In October 2025, the Australian Taxation Office refreshed its publicly-listed focus areas for privately owned and wealthy groups for the 2025–26 year. The update sits within the ATO’s Private Wealth program and signals where assurance and compliance activity will concentrate over the coming cycle.
The starting point remains foundational obligations. Correct registrations, on-time lodgement and payment, and reporting that aligns with the underlying records continue to be treated as practical indicators of overall risk. Persistent weaknesses at this level tend to draw review attention even where structures are otherwise straightforward.
Beyond the basics, several recurring technical themes are highlighted. Private company benefits feature prominently: loans, payments, or the use of company assets by shareholders or associates can attract Division 7A consequences if not handled on commercial terms. Trusts are again a focus, with emphasis on clear trustee resolutions, entitlement and cash movements, and the downstream effects of family trust elections. The ATO also continues to flag the potential for Family Trust Distribution Tax where distributions fall outside a designated family group, including in situations involving changes in control or ownership.
Capital transactions remain under close scrutiny. The characterisation of profits (revenue versus capital) and access to the small business capital gains tax concessions are being examined closely, particularly where restructures occur shortly before a sale. International related party dealings, activity in property and construction, and holdings of lifestyle assets round out the list, reflecting areas where valuation, pricing and documentation often drive disputes.
The context for all of this is the ATO’s assurance programs. The Top 500 and Next 5,000 programs continue to assess whether large private groups demonstrate “justified trust”, with subsequent engagement shaped by that assessment. The ATO’s 2025 updates include refinements to how it engages with Top 500 groups and the use of “provisional justified trust” to recognise groups that are largely assured but still formalising governance, underscoring the weight placed on consistent reporting and evidence.
Overall, the message is not a new rule set but a clear statement of where scrutiny will be applied during 2025–26: fundamentals, private company benefits, trusts, capital gains, international dealings and higher-risk industries, all viewed through assurance programs that shape how private groups are reviewed.
This article first appeared in the Summer 2025/26 issue of HLB Mann Judd Perth’s Client Alert.