Income Recognition for Property Developments

Explore income recognition for property developments under PCG 2026/D2, including key insights from the Morton decision.

In this session, we cover:

• Different income tax treatments for proceeds from property sales

• General principles relevant to the revenue vs capital distinction

• Commissioner of Taxation v Morton [2026] FCAFC 31

• Long-term construction contracts

  • TR 2018/3 — the ATO’s approach to income recognition

  • Taxpayer Alert TA 2026/1

  • Draft PCG 2026/D2 — the ATO’s compliance approach