This month we focus on key developments and practical guidance for business owners, property holders, and SMSF trustees navigating complex tax obligations.

We begin with a deep dive into Director Penalty Notices (DPNs), highlighting the Tax Ombudsman’s review in response to a 136% surge in notices and the personal risks directors face if company taxes go unpaid. Next, we clarify the ATO’s updated position on capital gains tax for home-based businesses, emphasising when small business CGT concessions apply—and when they don’t. We also examine the ATO’s draft ruling on inherited homes, exploring how changes to main residence exemptions could affect family estates and estate planning strategies. Finally, we provide practical reminders for SMSF trustees on maintaining compliance, focusing on the sole purpose test and arm’s length requirements for related-party arrangements.

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