Your Knowledge October 2026Your Knowledge October 2026

This month’s newsletter looks at several tax and compliance developments with practical implications for individuals, businesses, trusts and SMSF trustees.

We begin with the Government’s proposed 30% minimum tax on discretionary trusts and what the changes could mean for family groups, particularly where trust income is distributed to companies. The proposal is still subject to consultation, so there are some important details yet to be settled.

We also take a closer look at travel and overtime meal expenses following the release of the ATO’s updated 2026–27 allowance rates, including some common misconceptions about when an allowance automatically gives rise to a tax deduction.

From there, we turn to the increase in the Commonwealth penalty unit from 1 July 2026 and why late lodgements and other compliance mistakes could now be more costly.

And finally, we look at SMSF property valuations and related-party leases. With these arrangements often attracting closer attention during the annual audit, having appropriate evidence to support market values and arm’s-length rental terms can help trustees avoid unnecessary compliance issues.