What Australians with Property in Greece Need to Know

If you're an Australian resident with property in Greece — whether it's a family holiday home, an inherited house, or an investment you rent out — you've probably come across the terms "Certificate of Residency" and "overseas tax relief form" at some point. Greek notaries, tax offices, and even your own accountant may ask for one.

For many of our clients with ties to Greece, this paperwork feels unfamiliar and, frankly, a bit confusing.

This guide explains what these documents actually are, why the ATO issues them, and why they matter more than usual if your property is in Greece specifically.

What is a Certificate of Residency?

A Certificate of Residency is a document issued by the ATO confirming that, for a specific period, you were an Australian resident for tax purposes and therefore liable to pay tax in Australia on your worldwide income. In plain terms, it's official proof — accepted by foreign governments and institutions — that you pay tax in Australia, not in the other country.

Individuals apply using the ATO's request form (NAT 75441);

businesses and other entities use a separate version (NAT 75442).

The certificate typically covers a specific income year or period, so if you need proof for several years, you may need to request more than one.

What is an overseas tax relief form, and how is it different?

An overseas tax relief form is a document issued by a foreign tax authority — not the ATO — that a taxpayer asks the ATO to certify. Certifying it confirms to the foreign authority that you're an Australian tax resident, which can then be used to access reduced withholding tax rates or exemptions under a tax treaty (for example, on foreign dividends, interest, or pension income).

Here's the important part: the ATO will only certify one of these overseas forms where a comprehensive tax treaty is in force between Australia and that country. If no such treaty exists, there's no treaty mechanism for the ATO to certify against — so instead, you simply request the standard Certificate of Residency and use that as your evidence of Australian tax residency.

Why this matters more if your property is in Greece

This is where things get particularly relevant for many of our clients. Australia has income tax treaties in force with dozens of countries — the UK, the US, Germany, Italy, and many more — but Australia and Greece do not currently have a comprehensive double tax agreement. The only tax arrangement between the two countries is a narrow 1981 agreement covering airline profits, which has nothing to do with property, rental income, or individuals.

There has been genuine movement on this: in early 2026, Australian and Greek officials confirmed they were advancing talks toward a full bilateral tax treaty, driven by the size of the Greek-Australian community and the volume of cross-border investment, including property. But talks are not a treaty — until one is signed, ratified by both parliaments, and brought into force, there is no treaty-based relief available between the two countries.

Practically, that has a few consequences for property owners:

• You can't get a Greek-specific relief form certified by the ATO, because there's no treaty for the ATO to certify it under. If Greek authorities ask you to prove Australian tax residency, a standard Certificate of Residency is what you'll provide instead.
• Double taxation is a real risk, not just a theoretical one. Because there's no treaty to divide taxing rights or guarantee relief, both Australia and Greece can legitimately tax the same rental income or capital gain. Australia's relief in this situation comes not from a treaty, but from the Foreign Income Tax Offset (FITO) — a unilateral credit for foreign tax you've genuinely paid, which reduces (but doesn't always fully eliminate) the Australian tax on the same income.
• A Certificate of Residency helps support your position with Greek authorities and with the ATO. It's useful evidence when you're establishing to Greek tax authorities, a notary, or a bank that you are an Australian tax resident and not a Greek one, and it's good supporting documentation to keep on file when claiming a FITO for Greek tax paid.

Where a Certificate of Residency actually comes up for Greek property

A few practical touchpoints where this document tends to matter:

Getting an AFM (Greek tax number). You can't buy property, open a Greek bank account, or sign at a notary in Greece without an AFM. Getting one doesn't automatically require a Certificate of Residency, but having your Australian tax residency clearly documented helps avoid confusion about which country you should be reporting and paying tax in — an AFM does not make you a Greek tax resident, but the distinction is one Greek authorities, notaries, and even Australian advisers sometimes need spelled out.

Rental income from Greek property. If you rent out a Greek property, Greece taxes that income at progressive rates — currently 15% up to €12,000, 35% between €12,001 and €35,000, and 45% above that, with a standard 5% deduction applied instead of claiming actual expenses. That same rental income is also assessable in Australia as part of your worldwide income. Good records of your Australian residency and the Greek tax you've paid are essential to claim your FITO correctly and avoid paying full tax twice.

Selling Greek property. Capital gains tax on Greek property sales is currently suspended under a legislative measure in force until at least 31 December 2026 — but this is a temporary exemption, not a permanent rule, and it can change. Any gain will still need to be considered under Australian capital gains tax rules, where your Australian residency status is central to how the gain is taxed.

ENFIA (annual Greek property tax). Foreign owners are required to lodge a property statement (E9) and pay ENFIA on Greek real estate, just like Greek residents — residency status doesn't exempt you from this particular tax. It's a separate issue from income tax residency, but it's another reminder that Greek property ownership brings ongoing compliance obligations in both countries.

Estates and inheritance. If a Greek property passes to you, or you're managing a deceased estate with Greek assets, Greek authorities and notaries will often want clear documentation of the beneficiaries' tax residency status as part of the process.

Getting your Certificate of Residency ready to use in Greece

Two things trip people up when they try to actually use an ATO Certificate of Residency in Greece:

1. Apostille. Both Australia and Greece are members of the Hague Apostille Convention, so rather than going through a lengthy embassy legalisation process, you can have DFAT attach an apostille to your certificate, which Greek authorities will generally accept as proof of authenticity.
2. Translation. Greek government offices and notaries typically require an official Greek translation of the certificate, not just the English original.

Building both of these steps into your timeline — rather than discovering you need them the week before a settlement or filing deadline — will save a lot of stress.

How AWTS can help

Because there's no treaty to lean on, getting the Australia–Greece side of a property purchase, rental, sale, or estate right takes more care than it does with treaty countries. At AWTS, we help clients apply for their Certificate of Residency, work out what's owed in Australia after accounting for any Greek tax paid, and make sure the paperwork lines up with what Greek notaries and tax offices actually expect. If you own — or are about to buy, sell, or inherit — property in Greece, get in touch and we'll walk you through exactly what you need.

This article is general information only and doesn't take into account your personal circumstances or the current state of Greek tax law, which can change. For advice specific to your situation, speak with a registered tax agent. Emmanuel Sarris Tax Agent number 78641007

#CertificateOfResidency #AustraliaGreece #GreekProperty #DoubleTaxation #TaxResidency #ATO #ForeignIncomeTaxOffset #ExpatTax #PropertyInGreece #AustralianTaxAgent

A step-by-step guide to lodging your 2025–26 Australian tax return — key dates, what you need, common deductions, and how AWTS can help you get it right.

Tax time comes around every year, but that doesn't mean it gets any less confusing. Between remembering what you can claim, chasing down payment summaries, and trying to figure out whether you're better off lodging yourself or using an agent, it's easy to put your tax return off until the last minute.

This guide walks you through everything you need to know to complete and lodge your 2025–26 tax return — the return that covers income you earned between 1 July 2025 and 30 June 2026. We'll cover the key dates, what's changed this year, what to gather before you start, how to lodge, and the deductions people most commonly miss.

Key dates for the 2025–26 tax return

Missing a deadline is one of the easiest ways to end up with a penalty, so it's worth putting these dates in your calendar now.

• 1 July 2026 — Tax time officially opens, and you can lodge your return. It's usually worth waiting a couple of weeks before you lodge, since employers, banks and health funds have until mid-to-late July to finalise their data with the ATO. Lodging too early can mean your pre-fill information is incomplete, increasing the risk you'll need to amend it later. Please never lodge before 18 July 20XX, any year.
• 31 October 2026 — The deadline to lodge your own tax return if you're not using a registered tax agent. This applies whether you lodge through myTax or on paper.
• 15 May 2027 — You can access the extended deadline if you're registered with a tax agent, such as AWTS, by 31 October 2026. To qualify for this extension, you generally need to be up to date with your previous returns and not have any overdue debts with the ATO or Centrelink.

If you can't lodge by 31 October and you're not signed up with a tax agent, it's worth registering with one before that date — even if your agent doesn't get to your return straight away, being on their client list before the deadline can protect you from late lodgment penalties.

What's new for the 2025–26 tax return

A few things have changed since last year that are worth knowing about before you lodge.

Gifts and donations. The old $2 minimum for claiming a tax-deductible gift has been removed, so donations of any amount to an eligible deductible gift recipient can now be claimed, provided you have the right records.

Interest charges are no longer deductible. General interest charges (GIC) and shortfall interest charges (SIC) that you incur on or after 1 July 2025 can no longer be claimed as a tax deduction.

If you're carrying ATO debt, this makes it more important than ever to pay it down or set up a payment plan. Or refinance it with an external provider, which will be tax-deductible.

Rental property rules have been clarified. The ATO has issued updated guidance on when rental income is assessable and which expenses are deductible, including how to apportion expenses fairly for holiday homes and properties with mixed personal and rental use. If you own an investment property, it's worth reviewing your records against the latest guidance, or better yet, having an agent check it for you. You need to remember the grandfathering rules for existing properties before budget night.

The Junior Minerals Exploration Incentive has ended. This scheme closed on 30 June 2025, so exploration credits can no longer be claimed for the 2025–26 year onwards.

One thing that's not changing this year: the income tax brackets. The next round of tax cuts (a drop in the 16% rate to 15%) doesn't take effect until 1 July 2026, so it will apply to next year's return, not this one.

What you need before you start

Getting your paperwork together before you sit down to lodge will save you a lot of back-and-forth. Have these ready:

• Your tax file number (TFN) and myGov account linked to the ATO.
• Income statements from your employer(s) — most are now sent electronically via Single Touch Payroll and will show as "Tax ready" in myGov, but check every employer you worked for during the year, including short-term or casual roles.
• Bank interest statements and details of any dividend income, managed fund distributions, or crypto asset disposals.
• Government payment summaries, if you received JobSeeker, Youth Allowance, or other Centrelink payments.
• Private health insurance statement, if applicable. Recommended for incomes over $90k for singles.
• Records of work-related expenses — receipts, logbooks, or diary entries for anything you plan to claim.
• Details of any spouse's income, since this affects offsets like the Medicare levy surcharge and some tax offsets.
• Bank account details for your refund.

How to lodge your return

You have three main options.

1. Lodge yourself through myTax. This is the ATO's free online lodgment service, accessed through myGov. Most of your income information — wages, bank interest, private health insurance — will be pre-filled automatically once your employer and financial institutions report it, usually by late July. You then add any deductions, check everything is correct, and submit. Most electronic returns are processed within two weeks.

2. Use a registered tax agent. A tax agent can lodge on your behalf, offer advice on what you're entitled to claim, and give you access to the later 15 May deadline. Only registered agents are legally allowed to charge a fee for preparing and lodging your return, and their fee is generally tax-deductible next year. This is usually the better option if your return is more complex — multiple income sources, an investment property, capital gains, or a business — or if you'd simply rather have a professional check your figures than risk an ATO review later.

3. Lodge a paper return. Still possible, but slower, with refunds typically taking up to 50 business days. Most people avoid this option unless they have a specific reason to use it.

Deductions people often miss

The golden rule for any deduction is that you must have spent the money yourself, it must directly relate to earning your income, and you need a record to prove it. Some commonly overlooked deductions include:

• Working-from-home costs, using either the fixed rate method (which covers electricity, internet, phone and stationery at a set rate per hour) or the actual cost method, provided you keep the right records for whichever method you choose.
• Self-education expenses, where the course directly relates to your current role.
• Income protection insurance premiums, if the policy isn't paid through your super fund.
• Union and professional membership fees.
• Tools, equipment and uniforms specific to your job, including laundering costs for compulsory or protective uniforms.
• Donations to registered charities, now deductible from the first dollar.
• The cost of managing your tax affairs, including any fee you paid a tax agent last year.
• Please download our quote and tax checklist and deductions spreadsheet for the 2026 year here: Tax Checklist

If you're not sure whether something qualifies, it's far safer to ask than to guess — over-claiming is one of the most common triggers for an ATO review.

Mistakes that slow things down or cost you money

A few things consistently trip people up at tax time:

• Lodging before your income statement is finalised, which often means having to amend your return later.
• Forgetting a second job, short-term gig work, or bank interest, all of which the ATO can already see through data-matching, even if you don't declare it.
• Claiming deductions without records. The ATO can (and does) ask for evidence, sometimes years after you've lodged.
• Missing the 31 October deadline without being registered with a tax agent, which can trigger a failure-to-lodge penalty.
• Not declaring capital gains from selling shares, crypto, or an investment property.

Do you need a tax agent?

If your tax situation is simple — one employer, no investments, straightforward deductions — lodging through myTax yourself is often perfectly manageable. But if you've got rental property income, capital gains, multiple income streams, or you're just not confident you're claiming everything you're entitled to, a registered tax agent can make a real difference, both in accuracy and in what ends up in your refund.

Frequently asked questions

What happens if I miss the 31 October deadline? If you're not registered with a tax agent and you lodge late, the ATO can apply a failure-to-lodge penalty, generally charged in 28-day blocks. If you know you're going to be late, the best move is to lodge as soon as you can, or register with a tax agent before the deadline to access the extended date.

Do I still need to lodge if I earned under the tax-free threshold? Possibly. Even if your income was below $18,200, you may still need to lodge a return or receive a non-lodgment advice, particularly if tax was withheld from your pay. It's worth checking rather than assuming you're exempt. If you think you may inherit property overseas, we suggest lodging a tax return so you can qualify for the certificate of residency.

How long does it take to get my refund? Returns lodged online through myTax or a tax agent are usually processed within two weeks. Paper returns can take up to 50 business days.

Can I amend my return after I've lodged it? Yes. If you realise you've left something out or made a mistake, you can request an amendment through myGov or ask your tax agent to do it for you. It's far better to fix it yourself than to wait for the ATO to catch it.

Getting it right the first time

At AWTS, we specialise in making tax returns simple. Whether you've got a straightforward return, a late lodgment to sort out, or something more complex like an investment property or a deceased estate to manage, we'll walk you through exactly what you need and take care of the lodgment for you. Get in touch to book a consultation, online or in person, before the rush hits closer to the October deadline. For all quotes, click here; for just the individual tax checklist, click here; for a business tax checklist, click here

This article is general information only and doesn't take into account your personal circumstances. For advice specific to your situation, speak with a registered tax agent.

AWTS Tax Registered number is 78641007

Please text us for everything else. Please include your email and first name in the sms or WHATSAPP 0488854200

It's payroll day. You've just processed wages the same way you have for years — hours in, tax out, money hits the account, super gets sorted at the end of the quarter like it always has. Except from 1 July 2026, that last part is no longer true. Super now has to move on the same day as wages, not whenever it's convenient before the quarterly deadline. If your payroll process hasn't changed to match, you're already behind.

This is Payday Super, and it's not a minor tweak to how superannuation gets reported. It changes the mechanics of every single pay run.

**Key takeaways**

- Super Guarantee contributions must now reach an employee's fund within 7 business days of payday, not quarterly.

- The Small Business Super Clearing House has closed permanently — there's no fallback to the old free tool.

- Missed payments trigger automatic penalties from day eight, with far less room for "we'll catch it up next quarter."

- The rate is still 12%, but the timing discipline required is completely different.

## What Payday Super Actually Changes

For as long as most business owners have been running payroll, superannuation worked on a lag. Pay your staff each week or fortnight, then square up the Super Guarantee (SG) contributions by the 28th day after each quarter ends. Plenty of businesses treated that quarterly deadline as a cash flow buffer — a bill that could wait a little longer than wages.

That buffer is gone. From 1 July 2026, employers have to pay SG contributions at the same time as salary and wages, and those contributions need to land in the employee's nominated fund within seven business days of payday. Miss that window and you're not "a bit behind on paperwork" — you're technically in breach from day eight.

### The Small Business Super Clearing House is closed

If your business used the ATO's free Small Business Super Clearing House to distribute contributions across multiple employee funds, that option no longer exists. The SBSCH shut permanently on 1 July 2026. You now need a payroll system or commercial clearing house that can process super in the same cycle as wages — not a once-a-quarter batch job.

For businesses that were quietly relying on the SBSCH as their entire super process, this is the part that catches people off guard. It's not just a timing change. It's a systems change.

## How the New Timing Actually Works

Super is still calculated at 12% of ordinary time earnings (OTE) — that part hasn't moved. What's changed is the clock. The moment you pay wages, a seven-business-day countdown starts for the matching super contribution to actually arrive in the employee's fund, not just be initiated on your end.

That distinction matters. "I sent it" and "it landed" are different things once processing delays, fund details, or clearing house timing get involved. If you're used to setting super payments in motion a day or two before you think you need to, that habit needs tightening. Reporting runs through Single Touch Payroll, so the ATO has visibility into whether contributions are actually keeping pace with wages — not just whether you say they are.

**Why this matters:** the old system tolerated a slow quarter here and there because the penalty structure assumed occasional lateness. The new one assumes contributions move as routinely as wages do, and it's built to notice immediately when they don't.

Picture a fortnightly pay run on a Thursday. Under the old rules, that fortnight's super simply joined a running quarterly total, due weeks or months later. Under Payday Super, the seven-business-day clock starts that same Thursday. By the following Wednesday of the next week, the contribution needs to have actually reached the employee's fund — not just been submitted through your software. Multiply that by every pay run, every fortnight, all year, and it's easy to see why "set and forget" payroll habits don't survive the transition.

## The Penalties You Can't Talk Your Way Out Of

This is the part worth taking seriously. Under the old quarterly system, missing a payment could trigger a Superannuation Guarantee Charge of up to 200% in the worst cases — painful, but there was usually time and process involved before it got there.

Under Payday Super, penalties start automatically from day eight, with no built-in discretion for a minor delay. Depending on your compliance history, penalties can reach 25% to 50% of the unpaid SG amount. If the shortfall is still unpaid 28 days after the ATO issues a notice, an additional penalty of 25% (or 50% for businesses with a pattern of non-compliance) can apply on top.

There is some breathing room built into the first year. Under PCG 2026/1, the ATO has said it will take a risk-based approach between 1 July 2026 and 30 June 2027 — employers who genuinely try to pay on time and fix errors quickly won't be a compliance priority. That's a grace period, not a pass. It rewards businesses that are visibly making an effort, not ones that ignore the change and hope it blows over.

## Does This Apply to Every Business?

Yes. Payday Super applies to all employers, regardless of size. There's no small business carve-out and no phase-in based on headcount. If you have even one employee on the books, the same seven-business-day rule and the same penalty structure apply to you as they do to a business with fifty staff.

That's a change in itself. Plenty of compliance measures over the years have given small operators extra time or lighter obligations. This one didn't. A sole trader with one part-time employee has exactly the same clock running as a larger payroll team — just with fewer people to catch a missed payment before it becomes a problem.

## What This Actually Means for Your Payroll Process

The practical shift is this: super can no longer be an admin task you get to eventually. It has to be built into the same process as running wages, every single pay cycle.

A few things worth checking now, not in September:

- **Confirm your payroll software or clearing house can process super on-cycle.** If you were using the SBSCH, you need a replacement sorted already — not mid-crisis after a missed payday.

- **Check your cash flow timing.** Super leaving your account weekly or fortnightly instead of quarterly changes how money moves through the business. Build that into your forecasting now.

- **Tighten your OTE calculations.** Getting the earnings base wrong is a much bigger problem when it happens every pay run instead of every quarter.

- **Don't assume "processed" means "received."** Confirm contributions are actually landing within the seven-business-day window, not just leaving your account on time.

Where businesses tend to get caught out isn't malice — it's inertia. The old quarterly rhythm is muscle memory, and muscle memory is exactly what needs to change here.

## Getting Payday Super Right From the Start

Payday Super isn't complicated in concept — pay super when you pay wages. Where it gets difficult is in the mechanics: making sure your systems, your cash flow, and your record-keeping can actually support that rhythm without a slip every few pay runs.

If your payroll setup was built around the old quarterly cycle, or you're not confident your current process would survive the seven-business-day test, now is the time to check — not after a penalty notice arrives. Australia Wide Tax Solutions works with small business owners on payroll and BAS compliance and can review whether your current systems are actually ready for Payday Super. [Book an appointment] and we'll walk through it with you before it becomes a problem.

With the Australian financial year ending on 30 June, you have a short window to act. Decisions you make before that date can lower the income you're taxed on for 2025–26 — and once the clock ticks over, most of these doors close until next year.

This guide covers the practical, legal strategies Australians use to reduce taxable income, whether you're an employee, an investor, a sole trader or running a small business. None of it is exotic. It's about timing, contributions and good record-keeping.

Key Takeaways

• The concessional (before-tax) super contributions cap is $30,000 for 2025–26 — contributing more can reduce your taxable income while building retirement savings.
• Prepaying deductible expenses and bringing forward purchases before 30 June shifts deductions into this financial year.
• You may be able to use unused concessional cap amounts carried forward from previous years if your super balance is under $500,000.
• Always keep records — the ATO requires evidence for every deduction you claim.

Why Does 30 June Matter So Much?

In Australia, the financial year runs from 1 July to 30 June. The income you earn and the deductible expenses you incur within that period determine your tax position for the year. Anything paid on or before 30 June counts toward 2025–26; anything paid from 1 July counts toward the next year.

That single date is why "end of financial year" (EOFY) planning exists. A super contribution, a tool purchase or a donation made on 30 June can reduce this year's taxable income — the same action on 1 July cannot. Acting early matters too: super funds and payment processors need time to record the transaction before the deadline.

Can Extra Super Contributions Lower Your Tax?

Yes — and for most people it's the single most effective EOFY lever. Concessional (before-tax) super contributions are taxed at just 15% inside the fund for most earners, which is lower than the marginal tax rate paid by anyone earning above $45,000. The gap between your marginal rate and 15% is effectively tax saved.

For 2025–26, the concessional contributions cap is $30,000. This includes your employer's compulsory Super Guarantee payments and any salary-sacrifice amounts. If you haven't used the full cap, you can make a personal deductible contribution to top it up before 30 June.

To claim the deduction, you must:

• Make the contribution so it's received by your fund before 30 June
• Lodge a Notice of Intent to Claim with your super fund
• Receive an acknowledgement from the fund before you lodge your tax return

Our note: Don't leave super contributions to the final day. Funds can take several business days to process, and a contribution received on 1 July counts for the wrong year — wiping out the deduction entirely.

What Are Carry-Forward Contributions?

If you haven't used your full concessional cap in recent years, you may be able to use the leftover amounts now. These are called carry-forward (or "catch-up") concessional contributions.

You can carry forward unused cap amounts from the previous five financial years, provided your total super balance was below $500,000 on 30 June of the prior year. This is especially useful in a year where your income is unusually high — for example, after selling an asset, receiving a bonus, or returning to work after a break.

Because the calculations depend on your individual super history, check your available carry-forward amount through your myGov account linked to the ATO before contributing.

Should You Prepay or Bring Forward Expenses?

Bringing deductible spending into this financial year is a straightforward way to reduce taxable income. The principle is simple: if you were going to incur a deductible expense anyway, paying for it before 30 June claims the deduction a year earlier.

Common examples include:

• Prepaying interest on an investment loan (subject to the prepayment rules)
• Income protection insurance premiums (premiums for policies held outside super are generally deductible)
• Professional subscriptions, memberships and registrations related to your work
• Repairs and maintenance on an investment property
• Work-related tools, equipment or training you need anyway

If you're a sole trader or small business, you might also bring forward purchases of equipment or stock. The key test is that the expense must be genuinely deductible and actually incurred — you can't simply prepay arbitrary amounts to manufacture a deduction.

How Do Small Business Owners Reduce Taxable Income?

Small businesses have additional levers beyond the personal ones above. The instant asset write-off lets eligible small businesses immediately deduct the cost of qualifying assets, rather than depreciating them over several years — but the threshold and eligibility rules change between years, so confirm the current limit on the ATO website before you buy.

Other common small business EOFY moves include:

• Writing off bad debts that are genuinely unrecoverable, before 30 June
• Paying employee super early so it's received by funds before year-end (it's only deductible once paid)
• Reviewing and scrapping obsolete stock or assets to claim the loss
• Bringing forward deductible expenses such as repairs, supplies or subscriptions

Because business deductions interact with cash flow and BAS reporting, it's worth mapping out which expenses genuinely make sense to bring forward — spending money purely to save tax rarely leaves you ahead.

What About Investments and Capital Gains?

If you've sold an investment at a profit this year, you may face capital gains tax (CGT). One strategy investors consider near EOFY is tax-loss harvesting — selling an underperforming asset to crystallise a capital loss, which can then offset capital gains made elsewhere in the same year.

A few important points:

• Losses can only offset capital gains, not ordinary income
• Unused capital losses can be carried forward to future years
• Beware "wash sale" arrangements — selling purely to create a loss and immediately rebuying the same asset can attract ATO scrutiny

Holding an asset for more than 12 months before selling generally qualifies you for the 50% CGT discount as an individual, which can be far more valuable than any EOFY shuffle. Don't sell a quality investment just to save tax.

Are Charitable Donations Tax Deductible?

Donations of $2 or more to organisations with Deductible Gift Recipient (DGR) status are generally tax deductible. If you've been meaning to give, making the donation before 30 June claims the deduction this year.

To claim:

• The organisation must be a registered DGR (you can check on the ABN Lookup tool)
• You must keep a receipt
• The gift must be genuine — you can't receive a material benefit in return

It's a rare strategy that does real good and reduces your taxable income at the same time.

Frequently Asked Questions

What's the deadline for EOFY tax strategies?

Most strategies must be completed by 30 June 2026 for the 2025–26 financial year. Super contributions and donations must be received by the fund or charity before that date, not just initiated — so allow several business days for processing.

How much can I contribute to super before tax?

The concessional contributions cap is $30,000 for 2025–26, including employer contributions. You may be able to contribute more using carry-forward amounts if your total super balance was under $500,000 on 30 June 2025.

Do I need receipts for everything I claim?

Yes. The ATO requires written evidence for deductions. Keep receipts, invoices, bank statements and your super fund's acknowledgement of any deductible contribution. Without records, the ATO can disallow the claim.

Should I see an accountant before 30 June?

If your situation is more than straightforward — business income, investments, property, or a high-income year — speaking to a registered tax agent before EOFY is worthwhile. Many strategies can only be actioned before 30 June, so advice after that date is too late to apply this year.

The Bottom Line

EOFY tax planning isn't about loopholes — it's about timing and discipline. Topping up super within the cap, bringing forward genuine deductions, harvesting capital losses sensibly and giving to DGR charities can all reduce your taxable income for 2025–26, provided you act before 30 June.

The most expensive mistake is leaving it too late. Processing delays around the deadline are real, so start now rather than on 30 June. And because everyone's circumstances differ, confirm the current rules on the ATO website or with a registered tax agent before you commit.

This article is general information only and does not constitute financial or tax advice. Consult a registered tax agent or financial adviser about your specific circumstances.

You may have heard about a "$1,000 instant tax deduction" coming to Australia. It's real, it's in draft legislation, and it could simplify tax time for millions — but the details matter, and it does not apply to the return you're lodging right now. Here's exactly how the proposed $1,000 standard deduction works, who benefits, and what to do in the meantime.

Key Takeaways

• The $1,000 standard deduction is proposed to start 1 July 2026 — first available on 2026–27 returns lodged in 2027 (ATO, 2026).
• It lets you claim a flat $1,000 for work expenses with no receipts — or claim your actual deductions if they're higher.
• Around 6.2 million workers (42%) are expected to benefit, with an average saving of about $205.

What Is the $1,000 Standard Deduction?

The $1,000 standard deduction is a proposed flat work-related deduction you could claim without keeping a single receipt, announced in the 2026–27 Budget and now in draft legislation (ATO, 2026). It's designed to make tax time simpler for people whose work expenses are modest.

Think of it as a no-questions-asked floor. Instead of digging up receipts for small work costs, eligible taxpayers could simply reduce their taxable income by $1,000. If your real work-related expenses come to more than $1,000, you'd still claim those actual amounts instead — you choose whichever is better.

When Does It Start, and Does It Affect My 2026 Return?

No — it does not affect the 2025–26 return you lodge this year. If passed, the measure applies from 1 July 2026, so the first time you could use it is on your 2026–27 return, lodged in 2027 (ATO, 2026).

For your current return, the existing rules still apply: itemise your real deductions, keep your receipts, and use the 70c work-from-home method if it fits. See what you can claim this year and our 2026 work-from-home guide.

Who Benefits from the $1,000 Deduction?

The Treasury estimates around 6.2 million workers — about 42% of taxpayers — would benefit, with an average tax saving of roughly $205 a year (Treasury, 2026). The winners are people whose genuine work expenses are currently under $1,000.

If you already claim more than $1,000 — common for tradies, nurses, drivers and anyone with a work vehicle or home office — you'd simply keep itemising, because your actual deductions beat the flat amount. The standard deduction sets a floor; it never caps what you can legitimately claim.

What Should You Do Now?

Because the change is still draft legislation, the smart move is to keep doing what maximises your refund today while watching for the law to pass. Don't stop keeping receipts — if your real expenses exceed $1,000, records are how you claim the bigger amount.

• This year (2025–26): itemise and substantiate as normal.
• Keep records anyway: the standard deduction is a choice, not a cap — receipts protect your option to claim more.
• Review next year: once the law is confirmed, compare the flat $1,000 against your actual deductions.

Not sure whether you're above or below the $1,000 line? That's exactly the kind of thing a quick review answers. See how to maximise your tax return.

Want to make sure you claim the most either way? Australia Wide Tax Solutions lodges over 10,000 returns a year and is registered with the Tax Practitioners Board. Book an appointment or lodge online and we'll work out whether itemising or the standard deduction leaves you better off.

Frequently Asked Questions

Can I claim the $1,000 standard deduction on my 2026 tax return?

No. The proposed standard deduction applies from 1 July 2026, so the earliest you could use it is your 2026–27 return, lodged in 2027. Your current 2025–26 return uses the existing rules — itemise your actual work-related deductions (ATO, 2026).

Do I still need receipts if there's a $1,000 standard deduction?

Yes. The standard deduction is a choice, not a cap. If your genuine work expenses exceed $1,000, you'll want receipts to claim the larger actual amount instead. Keeping records preserves your option to claim whichever result is better for you.

Is the $1,000 deduction automatic?

The tax cuts are applied automatically through payroll, but the standard deduction is a choice you make when you lodge. You'd elect either the flat $1,000 or your actual itemised deductions — whichever gives the bigger benefit. Around 6.2 million workers are expected to use it.

Sources

• Australian Taxation Office, Standard deduction for work-related expenses, retrieved 2026-06-22, https://www.ato.gov.au/about-ato/new-legislation/in-detail/individuals/standard-deduction-for-work-related-expenses
• The Treasury, $1000 instant tax deduction to deliver lower, simpler taxes, retrieved 2026-06-22, https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/1000-instant-tax-deduction-deliver-lower-simpler-taxes

Tradies spend more of their own money on work gear than almost any other occupation — tools, utes, boots, licences, phones. The good news: most of it is deductible if you get the rules right. The ATO publishes a dedicated tradie guide and watches this group closely, so this is what you can actually claim in 2026, and where tradies most often get it wrong.

Key Takeaways

• Tools costing $300 or less are claimed in full this year; over $300 they're depreciated over their effective life (ATO, 2026).
• Only genuine protective clothing (steel-caps, hi-vis, safety glasses) is deductible — ordinary clothes never are, even on site.
• You generally can't claim home-to-work travel, but travel between jobs and carrying bulky tools can qualify.

What Can Tradies Claim on Tax in 2026?

In 2026, tradies can claim work costs they paid for themselves and weren't reimbursed for, as long as each cost directly relates to earning income (ATO, 2026). For most tradespeople that means tools and equipment, protective clothing, vehicle and travel costs, licences and tickets, phone, and insurance.

Whether you're an employee or running your own business changes how you claim — sole traders also deal with GST and BAS — but the underlying "is it work-related?" test is the same. If you're a sole trader, see our sole trader tax return guide.

How Do Tradies Claim Tools and Equipment?

It comes down to cost. A tool costing $300 or less can be deducted in full in the year you buy it; anything over $300 is claimed gradually as it depreciates (ATO, 2026). This applies to drills, saws, nail guns, ladders, toolboxes and the like.

If you run a small business, the instant asset write-off can let you immediately deduct higher-value eligible assets — but the threshold has changed year to year, so confirm the current cap before you rely on it. See our explainer on the instant asset write-off. Repairs, insurance and replacement of work tools are also deductible.

What Clothing and Travel Can Tradies Claim?

Only protective clothing is deductible — items with features that shield you from real workplace risks, such as steel-capped boots, hi-vis gear, cut-resistant gloves, safety glasses, and sun protection for outdoor work (ATO, 2026). Ordinary clothes — jeans, plain shirts — are never deductible, even if your boss insists on them.

Travel is the other grey area. Your normal commute from home to a regular workplace isn't claimable. But driving between job sites during the day, or transporting bulky tools you can't securely leave on site, generally is. Keep a logbook — see motor vehicle expenses.

What Else Can Tradies Claim?

Plenty of smaller costs are deductible and easy to forget across a busy year:

• Licences, tickets and white cards needed for your current work (renewals)
• Phone and internet — the work-related percentage
• Union fees and industry memberships
• Sunscreen, sunglasses and hats for outdoor tradies
• Work-related training that maintains or improves your current skills
• Tax agent fees and income protection insurance

Keep every receipt and a logbook for vehicle claims. If your tax is more than a shoebox of dockets, a tradie-savvy accountant pays for themselves — and the fee is deductible. We also work with tradies directly through our tradie accountants service.

Want to claim every tool, ticket and kilometre? Australia Wide Tax Solutions handles returns and BAS for tradies across Australia and is registered with the Tax Practitioners Board. Book an appointment or lodge online.

Frequently Asked Questions

Can tradies claim their work boots and clothing?

You can claim genuine protective items — steel-capped boots, hi-vis, safety glasses, gloves — and sun protection for outdoor work. Ordinary clothing like jeans or plain shirts isn't deductible, even if required on site, because it lacks specific protective features (ATO, 2026).

Can I claim my ute on tax?

You can claim the work-related portion of running costs. Travel between job sites and carrying bulky tools generally qualifies, but your regular home-to-work commute does not. Use a logbook to establish your business-use percentage and keep receipts for fuel, servicing and repairs (ATO, 2026).

How much can a tradie claim for tools without depreciating them?

Any tool costing $300 or less can be claimed in full in the year you buy it. Tools costing more than $300 — or a set costing more than $300 in total — must be claimed over their effective life through depreciation. Small businesses may use the instant asset write-off for higher-value assets, subject to the current threshold.

Sources

• Australian Taxation Office, Tradies - be certain about what you can claim, retrieved 2026-06-22, https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tradies-be-certain-about-what-you-can-claim

Nurses and midwives spend their own money on the job all year — registration, uniforms, training, equipment — and a lot of it is deductible. The catch is that the ATO has a specific occupation guide for nurses, and it draws firm lines. This guide covers what nurses can claim on tax in 2026, what trips people up, and how to keep the records that make a claim stick.

Key Takeaways

• Your annual AHPRA registration renewal is deductible — but your first-ever registration isn't (ATO, 2026).
• Laundry of eligible work uniforms can be claimed up to $150 without written evidence.
• Self-education only counts if it relates to your current role — study to get a new or first job isn't deductible.

What Can Nurses Claim on Tax in 2026?

In 2026, nurses can claim any expense they paid themselves, weren't reimbursed for, and that directly relates to earning their income (ATO, 2026). For nurses and midwives, that covers a well-defined set of work costs the ATO expects to see.

Common deductions include AHPRA registration renewal, union and professional association fees, compulsory or occupation-specific uniforms and their laundry, work-related self-education, and equipment like a fob watch or stethoscope. The key word is work-related — if an expense has a private element, you claim only the work portion.

One rule catches people every year: if your employer reimbursed you, you can't also claim it. Deductions are only for money you were genuinely out of pocket on.

Can Nurses Claim Uniforms and Laundry?

Yes — but only specific clothing. You can claim compulsory uniforms, occupation-specific clothing, and protective items, plus the cost of laundering them; everyday clothing like plain black pants is not deductible even if your ward requires it (ATO, 2026).

Laundry has a handy shortcut: if your total claim for washing eligible work clothing is $150 or less, you can claim it without receipts. Go above $150 and you'll need records. For the detail, see our guide on how much you can claim for laundry.

Are Registration and Training Fees Deductible?

Your annual AHPRA registration renewal is deductible, as are union fees and professional memberships — but your initial registration to become a nurse is not (ATO, 2026). The logic: renewal maintains your current income; first registration helps you get the job.

Self-education follows the same principle. CPD courses, CPR and first-aid renewals, specialist skills like IV cannulation or wound care, and related textbooks are claimable when they connect to your current role. Studying for a different or first job is not deductible. Mandatory immunisations your employer doesn't fund can also be claimed.

What Else Can Nurses Claim?

Beyond the big items, several smaller work costs add up across a year of shifts. Many nurses under-claim simply because they don't keep the receipts.

• Equipment — fob watch, stethoscope, scissors, safety glasses (items over $300 are depreciated)
• Phone and internet — the work-related percentage
• Agency travel — driving between different workplaces in a shift (not home-to-work)
• Annual practising certificates and indemnity insurance you pay yourself
• Tax agent fees from last year's return

Keep receipts for anything over the $300 threshold and a logbook if you claim car expenses. Grab our tax return checklist before you lodge.

Want to claim everything you're entitled to? Australia Wide Tax Solutions prepares thousands of returns for healthcare workers each year and is registered with the Tax Practitioners Board. Book an appointment or lodge online and we'll make sure nothing's left on the table.

Frequently Asked Questions

Can nurses claim shoes and stockings on tax?

Only if they're protective or part of a compulsory, registered uniform. Plain everyday shoes and stockings are treated as conventional clothing and aren't deductible, even if you only wear them at work (ATO, 2026). Non-slip safety footwear with protective features can qualify.

Is my AHPRA registration tax deductible?

Your annual AHPRA renewal is deductible because it maintains your current income. Your very first registration to enter the profession is not deductible. Union fees and professional association memberships you pay yourself are also claimable (ATO, 2026).

Can I claim a nursing course I'm studying?

Only if it relates to your current nursing role and maintains or improves your skills. CPD, first-aid renewals and specialist clinical courses qualify. A course to get your first nursing job, or to move into a different career, is not deductible.

Sources

• Australian Taxation Office, Professional memberships and accreditations, retrieved 2026-06-22, https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/memberships-accreditations-fees-and-commissions/professional-memberships-and-accreditations
• Australian Taxation Office, Clothing, laundry and dry-cleaning expenses, retrieved 2026-06-22, https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/clothing-laundry-and-dry-cleaning-expenses

Driving for Uber, DiDi, Menulog or DoorDash turns your car into a business — and the ATO treats it that way. That means real deductions, but also some rules that catch new drivers out (GST being the big one). This guide covers exactly what rideshare and delivery drivers can claim on tax in 2026, the two ways to claim your car, and the mistakes that trigger ATO attention.

Key Takeaways

• Rideshare drivers must register for GST from their first dollar — the $75,000 threshold does not apply to ride-sourcing (ATO, 2026).
• You can claim car costs two ways: cents per kilometre (88c/km, capped at 5,000km = $4,400) or the logbook method — the logbook usually wins for drivers.
• Your income and GST are reported on a Business Activity Statement (BAS), not just your annual return.

Do Uber and Delivery Drivers Have to Pay Tax?

Yes. In 2026, all income you earn from rideshare and food delivery is assessable and must be declared in your tax return, even if it's a side gig (ATO, 2026). You're treated as a sole trader running a business, so you report your earnings, claim your expenses, and pay tax on the profit.

The platforms report your earnings to the ATO directly through the data-matching program. So "they'll never know" isn't a strategy — undeclared rideshare income is one of the easiest things for the ATO to spot.

The upside is that being a business means you can deduct the genuine costs of earning that income. For a deeper look at sole trader obligations, see our sole trader tax return guide.

Why Must Rideshare Drivers Register for GST Immediately?

Ride-sourcing is the one industry where the $75,000 GST threshold doesn't apply — drivers must register for GST regardless of how little they earn (ATO, 2026). This is the single most common mistake new Uber and DiDi drivers make.

Once registered, you remit 1/11th of your fares as GST, but you can also claim GST credits on your business expenses — including the GST portion of fuel, repairs, and your car purchase. You lodge this through a BAS, usually quarterly.

Important nuance: pure food-delivery work (Menulog, DoorDash, Uber Eats) is not automatically caught by the ride-sourcing rule, so the normal $75,000 threshold can apply if you only deliver food. If you do both, the rideshare rule pulls you in. When in doubt, get advice before you start.

How Do You Claim Car Expenses: Cents Per KM or Logbook?

There are two methods, and for drivers the choice is worth thousands. The cents-per-kilometre method pays 88 cents per business kilometre in 2025–26, but it's capped at 5,000km — a maximum of $4,400 per car (ATO, 2026). Full-time drivers blow past 5,000km in weeks.

That's why the logbook method usually wins for rideshare and delivery work. You keep a 12-week logbook to establish your business-use percentage, then claim that percentage of all running costs: fuel, insurance, registration, servicing, repairs, interest on a car loan, and depreciation. Drive 20,000+ business kilometres a year and the logbook can be far more valuable than the $4,400 cap.

You can't use both methods on the same car in the same year. See our guides on the car logbook and motor vehicle expenses.

What Else Can Rideshare and Delivery Drivers Claim?

Beyond the car itself, a range of running costs are deductible to the extent they relate to your driving in 2026. Many drivers under-claim here because the amounts feel small — but they add up across a year of shifts.

• Platform fees and commissions — Uber/DiDi service fees, booking fees
• Mobile phone and data — the work-related percentage
• Phone mount, charger, and dash cam
• Tolls and parking incurred while working
• Car cleaning and detailing
• Water, mints and amenities provided to passengers
• Bank fees on a dedicated business account and accounting fees

Keep every receipt. The ATO can ask you to substantiate the business-use percentage of any shared item like your phone or car.

How Should Drivers Keep Records in 2026?

Good records are what separate a smooth return from a denied claim. Because you're a GST-registered business, you need to track income and expenses all year, not reconstruct them in October. The drivers who get audited and lose are almost always the ones without a logbook or receipts.

Set up a simple system from day one: a dedicated bank account for driving, a logbook app, and a folder (digital is fine) for receipts. Keep records for five years. If that sounds like a lot alongside driving, a tax agent who knows the gig economy can take it off your hands — and the fee is itself deductible.

Drive for Uber, DiDi or a delivery app? Australia Wide Tax Solutions handles GST registration, BAS, and your annual return so you claim every kilometre and stay ATO-compliant. We lodge over 10,000 returns a year and are registered with the Tax Practitioners Board. Book an appointment or lodge online.

Frequently Asked Questions

Do I have to register for GST if I only drive part-time for Uber?

Yes. For ride-sourcing, the ATO requires GST registration from your first dollar of fares, regardless of how few hours you drive (ATO, 2026). The usual $75,000 threshold does not apply to rideshare drivers.

Is the logbook or cents-per-km method better for Uber drivers?

For most drivers, the logbook method wins. Cents per kilometre is capped at 5,000km (a maximum $4,400 at 88c/km in 2025–26), and full-time drivers exceed that quickly. The logbook lets you claim your business-use share of all running costs and depreciation (ATO, 2026).

Can I claim my car if I bought it on finance?

Yes. Under the logbook method you can claim the business-use percentage of the loan interest plus depreciation of the car's value (the principal repayment itself isn't deductible). Receipts and a valid 12-week logbook are required to support the claim.

Do food delivery drivers need to register for GST?

Not always. Pure food delivery (Uber Eats, Menulog, DoorDash) isn't automatically caught by the ride-sourcing rule, so the $75,000 GST threshold can apply. But if you also do rideshare, you must register for GST on all your driving income.

Sources

• Australian Taxation Office, GST for driving services, retrieved 2026-06-22, https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/your-industry/gst-for-driving-services
• Australian Taxation Office, Cents per kilometre method, retrieved 2026-06-22, https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions/deductions-for-motor-vehicle-expenses/cents-per-kilometre-method

In August 2025, 36% of employed Australians usually worked from home (Australian Bureau of Statistics, Working Arrangements, 2025). Most of them can claim a deduction at tax time. But the rules changed in a way that catches people out every year, and the ATO is watching this claim more closely than almost any other. Get the records wrong and your deduction can be denied on review. This guide shows you what you can claim in 2026, and the one mistake that sinks most returns.

Key Takeaways
- The ATO fixed rate is 70 cents per hour for the 2025–26 year (ATO, Fixed rate method, 2026).
- You must keep a record of every hour worked from home across the full year — estimates and 4-week sample diaries are no longer accepted.
- The fixed rate already covers phone, internet, and electricity, so you can't claim those separately on top of it.

This guide focuses on the 2026 rule changes and record-keeping. For the full A-to-Z walkthrough, see our comprehensive guide to the Australian working-from-home tax deduction.

What Is the Work-From-Home Fixed Rate in 2026?

In 2026, the ATO fixed rate is 70 cents per hour worked from home for the 2025–26 income year (ATO, Fixed rate method, 2026). That rate rose from 67 cents in 2023–24. It bundles a set of everyday running costs into a single per-hour figure, so you don't have to apportion each bill yourself.

The 70-cent rate covers electricity and gas, home and mobile phone use, internet and data, plus stationery and computer consumables. Here's the catch: because those costs are baked in, you can't also claim your phone or internet bill on the side. Try it, and you've double-dipped.

According to the ATO, the fixed rate method lets you claim 70 cents for each hour you work from home in 2025–26, covering energy, phone, internet, and consumables in one figure (ATO, Fixed rate method, 2026). It's the simplest path for most employees, but simple doesn't mean record-free.

For help estimating your likely refund before you lodge, see our tax checklists and calculators.

How Do You Keep Records the ATO Will Actually Accept?

You must keep a record of the total number of hours you worked from home across the entire income year, and the ATO will not accept estimates such as a 4-week representative diary (ATO, Fixed rate method, 2026). This is the single biggest change people miss, and it's where most denied claims start.

The record can take any form, as long as you keep it as the hours happen. A timesheet, a roster, a calendar, or a running diary all work. What doesn't work is sitting down in July and guessing your hours for the year just gone.

You also need at least one bill for each type of expense the rate covers. If you used electricity and your phone while working from home, keep one electricity bill and one phone bill on file. These prove you actually incurred the costs the 70-cent rate represents.

Our advice from the desk: the clients who breeze through ATO review are the ones who logged hours in real time — a simple spreadsheet or calendar entry per workday. The ones who get stuck are reconstructing a year from memory in July. Start your log on 1 July and the work-from-home claim looks after itself.

A quick gut-check: could you show the ATO a contemporaneous record for every hour you're claiming? If the honest answer is no, the fixed rate may not be safe for you this year. For broader record-keeping rules across your whole return, see our individual tax returns.

Fixed Rate or Actual Cost: Which Method Gives the Bigger Refund?

The actual cost method usually produces a larger deduction when you have significant home running costs, because you claim the genuine work-related portion of each expense rather than a flat rate (ATO, Actual cost method, 2026). The trade-off is paperwork. You need receipts and a way to apportion each cost.

Under the actual cost method, you can claim the work-related share of electricity and gas, phone and internet, stationery, and the decline in value of assets like a desk, chair, laptop, or monitor. Items costing $300 or less can be claimed in full in the year you buy them; anything above $300 is depreciated over time.

The ATO confirms the actual cost method lets you claim the work-related portion of all running expenses plus the decline in value of office assets, which can beat the 70-cent rate for taxpayers with high energy or equipment costs (ATO, Actual cost method, 2026). Bought a $1,500 ergonomic setup this year? Actual cost is probably worth the extra effort.

So which wins? If you work limited hours and have modest bills, the fixed rate is faster and often comparable. If you work full-time from home, run a power-hungry setup, or bought equipment this year, run the actual cost numbers before you decide. We can model both for you in a book an appointment.

Why Is the ATO Watching This Deduction So Closely?

Work-related expenses are the ATO's largest individual deduction category, and that scale invites scrutiny. In 2023–24, 10.7 million Australians claimed $31.6 billion in work-related expenses — about 53% of all individual deductions, averaging $2,956 per person (ATO, 2023–24 Taxation Statistics, 2025). Working-from-home costs sit inside that pool.

Because the claim is so common and so often poorly substantiated, the ATO uses data-matching to compare your deductions against benchmarks for your occupation and income. Claims that look high for your job get flagged automatically. With 6.7 million Australians working from home as of June 2025 (Roy Morgan, 2025), even a small error rate is a lot of returns.

The lesson isn't to claim less than you're entitled to. It's to claim exactly what you can prove. Good records turn a flagged claim into a non-event.

What's Changing for Tax After 1 July 2026?

From 1 July 2026, the tax rate on income between $18,201 and $45,000 drops from 16% to 15%, with a further cut to 14% from 1 July 2027 (ATO, Personal income tax cuts, 2026). That change applies to the 2026–27 year, not the 2025–26 return you're lodging now.

There's also a proposed $1,000 standard deduction for work-related expenses, flagged to start from 2026–27. If it lands, many people could claim a flat $1,000 without itemising. For your current return, though, the existing rules and the 70-cent fixed rate still apply. Plan ahead, but lodge this year by the book.

How to Claim Your WFH Deduction in 2026: A Quick Checklist

Claiming correctly in 2026 comes down to three steps the ATO can verify, and most disputes trace back to a missing record rather than a wrong number. Follow this and your work-from-home claim should hold up.

1. Choose your method. Fixed rate (70c/hour, simple) or actual cost (receipts, often larger). Run both if you're unsure.
2. Prove your hours. Keep a full-year, real-time log — timesheet, roster, or diary. No estimates.
3. Keep one bill per expense. At minimum, hold one bill for each cost the rate covers (e.g. electricity, phone).
4. Don't double up. On the fixed rate, never claim phone or internet separately.
5. Get a second look. A registered tax agent can confirm your method and catch errors before the ATO does.

Not sure which method maximises your refund — or whether your records will pass? Australia Wide Tax Solutions has processed over 10,000 returns a year and is registered with the Tax Practitioners Board. Book an in-office appointment in Sydney or lodge online from anywhere via our [lodge online(https://awts.net.au/contact-us/).]

Frequently Asked Questions

Can I still use a 4-week diary for my work-from-home hours in 2026?

No. The ATO no longer accepts a 4-week representative diary or any estimate for the fixed rate method (ATO, Fixed rate method, 2026). You need a record of the actual hours worked from home across the full income year, kept as the hours occur.

What does the 70 cents per hour fixed rate cover?

The 70-cent rate covers electricity and gas, home and mobile phone use, internet and data, and stationery and computer consumables (ATO, Fixed rate method, 2026). Because these are bundled in, you can't claim any of them separately on top of the fixed rate.

Can I claim my desk and office chair?

Yes, but not under the fixed rate. The decline in value of furniture and equipment is claimed under the actual cost method (ATO, Actual cost method, 2026). Items costing $300 or less can be claimed in full in the purchase year; items over $300 are depreciated.

Do the 2026 tax cuts affect my refund this year?

Not for the 2025–26 return. The cut from 16% to 15% applies from 1 July 2026, so it affects the 2026–27 income year (ATO, Personal income tax cuts, 2026). Your current return uses the existing rates and the 70-cent fixed rate.

What happens if my work-from-home claim is audited?

The ATO compares your claim against occupation benchmarks using data-matching, and flagged claims must be substantiated with records (ATO, 2023–24 Taxation Statistics, 2025). If you have a contemporaneous hours log and the required bills, an audit is usually straightforward. Without them, the deduction can be reduced or denied.

The Bottom Line

Working-from-home deductions are worth claiming, but 2026 rewards records over guesswork. Keep these three things straight:

• The fixed rate is 70 cents per hour for 2025–26 and covers phone, internet, and energy in one figure.
• You must log every hour worked from home in real time — no estimates, no 4-week samples.
• Compare the fixed rate against the actual cost method if you have big bills or bought equipment.

Tax time doesn't have to be stressful. If you'd like a registered agent to confirm your method, check your records, and lodge with confidence, the team at Australia Wide Tax Solutions can help in person in Sydney or online. For your next read, see our investment property tax guide if you also earn rental income.

Sources

• Australian Taxation Office, Fixed rate method (working from home expenses), retrieved 2026-06-22, https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/working-from-home-expenses/fixed-rate-method
• Australian Taxation Office, Actual cost method (working from home expenses), retrieved 2026-06-22, https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/work-related-deductions/working-from-home-expenses/actual-cost-method
• Australian Taxation Office, 2023–24 Taxation Statistics released, retrieved 2026-06-22, https://www.ato.gov.au/media-centre/2023-24-taxation-statistics-released
• Australian Taxation Office, Personal income tax – new tax cuts for every Australian taxpayer, retrieved 2026-06-22, https://www.ato.gov.au/about-ato/new-legislation/in-detail/individuals/personal-income-tax-new-tax-cuts-for-every-australian-taxpayer
• Australian Bureau of Statistics, Working Arrangements, August 2025, retrieved 2026-06-22, https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/working-arrangements/latest-release
• Roy Morgan, More than 6.7 million Australians 'work from home', June 2025, retrieved 2026-06-22, https://www.roymorgan.com/findings/9981-work-from-home-june-2025

It's late June. You're looking at an aged receivables report, one customer hasn't paid in months, another has gone silent, and your bookkeeper has marked both as “probably bad”. That label feels useful. For tax, it means almost nothing.

I've seen the same mistake too many times. Business owners think writing off bad debts is an accounting tidy-up. It isn't. It's a tax position that has to survive ATO scrutiny, and the difference between “overdue”, “doubtful”, and “bad” decides whether the deduction stands up or gets knocked back.

Table of Contents

• The ATO Litmus Test When Is a Debt Truly Bad
  • Overdue is not enough
  • The three conditions that matter
• Building Your ATO-Proof Evidence File
  • Build the file like you expect questions
  • Common Pitfall
  • What belongs in the file
• Tax and GST Mechanics of the Write-Off
  • Income tax and GST are separate decisions
  • Partial worthlessness creates trouble
• Worked Examples Trade Debt vs Rental Debt
  • Example one trade debt
  • Example two rental debt
  • Pro-Tip
• The Comeback Handling Bad Debt Recoupment
  • What to do when money comes in later
  • Tracing before writing off versus after recovery
• Your Bad Debt Write-Off Checklist
  • The practical next steps

The ATO Litmus Test When Is a Debt Truly Bad

An invoice can be old, disputed, awkward, and still not be deductible. For Australian tax purposes, bad debts are deductible only when they are written off in the accounts during the income year and the debt is bad rather than merely doubtful, under section 25-35 of the Income Tax Assessment Act 1997, with the write-off needing to occur before year-end, as explained in Esker's overview of bad debt write-off timing.

Overdue is not enough

People often get sloppy. They assume age proves worthlessness. It doesn't.

A debt is doubtful when payment looks shaky but recovery is still possible. A debt is bad when the facts support a commercial decision that you won't recover it. That distinction matters because the deduction turns on the point where recovery is no longer reasonably expected, not the point where you get annoyed enough to stop chasing.

Practical rule: If your records still show a real path to recovery, the debt probably isn't ready to be written off for tax.

The harder cases are the ones in the middle. The customer is still replying, maybe asking for time, maybe promising instalments, maybe contesting part of the invoice. In that situation, calling it bad too early is risky. The ATO won't care that you were pessimistic. It will care whether your records show the debt was worthless at the time you claimed the deduction.

The three conditions that matter

When I review a proposed write-off, I boil it down to three questions.

1. Did the debt exist in a form the tax law recognises?
   You need a real debt. For trade debt, that usually means an invoice tied back to the sale, contract, or engagement terms. If the amount was never properly raised, never finalised, or was still contingent, the foundation is weak.

2. Was the amount already brought to account properly?
   The amount needs to have been included in assessable income, or otherwise represent a loaned amount. If the ledger trail is a mess, you're already on the back foot.

3. Did the facts support a decision that the debt was worthless in that year?
   This is the judgement call, but it can't be a guess. You need a recovery history, failed contact attempts, and something concrete showing that further pursuit was unlikely to produce a result.

Here's the practical test I use with clients:

The businesses that get this right treat the write-off as a decision backed by evidence, not a year-end shortcut.

Why this matters: The first call you make, doubtful or genuinely bad, determines whether the deduction is valid at all.

Building Your ATO-Proof Evidence File

If the ATO asks why you wrote off a debt, your opinion won't carry the day. Your file will. The strongest files read like a clean chronology: debt raised, reminders sent, recovery attempted, decision approved, write-off posted.

Build the file like you expect questions

The most defensible workflow is simple. Evidence the debt as irrecoverable, document a reasonable recovery trail, and write it off in the period the debt becomes worthless. The evidence pack should retain aged receivables reports, reminder letters or emails, legal demand records, and management write-off approval notes, as outlined in the IRS bad debt topic material referenced for workflow and record examples.

That doesn't mean every debt needs a solicitor's letter. It does mean the file needs to show that someone acted like they wanted the money back.

A proper file usually starts with the source documents, then moves into the chase history. Don't rely on memory. Save the emails. Keep the call notes. Export the aged receivables report that shows the debt ageing over time. If the debtor stopped trading, went insolvent, disappeared, or flatly refused to pay, preserve that evidence too.

Common Pitfall

A single overdue invoice isn't an evidence file. It proves there was a debt. It doesn't prove you had sound grounds to write it off.

That mistake shows up all the time in small businesses using Xero, MYOB, or QuickBooks. Someone flags the invoice, posts a journal, and assumes the software entry creates the tax deduction. It doesn't. Software records the decision. It doesn't justify it.

If your bookkeeping process is loose, tighten the record-keeping side before year-end. AWTS has a practical guide to ATO record-keeping requirements that's worth using as a housekeeping benchmark.

What belongs in the file

Use this as a minimum checklist:

• Original debt support such as signed terms, invoices, statements, work orders, lease records, or loan documents.
• Aged receivables evidence showing the debt has remained outstanding and how long it has been unpaid.
• Contact history including reminder emails, letters, file notes of phone calls, and any payment plan discussion.
• Escalation records such as final notices, letters of demand, collection agency correspondence, or legal communications.
• Debtor status material including insolvency notices, bankruptcy material, returned mail, bounced email records, or evidence the business ceased trading.
• Internal approval with a dated management note, board note, or authorised write-off memo explaining why recovery was no longer expected.
• Ledger posting support showing the debt was written off in the accounts in the relevant income year.

Some businesses overcomplicate this by building huge folders full of duplicates. Don't. Build a file that answers the obvious audit questions in order.

A short internal memo often helps. State the debt amount, identify the debtor, summarise recovery steps, note why further action isn't commercially sensible, and record the date the write-off was approved. That memo can do a lot of heavy lifting when memories fade.

Why this matters: A strong evidence file turns a vulnerable deduction into one you can defend calmly if the ATO asks.

Tax and GST Mechanics of the Write-Off

Bookkeeping shortcuts create expensive mistakes. The tax deduction and the GST treatment are related, but they aren't the same entry and they don't solve the same problem.

Income tax and GST are separate decisions

For income tax, the issue is whether the bad debt deduction is available in the year you wrote the debt off. That affects taxable income. If you leave the decision too late and don't post the write-off before year-end, the deduction can slip into the next income year. That timing error is common and avoidable.

For GST, the question is different. If you reported GST on an accrual basis when you issued the invoice, you may be entitled to a bad debt adjustment through your BAS once the debt is written off as bad. Business owners often remember the deduction and forget the GST adjustment, which means they leave money sitting with the ATO that they may have been entitled to recover.

The accounting entry still needs to be clean. If you want a plain-English refresher on how adjusting entries work in practice, Smart Receipts' journal entry insights are a useful companion read before you touch the ledger.

A short comparison helps:

If your BAS work is handled separately from year-end accounts, force those teams to talk to each other. I've seen plenty of files where the debt was written off in the ledger, but the BAS adjustment was missed, or the reverse. That kind of mismatch attracts questions because the records tell two different stories. AWTS also has a plain guide on GST return requirements if you need to check your BAS process.

Partial worthlessness creates trouble

One awkward area is partial worthlessness. Public commentary often treats bad debt as one clean event, but some tax systems distinguish between a debt that is partly worthless and one that is wholly bad. The practical issue for Australian SMEs and landlords is timing. Australian guidance focuses on the point where the debt is wholly worthless, which makes the evidence and timing of the write-off decision critical, as discussed in this analysis of partial bad debt treatment.

If you're still actively negotiating recovery of a meaningful part of the balance, don't assume the whole debt is ready to be written off.

That doesn't mean you must chase forever. It means your records should show why the remaining amount had no realistic recovery path when you wrote it off. If part of the debt is still under genuine negotiation, separate that issue before posting a full write-off.

Why this matters: Clean treatment of tax and GST protects cash flow and avoids contradictory records that are hard to defend later.

Worked Examples Trade Debt vs Rental Debt

Bad debt rules look neat on paper. Real files never are. A design studio handles one kind of debt. A property investor deals with another. The records differ, the commercial decisions differ, and the tax treatment has to follow the facts.

A useful benchmark for context is APQC's median bad debt ratio of 0.68% of revenue, and for an Australian business with $5 million in revenue that equates to $34,000 in annual bad debt losses, which is why active management matters, as noted in Allianz Trade's discussion of direct write-off benchmarks.

Example one trade debt

A graphic design studio issues a $5,000 invoice to a client. The work was completed, the invoice was raised properly, and the amount was included in income. Then the client goes quiet. Emails bounce. Calls stop getting answered. A final demand goes out. The business later learns the client has ceased trading.

At that point, the studio has the ingredients for a defensible write-off if the decision is documented and posted in the accounts in the correct year.

The journal effect is straightforward in concept:

Using the figures in the brief, the $5,000 write-off creates a $500 income tax deduction effect at a 25% company tax rate. If the studio accounts for GST on an accrual basis, it may also claim a $454.55 GST decreasing adjustment on the next BAS.

Those numbers only help if the file supports them. If the studio can't show the debt was uncollectible when written off, the tax effect becomes vulnerable no matter how neat the journal looks.

The write-off doesn't become valid because the debtor closed the business. It becomes defensible because the records show that fact, plus the failed recovery trail, plus the timing of the write-off.

Example two rental debt

A property investor is owed $3,000 in rent arrears. The tenant has absconded. The investor is frustrated and wants to claim the whole amount straight away. That's not how a clean file works.

The rental bond has to be dealt with first. In this example, the bond is $2,000, so that amount should be applied before treating the remaining balance as bad. That leaves $1,000 as the potential bad debt claim against the property's rental income, assuming the file supports the write-off decision and the amount has the right ledger trail.

The records in a rental debt file usually look different from trade debt. You'd expect to see the lease, rent ledger, arrears notices, bond application records, property manager correspondence, and any evidence showing the tenant has left or can't be traced. If you handle rental schedules yourself, it also helps to review AWTS's ATO rental property guide so the debt treatment lines up with the rest of the property records.

Pro-Tip

For rental debts, the bond isn't a side issue. It's part of the core calculation.

If you ignore the bond and claim the gross arrears as a bad debt, you're overstating the loss. That's the sort of basic mismatch that causes avoidable trouble in a review. Landlords often focus on the tenant's behaviour and forget the accounting sequence.

Why this matters: Worked examples force the legal rules back into real records, which is where most bad debt claims either stand up or fall apart.

The Comeback Handling Bad Debt Recoupment

Every now and then, a debt you wrote off comes back from the dead. A former customer wants to clear old accounts. A liquidator makes a distribution. A tenant reappears and pays part of the arrears. Nice surprise. It still needs proper tax treatment.

What to do when money comes in later

If you claimed a deduction when the debt was written off, a later recovery doesn't just vanish into the bank account. The recovered amount needs to be brought back into your income in the year you receive it.

The GST side also needs attention if you previously made a bad debt GST adjustment. In that case, you'll need to reverse that position through the BAS for the period of recovery. Keep the paper trail tight. Match the incoming payment to the original written-off debt, note the date received, and post the recovery clearly so no one mistakes it for ordinary current-period sales.

Use this sequence:

1. Identify the original debt and confirm it was previously written off.
2. Match the payment to that historical balance, not to a fresh invoice.
3. Record the receipt as bad debt recovery income in the correct period.
4. Review BAS treatment if a prior GST adjustment was claimed.
5. Retain support for the original write-off and the later recovery in the same file.

Tracing before writing off versus after recovery

Sometimes the issue isn't whether to account for a recovery. It's whether more tracing should have happened before the debt was written off in the first place. In harder matters, especially when a debtor has moved or gone silent, practical tracing steps can help establish whether recovery was still realistic. For a plain-English look at that side of the process, Sentry Private Investigators' guide on tracing debtors gives useful context on what debtor tracing can involve.

If a recovered amount lands after you've already claimed the deduction, don't treat it casually. It changes your taxable income for that year. If you're unsure how that feeds into your numbers, revisit the basics of calculating taxable income in Australia before lodging.

Why this matters: Recoupments are easy to overlook, and mishandling them can turn an earlier valid claim into a later reporting problem.

Your Bad Debt Write-Off Checklist

Most bad debt problems don't start with the ATO. They start with businesses leaving decisions too late, keeping thin records, and assuming the accountant can fix the story after year-end. Sometimes we can clean it up. Sometimes the evidence was never created, and then the deduction is exposed.

The practical next steps

Run each overdue debtor through this checklist before year-end:

• Confirm the debt is real by matching the balance to the invoice, contract, lease, or ledger source.
• Check it was previously recognised properly in income or as a qualifying amount.
• Review the recovery trail and make sure your file contains dated emails, letters, call notes, and any escalation record.
• Decide whether it is doubtful or bad based on facts, not frustration.
• Document the decision with an internal approval note that explains why further recovery isn't reasonably expected.
• Post the write-off in the accounts in the correct income year if the debt is bad.
• Check the BAS position so the GST treatment lines up with the accounting treatment.
• Create one complete file for each written-off debtor, not scattered notes across inboxes and software.
• Review recoupment risk so any later payment is recorded correctly if it turns up.
• Use a year-end process rather than ad hoc clean-ups. A structured BAS preparation checklist helps keep the tax and GST steps aligned.

A final point. Don't use bad debt write-offs as a substitute for credit control. Chasing debts properly, escalating at the right time, and documenting every step will always put you in a better tax position than trying to reconstruct events later.

Why this matters: A repeatable checklist turns writing off bad debts from a rushed year-end scramble into a controlled, defensible process.

If you need help reviewing old debtors, documenting an ATO-defensible write-off, or cleaning up the tax and BAS treatment before lodgement, Australia Wide Tax Solutions can assist with the accounting records, compliance steps, and supporting documentation needed to get it right.