News update – April 2026

April 2026 Tax Update for Small Businesses and High‑Wealth Clients

What Business Owners in Reservoir Need to Know Right Now

The tax landscape continues to shift—and April 2026 has delivered some of the most important changes and court decisions we’ve seen in years.

For business owners, property investors, and individuals with significant superannuation balances, recent updates from the ATO and the Federal Courts highlight one clear message: old assumptions no longer hold.

At Siragusa Accounting Group, we work closely with small and family‑owned businesses across Reservoir and Melbourne’s northern suburbs. Below, we break down what’s changed, why it matters, and what practical steps you should be considering now.

Division 296: Higher Super Tax for Large Balances Starts 1 July 2026

From 1 July 2026, the government’s new Division 296 tax will apply to individuals with larger superannuation balances.

Who Is Affected?

If your total super balance exceeds $3 million, this new tax may apply to you. The thresholds are:

• Up to $3 million – no additional tax
• Between $3m and $10m – extra 15% tax on earnings relating to this portion
• Above $10m – extra 25% tax on earnings relating to that portion

When combined with standard super fund tax, this means some high‑balance members will face effective tax rates of up to 40% on certain earnings.

Importantly, this tax is assessed personally, not at the fund level—though you can elect to have it paid directly from your super interest.

Why This Matters

For business owners who have used superannuation as a long‑term wealth strategy, especially via SMSFs holding property or business assets, this change can significantly alter long‑term outcomes.

Now is the time to:

• Review whether capital should continue to sit inside super,
• Model future tax impacts,
• Review CGT elections inside SMSFs, and
• Consider alternative structures for surplus investment capital.

✅ Tip for Reservoir business owners: If your SMSF holds commercial property or business real property, this tax can create cash‑flow pressure unless planned carefully.

Family Businesses and Fringe Benefits Tax: A Major Court Win (With Caution)

A recent Full Federal Court decision has provided welcome clarity for family businesses—particularly those operating through discretionary trusts.

What Changed?

In a high‑profile case involving a large family enterprise, the court confirmed that not every benefit provided to working family members automatically triggers Fringe Benefits Tax (FBT).

Despite the ATO arguing that luxury vehicles provided to family members were employee benefits, the court found that:

• The individuals were not employees in the traditional sense, and
• The benefits arose from their role as owners and beneficiaries, not employment.

Why This Is Important for Small Businesses

Many family businesses in Reservoir and surrounding suburbs blur the line between:

• Director
• Beneficiary
• Manager
• Worker

This decision confirms that substance matters more than job titles.

However—this is critical—poor documentation can still put you at risk.

Practical Takeaways

If your business provides vehicles, phones, or other perks to family members:

• Clearly document whether benefits are trust distributions or remuneration
• Avoid informal arrangements with no paper trail
• Ensure private use is accounted for correctly
• Review potential flow‑on issues like Division 7A

⚠️ The ATO has made it clear they will continue to audit these arrangements aggressively.

Business Sales and Valuations: The Kilgour Case Changes the Game

If you’re considering selling your business—or part of it—a recent court decision has major implications.

The Key Lesson

When a business is sold in a coordinated transaction, the courts may reject minority discounts when determining market value for tax purposes.

In simple terms:

• If all owners sell together,
• And the buyer wants 100% control,
• Each owner’s interest may be valued as a straight percentage of the total sale price.

This can push owners over the $6 million net asset threshold, limiting access to valuable small business CGT concessions.

Why Planning Early Matters

Once terms are agreed—or even informally locked in—it may be too late to restructure.

✅ Business owners should:

• Test CGT concession eligibility early,
• Review shareholder and trust structures well before negotiations,
• Keep detailed records of buyer intent and deal dynamics.

ATO Crackdown on Work Vehicles: No More Assumptions

The ATO is actively data‑matching vehicle registrations, logbooks and FBT returns—and work vehicles are a major audit focus.

Common Mistakes We See

• Assuming dual‑cab utes are automatically FBT‑free
• No logbooks or usage records
• Private use not properly apportioned
• Not lodging FBT returns because “the amount is small”

Even minimal errors can result in penalties, interest, and multi‑year audits.

What You Should Do Now

• Review vehicle classifications carefully
• Keep reliable usage records (digital logbooks work well)
• Ensure private use is correctly identified
• Lodge FBT returns on time (due 21 May each year)

How We Help Business Owners in Northern Suburbs of Melbourne

Tax law is becoming more complex—and more aggressively enforced.

At Siragusa Accounting Group, we specialise in:

• Small and family‑owned businesses
• SMSFs and high‑balance super planning
• Business structuring and restructuring
• FBT, Division 7A, and ATO audit support
• Business exits and CGT concession planning

📍 Based near Reservoir, we work with business owners across Melbourne’s north to turn tax complexity into clarity.

Thinking Ahead? Let’s Talk

If any of the issues above apply to you—or you’re unsure whether they might—it’s worth acting early.

➡️ Book a review with our team to:

• Stress‑test your structure,
• Identify risks before the ATO does, and
• Put practical, commercial solutions in place