Compliance
Staying Compliant During Major ATO & Trust Changes from July 2026
With new trust reporting requirements, PAYG table updates and the ATO’s compliance ramping up, entities and individuals must prepare now to avoid penalties.
By NomadicTax Research Team • 5-8 min read • June 21, 2026
## Key compliance changes taking effect mid-2026
- **PAYG withholding tax tables** have been updated. All schedules and tax tables will apply from **1 July 2026**, including revised rates and thresholds in withholding schedules (e.g. NAT 1004, 3539 etc.). ([softwaredevelopers.ato.gov.au](https://softwaredevelopers.ato.gov.au/2026-pay-you-go-payg-withholding-tax-tables-0?utm_source=openai))
- **Combined Global and Domestic Minimum Tax Return (CGDMTR)** replaces legacy forms (Foreign Lodgement Notification, AIUTR, DMTR) for multinational enterprises and large groups. Lodgment deadlines—for those with 31-December fiscal year end—are by **30 June 2026**. ([bdo.com.au](https://www.bdo.com.au/en-au/insights/tax/articles/ato-releases-an-update-on-the-new-pillar-two-compliance-guidelines?utm_source=openai))
- Under the **Modernisation of Tax Administration Systems (MTAS)**, from **1 July 2026** there will be **mandatory Tax File Number (TFN) reporting for closely held trusts.** Trust distribution statement data will be used to prefill individual beneficiaries’ returns; e-lodge software limitations on beneficiary numbers will lift for trusts in future tax times. ([pwc.com.au](https://www.pwc.com.au/tax/monthly-tax-updates/may-2026.html?utm_source=openai))
## What this means for taxpayers & entities
### For trustees of closely held trusts
- Ensure your trust distribution statements are accurate and include correct beneficiary names, TFNs, and amounts because this information will be used for ATO pre-fill and compliance validation.
- Prepare for enhanced transparency. Errors in trust reporting may lead to delays or audit attention.
### For large entities/multinationals
- Complete the **CGDMTR** submission—in a single form—combining what were previously three returns. Non-compliance or missing timelines may incur penalties.
- Review your fiscal year end and closing procedures to ensure data collection, especially for complex structures, to prepare all required disclosures.
### For employers & payroll providers
- Implement the new **PAYG withholding rates and schedules** by 1 July 2026. Payroll systems must be updated; employee contracts with salary sacrifice etc must be adjusted.
- If you use e-lodge or tax software, ensure beneficiary numbers and trust reporting modules are ready when limitations are removed.
## Penalties & risks
- Incorrect withholding amounts lead to payroll shortfalls and potential liabilities for the business.
- Trusts that misreport or fail to report current data risk audit scrutiny, correction of distribution mismatches, and compliance penalties.
- Multinational groups missing CGDMTR deadlines face significant compliance risk, reputational exposure, and possible interest or fines.
## Action plan checklist
| Task | Who Should Do It | Timeline |
|------|-------------------|----------|
| Review trust documentation & beneficiary data | Trustees / Administrators | Before 30 June 2026 |
| Update payroll software with new PAYG tables | Employers & Payroll systems | 30 June 2026 |
| Train staff & tax agents on CGDMTR requirements | Multinational companies / Tax agents | Before lodgement deadlines |
| Monitor MTAS changes & software readiness | Trust entities / Developers | For Tax Time 2026 & 2027 |
**Takeaway**: These compliance changes aren’t optional. Aligning processes, updating software and preparing documentation now ensures smoother tax lodgment, fewer surprises, and fewer penalties when new rules apply from July 2026.