Highlights

  • The High Court refused special leave in four tax and state-tax matters, leaving the lower-court decisions in place.
  • Cheung leaves $33 million in bank deposits assessable, with the taxpayer generally bearing the burden of proving an assessment excessive.
  • SKG Cleaning Services keeps the NSW payroll tax treatment of employment agency contracts as the law.
  • Toowoomba Regional Council concerned fringe benefits tax on commercial parking, and the lower court's approach now stands.

Picture four sets of advisers waiting on a message from Canberra, hoping for a final hearing in Australia's highest court. The reply, in four separate matters, was no. The High Court has refused special leave to appeal in cases covering fringe benefits tax (FBT) on council parking, $33 million in bank deposits, NSW payroll tax and a Victorian revenue dispute. The lower-court decisions now stand, and businesses with similar arrangements will be watching.

What the High Court decided

Special leave was refused in Toowoomba Regional Council, about FBT on commercial parking; Cheung, in which $33 million in deposits was found assessable; SKG Cleaning Services, about NSW payroll tax on employment agency contracts; and Vicinity Funds, a Victorian revenue matter. No further appeal is possible, and the lower courts' decisions remain.

These are court outcomes, not new legislation or ATO guidance, though they can still shape how the ATO and state revenue offices approach similar cases. Details of the tax and issues in the Vicinity Funds dispute were not set out. The full lower-court reasoning in each case should be read before drawing conclusions.

What "special leave" means

Most parties have no automatic right to appeal to the High Court and must first seek special leave. Under the Judiciary Act 1903, the court weighs factors such as whether the case raises a question of law of public importance, whether it resolves differences between courts, and whether it serves the administration of justice.

A refusal does not necessarily mean the court agrees with every part of the reasoning below. It does make the decision final for the parties and a continuing precedent.

Council parking and FBT

An employer can face a car parking fringe benefit when it provides parking for more than four hours between 7am and 7pm, and a commercial parking station within one kilometre charges more than the all-day parking threshold.

With leave refused, the approach in Toowoomba stands. Employers providing staff parking near paid facilities may want to test it against their own positions, ideally with professional advice.

$33 million in deposits: the onus on the taxpayer

Deposit cases often begin when the ATO spots money flowing into accounts and treats it as income. Under the Taxation Administration Act 1953, a taxpayer who challenges an assessment generally bears the burden of proving it excessive. If a deposit cannot be shown to be non-assessable, such as a loan, gift or own-account transfer, the assessment may stand.

Hypothetical example: a resident earns an $80,000 salary in 2026-27, and the ATO adds $200,000 of unexplained deposits, lifting taxable income to $280,000. Tax on $80,000 is $14,520 ($4,020 plus $10,500). Tax on $280,000 is $91,870 ($4,020, $27,000, $20,350 and $40,500). The extra income tax is $77,350, and the 2% Medicare levy adds $4,000, so the total rises by $81,350 before penalties and interest, and ignoring offsets.

NSW payroll tax and employment agencies

The NSW employment agency provisions can treat a business that procures workers' services for clients as the employer for payroll tax, even where the workers are not employees in the ordinary sense. That matters for labour-hire, cleaning and other placement businesses. As a state tax, the outcome affects the NSW regime rather than federal law.

Dates and signals: the ATO often publishes decision impact statements after significant cases, with comments due 20 November 2026 on those released for Hilton International Australia (No 2) and Commissioner v Hicks. The ATO issued a statement on Oracle Corporation Australia v Commissioner [2025] FCAFC 145 after choosing not to seek special leave. The FBT year ends on 31 March 2027, and no guidance from Revenue NSW or Victoria's State Revenue Office has been reported.