Maximising your Australian tax return means claiming every legitimate deduction you are entitled to — and avoiding the common mistakes that trigger ATO audits. In the 2025-26 financial year, the ATO is focusing audit attention on work-related expenses, rental property deductions, and sharing economy income. Working with a registered tax agent gives you the best chance of a full, compliant return. Here is what your accountant will cover when maximising your 2026 tax return.

Key Questions Your Accountant Will Ask

A thorough tax accountant will go beyond your employer's income statement. They will ask about every potential income source and deduction in your life:

  • Employment income: All PAYG payment summaries (income statements), allowances, bonuses, and termination payments
  • Investment income: Bank interest, dividends (including franking credits), rental property income
  • Side income: Sharing economy, freelance, ABN income, government payments
  • Work expenses: Vehicle (logbook or cents-per-km), uniforms, tools, professional memberships, union fees
  • Home office: Hours worked from home, equipment purchased, internet proportion
  • Self-education: Courses and training directly related to your current job
  • Super contributions: Any personal contributions you made for which you intend to claim a deduction

The Top Deductions Australians Miss in 2026

  • Income protection insurance premiums — fully deductible if paid personally (not through super)
  • Tax agent fees from last year's return — deductible in the year paid
  • Professional development and self-education — courses, textbooks, and study materials related to your current role
  • Tools and equipment — items under $300 claimed immediately; above $300 depreciated
  • Phone and internet — work-use percentage of your total bills
  • Union fees and professional memberships — fully deductible
  • Charitable donations — to ATO-registered Deductible Gift Recipients (DGRs), $2 or more
  • Investment property expenses — interest, rates, repairs, depreciation schedule

2025-26 Tax Rates and Thresholds

  • Tax-free threshold: $18,200
  • 19% rate: $18,201 to $45,000 (Stage 3 cuts — 19% bracket extended from 2024-25)
  • 32.5% rate: $45,001 to $135,000
  • 37% rate: $135,001 to $190,000
  • 45% rate: Above $190,000
  • Medicare Levy: 2% of taxable income (Low Income Tax Offset and LMITO apply at lower incomes)

Low Income Tax Offset (LITO) in 2026

The Low Income Tax Offset for 2025-26 provides a maximum offset of $700 for taxable incomes up to $37,500, phasing out at incomes between $37,500 and $66,667. This effectively means low-income earners pay less income tax than the stated rate brackets suggest.

Frequently Asked Questions

When is the 2026 tax return due?

Individual tax returns for the 2025-26 income year are due by 31 October 2026 if you lodge yourself. If you use a registered tax agent who lodges electronically, you may have until 15 May 2027. Registering with a tax agent before 31 October 2026 is essential to access the extended lodgement deadline.

How much does a tax agent cost?

Tax agent fees for individual returns typically range from $150 to $500 depending on the complexity of your return. The fee is tax-deductible in the following year. For investment properties, business income, or complex deduction claims, a tax agent almost always saves more than their fee.

What receipts do I need for tax time?

For work-related deductions, you need written evidence (receipts or invoices) for any individual expense over $82.50. For expenses under $82.50, you can use bank statements or diary entries. The ATO's myDeductions app in the ATO app is a free tool for recording receipts throughout the year.

Want to make sure you claim everything you are entitled to? Book a tax return appointment with AWTS and let our registered tax agents maximise your 2026 return.