This month’s update brings a sharp focus on key tax developments affecting business owners, property owners, and SMSF trustees. 

With a significant rise in Director Penalty Notices, the Tax Ombudsman has launched a review into how these are issued, reinforcing the growing personal risk directors face when company tax obligations fall behind. 

Alongside this, the ATO has clarified its stance on capital gains tax for home-based businesses, making it clear that many owners may not qualify for small business CGT concessions unless the property is used substantially for business purposes. 

We also look at new draft guidance on inherited properties, which could impact how families manage and pass on wealth, especially where main residence exemptions are involved. 

Finally, SMSF trustees are reminded to stay vigilant on compliance, with a focus on the sole purpose test and ensuring all related party dealings are conducted on commercial terms.