Notice of Rulings and Withdrawal of Rulings 15 July 2026
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, and under subsection 358-20(1) of Schedule 1 to the Taxation Administration Act 1953 of the withdrawal of the following public rulings, copies of which can be obtained from ato.gov.au/law
NOTICE OF RULINGS |
Ruling number | Subject | Brief description |
CR 2026/40 | FAR Ltd – return of capital | This Ruling sets out the income tax consequences for shareholders of FAR Ltd who receive a return of capital payment on 11 June 2026. This Ruling applies to shareholders specified in the Ruling from 1 July 2025 to 30 June 2026. |
CR 2026/41 | Peel Mining Limited – return of capital by in specie distribution of shares in Spectre Metals Limited | This Ruling sets out the income tax consequences for shareholders of Peel Mining Limited who received from that company a pro rata in specie distribution of ordinary shares in Spectre Metals Limited on 30 June 2026. This Ruling applies to shareholders specified in the Ruling from 1 July 2025 to 30 June 2026. |
CR 2026/42 | Peel Mining Limited – scrip for scrip roll-over | This Ruling sets out the income tax consequences for the holders of ordinary shares in Peel Mining Limited who acquired ordinary shares in Aeris Resources Limited in exchange for their shares in Peel Mining Limited on 1 July 2026. This Ruling applies to shareholders specified in the Ruling from 1 July 2026 to 30 June 2027. |
NOTICE OF ADDENDA |
Ruling number | Subject | Brief description |
LCR 2016/9 | Superannuation reform: transfer balance cap | This Addendum amends Law Companion Ruling LCR 2016/9 to: - further explain proportional indexation of the transfer balance cap and superannuation income streams subject to a commutation authority
- clarify how the general principles apply in the context of successor fund transfers, and
- reflect the increase in the maximum allowable members made under the Treasury Laws Amendment (Self Managed Superannuation Funds) Act 2021.
This Addendum applies from both before and after its date of issue, subject to the commencement and application of each Act to which it refers. |
ER 2023/1 | Excise: the meaning of ‘legally and economically independent’ | This Addendum amends Excise Ruling ER 2023/1 to reflect amendments made to Excise Regulation 2015 by the Excise Amendment (Remission Increase for Distillers and Brewers) Regulations 2025, and update minor typographical and grammatical issues. This Addendum applies from 1 July 2026. |
CR 2026/36 | Red Metal Limited – in specie return of Maronan Metals Limited shares | This Addendum amends Class Ruling CR 2026/36 to represent the acceptable reasonable apportionment of the cost base. This Addendum applies from 1 July 2025 to 30 June 2026. |
NOTICE OF WITHDRAWALS |
Ruling number | Subject | Brief description |
TR 94/3 | Income tax: tax shortfall penalties: calculation of a tax shortfall and allocation of additional tax | Taxation Ruling TR 94/3 sets out the basis on which additional tax should be calculated under former sections 226G, 226H, 226J, 226K, 226L and 226M of the Income Tax Assessment Act 1936. The Ruling is withdrawn with effect from 16 July 2026. |
TR 94/7 | Income tax: tax shortfall penalties: guidelines for the exercise of the Commissioner’s discretion to remit penalty otherwise attracted | Taxation Ruling TR 94/7 sets out how the discretion contained in former subsection 227(3) of the Income Tax Assessment Act 1936 may be exercised to remit penalties otherwise payable under former sections 226G, 226H, 226J, 226K, 226L and 226M of that Act. The Ruling is withdrawn with effect from 16 July 2026. |
Overview
The Commissioner of Taxation has issued a notifiable instrument under the Taxation Administration Act 1953, effective from 15 July 2026, to notify the public of certain tax rulings and the withdrawal of others. This notice includes three new public rulings addressing the income tax consequences of specific distributions and transactions, such as the return of capital by FAR Ltd, an in specie distribution by Peel Mining Limited, and a scrip-for-scrip roll-over, each applying to defined periods. Additionally, there are amendments to existing rulings to clarify tax implications of certain transactions, such as the transfer balance cap for superannuation and the meaning of ‘legally and economically independent’ in excise duties. This instrument also withdraws two taxation rulings concerning the calculation of tax shortfall penalties and the remission of such penalties, effective from 16 July 2026. These notifications aim to ensure taxpayers are aware of the current tax obligations and legislative changes affecting their financial and legal compliance.
Scope and Application
The Commissioner of Taxation, Rob Heferen, has issued a notifiable instrument under the Taxation Administration Act 1953, detailing the issuance of new public rulings and the withdrawal of existing ones. This instrument applies to taxpayers, particularly those who are shareholders of FAR Ltd, Peel Mining Limited, and Red Metal Limited, as well as entities subject to excise regulations, for the specified periods. The rulings address income tax consequences for shareholders involved in specific transactions such as returns of capital and scrip for scrip roll-overs. Notably, the rulings cover transactions from 1 July 2025 to 30 June 2027, with specific provisions for amendments and addendums that adjust to changes in legislation. These rulings are available for review on the Australian Taxation Office website. The withdrawal of Taxation Ruling TR 94/3 and TR 94/7, effective from 16 July 2026, removes outdated provisions regarding tax shortfall penalties, aligning with changes in the Income Tax Assessment Act 1936. The instrument's scope and application are limited to the Commonwealth of Australia and are subject to the specific dates mentioned in each ruling and addendum.
Key Provisions
The notice of rulings and withdrawal of rulings issued by the Commissioner of Taxation on 15 July 2026, details various public rulings and their statuses. CR 2026/40 (section 1) provides information about the income tax consequences for shareholders of FAR Ltd who receive a return of capital payment on 11 June 2026, effective from 1 July 2025 to 30 June 2026. CR 2026/41 (section 2) outlines the income tax implications for shareholders of Peel Mining Limited who received an in specie distribution of shares in Spectre Metals Limited on 30 June 2026, also effective from 1 July 2025 to 30 June 2026. CR 2026/42 (section 3) discusses the income tax consequences for shareholders of Peel Mining Limited who acquired shares in Aeris Resources Limited in exchange for their shares in Peel Mining Limited on 1 July 2026, effective from 1 July 2026 to 30 June 2027.
The notice also includes an addendum to LCR 2016/9 (section 4) regarding superannuation reform and the transfer balance cap, which further explains proportional indexation, clarifies how general principles apply to successor fund transfers, and reflects the increase in the maximum allowable members. This addendum applies both before and after its date of issue, subject to the commencement and application of each Act to which it refers. Another addendum to ER 2023/1 (section 5) provides updates to reflect amendments made to Excise Regulation 2015 and to correct minor typographical and grammatical issues, effective from 1 July 2026. Additionally, an addendum to CR 2026/36 (section 6) amends the ruling to represent the acceptable reasonable apportionment of the cost base, effective from 1 July 2025 to 30 June 2026.
Finally, the notice withdraws Taxation Ruling TR 94/3 (section 7) concerning the calculation of a tax shortfall and allocation of additional tax, and Taxation Ruling TR 94/7 (section 8) regarding guidelines for the exercise of the Commissioner’s discretion to remit penalty otherwise attracted, both effective from 16 July 2026. These rulings are no longer applicable as of the specified date. The withdrawal and issuance of these rulings impose obligations on taxpayers to ensure compliance with the updated or withdrawn tax guidance. Failure to comply with these rulings may result in the reassessment of tax liabilities, penalties, or other financial consequences, depending on the specific tax laws and regulations in place.