Your Individual 2026 tax return, and the changes worth knowing about
Individuals · 2026
Tax time again. A plain-English guide to lodging a clean 2025-26 return, plus the handful of changes now shaping decisions you might be making today.
Your 2025-26 return, for the year that ended 30 June 2026, is ready to prepare. Most of getting it right comes down to two habits: keep good records, and declare everything. Here's what matters this year, where the ATO is looking, and what's coming that's worth planning for.
Where the numbers sit for 2025-26
The resident rates were unchanged from last year: nil to $18,200, then 16% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above that, with the 2% Medicare levy on top for most people, and the Low Income Tax Offset lifting the effective tax-free point to around $22,575 for lower earners.
One point that causes confusion: from 1 July 2026, the year we're in now, that 16% rate dropped to 15% (and it's legislated to reach 14% from July 2027). That cut lands in your take-home pay now; it does not change the 2025-26 return you're lodging. So if your refund looks different this year even though little has changed, that's usually why.
Where the ATO is looking this year
Behind every focus area sits the same engine: data matching. Banks, employers, health funds, share registries, crypto exchanges and platforms like Airbnb and Uber report straight to the ATO, so assume it can already see most of your income. The aim isn't to hide anything; it's to claim only what's genuine and can be backed up.
Work-related expenses
- Three tests: you paid for it, it relates to earning your income, and you have a record.
- No record, no claim. Estimates don't survive a review.
Rental properties
- Guidance tightened again this year: holiday homes, short stays and below-market family rent are the hot spots.
- Repairs are immediate; improvements are claimed over time.
Side and gig income
- Rideshare, delivery, online selling, freelancing, content.
- It counts even when it's irregular or modest.
Investment gains
- Capital gains on shares and crypto are in scope.
- Swapping one crypto asset for another is a disposal.
One change that already costs money
From 1 July 2025, the ATO's interest charges (the general interest charge on a late bill, and the shortfall interest charge on an amended assessment) are no longer tax-deductible, whichever year the debt relates to. Until now, that interest took some of the sting out at tax time. It doesn't anymore. With the general interest charge sitting above 11%, an ATO payment plan has quietly become one of the more expensive ways to carry a debt. If you have an outstanding balance, the maths has shifted, so it's worth a conversation before you let it run.
The mistakes that get returns flagged
✕ Double-dipping on working from home
- Using the 70c rate and then also claiming phone or internet separately.
- The rate already includes them, so you can't claim it twice.
✕ Assuming small income is invisible
- A cash job, a bit of side income, a modest crypto gain left off.
- Data matching means the ATO usually sees it before you lodge.
Changes on the horizon, not this year's return
The $1,000 standard deduction. You may have heard about a $1,000 no-receipts deduction for work expenses. It's now law, but it starts with the 2026-27 return, not this one. It's optional, and it's a deduction rather than $1,000 back (worth roughly $300 at a 30% rate). Many people claim more than that in genuine expenses, so keep your records either way.
CGT and negative gearing, from 1 July 2027. The 50% CGT discount for individuals is being replaced with cost-base indexation and a 30% minimum tax, applying only to gains that accrue after that date. Your home stays exempt and small business concessions remain. And for established rental properties bought after Budget night (12 May 2026), negative gearing against your salary will no longer apply. Properties held before then are grandfathered; new builds are exempt.
If you're weighing a sale or an investment property, the timing question is now a real one, so talk to us first.
What to do now
- Wait for pre-fill. Wages, interest, dividends and health cover usually land from late July into August. Lodging before then is the top cause of errors and amendments.
- Gather your records. Work-from-home hours, car logbook, donation receipts, subscriptions, income-protection premiums, and for rentals, the agent statement, loan interest, and repair-versus-improvement invoices.
- Declare everything. Every job, platform and parcel of investment income, shares and crypto included.
- Consider super before year-end. The super guarantee is now 12%, so check it's actually landing; and if cash flow allows, the $30,000 before-tax cap can be an efficient way to cut tax and build retirement savings.
How we help
We'll prepare your return properly, show you the reasoning behind every claim, and flag anything on the horizon that touches a decision you're about to make. Nothing left as a black box. Everyone who sits with us gets the same clarity: the numbers, the trade-offs, and what they mean for you, so you can act with confidence.
If you'd like to discuss how any of this applies to your situation, contact Atramentum.
This briefing is general information current as at July 2026, drawn from ATO, Treasury and legislative sources. It doesn't take your personal circumstances into account and isn't personal tax, financial or legal advice. Please talk to us before acting so we can tailor it to you.
