February 2026

The ATO has kicked off 2026 with several noteworthy developments affecting both small businesses and individuals. From record levels of tax debt calls to data-matching expansions and MyGov security alerts, the early trends show the ATO is focusing on enforcement, compliance education and protecting taxpayers. Staying informed now can help you avoid penalties and make smarter decisions this year.

Small Business Tax Debt Hits Record Levels

The ATO’s Small Business Debt Helpline is handling a record number of cases, with over 6,000 calls last year relating to unpaid tax and super obligations, up 21 % from the prior year.

What this means for you:

• Don’t ignore outstanding PAYG, GST or super — early engagement with the ATO can prevent escalation.

• Consider repayment arrangements if debts are mounting; the ATO is showing more flexibility for proactive businesses.

  
  

ATO Pushes Stronger Record-Keeping

The ATO is urging small businesses to tighten bookkeeping practices. Poor records are a leading cause of BAS errors and late or inaccurate reporting.

Tips for small businesses:

• Keep accurate digital records (receipts, invoices, and GST categorisation)

• Ensure payroll is reconciled with STP submissions

• Review cash flow regularly to avoid missed PAYG or super obligations

Rental Property Tax Guidance in Focus

The Tax Institute has called for clearer ATO guidance on rental property deductions due to ongoing confusion.

Key points of friction include:

• Differentiating repairs vs capital improvements

• Mixed-use property claims

• Substantiation requirements for deductions

MyGov Fraud Alerts

There have been recent reports of scammers accessing MyGov accounts to lodge fake tax returns.

Key precautions:

• Enable two-factor authentication on MyGov accounts

• Use strong, unique passwords

• Report suspicious activity immediately

This is particularly important for accountants or businesses managing multiple client accounts.

Data-Matching & Compliance Trends

The ATO is increasingly using data from:

• STP payroll systems

• Banks and payment platforms

• Share trading and crypto exchanges

• Property and investment reporting

Implications: Any mismatched or incomplete data can trigger review or audit. Accurate bookkeeping and reporting are now more critical than ever.

Take control of your finances this year. With the ATO ramping up enforcement, expanding data-matching and issuing new guidance, staying proactive is more important than ever. Apex Tax Advisory can help you review your records, address any outstanding obligations and put practical strategies in place to protect your business and personal finances. Contact us today to get expert advice tailored to your situation.