Notice of Rulings 1 October 2025
The Commissioner of Taxation, Rob Heferen, gives notice by notifiable instrument under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 of the following public rulings, copies of which can be obtained from ato.gov.au/law
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
TR 2025/2 | Income tax: aspects of the third-party debt test in Subdivision 820-EAB of the Income Tax Assessment Act 1997 | This Ruling sets out our views on aspects of the third party debt test in Subdivision 820-EAB of the Income Tax Assessment Act 1997. This Ruling applies both before and after its date of issue. |
CR 2025/67 | Platinum Asia Investments Limited – disposal of shares and special dividend | This Ruling sets out the income tax consequences for the holders of ordinary shares in Platinum Asia Investments Limited in relation to the payment of a special dividend by that company on 12 September 2025 and the acquisition of all the ordinary shares in that company by the trustee of Platinum Asia Fund which was implemented on 25 August 2025. This Ruling applies to shareholders specified in the Ruling from 1 July 2025 to 30 June 2026. |
CR 2025/68 | Flexabike – use of an electric bicycle by an employee | This Ruling sets out the fringe benefits tax consequences of employers providing their employees with the use of an electric bicycle under a salary packaging arrangement with The Trustee for Cookson Family Trust trading as Flexabike. This Ruling applies to employees specified in the Ruling from 1 April 2024 to 31 March 2030. |
CR 2025/69 | Whitefield Industrials Limited – bonus shares issued under Dividend Substitution Plan | This Ruling sets out the income tax consequences for shareholders of Whitefield Industrials Limited who choose to receive bonus shares in lieu of dividends under the Dividend Substitution Plan offered by that company. This Ruling applies to shareholders specified in the Ruling from 1 July 2024 to 30 June 2029. |
Overview
The Notice of Rulings 1 October 2025, issued by the Commissioner of Taxation Rob Heferen, serves to clarify certain aspects of income tax law through the use of public rulings. These rulings, available for review on the Australian Taxation Office website, provide detailed guidance on specific tax scenarios as stipulated in the Income Tax Assessment Act 1997 and the Taxation Administration Act 1953. The notice includes rulings such as TR 2025/2, which addresses the third-party debt test in Subdivision 820-EAB, and various company-specific rulings like CR 2025/67, CR 2025/68, and CR 2025/69, each of which outlines the tax implications for particular financial transactions or arrangements. The enactment of these rulings aims to ensure taxpayers are adequately informed and can comply with their obligations accurately.
Scope and Application
The Notifiable Instrument F2025N00781 issued by the Commissioner of Taxation under subsection 358-5(4) of Schedule 1 to the Taxation Administration Act 1953 provides public rulings on specific tax matters as of 1 October 2025. These rulings, accessible via the ATO website, cover a range of scenarios impacting various entities and individuals, including shareholders and employees. The rulings address income tax implications related to the third-party debt test, special dividends, the use of electric bicycles by employees under salary packaging arrangements, and the issuance of bonus shares under Dividend Substitution Plans. The specified rulings apply to particular taxpayers and time periods, providing clarity and certainty on their tax obligations and entitlements. The Commissioner of Taxation issues these rulings to guide taxpayers and ensure compliance with the Income Tax Assessment Act 1997 and related legislation.
Key Provisions
The Notifiable Instrument F2025N00781 issued by the Commissioner of Taxation, Rob Heferen, provides public rulings that clarify the application of specific provisions within the Income Tax Assessment Act 1997 and other relevant taxation laws. These rulings are critical for taxpayers, accountants, and other relevant parties to understand their obligations and entitlements under the tax law. The first ruling, TR 2025/2, addresses aspects of the third-party debt test in Subdivision 820-EAB of the Income Tax Assessment Act 1997 (section 820-EAB). It provides the Commissioner’s views on how certain debts are assessed for tax purposes, applicable both before and after the ruling's issuance (section 358-5(4)).
The obligations and requirements imposed by these rulings are designed to ensure compliance and predictability in the application of tax law. For instance, TR 2025/2 helps taxpayers understand how third-party debts are treated for income tax purposes, thereby guiding them in structuring their financial transactions to comply with tax laws. Similarly, CR 2025/67, CR 2025/68, and CR 2025/69 provide specific guidance on the tax implications of events such as the disposal of shares, the use of electric bicycles by employees, and the issuance of bonus shares under a Dividend Substitution Plan, respectively. These rulings assist taxpayers in planning and understanding the tax consequences of their actions, ensuring they meet their obligations under the law.
Failure to comply with the provisions outlined in these rulings can lead to various consequences, including both civil and criminal penalties. For example, if taxpayers do not adhere to the guidelines provided in TR 2025/2, they may face reassessments of their tax liabilities, interest charges, and penalties for underpayment. The maximum penalties for tax evasion or fraud can include fines and imprisonment, as stipulated in the Income Tax Assessment Act 1997. Additionally, incorrect application of the rulings in CR 2025/67, CR 2025/68, and CR 2025/69 can result in the imposition of penalties for underpaid taxes, interest, and potentially criminal charges if the non-compliance is found to be deliberate. It is essential for all parties to carefully review and adhere to these rulings to avoid adverse consequences.