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ARTICLE · 07 JULY 2026

ATO Releases Decision Impact Statement On Bendel – The Wait Is Over, But Was It Worth The Wait

Piper Alderman
Piper Alderman
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The Australian Taxation Office has released its Decision Impact Statement following the High Court's landmark Bendel judgment on unpaid present entitlements and Division 7A. While some taxpayers who maintained passive arrangements may find relief, significant questions remain about the application of anti-avoidance provisions and the Commissioner's discretionary powers. The statement signals important changes to longstanding ATO guidance and raises critical considerations for trust and corporate beneficiary

AustraliaTax
Megan Bishop
Megan Bishop
Belinda Spence
Belinda Spence
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On 26 June, the Australian Taxation Office (ATO) issued the highly anticipated Decision Impact Statement (DIS) following the High Court’s landmark judgment in Commissioner of Taxation v Bendel [2026] HCA 18 (Bendel). The DIS sets out the ATO’s response to the Bendel decision handed down on 10 June 2026. There are positives for some taxpayers. Ironically largely those that ignored the interim advice issued by the ATO. And a lot of questions that remain for others.

Summary

As set out in our earlier Insight, Bendel – The High Court has spoken, but is this the final word on taxation on unpaid present entitlements? dated 11 June, Bendel concerned whether unpaid present entitlements (UPEs) are loans for the purposes of Division 7A of the Income Tax Assessment Act 1936 (Cth). The High Court (Gageler CJ, Gordon, Edelman, Steward and Gleeson JJ) found in favour of the taxpayer, that UPEs from a trust to a corporate beneficiary do not, without more, constitute a loan for the purpose of

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