contravention.

Obligations or duties

(4)If Division 51 (Criminal offences) purports to impose on the partnership an obligation or duty not to do a thing, the obligation or duty is imposed on each partner in the partnership at the time the obligation or duty arises or is in operation.

Offences

(5)An offence against a provision of Division 51 does not apply to the partnership but is instead committed by each partner in the partnership:

(a)who did the relevant acts or made the relevant omissions; and

(b)in relation to each physical element of the offence that has a fault element—where that fault element exists in relation to the partner.

No limit on operation of ancillary provisions

(6)This section does not limit the operation of Division 11 of the Criminal Code in relation to an offence against a provision of Division 51.

57 After section 70-50

Insert:

70-53Commissioner may make notifiable instruments#

The Commissioner may, by notifiable instrument, approve a scheme for the purposes of the following paragraphs:

(a)paragraph 50-10(1)(e);

(b)paragraph 50-10(2)(e);

(c)paragraph 51-15(1)(e);

(d)paragraph 51-20(1)(e).

58 Subsection 90-1(1)

Insert:

Regulatory Powers Act means the Regulatory Powers (Standard Provisions) Act 2014.

Division 4—Consequential and other amendments #

Tax Agent Services Act 2009 #

59 Subsection 40-25(1)

Omit “5 years”, substitute “10 years”.

60 Subsection 45-5(2)

Omit “5 years”, substitute “10 years”.

61 Subsection 70-5(1)

After “civil penalty provision”, insert “or may constitute an offence”.

Part 2 · Increasing amounts of existing civil penalties

Tax Agent Services Act 2009 #

62 Subsections 45-10(3), 45-15(3) and 45-20(3) (penalty)

Repeal the penalty, substitute:

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

63 Subsections 50-5(1) and (2) and 50-10(1) and (2) (penalty)

Repeal the penalty, substitute:

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

64 Section 50-15 (penalty)

Repeal the penalty, substitute:

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

65 Sections 50-17 and 50-18 (penalty)

Repeal the penalty, substitute:

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

66 Sections 50-20 (penalty)

Repeal the penalty, substitute:

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

67 Subsection 50-25(1) (penalty)

Repeal the penalty, substitute:

Civil penalty:

(a)for an individual—2,500 penalty units; and

(b)for a body corporate—50,000 penalty units.

68 Subsections 50-30(1) and (2) (penalty)

Omit “250”, substitute “2,500”.

69 Subsections 50-30(3) and (4) (penalty)

Omit “1,250”, substitute “50,000”.

Part 3 · Application of amendments

70 Application

The amendments of the Tax Agent Services Act 2009 made by this Schedule apply in relation to conduct engaged in on or after the commencement of this Schedule.

71 Savings

An instrument made for the purposes of paragraph 50-10(1)(e) or (2)(e) of the Tax Agent Services Act 2009 that was in force immediately before the commencement of this Schedule continues in force (and may be dealt with) as if it had been made under section 70-53 of that Act as inserted by this Schedule.

Schedule 2 · Strengthening the foreign resident CGT regime

Part 1 · Amendments

Income Tax Assessment Act 1997 #

1 Paragraph 26-105(3)(b)

Omit “real property (within the meaning of that section of that Act)”, substitute “*real property”.

2 Subsection 35-40(1)

Omit “real property or interests”, substitute “*real property or interests”.

3 Subsection 35-40(2)

Omit “real property”, substitute “*real property”.

4 Paragraph 35-45(4)(a)

Omit “real property or interests”, substitute “*real property or interests”.

5 Subparagraph 40-27(4)(c)(ii)

Omit “real property”, substitute “*real property”.

6 Subparagraph 230-460(2)(d)(i)

Omit “real property”, substitute “*real property”.

7 Subparagraph 250-30(1)(a)(i)

Omit “real property”, substitute “*real property”.

8 Subparagraph 250-80(a)(i)

Omit “real property”, substitute “*real property”.

9 Paragraph 250-115(5)(a)

Omit “asset is real property”, substitute “asset is *real property”.

10 Paragraph 250-115(6)(b)

Omit “asset is real property”, substitute “asset is *real property”.

11 Section 855-1 (paragraph beginning “A foreign resident”)

After “real property”, insert “or closely related interests”.

12 Paragraph 855-5(2)(b)

Omit “Australian real property”, insert “Australian *real property or closely related interests”.

13 Section 855-15 (table item 4, column headed “Description”)

Omit “1,”.

14 Paragraph 855-20(a)

Repeal the paragraph, substitute:

(a)*real property that:

(i)is situated in Australia; or

(ii)relates to land situated in Australia; or

(iii)relates to a thing (or combination of things) fixed or installed on land situated in Australia; or

15 At the end of section 855-20

Add:

; or (c) a *water entitlement in relation to a water resource situated in Australia; or

(d)an option or right to *acquire a CGT asset covered by any of the preceding paragraphs.

16 Paragraph 855-25(1)(b)

Repeal the paragraph, substitute:

(b)the interest passes the principal asset test in section 855-30:

(i)unless subparagraph (ii) applies—at that time or at any time during the period of 365 days preceding that time; or

(ii)if a time determined under subsection (1A) applies—at any time determined under that subsection.

17 After subsection 855-25(1)

Insert:

(1A)The Minister may, by legislative instrument, determine the circumstances in which a specified time applies for the purposes of subparagraph (1)(b)(ii).

18 Subsection 855-30(1)

Omit “Australian real property”, insert “Australian *real property or closely related interests”.

19 At the end of section 855-30

Add:

(6)For the purposes of this section (and section 855-32 as it applies in relation to this section), treat *mining, quarrying or prospecting information relating to an area in Australia as if it were *taxable Australian real property.

20 Subsection 995-1(1)

Insert:

real property includes the following:

(a)any interest in or right over land (regardless of how that interest or right is treated for the purposes of any *State law or *Territory law);

(b)a personal right to call for or be granted any interest in or right over land;

(c)a licence or contractual right exercisable over or in relation to land;

(d)a thing (or combination of things) that is fixed or installed on land (whether or not it is a fixture, or treated in any other way, for the purposes of any State law or Territory law or at general law);

(e)a lease of a thing mentioned in paragraph (d);

(f)a licence or contractual right exercisable over a thing mentioned in paragraph (d).

International Tax Agreements Act 1953 #

21 Subsection 3(5)

Repeal the subsection, substitute:

(5)To the extent that an agreement provides that the expression real property, immovable property or land has the meaning it has under the law of Australia, for the purposes of that agreement, that expression means taxable Australian real property within the meaning of the Income Tax Assessment Act 1997.

Taxation Administration Act 1953 #

22 Paragraph 14-210(1)(d)

Omit “in the regulations”, substitute “under paragraph (6)(a)”.

23 Paragraph 14-210(3)(b) in Schedule 1

Repeal the paragraph, substitute:

(b)at no time during the period starting when you are given the declaration, and ending immediately before you become the owner of the CGT asset, do you know, or could you reasonably be expected to know, the declaration to be false; and

24 At the end of subsection 14-210(3) in Schedule 1

Add:

; and (d) for a declaration given under subsection 14-225(2):

(i)the requirements in subsection (4) of this section are satisfied in relation to the declaration; or

(ii)the total of the amounts that would be determined in accordance with subparagraphs 14-200(3)(a)(i) and (ii) in relation to the transaction and any related transactions that have been or are being undertaken (assuming those subparagraphs applied) is less than $50 million; or

(iii)the transaction is of a kind specified under paragraph (6)(b), or circumstances specified under that paragraph apply to the transaction.

25 At the end of section 14-210 in Schedule 1

Add:

(4)For the purposes of subparagraph (3)(d)(i), the requirements are that:

(a)the entity gave the Commissioner a notice under subsection 14-226(1) in relation to the declaration:

(i)if the period mentioned in subsection (5) of this section is more than 31 days—at least 28 days before the end of the period; or

(ii)if the period mentioned in that subsection is not more than 31 days—before, or as soon as reasonably practicable after, the start of the period but before the end of the period; and

(b)the entity gave you a declaration under subsection 14-225(2A) in relation to the notice before you became the owner of the *CGT asset.

(5)For the purposes of paragraph (4)(a), the period:

(a)starts when the transaction is entered into; and

(b)ends immediately before you became the owner of the *CGT asset.

(6)The Minister may, by legislative instrument, make a determination:

(a)for the purposes of paragraph (1)(d), specifying a kind of connection outside Australia for an entity; or

(b)for the purposes of subparagraph (3)(d)(iii), specifying a kind of transaction, or specifying circumstances applicable to the transaction.

26 After subsection 14-225(2) in Schedule 1

Insert:

(2A)An entity may, in writing, declare:

(a)that the entity has given the Commissioner notice under subsection 14-226(1) in respect of a particular declaration under subsection (2); and

(b)the day on which that notice was given to the Commissioner.

27 After section 14-225 in Schedule 1

Insert:

14-226Notice to the Commissioner#

(1)An entity may give the Commissioner a notice, in the *approved form, that the entity intends to make or has made a declaration under subsection 14-225(2) in relation to specified *CGT assets.

Note: See section 388-50 regarding approved forms.

(2)A notice under this section is not a legislative instrument.

28 Section 14-230 (heading) in Schedule 1

Omit “declarations”, substitute “statements”.

29 Subsection 14-230(1) (heading) in Schedule 1

Omit “declarations”, substitute “statements”.

30 Paragraph 14-230(1)(b) in Schedule 1

After “14-225”, insert “or a notice under section 14-226”.

31 Subsection 14-230(2) (heading) in Schedule 1

Omit “declarations”, substitute “statements”.

32 Paragraph 14-230(2)(b) in Schedule 1

After “14-225”, insert “or a notice under section 14-226”.

33 Subsection 14-230(3) (heading) in Schedule 1

Omit “declarations”, substitute “statements”.

34 Paragraph 14-230(3)(b) in Schedule 1

After “14-225”, insert “or a notice under 14-226”.

35 Subparagraph 138-10(2)(a)(i)

Omit “real property”, substitute “*real property”.

36 Section 396-55 in Schedule 1 (table item 3, column 2)

Omit “real property”, substitute “*real property”.

37 Section 396-55 in Schedule 1 (table item 15, column 2, subparagraph (d)(ii))

Omit “real property (within the meaning of the GST Act)”, substitute “*real property”.

Part 2 · Application of amendments and related matters

38 Interpretation

(1) In this Part:

amending Part means Part 1 of this Schedule.

commencement day means the day this Part commences.

(2) An expression used in this Part and in the Income Tax Assessment Act 1997 has the same meaning in this Part as it has in that Act.

39 Application of amendments

Income Tax Assessment Act 1997

(1) Subject to subitem (2), the amendments of the Income Tax Assessment Act 1997 made by the amending Part, apply in relation to assessments for income years starting on or after the commencement day.

(2) The amendments of the Income Tax Assessment Act 1997 made by the amending Part, to the extent they relate to Division 855 of that Act, apply in relation to CGT events happening on or after the commencement day.

International Tax Agreements Act 1953

(3) Subsection 3(5) of the International Tax Agreements Act 1953, as substituted by the amending Part, applies on and after the commencement day.

40 Limit on amending previous assessments relating to taxable Australian real property

(1) This item applies if:

(a) before the commencement day the Commissioner made an assessment for an income year for:

(i) a foreign resident; or

(ii) the trustee of a foreign trust for CGT purposes; and

(b) the assessment included a particular about a capital gain for a CGT event relating to a CGT asset that was one of the following, within the meaning of the Income Tax Assessment Act 1997 as in force immediately before the commencement day:

(i) taxable Australian real property;

(ii) an indirect Australian real property interest;

(iii) taxable Australian property that otherwise relates to taxable Australian real property or an indirect Australian real property interest.

(2) The Commissioner cannot amend the assessment in relation to a particular about the capital gain unless:

(a) if the limited amendment period (within the meaning of section 170 of the Income Tax Assessment Act 1936) for the assessment has not ended—the amendment is in accordance with subsection 170(1) of that Act; or

(b) if the limited amendment period (within the meaning of that Act) for the assessment has ended—either:

(i) the amendment is in accordance with item 5 (fraud or evasion) of the table in subsection 170(1) of that Act; or

(ii) the amendment is in accordance with item 6 (review, appeal or objection) of that table and relates to an objection made before 10 April 2026.

(3) Subitem (2) applies despite any other provision of the Income Tax Assessment Act 1997, the Income Tax Assessment Act 1936, and the Taxation Administration Act 1953.

Schedule 3 · Strengthening the foreign resident CGT regime—transitional arrangements for renewable energy assets

Income Tax (Transitional Provisions) Act 1997 #

1 After Division 842

Insert:

Division 855 · Capital gains and foreign residents

Table of sections

855-1 Definitions

855-5 Discount capital gains—assets relating to renewable energy

855-10 Renewable energy asset test

855-15 Disregard market value of duplicated RE assets

855-1Definitions#

In this Division:

Australian renewable energy asset means a CGT asset that satisfies the following conditions:

(a)the asset is taxable Australian real property;

(b)the primary purpose of the asset is either:

(i)to generate or produce electricity in Australia using an eligible renewable energy source (within the meaning of the Renewable Energy (Electricity) Act 2000), whether the generation or production occurs presently or is to occur in the future; or

(ii)to operate as an energy storage system for such electricity.

other taxable Australian real property means a CGT asset, other than an Australian renewable energy asset, that is taxable Australian real property.

855-5Discount capital gains—assets relating to renewable energy#

(1)For the purposes of section 102-5 of the Income Tax Assessment Act 1997:

(a)treat a capital gain of yours as a discount capital gain if the conditions in subsection (2) of this section are satisfied (regardless of whether it is otherwise a discount capital gain); and

(b)the discount percentage for an amount of that discount capital gain is taken to be 50% (instead of any discount percentage that would otherwise apply).

Note: You can have a discount capital gain under this section regardless of whether you are an entity mentioned in section 115-10 (who can make a discount capital gain) of the Income Tax Assessment Act 1997.

(2)The conditions are as follows:

(a)the capital gain is from a CGT event that arises in relation to a CGT asset;

(b)just before the CGT event happens:

(i)you are a foreign resident (other than an individual); or

(ii)you are the trustee of a foreign trust for CGT purposes;

(c)at the time of the CGT event, the CGT asset is taxable Australian property covered by subsection (4) or (5) of this section;

(d)the CGT event occurs:

(i)on or after the day this section commences; and

(ii)before 1 July 2040.

(3)The CGT asset in relation to which a CGT event happens includes a CGT asset mentioned in subsection 855-10(2) of the Income Tax Assessment Act 1997.

Australian renewable energy assets

(4)A CGT asset is covered by this subsection at a time if, at that time, it is an Australian renewable energy asset.

Membership interests that pass the renewable energy asset test

(5)A CGT asset is covered by this subsection at a time if, at that time:

(a)the CGT asset:

(i)is an indirect Australian real property interest; and

(ii)is not covered by item 5 of the table in section 855-15 of the Income Tax Assessment Act 1997; and

(b)the interest passes the renewable energy asset test in section 855-10 of this Act.

(6)For the purposes of subsection (5), in working out whether the interest passes the renewable energy asset test in section 855-10, apply the modifications in subsection 855-25(2) of the Income Tax Assessment Act 1997.

855-10Renewable energy asset test#

(1)A membership interest held by an entity (the holding entity) in another entity (the test entity) passes the renewable energy asset test if the sum of the market values of the test entity’s Australian renewable energy assets is equal to or greater than 3 times the sum of the market values of its assets that are other taxable Australian real property.

Note: The market value of any of the former kind of assets that are duplicated within the test entity’s corporate group could be disregarded (see section 855-15).

(2)For the purposes of subsection (1), treat an asset of an entity (the first entity) that is a membership interest in another entity (the other entity) as if it were instead the following 2 assets:

(a)an asset that is an Australian renewable energy asset (the RE asset);

(b)an asset that is other taxable Australian real property (the non-RE asset).

(3)For the purposes of subsection (1):

(a)treat the market value of the RE asset as the product of:

(i)the sum of the market values of all the assets of the other entity that are Australian renewable energy assets; and

(ii)the first entity’s direct participation interest in the other entity; and

(b)treat the market value of the non-RE asset as the product of:

(i)the sum of the market values of all the assets of the other entity that are other taxable Australian real property; and

(ii)the first entity’s direct participation interest in the other entity.

Note 1: It is necessary to work out the market value of any RE assets and non-RE assets in relation to any membership interests held by the other entity before working out the value of the RE asset and non-RE asset held by the first entity.

Note 2: The market value of an asset of the other entity that is an Australian renewable energy asset, and is duplicated within the other entity’s corporate group, could be disregarded (see section 855-15).

(4)For the purposes of this section, disregard the market value of any asset acquired by the test entity, or by any other entity, if the acquisition was done for a purpose (other than an incidental purpose) that included ensuring that a membership interest in any entity would pass the renewable energy asset test in this section.

855-15Disregard market value of duplicated RE assets#

(1)The purpose of this section is to prevent double counting of the market value of the assets of a corporate group that:

(a)are Australian renewable energy assets; and

(b)are created under arrangements under which corresponding liabilities are created in other members of the group.

(2)For the purposes of subsection 855-10(1), subsection (4) of this section applies to an asset that is an Australian renewable energy asset if:

(a)the parties to an arrangement included the 2 entities referred to in subsection (3); and

(b)an effect of the arrangement was to create, before the CGT event happened:

(i)the asset as an asset of one of those 2 parties; and

(ii)a corresponding liability of the other (the other party).

(3)The 2 entities are either:

(a)the first entity and the other entity (see subsection 855-10(2)); or

(b)both:

(i)that first entity or that other entity; and

(ii)an entity that is a first entity or other entity for the purposes of a related application of subsection 855-10(2).

(4)Disregard:

(a)if the other party is the test entity (see subsection 855-10(1))—the asset’s market value; or

(b)otherwise—the percentage of the asset’s market value equal to the percentage that is the test entity’s total participation interest in the other party.

Example: The test entity loans money to its wholly-owned subsidiary. The market value of the loan asset created as an asset of the test entity is disregarded for the purposes of subsection 855-10(1).

Schedule 4 · Critical changes to the merger primary law framework

Part 1 · Non-notifications to be voidable rather than void

Competition and Consumer Act 2010 #

1 Subdivision C of Division 1A of Part IV (heading)

Repeal the heading, substitute:

Subdivision C · Certain stayed acquisitions void if put into effect

2 Section 45AZA (heading)

Repeal the heading, substitute:

45AZACertain stayed acquisitions void if put into effect#

3 Subsection 45AZA(1)

Repeal the subsection, substitute:

(1)This section applies to an acquisition that:

(a)is stayed because of subsection 51ABE(3), (4) or (5); and

(b)is put into effect, or purportedly put into effect, in contravention of section 45AY.

4 Subsection 77D(3)

Repeal the subsection, substitute:

(3)The application may be made:

(a)at any time no later than 6 years after the acquisition was put into effect or purportedly put into effect; or

(b)at a later time:

(i)with the leave of the Court and subject to any conditions imposed by the Court; and

(ii)so long as the application is only for an order to deal with the consequences of the voiding.

5 After section 77D

Insert:

77EOrders relating to acquisitions that were not notified even though they were required to be#

Order declaring an acquisition to be void

(1)The Federal Court must, on the application of the Commission, make an order declaring that an acquisition is, and is taken always to have been, void if the Court is satisfied that the acquisition:

(a)is stayed because of subsection 51ABE(2); and

(b)is put into effect;

unless the Court believes it is undesirable to make the order.

Note: Subsection 51ABE(2) applies if the acquisition is required to be notified, but is not a notified acquisition.

Other orders such as divestiture orders

(2)The Federal Court may, on the application of the Commission, make such orders (other than an order described in subsection (1)) as the Court believes are desirable to deal with an acquisition that the Court is satisfied:

(a)is stayed because of subsection 51ABE(2); and

(b)is put into effect.

Example: An order for the divestiture of shares or assets.

Note: Subsection 51ABE(2) applies if the acquisition is required to be notified, but is not a notified acquisition.

Orders giving effect to, or dealing with the consequences of, a voiding order

(3)The Federal Court may, on the application of the Commission or any other person, make such orders as the Court believes are desirable to give effect to, or to deal with the consequences of, an order made under subsection (1) about an acquisition.

Timing for applying for orders

(4)An application under subsection (1), (2) or (3) must be made no later than 6 years after the acquisition was put into effect.

Matters to which the Court must not have regard

(5)In determining whether to make an order under subsection (1), (2) or (3), the Court must not have regard to any of the following:

(a)whether the acquisition would or could, in all the circumstances, have the effect, or be likely to have the effect, of substantially lessening competition in any market;

(b)whether the acquisition would or could, in all the circumstances, result, or be likely to result, in a benefit to the public;

(c)whether a benefit described in paragraph (b) would or could, in all the circumstances, outweigh the detriment to the public that would result, or be likely to result, from the acquisition.

Note: For lessening of competition, see section 4G.

Commission may intervene in proceedings

(6)If an application is made under subsection (3) by a person other than the Commission:

(a)the Court must give a copy of the application to the Commission; and

(b)the Commission may intervene in the proceedings on the application.

(7)If the Commission intervenes in a proceeding under paragraph (6)(b), the Commission is taken to be a party to the proceeding and has all the rights, duties and liabilities of such a party.

77FInjunctions relating to acquisitions for which orders may be, or are being, sought under section 77E#

(1)This section applies if the Commission:

(a)is investigating whether an order could be sought under subsection 77E(1) or (2) in relation to an acquisition; or

(b)is applying for an order under subsection 77E(1) or (2) in relation to an acquisition.

(2)The Federal Court may, on the application of the Commission, grant an injunction restraining a person from engaging in conduct if the Court is of the opinion that it is desirable to do so:

(a)if paragraph (1)(a) applies—pending the outcome of the Commission’s investigation; or

(b)if paragraph (1)(b) applies—pending the determination of the application for an order under subsection 77E(1) or (2).

(3)The Court may rescind or vary such an injunction.

(4)The power of the Court to grant such an injunction restraining a person from engaging in conduct may be exercised:

(a)whether or not it appears to the Court that the person intends to engage again, or to continue to engage, in conduct of that kind; and

(b)whether or not the person has previously engaged in conduct of that kind; and

(c)whether or not there is an imminent danger of substantial damage to any person if the first-mentioned person engages in conduct of that kind.

(5)The Court must not require the Commission or any other person, as a condition of granting such an injunction, to give any undertakings as to damages.

77GOrders may include directions relating to registers of titles#

(1)For the purposes of (but without limiting) paragraph 77D(2)(b) or subsection 77E(2) or (3), the Federal Court may make an order directing a person to take steps under a State or Territory law to arrange for:

(a)a transfer of title to an asset; and

(b)a related amendment of any applicable register of titles.

(2)Such an order cannot direct an officer or employee of a department, body or authority of a State or Territory whose duties relate to such a register.

6 Subdivision C of Division 1A of Part 1 of Schedule 1 (heading)

Repeal the heading, substitute:

Subdivision C · Certain stayed acquisitions void if put into effect

7 Section 45AZA of Schedule 1 (heading)

Repeal the heading, substitute:

45AZACertain stayed acquisitions void if put into effect#

8 Subsection 45AZA(1) of Schedule 1

Repeal the subsection, substitute:

(1)This section applies to an acquisition that:

(a)is stayed because of subsection 51ABE(3), (4) or (5); and

(b)is put into effect, or purportedly put into effect, in contravention of section 45AY.

Part 2 · Changes to the rules about associates

Competition and Consumer Act 2010 #

9 Subsection 4(1) (at the end of the definition of acquisitions provision)

Add:

; (e) section 50AA of the Corporations Act 2001, as that section applies for the purposes of section 51ABSA of this Act;

(f)section 50AA of the Corporations Act 2001, as that section applies for the purposes of section 51ABSB of this Act.

Note: For paragraphs (e) and (f), section 50AA of that Act:

(a) applies with modifications for section 51ABSA; and

(b) applies without modifications for section 51ABSB.

10 Subsection 4(1)

Insert:

managed investment scheme has the same meaning as in the Corporations Act 2001.

11 Subsection 51ABC(2)

Omit “(within the meaning of the Corporations Act 2001)”.

12 Section 51ABS (heading)

Repeal the heading, substitute:

51ABSAcquisitions that do not result in control—no requirement to notify#

13 Paragraph 51ABS(1)(a)

Omit “section 50AA of the Corporations Act 2001”, substitute “section 51ABSA”.

14 Paragraph 51ABS(1)(b)

After “controlled”, insert “(within the meaning of section 51ABSA)”.

15 At the end of subsection 51ABS(1)

Add:

Note: This section and sections 51ABSA and 51ABSB apply in a similar way to acquisitions of units in unit trusts, or acquisitions of interests in managed investment schemes (see section 51ABC of this Act).

16 Subsection 51ABS(2)

Repeal the subsection.

17 After section 51ABS

Insert:

51ABSAAcquisitions that do not result in control—meaning of control#

Control has the same meaning as in a modified version of section 50AA of the Corporations Act 2001

(1)To work out whether a person controls a body corporate for the purposes of subsection 51ABS(1):

(a)start with the meaning of control in section 50AA of the Corporations Act 2001; but

(b)treat that section as if it were modified as set out in this section.

Note: Subsection 51ABS(3) or (5) can also affect whether subsection 51ABS(1) applies in relation to the person.

Modifications of subsection 50AA(3) of that Act

(2)Assume that subsection 50AA(3) of that Act instead provided that the person controls the body corporate if:

(a)the person; and

(b)one or more associates (within the meaning of section 51ABSB of this Act);

jointly have the capacity to determine the outcome of decisions about the body corporate’s financial and operating policies.

Modifications of subsection 50AA(4) of that Act

(3)Disregard subsection 50AA(4) of that Act if the person is a special purpose vehicle.

(4)Disregard paragraph 50AA(4)(b) of that Act to the extent that it applies to a legal obligation the person has as a subsidiary of someone that is a body corporate.

51ABSBAcquisitions that do not result in control—meaning of associate#

Meaning of associate—main rule

(1)For the purposes of paragraph 51ABSA(2)(b), a person (the second person) is an associate of a person (the primary person) in relation to a body corporate (the designated body) if, and only if, one or more of the following paragraphs applies:

(a)the primary person is a body corporate and the second person is:

(i)a body corporate the primary person controls; or

(ii)a body corporate that controls the primary person; or

(iii)a body corporate that is controlled by an entity that controls the primary person;

(b)the second person is a person with whom the primary person has, or proposes to enter into, a relevant agreement for the purpose of controlling or influencing the outcome of decisions about the designated body’s financial and operating policies;

(c)the second person is a person with whom the primary person is acting, or proposing to act, in concert in relation to controlling or influencing the outcome of decisions about the designated body’s financial and operating policies.

Exception—is not an associate merely because of certain rights

(2)Despite paragraph (1)(b) or (c), the second person is not an associate of the primary person in relation to the designated body merely because:

(a)they have entered or propose to enter into a relevant agreement; and

(b)under the relevant agreement, one of them has or will have one or more rights:

(i)of a class set out in subsection (3); and

(ii)whether enforceable presently or in the future, and whether or not on the fulfilment of a condition.

(3)The classes of rights are as follows:

(a)a right to dispose of securities in the designated body;

(b)a right to control the exercise of a power to dispose of securities in the designated body;

(c)a right that is both:

(i)consistent with a right normally accorded to minority shareholders in order to protect their financial interests as investors; and

(ii)reasonably appropriate and adapted to achieving the purpose of protecting a minority shareholder’s financial interests, in their capacity as an investor, and not for some other purpose;

(d)a right to the distribution of the profits of the designated body in accordance with a policy for allocating such rights for classes of securities in the designated body;

(e)a right under the relevant agreement if the agreement:

(i)would be reasonable in the circumstances if the parties were dealing at arm’s length; and

(ii)is a financing agreement, or a standard shareholder (or member) agreement about governance processes; and

(iii)is not of a class determined under paragraph (5)(a);

(f)a right of a class determined under paragraph (5)(b).

Example: For subparagraph (c)(i), rights normally accorded to minority shareholders can include the following:

(a) protections relating to changes to a body corporate’s constitution or capital;

(b) protections relating to the liquidation, sale or winding up of a body corporate;

(d) rights to access information consistent with a minority shareholder’s investment;

(e) rights to observe board meetings.

Note: For the application of subparagraph (e)(ii) to a unit trust or managed investment scheme, note the extended meaning of shareholder in subsection (6).

Exception—is not an associate merely because of other matters

(4)Despite subsection (1), the second person is not an associate of the primary person in relation to the designated body merely because of one or more of the following:

(a)one gives advice to the other, or acts on the other’s behalf, in the proper performance of the functions attaching to a professional capacity or a business relationship;

(b)one, a client, gives specific instructions to the other, whose ordinary business includes dealing in financial products, to acquire financial products on the client’s behalf in the ordinary course of that business;

(c)one has sent, or proposes to send, to the other an offer under a takeover bid for shares held by the other;

(d)one has appointed the other, otherwise than for valuable consideration, to vote as a proxy or representative at a meeting of members, or of a class of members, of a body corporate;

(e)a matter of a class determined under paragraph (5)(c).

Ministerial determinations

(5)The Minister may, by legislative instrument:

(a)determine a class of agreements for the purposes of subparagraph (3)(e)(iii); or

(b)determine a class of rights for the purposes of paragraph (3)(f); or

(c)determine a class of matters for the purposes of paragraph (4)(e).

Definitions

(6)In this section:

control has the meaning given by section 50AA of the Corporations Act 2001.

Note: While this section (by defining associate) is modifying what control means for subsection 51ABS(1) of this Act, references in this section to control do not adopt those modifications (of section 50AA of the Corporations Act).

financial product has the meaning given by Division 3 of Part 7.1 of the Corporations Act 2001.

member or shareholder, of a body corporate, includes the following:

(a)if the body is a company—a person who is a member of the company under section 231 of the Corporations Act 2001;

(b)if because of section 51ABC the body is a unit trust—a person who holds a unit in the trust;

(c)if because of section 51ABC the body is a managed investment scheme—a person who holds an interest in the scheme.

relevant agreement has the same meaning as in the Corporations Act 2001.

securities, of a body corporate, has the following meaning:

(a)unless paragraph (b) applies—the same meaning as in subsection 92(2) of the Corporations Act 2001;

(b)if because of section 51ABC the body is a unit trust—a unit in the trust.

Note: If because of section 51ABC the body is a managed investment scheme, see paragraph 92(2)(c) of the Corporations Act 2001.

shareholder: see member.

Part 3 · Extension before notifications become stale

Competition and Consumer Act 2010 #

18 Section 51ABG

Repeal the section, substitute:

51ABGWhen notifications become stale#

(1)A notification of an acquisition becomes stale immediately after the end of the relevant period (see subsections (2) and (3)), assuming there is such a period.

(2)Unless subsection (3) applies, the relevant period is the 12-month period starting at the time (if any) at which the Commission:

(a)unless paragraph (b) of this section applies—makes a determination under paragraph 51ABZE(1)(a) in respect of the notification; or

(b)if the Commission makes a determination under paragraph 51ABZW(1)(a) in respect of a public benefit application that relates to the notification—makes that determination.

(3)The Commission may, on written request, decide to extend by up to a further 6 months the relevant period applying under subsection (2), or under an earlier application of this subsection, if the Commission has had regard to the following:

(a)whether there are reasonable reasons why the acquisition has not been put into effect;

(b)whether there have been material changes to the market since the determination described in subsection (2) was made;

(c)whether it would be more appropriate for there to be another notification of the acquisition.

The Commission may also have regard to other matters.

Note: Any conditions included in a determination under paragraph 51ABZE(1)(a) or 51ABZW(1)(a) continue to apply during the extended period.

(4)A request for an extension under subsection (3) may be made by the notifying party of the notification. The Commission must give written notice to that party of the Commission’s decision whether or not to grant the extension.

19 At the end of subsection 51ABZZI(1)

Add:

; and (d) if a decision under subsection 51ABG(3) grants an extension relating to a notification of the acquisition—details of the extension.

20 After subsection 51ABZZI(4)

Insert:

(4A)Details to which paragraph (1)(d) applies must be included on the acquisitions register within:

(a)1 business day after the day the decision is made; or

(b)if this is impracticable—as soon as practicable afterwards.

Part 4 · Application of amendments

Competition and Consumer Act 2010 #

21 In the appropriate position in Part XIII

Insert:

Division 8 · Application of amendments made by the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026

194Application of amendments#

(1)The amendments made by Parts 1 and 2 of Schedule 4 to the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026 apply in relation to an acquisition that is put into effect, or purportedly put into effect, on or after the commencement of that Schedule.

(2)The amendments made by Part 3 of Schedule 4 to the Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Act 2026 apply in relation to a notification of an acquisition if either of the following determinations:

(a)a determination under paragraph 51ABZE(1)(a) in respect of the notification;

(b)a determination under paragraph 51ABZW(1)(a) in respect of a public benefit application that relates to the notification;

is made after the day that is 12 months before the commencement of that Schedule.

Schedule 5 · National Competition Policy Agreement and competitive neutrality arrangements

Part 1 · Amendments to implement the National Competition Policy Agreement

Competition and Consumer Act 2010 #

1 Subsection 4(1) (definition of Competition Principles Agreement)

Repeal the definition.

2 Subsection 4(1) (definition of Conduct Code Agreement)

Repeal the definition.

3 Subsection 4(1)

Insert:

National Competition Policy Agreement has the meaning given by section 44DAA.

4 Subsection 29B(2A)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

5 Paragraph 29C(3)(b)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

6 Subsection 29J(2)

Omit “or VIIA”.

7 Paragraph 29J(2)(a)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

8 Paragraphs 44D(2)(b) and (4)(b)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

9 After section 44D

Insert:

44DAAMeaning of National Competition Policy Agreement#

(1)The National Competition Policy Agreement is:

(a)until the Minister specifies an agreement under subsection (2)—the Intergovernmental Agreement on National Competition Policy agreed on 29 November 2024 between the Commonwealth, New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory, being that agreement as in force from time to time; or

(b)otherwise—the agreement specified by the Minister under subsection (2) as in force from time to time.

Note: The Intergovernmental Agreement on National Competition Policy could in 2026 be viewed on the website for Australia’s Federal Relations Architecture (https://federation.gov.au).

(2)The Minister may, by legislative instrument, specify that an agreement to which the Commonwealth, New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory are all parties at the time the instrument is made, is the National Competition Policy Agreement for the purposes of paragraph (1)(b).

(3)If the Minister specifies an agreement in an instrument made under subsection (2), then the Minister must also specify in that instrument a component of the agreement that is to be the public interest test in relation to the agreement.

Note: The Productivity Commission’s consideration of a complaint under Division 2 of Part 4 of the Productivity Commission Act 1998 must include giving particular consideration to the public interest test in relation to the National Competition Policy Agreement.

10 Section 44DA (heading)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

11 Section 44DA

Omit “Competition Principles Agreement” (wherever occurring), substitute “National Competition Policy Agreement”.

12 Section 44M

Omit “Competition Principles Agreement” (wherever occurring), substitute “National Competition Policy Agreement”.

13 Paragraph 44N(2)(a)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

14 Subsection 44NBA(5)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

15 Subdivision F of Division 2A of Part IIIA (heading)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

16 Section 44P (heading)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

17 Section 44P

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

18 Paragraph 51(1C)(e)

Omit “Competition Principles Agreement” (wherever occurring), substitute “National Competition Policy Agreement”.

19 Subsection 95Y(4)

Omit “Competition Principles Agreement”, substitute “National Competition Policy Agreement”.

20 Section 150A (definition of participating State)

Omit “Conduct Code Agreement”, substitute “National Competition Policy Agreement”.

21 Section 150A (definition of participating Territory)

Omit “Conduct Code Agreement”, substitute “National Competition Policy Agreement”.

Productivity Commission Act 1998 #

22 Section 3

Insert:

National Competition Policy Agreement has the meaning given by section 44DAA of the Competition and Consumer Act 2010.

public interest test, in relation to the National Competition Policy Agreement, means:

(a)until the Minister has made an instrument under subsection 44DAA(2) of the Competition and Consumer Act 2010—the public interest exemption to the competitive neutrality principles set out in Schedule 4 to the National Competition Policy Agreement; or

(b)if the Minister has made an instrument under that subsection that specifies an agreement—the component of that agreement specified by the Minister in that instrument (in accordance with subsection 44DAA(3) of that Act) to be the public interest test in relation to that agreement.

23 Subsection 21(4)

Omit “public interest requirements in clause 1 of the Competition Principles Agreement signed by the Commonwealth Government on 11 April 1995”, substitute “public interest test in relation to the National Competition Policy Agreement”.

24 After subsection 21(4)

Insert:

Note: For public interest test and National Competition Policy Agreement, see subsection 3(1).

Part 2 · Amendments relating to competitive neutrality arrangements

Productivity Commission Act 1998 #

25 Section 3

Before “In this Act,”, insert “(1)”.

26 Section 3

Insert:

competitive neutrality arrangements means:

(a)until the Minister has made an instrument under subsection (2)—the arrangements referred to as the competitive neutrality arrangements in the Commonwealth Competitive Neutrality Policy Statement (which was first published in June 1996), as the statement exists in the form published on the Department’s website from time to time; or

(b)otherwise—the arrangements specified by the Minister in an instrument under subsection (2) to be the competitive neutrality arrangements.

Note: The Commonwealth Competitive Neutrality Policy Statement could in 2026 be viewed on the Department’s website (https://treasury.gov.au).

27 At the end of section 3

Add:

Competitive neutrality arrangements

(2)The Minister may, by legislative instrument, specify arrangements that are to be the competitive neutrality arrangements for the purposes of paragraph (b) of the definition of competitive neutrality arrangements in subsection (1).

(3)Despite subsection 14(2) of the Legislation Act 2003, an instrument made under subsection (2) of this section may make provision in relation to a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time.

28 Subsection 21(5)

Repeal the subsection.

Schedule 6 · Deductible Gift Recipient (DGR) specific listings—No. 1 of 2026

Income Tax Assessment Act 1997 #

1 Subsection 30-25(2) (cell at table item 2.2.49, column headed “Special conditions”)

Repeal the cell, substitute:

the gift must be made either:(a) after 30 June 2019 and before 1 July 2025; or(b) after 30 June 2026 and before 1 July 2031

2 In the appropriate position in subsection 30-45(2) (table)

Insert:

4.2.52

Ross House Trust

the gift must be made after 30 June 2026 and before 1 July 2031

3 Subsection 30-70(2) (table item 8.2.6, column headed “Fund, authority or institution”)

Omit “Playgroup Queensland Ltd”, substitute “Play Matters Australia Ltd”.

4 Subsection 30-80(2) (table item 9.2.27, column headed “Special conditions”)

Omit “2026”, substitute “2031”.

5 In the appropriate position in subsection 30-105(2) (table)

Insert:

13.2.52	I4give Foundation Ltd	the gift must be made after 1 February 2021 and before 1 July 2029
13.2.53	Tanarra Social Purpose Ltd	the gift must be made after 30 June 2026 and before 1 July 2031

6 Section 30-315 (after table item 58)

Insert:

I4give Foundation Ltd

item 13.2.52

7 Section 30-315 (table item 86C)

Omit “Playgroup Queensland Ltd”, substitute “Play Matters Australia Ltd”.

8 Section 30-315 (after table item 97AAA)

Insert:

97AA

Ross House Trust

item 4.2.52

9 Section 30-315 (after table item 112B)

Insert:

112C

Tanarra Social Purpose Ltd

item 13.2.53

Schedule 7 · Giving funds

Part 1 · Amendments

Anti-Money Laundering and Counter-Terrorism Financing Act 2006 #

1 Section 39E (table item 6, column 2, paragraph (c))

Omit “an ancillary”, substitute “a giving”.

Income Tax Assessment Act 1997 #

2 Section 30-15 (table item 2, column headed “Recipient”)

Omit “An *ancillary”, substitute “A *giving”.

3 Section 30-15 (table item 2, column headed “Special conditions”, paragraphs (b) and (c))

Omit “ancillary”, substitute “giving”.

4 Paragraph 30-125(1)(d)

Omit “an *ancillary”, substitute “a *giving”.

5 Section 30-315 (table item 4)

Omit “Ancillary”, substitute “Giving”.

6 Section 30-315 (table item 117)

Omit “ancillary”, substitute “giving”.

7 Paragraph 31-10(1)(b)

Omit “an *ancillary”, substitute “a *giving”.

8 Subsection 995-1(1) (definitions of ancillary fund and ancillary or community charity trust fund)

Repeal the definitions.

9 Subsection 995-1(1) (paragraphs (a) and (b) of the definition of applicable trust fund guidelines)

Omit “ancillary” (wherever occurring), substitute “giving”.

10 Subsection 995-1(1)

Insert:

giving fund means:

(a)a *public giving fund; or

(b)a *private giving fund.

giving or community charity trust fund means:

(a)a *public giving fund; or

(b)a *private giving fund; or

(c)a *community charity trust.

11 Subsection 995-1(1) (definitions of private ancillary fund and private ancillary fund guidelines)

Repeal the definitions.

12 Subsection 995-1(1)

Insert:

private giving fund has the meaning given by section 426-105 in Schedule 1 to the Taxation Administration Act 1953.

private giving fund guidelines has the meaning given by section 426-110 in Schedule 1 to the Taxation Administration Act 1953.

13 Subsection 995-1(1) (definitions of public ancillary fund and public ancillary fund guidelines)

Repeal the definitions.

14 Subsection 995-1(1)

Insert:

public giving fund has the meaning given by section 426-102 in Schedule 1 to the Taxation Administration Act 1953.

public giving fund guidelines has the meaning given by section 426-103 in Schedule 1 to the Taxation Administration Act 1953.

Taxation Administration Act 1953 #

15 Amendments of listed provisions—substituting references to ancillary funds with references to giving funds

Substituting references to ancillary funds with references to giving funds
Item	Provision	Omit	Substitute
1	Schedule 1, subsection 355-65(8), table item 6, column headed “and the record or disclosure…”, subparagraph (a)(i)	an *ancillary	a *giving
2	Schedule 1, section 426-1 (paragraph beginning “Subdivision 426-D”)	ancillary (wherever occurring)	giving
3	Schedule 1, Subdivision 426-D (heading)	Ancillary	Giving
4	Schedule 1, section 426-100 (paragraph beginning “This Subdivision deals”)	ancillary (wherever occurring)	giving
5	Schedule 1, group heading before section 426-102	ancillary	giving
6	Schedule 1, section 426-102 (heading)	ancillary	giving
7	Schedule 1, subsections 426-102(1) and (3)	ancillary (wherever occurring)	giving
8	Schedule 1, section 426-103 (heading)	ancillary	giving
9	Schedule 1, section 426-103	ancillary (wherever occurring)	giving
10	Schedule 1, section 426-104 (heading)	ancillary	giving
11	Schedule 1, subsection 426-104(1)	ancillary (wherever occurring)	giving
12	Schedule 1, group heading before section 426-105	ancillary	giving
13	Schedule 1, section 426-105 (heading)	ancillary	giving
14	Schedule 1, subsection 426-105(1)	ancillary (wherever occurring)	giving
15	Schedule 1, section 426-110 (heading)	ancillary	giving
16	Schedule 1, section 426-110	ancillary (wherever occurring)	giving
17	Schedule 1, section 426-115 (heading)	ancillary	giving
18	Schedule 1, subsection 426-115(1)	ancillary (wherever occurring)	giving
19	Schedule 1, section 426-120 (heading)	ancillary	giving
20	Schedule 1, paragraph 426-120(1)(a)	an *ancillary	a *giving
21	Schedule 1, subsections 426-125(1) and (6)	an *ancillary	a *giving
22	Schedule 1, subsections 426-130(1) and (2)	an *ancillary	a *giving
23	Schedule 1, section 426-135	*ancillary (wherever occurring)	*giving
24	Schedule 1, subsection 426-150(1)	*ancillary	*giving
25	Schedule 1, subsection 426-150(3)	an *ancillary	a *giving
26	Schedule 1, paragraph 426-155(b)	*ancillary	*giving
27	Schedule 1, subsection 426-160(1)	*ancillary	*giving
28	Schedule 1, paragraphs 426-165(1)(a) and (2)(a)	an *ancillary	a *giving
29	Schedule 1, section 426-170 (heading)	ancillary	giving
30	Schedule 1, subsection 426-170(1)	An *ancillary	A *giving
31	Schedule 1, subsection 426-170(1)	ancillary (wherever occurring)	giving
32	Schedule 1, paragraph 426-170(2)(b)	an *ancillary	a *giving
33	Schedule 1, paragraph 426-200(b)	an *ancillary	a *giving

Part 2 · Transitional provisions

16 References to ancillary funds etc.

(1) In any instrument under an Act or in any other instrument:

(a) a reference to an ancillary fund is taken to include a reference to a giving fund; and

(b) a reference to an ancillary or community charity trust fund is taken to include a reference to a giving or community charity trust fund; and

(d) a reference to the public ancillary fund guidelines is taken to include a reference to the public giving fund guidelines; and

(e) a reference to a private ancillary fund is taken to include a reference to a private giving fund; and

(f) a reference to the private ancillary fund guidelines is taken to include a reference to the private giving fund guidelines.

(2) Subsection (1) is subject to a contrary intention.

17 Public ancillary fund guidelines

The public ancillary fund guidelines in force immediately before the commencement of this Schedule continue in force (and may be dealt with) after that commencement as if they were public giving fund guidelines.

18 Private ancillary fund guidelines

The private ancillary fund guidelines in force immediately before the commencement of this Schedule continue in force (and may be dealt with) after that commencement as if they were private giving fund guidelines.

Schedule 8 · Tax credits under the foreign resident capital gains withholding regime

Part 1 · Amendment of the Taxation Administration Act 1953

Taxation Administration Act 1953 #

1 At the end of section 18-15 in Schedule 1

Add:

(3)For the purposes of subsection (1), if Subdivision 14-D applies to a *withholding payment made to the entity, then the withholding payment is taken to have been made to the entity in the income year for which the withholding payment is recognised for income tax purposes for the entity.

Note 1: This subsection ensures that the entity’s entitlement to the credit is determined for the income year in which the withholding payment is recognised for income tax purposes for the entity.

Note 2: The withholding payment may be recognised for income tax purposes for the entity at different times depending on whether the payment is recognised on revenue or capital account for the entity.

2 After subsection 18-20(1) in Schedule 1

Insert:

(1A)For the purposes of subsection (1), if Subdivision 14-D applies to a *withholding payment made to the partnership, then the withholding payment is taken to have been made to the partnership in the income year for which the withholding payment is recognised for income tax purposes for the partnership.

Note 1: This subsection ensures that the entity’s entitlement to the credit is determined for the income year in which the withholding payment is recognised for income tax purposes for the partnership.

Note 2: The withholding payment may be recognised for income tax purposes for the partnership at different times depending on whether the payment is recognised on revenue or capital account for the partnership.

3 After subsection 18-25(1) in Schedule 1

Insert:

(1A)For the purposes of subsection (1), if Subdivision 14-D applies to a *withholding payment made to the trustee of a trust, then the withholding payment is taken to have been made to the trustee in the income year for which the withholding payment is recognised for income tax purposes for the trust.

Note 1: This subsection ensures that the entity’s entitlement to the credit is determined for the income year in which the withholding payment is recognised for income tax purposes for the trust.

Note 2: The withholding payment may be recognised for income tax purposes for the trust at different times depending on whether the payment is recognised on revenue or capital account for the trust.

4 Application provision

The amendments made by items 1 to 3 apply in relation to withholding payments that are made on or after the day this Schedule commences.

Part 2 · Repeal of the Taxation Administration (Remedial Power—Foreign Resident Capital Gains Withholding) Determination 2017

Taxation Administration (Remedial Power—Foreign Resident Capital Gains Withholding) Determination 2017 #

5 The whole of the instrument

Repeal the instrument.

6 Application provision

Despite the repeal of the Taxation Administration (Remedial Power—Foreign Resident Capital Gains Withholding) Determination 2017 by item 5, that instrument continues to apply in relation to withholding payments that are made before the day this Schedule commences as if that repeal had not happened.

[Minister’s second reading speech made in—

House of Representatives on 2 July 2026

Senate on 7 September 2026]

(93/26)

Sourced from the Federal Register of Legislation at legislation.gov.au, © Commonwealth of Australia, licensed under CC BY 4.0. Compilations may have been reformatted.