Now that the financial year has ended, it’s tax-return season again. A little preparation makes your return faster, more accurate and easier to support with the right records. Here’s the short version for individuals.
The three golden rules for deductions
Whatever you’re claiming, the ATO applies the same three tests. To claim a work-related deduction:
- You must have spent the money yourself and not been reimbursed.
- The expense must directly relate to earning your income.
- You must have a record to prove it, usually a receipt.
If a claim doesn’t clear all three, leave it out. If you’re not sure, keep the receipt and ask us.
Working from home
If you work from home, the fixed-rate method lets you claim 70 cents for each hour worked from home in 2025–26. The rate covers energy, internet and data, phone, stationery and computer consumables. You must keep a record of the actual hours worked from home across the whole year, plus evidence showing you incurred the expenses covered by the rate. A four-week estimate of your hours is not enough.
Car and travel
For 2025–26, the cents-per-kilometre method lets you claim 88 cents per business kilometre, up to 5,000 business kilometres per car. The rate covers all eligible car expenses, including fuel, servicing, insurance, registration and decline in value, so those costs cannot be claimed again separately. You still need a reasonable basis for the kilometres claimed, such as diary records. The logbook method can give a larger deduction if you do a lot of work driving. We can help you work out which method suits you.
What to bring (or upload)
- Your income statement / PAYG summaries (these usually pre-fill, but check them).
- Bank interest, dividends, managed funds and any crypto activity.
- Rental property income and expenses, if you have an investment property.
- Receipts for work-related expenses, donations and the cost of managing your tax affairs.
- Private health insurance statement and any government payments.
Can’t make it into the office? You don’t have to. Ask us for a secure document-upload link and we’ll handle the rest by phone and email.
What changed from 1 July 2026
- The first new tax cut is now in effect. From 1 July 2026, the former 16% rate is 15%. It falls again to 14% from 1 July 2027. These rates apply to future income years, not the 2025–26 return you’re lodging now.
- The $1,000 standard deduction is now law, but it does not apply to 2025–26. From the 2026–27 year, eligible Australian residents who earn income from work can receive a standard deduction of up to $1,000 for covered work-related expenses without receipts. People whose actual eligible work-related deductions exceed $1,000 can continue claiming those expenses under the usual rules with records.