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ALERT: ATO Updates
Short Term FX Election – Technical amendments de-announced
The ATO provided an update to the ACSA Board in September. This included the de-announcement of various historical legislative amendments, as part of the Federal Budget Oct 2022-23, a number of which are relevant to ACSA members and their clients.
One of the de-announced measures relates to Short Term FX Election (s775-80 ITAA 1997). It was originally announced in 2004 (and confirmed in 2004-2005 and 2016-17 Federal Budgets) to extend the availability of the Short-Term FX Election (s775-80 ITAA 1997) beyond the period originally legislated. (We note this technical amendment announced in 2004 was the result of extensive lobbying by industry peak bodies including ACSA). Taxpayers have been relying on the 2004 announcement – and the associated protection afforded by PS LA 2007/11 - in continuing to make the election, where relevant to their fund’s circumstances. Recent Combined Assurance Reviews (CARs) appear to have create focus on this issue.
ACSA believes this de-announcement has material consequences to ACSA members and their clients. ACSA Tax Working Group representatives are engaging with ATO and Treasury representatives to continue to advocate for a technical amendment. ACSA members are encouraged to highlight this risk to their clients, especially for funds launched since the de-announcement of the technical amendments in Oct 2022.
More information please contact your tax team or ACSA Tax Working Group member.
Revised Div 296 proposal to tax superfund balances over $3m
The government announced its proposed Better Targeted Superannuation Concessions (BTSC) measures on 13 October 2025. Key features of the proposal include the introduction of two thresholds - $3 million and $10 million - based on each member’s aggregated superannuation balances across all funds. Balances between $3 million and $10 million will be subject to a 30% concessional tax rate, while balances above $10 million will attract a 40% rate. Both thresholds will be indexed over time, and tax will be calculated on realised earnings rather than notional balances.
Concerns have been noted that, for Division 296 purposes, realised gains and losses may be calculated from 1 July 2026, implying that the tax cost of assets could be reset to market value on this date, potentially requiring updates to custodian CGT and TOFA systems.
Initial industry consultations have commenced to agree acceptable definitions and methodologies for attributing the share of realised earnings at the fund level to members.
More information please contact your tax team or ACSA Tax Working Group member.
Availability of franking credits in relation to positions in shares – Draft TD and PCG pending
Recent developments suggest the Australian Taxation Office (ATO) is revisiting its interpretation that a net position in relation to shares, or an interest in shares, should include all positions held in respect of those shares. The ATO is now reviewing taxpayers with broad ASX exposure and derivatives that reduce that economic exposure to determine whether a related payment has occurred.
In particular, the ATO is reviewing arrangements where long and short positions are undertaken contemporaneously to determine whether the resultant parcel of shares is a ‘position’, rather than the aggregate of the delta of all long positions. A draft tax determination and practical compliance guideline are expected to be delivered in the coming weeks. Federal Court cases are also pending addressing similar issues.
For more information, please contact your tax team or ACSA Tax Working Group member.
More information please contact your tax team or ACSA Tax Working Group member.
AUSTRAC AML/CTF reform program core guidance
October marked a major milestone in AUSTRAC’s AML/CTF reform program with the release of their reforms guidance. The in-depth material was designed to help prepare current and future reporting entities for the upcoming changes to AML/CTF laws with information on:
Much consideration has been given to the digital experience for readers of this guidance. Before you start reading, be sure to read AUSTRAC’s handy Learn how to use this guidance (Reform)page to:
- Learn how to use the guidance
- Understand the language we use
- See the recommended reading order
AUSTRAC will continue to share more resources over the upcoming months including fact sheets, e-learning modules and sector-specific guidance.
If you notice anything in the guidance that you consider may require correction or clarification, please contact the AUSTRAC Guidance team at workinggroups@austrac.gov.au.
You can also visit AUSTRAC’s Reforms hub
to stay up to date on newly released information.
Join the discussion.
If you’re interested in joining in ACSA’s discussions and response to market initiatives and industry consultations, please connect to us at admin@acsa.com.au.
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