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October’s update focuses on timing in trust resolutions, documentation and decision-making. With new ATO rules, changing compliance expectations and a closer look at when key actions are taken, this month is all about getting the details right before it’s too late.
Trust Resolutions – Why Timing and Evidence Matter
A recent Tribunal case, Goldenville Family Trust v Commissioner of Taxation (2025), has reinforced how critical timing and documentation are when making trust distribution decisions.
In this case, the ATO successfully argued that certain income distribution resolutions were invalid because there was no reliable evidence that the trustee made the decisions before 30 June. As a result, default resident beneficiaries were taxed at higher rates.
For trust distributions to be effective, trustees must make genuine decisions by 30 June (or earlier if required by the trust deed). Paperwork can be finalised later, but it must reflect a decision that was actually made before year-end.
The same principle applies across other tax situations such as Division 7A loans and dividend set-offs — what matters is when the decision is made, not when the paperwork is typed up. Keeping contemporaneous notes, meeting records or time-stamped emails can prevent costly disputes later.
ATO Interest Charges Are No Longer Deductible
From 1 July 2025, interest charged by the ATO — including General Interest Charge (GIC) and Shortfall Interest Charge (SIC) — is no longer deductible for tax purposes. With GIC currently around 11 per cent, leaving debts unpaid with the ATO is now an expensive option.
Some businesses may consider refinancing ATO debts with commercial lenders. In certain cases, interest on these new loans may still be deductible if the borrowing relates to a business activity.
For example, a café owner who borrows funds to pay a business tax debt could claim the interest. But where a tax debt relates to personal income, such as wages or investment earnings, interest on a loan to pay it would not be deductible.
Refinancing may still help reduce costs, but it’s important to seek advice before proceeding to ensure the tax treatment is clear and compliant.
Supermarket Unit Pricing Review – What It Means for Businesses
The Federal Government has completed its consultation on strengthening the Unit Pricing Code of Conduct for supermarkets.
Proposed reforms include clearer and larger display requirements, extending the rules to smaller and online retailers, and possible penalties for non-compliance. There’s also talk of requiring “shrinkflation alerts” when product sizes reduce but prices stay the same.
While this might sound like a consumer issue, suppliers and retailers could face real costs from updating packaging, shelf labels or online systems. Businesses that get ahead of these changes and focus on transparency could turn compliance into a marketing advantage.
Early Access to Super – Proceed with Caution
The ATO has issued fresh warnings about promoters offering to help people access their super early for cosmetic or non-essential purposes.
Early access is only allowed in limited cases such as severe financial hardship or compassionate grounds like preventing home foreclosure or paying for serious medical treatment.
Allowing a third party to access your MyGov account or lodge applications on your behalf is risky and can lead to penalties for breaching super laws. Always seek professional advice before applying to access super outside the usual retirement conditions.
Find all the details in this months Newsletter here.
From trust resolutions to tax debts and regulatory reform, documentation and compliance are key themes this month. If you’d like help reviewing your trust processes, refinancing options or compliance obligations, contact the team at Strategic 360 — we can help you stay on top of the rules and avoid unnecessary surprises.
Kerrily and Louise – Directors
