If you run a trade business, this month’s ATO updates touch real-world issues: dual cab utes, what you can claim, rental income data-matching letters, SMSF release authorities, and GST on subdividing land. This guide translates the ATO’s latest signals into practical actions for builders, sparkies, mechanics and crews across Queensland. It’s short, direct, and built for busy owners. If you want help implementing any of this, book a 15-minute strategy call with our team in Cairns or the Sunshine Coast.
Not advice: This article is general information only. For your situation, speak with a registered tax agent and always refer to the ATO’s primary guidance. See the ATO’s guidance on deductions and record-keeping.
What’s included
Dual cab utes and FBT: what “limited private use” really means
Deductions: the ATO’s three golden rules
ATO focus on small business: common mistakes to avoid
New data-matching activity: rental income letters and offshore merchants
SMSF release authorities: the 10-business-day clock
GST and subdivided land: when sales are an “enterprise”
Action checklist for owners
Where Trinity can help
Dual cab utes and FBT: exemptions aren’t automatic
The ATO is calling out the myth that dual cab utes are automatically FBT-exempt. They’re only exempt if they’re an eligible vehicle and the employee’s private use is limited (minor, infrequent, irregular — think an occasional tip run). Start by checking eligibility and then documenting how the vehicle is used.
For the exemption itself, see ATO’s page on exempt use of eligible vehicles it outlines what counts as limited private use (including basic home-to-work travel) and the records you should keep.
The ATO also published a plain-English explainer “The truth about dual cab utes and FBT” on 1 October 2025 reinforcing that exemptions depend on the vehicle type and use, not the badge on the tailgate.
Business deductions: three golden rules
The ATO’s evergreen rule-of-thumb holds:
the expense must be for business, not private;
if mixed, claim only the business portion;
keep records to prove it. The ATO’s record-keeping guidance explains what evidence you need to substantiate claims.
The ATO’s “three golden rules” explanation for small businesses is also covered in its tax education material for small business owners.
ATO focus on small business: recurring issues to fix
If your turnover sits between $1 m and $10 m, the ATO is monitoring patterns it sees in property & construction and professional/technical services. Common errors include omitting income, over-claiming expenses or GST credits, incorrectly treating private costs as business, and failing to register for GST when required. These are consistent with the ATO’s public compliance messaging and data-matching approach.
New ATO data-matching: expect letters on rental income (and more)
Rental properties. The ATO confirmed on 10 October 2025 that it’s sending letters where data indicates a rental return may need lodging for specific years or where rental income should have been included in an already-lodged return. If you get one of these letters, follow the steps in the linked ATO guidance.
The ATO also provides the specific letter types and what to do — including overdue tax return with rental income and rental income not included in lodged return.
Offshore merchants. The ATO continues to run formal data-matching programs and publishes public notifications of these programs, describing the kinds of financial data it acquires and matches to identify non-compliance.
SMSF release authorities: strict 10-day deadline
If your SMSF receives a release authority, you generally must pay the required amount to the ATO within 10 business days and lodge the Release Authority Statement in that same timeframe. The ATO has highlighted rising non-compliance here, with penalties possible for funds that fail to act correctly.
See also the ATO’s step-by-step guidance for SMSFs on how to respond to a release authority.
GST on subdivided land: when sales are an “enterprise”
Subdividing farmland and selling lots can be subject to GST if the activity amounts to carrying on an enterprise (for example, where there’s an organised series of activities, agreements with a developer, and regular sales activity). The ATO’s farmland guidance and broader GST property pages explain when sales can be GST-free (e.g., specific farmland conditions) versus taxable supplies. Always assess your facts against these tests.
Action checklist for trade business owners
Vehicles & FBT
Confirm each ute/van meets eligible vehicle criteria and document limited private use. Use a simple log for trips that aren’t work.
Deductions & records
For every recurring cost (fuel, phones, tools, software), note business vs private portion and store invoices and payment evidence.
Rental data-matching
If you hold a rental property personally or via an entity, reconcile statements to your lodged returns. If a letter arrives, act within the timeframe and correct any omissions promptly.
SMSF
Set a 10-day response workflow for any release authority notices: pay the amount and lodge the statement, then file records.
Property & GST
Before subdividing or entering a developer agreement, get advice on whether your activities amount to an enterprise for GST.
How Trinity can help (fast wins we see)
Price hygiene and GP%: many “expense issues” vanish when price discipline improves.
Management reporting: monthly board-style pack with job margin KPIs, so you can spot errors and under-claiming early.
Quarterly coaching: set a 90-day plan, then execute with accountability.
CTA: Want a second set of eyes on vehicles, deductions, and data-matching risk? Book a strategy call and we’ll map a clean process for the next quarter.
FAQ
Are dual cab utes still FBT-exempt for work crews?
Only if the vehicle qualifies as an eligible vehicle and private use is limited, minor and infrequent. Keep records to support that. (ATO guidance)
What if I get a rental data-matching letter from the ATO?
Follow the steps in the ATO letter guidance and correct any omissions promptly.
How fast must my SMSF act on a release authority?
Within 10 business days to pay the required amount and lodge the statement (see ATO).
If I subdivide farmland, is it always GST-free?
No. GST-free treatment has strict conditions; many subdivisions will be taxable if you’re effectively carrying on an enterprise. Australian Taxation Office
What records do I need for small-business deductions?
Invoices, payment evidence and apportionment notes where there’s private use.
