Deputy Commissioner Louise Clarke has outlined the ATO’s priorities for the private wealth sector for 2026, with an emphasis on governance, succession planning activity and increasingly complex structures within large private groups.  She noted that the ATO oversees more than 284,000 private wealth groups controlling over four trillion dollars in assets, and that an ageing ownership base has resulted in a rise in restructures, reorganisations and business transitions.  These developments often involve private equity, cross border investment and detailed governance arrangements, which are all areas of heightened ATO interest.
The ATO has also recently issued guidance targeting property sector arrangements, including a taxpayer alert addressing the use of long-term construction contracts to defer income.

Clarke pointed to several important cases currently before the courts, including Bendel and Merchant, which are expected to provide clarity on trust and private group taxation issues.  She also referred to the recent SNA Group decision as a reminder that related party transactions must have proper documentation and commercial grounding.

For practitioners, the ATO’s focus signals the need for robust tax governance and well documented decisions.  The transitional period for PCG 2021/4 has ended, meaning professional firm profit allocation arrangements must now be assessed under the full risk framework without concession.  Advisers working with private groups should expect closer attention to intragroup arrangements, succession planning steps and the tax consequences of business transitions.

Overall, the ATO is signalling a shift toward closer scrutiny of behavioural patterns across private groups, not just technical positions.  Strong governance, accurate records and early engagement remain crucial for clients seeking to demonstrate low risk behaviour.

Spotlight on Deputy Commissioner Louise Clarke | Australian Taxation Office