August 2026

A month into the new financial year, and the focus has shifted from "getting ready" to "staying on top of it." A few specific numbers and system changes are worth flagging this month.

Division 7A benchmark rate has increased

• The Division 7A benchmark interest rate for 2026–27 is now 8.77% per annum, up from 8.37%

• If your company has loans to directors, shareholders or related parties, complying loan agreements need to accrue interest at the new rate

• Getting this wrong can see a loan treated as an unfranked dividend, which is a costly outcome — worth reviewing loan agreements now rather than at tax time

  
  

TPAR pre-fill has gone live

• Taxable Payments Annual Report data is now being used to pre-fill information for businesses in certain industries (building and construction, cleaning, courier, road freight, IT and security services, among others)

• This makes it easier for the ATO to cross-check income reported by contractors against payments reported by the businesses that engaged them

• If you pay contractors, make sure your TPAR reporting is accurate and up to date

  
  

ATO pushing toward simplification — but also more scrutiny

• The ATO Commissioner has spoken publicly about simplifying administration for small business, particularly around reporting and lodgement

• At the same time, data-matching and real-time reporting continue to expand, so the trade-off is less paperwork but less room for errors to go unnoticed

• Contractor classification remains a focus area, with data-sharing between the ATO and state revenue offices used to identify sham contracting arrangements

  
  

Payday Super — bedding in

• Now that Payday Super has been running for a month, this is a good time to check contributions are actually landing within the 7 business day window

• Any gaps between payroll and your super clearing system should be picked up and fixed early, before they compound into a Superannuation Guarantee Charge liability

  
  

What to focus on now

• Update Division 7A loan agreements to reflect the new 8.77% benchmark rate

• Check your TPAR reporting is accurate now that pre-fill is live

• Review contractor arrangements for correct classification

• Confirm your first month or two of Payday Super contributions have gone through correctly

  
  

If you want help navigating these changes or understanding how they apply to your situation, Apex Tax Advisory can assist.