As the end of the financial year approaches, the Australian Taxation Office has outlined its key compliance priorities for 2026 tax returns. This year, the focus is firmly on ensuring taxpayers correctly report income and avoid overstating deductions particularly work-related expenses.

Understanding these focus areas can help you avoid costly mistakes, delays, or audits when lodging your return.

ATO Crackdown on Work-Related Expense Claims

Work-related deductions remain one of the biggest areas of concern for the ATO. Each year, incorrect or inflated claims are flagged by its increasingly sophisticated data-matching systems.

For 2026, the ATO is closely monitoring:

• Overclaimed deductions
• Expenses not directly related to income earning
• Claims lacking proper documentation

Taxpayers are expected to follow the ATO’s long-standing rules for deductions. To make a valid claim:

• The expense must directly relate to earning your income
• You must have paid for it yourself and not been reimbursed
• You must have records such as receipts, invoices, or logbooks

Even small exaggerations can trigger scrutiny, as the ATO’s systems are designed to detect inconsistencies across returns.

$1,000 Instant Deduction Rule: Not Yet  for 2026 Returns

A major upcoming reform is the proposed $1,000 standard work-related deduction, designed to simplify tax returns.

However, according to the latest ATO guidance:

• This change does not apply to 2026 tax returns
• It is expected to begin from the 2026–27 financial year, meaning it will first impact 2027 tax returns

Until then, taxpayers must continue to:

• Keep receipts
• Substantiate all work-related claims

Relying on the upcoming rule too early could lead to incorrect lodgements.

ATO Warning on Undeclared Income

Another major focus area is omitted income, even in small amounts.

The ATO is targeting undeclared earnings from:

• Side hustles and gig economy work
• Cash-in-hand jobs
• Rental income
• Bank interest and investments

With expanded data-sharing from banks, employers, and digital platforms, the ATO can automatically cross-check income sources. Failing to declare all income streams is one of the fastest ways to attract penalties or audits.

Industry-Specific Deductions: What You Can Legitimately Claim

The ATO continues to emphasise that deductions vary by occupation. Understanding what applies to your role is critical.

Examples highlighted in current ATO guidance include:

• Outdoor workers (such as those in fitness or sports industries) may claim protective items like sunscreen, hats, and sunglasses if required for work
• Flight attendants may be eligible to claim specific footwear if mandated by their employer

Using ATO occupation-specific guides can help ensure claims are accurate and compliant.

Correcting Past Tax Mistakes

The ATO has also reinforced the importance of correcting previous errors.

If you discover that you have:

• Overclaimed deductions
• Missed income in prior years

You should:

• Lodge an amendment to your tax return
• Or consult a registered tax professional

Voluntarily correcting mistakes is viewed more favourably than waiting for the ATO to identify discrepancies.

How to Claim Work From Home Expenses in 2026

With remote and hybrid work still common across Australia, many taxpayers will be claiming home office expenses.

The ATO allows two main methods:

Fixed Rate Method (Simplified)

• Claim 70 cents per hour worked from home
• Covers running costs such as electricity, internet, phone use, and stationery
• Requires a record of hours worked

Actual Cost Method (Detailed)

• Claim the actual work-related portion of expenses
• Includes electricity, internet, equipment depreciation, and more
• Requires detailed records and calculations

Choosing the right method depends on your work setup and record-keeping ability.

Increased ATO Data Matching and Compliance in 2026

The ATO’s compliance capabilities continue to expand, with advanced data-matching systems now able to:

• Cross-check employer, bank, and third-party data
• Identify unusual deduction patterns
• Detect undeclared income streams

This means accuracy is more important than ever. Even minor inconsistencies can be flagged automatically.

Key Takeaways for Your 2026 Tax Return

To stay compliant and avoid ATO scrutiny:

• Declare all income, including side earnings
• Only claim deductions you are entitled to
• Keep clear and complete records
• Use the correct method for work-from-home claims
• Stay informed about upcoming tax changes

Being proactive and accurate will reduce the risk of audits and ensure a smoother tax return process.

Conclusion: Stay Ahead of ATO Tax Rules in 2026

The ATO’s 2026 focus highlights a continued shift toward stricter compliance and smarter data monitoring. While new policies like the $1,000 instant deduction are on the horizon, current tax returns still require careful documentation and accuracy.

By understanding the latest ATO guidance and applying it correctly, Australian workers can confidently lodge their returns while minimising risk.

Source: ATO

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au  or arrange a time for a meeting so we can discuss your requirements in more detail.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

The personal income tax cuts legislated to commence on 1 July 2024 will be realigned and redistributed under a proposal released by the Federal Government.

After much speculation, the Prime Minister has announced that the Government will amend the legislated Stage 3 tax cuts scheduled to commence on 1 July 2024. Relative to the current Stage 3 plan, the proposed redesign will broaden the benefits of the tax cut by focussing on individuals with taxable income below $150,000. If enacted, an additional 2.9 million Australian taxpayers are estimated to take home more in their pay packet from 1 July.

It’s not how Stage 3 of the 5 year plan to restructure the personal income tax system was supposed to work, but a sharp escalation in the cost of living has reshaped community sentiment. As the Prime Minister said, “we are focussed on the here and now” and by default, not on long term structural change.

The redesign will increase Government revenues from personal income tax by an estimated $28 billion to 2034-35 as bracket creep takes its toll.

What will change? | Proposed Changes

The revised tax cuts redistribute the reforms to benefit lower income households that have been disproportionately impacted by cost of living pressures.

Tax Bracket	Income Range	Marginal Tax Rate	Tax Payable
1	$0-$18,200	0%	nil
2	$18,201-$45,000	16%	16% of excess over $18,201
3	$45,001-$135,000	30%	$4,288 + 30% of excess over $45,000
4	$135,001-$190,000	37%	$31,288 + 37% of excess over $135,000
5	$190,001+	45%	$51,638 + 45% of excess over $190,000

Under the proposed redesign, all resident taxpayers with taxable income under $146,486, who would actually have an income tax liability, will receive a larger tax cut compared with the existing Stage 3 plan. For example:

• An individual with taxable income of $40,000 will receive a tax cut of $654, in contrast to receiving no tax cut under the current Stage 3 plan (but they are likely to have benefited from the tax cuts at Stage 1 and Stage 2).
• An individual with taxable income of $100,000 would receive a tax cut of $2,179, which is $804 more than under the current Stage 3 plan.

However, an individual earning $200,000 will have the benefit of the Stage 3 plan slashed to around half of what was expected from $9,075 to $4,529. There is still a benefit compared with current tax rates, just not as much.

There is additional relief for low-income earners with the Medicare Levy low-income threshold increasing by 7.1% in line with inflation. It is expected that an individual will not start paying the Medicare Levy until their income reaches $26,000 and will not pay the full 2% until $32,500 (for singles).

While the proposed redesign is intended to be broadly revenue neutral compared with the existing budgeted Stage 3 plan, it will cost around $1bn more over the next four years before bracket creep starts to diminish the gains.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

As we kick off 2024 and wade through the financial scene, it’s time to set goals for our money resolutions. Personally, I’m all about setting and hitting goals, but let’s be real – not everyone can pull it off without the right setup and support. There’s nothing more frustrating than reaching the end of the year and realising that all the plans you made got tossed aside.

But guess what? This year, we’re turning it around. We’re setting money goals that are not just doable but will also make this your best year yet.

Before we jump into the nitty-gritty of these resolutions, let’s give a nod to the economic challenges we’ve been dealing with and are still grappling with. The shadow of the inflation crisis from previous years is still hanging over us as we step into the new year. According to the Reserve Bank of Australia (RBA), they’re not expecting to hit the midpoint of their inflation target until 2026. Tough times, but we’re gearing up to tackle it head-on. With this in mind, let’s break down the five money resolutions that can pave the way for your financial success in 2024 and put you in the position to have your best year yet.

1. Take pressure off yourself – Set short term goals

It’s common to take on the burden of financial challenges and start blaming ourselves when we fall short of certain expectations. Yet, in the face of a cost-of-living crisis, it’s vital to change how we view things.

Remember, you’re not alone; plenty of others are facing similar challenges. Instead of blaming yourself, shift your mindset to proactive problem-solving. Reach out for support, educate yourself on financial literacy, and make decisions based on knowledge.

Recognising external factors can lighten the load and allow you to approach your financial journey with a healthier perspective. Your financial history doesn’t define your ability with money, so don’t be too hard on yourself.

Short-Term Goals

A short-term financial objective is a financial goal that you want to achieve within a relatively short period, typically within one year. These objectives can be singular goals or incremental steps to larger financial goals. Some common short-term financial goals include setting a budget, starting an emergency fund, paying off debt, and saving for personal goods or experiences.

To identify and set short-term financial objectives for the new year, you can follow these steps:

Define Your Goals: Determine what you want to achieve in the short term, such as paying off credit card debt, building an emergency fund, saving for a vacation, or making a major purchase.

Set Specific and Measurable Objectives: Establish clear and achievable financial goals, such as saving a specific amount of money each month or paying off a certain amount of debt by the end of the year.

Create a Budget: Develop a budget that aligns with your short-term objectives, ensuring that your income covers your expenses and allows you to make progress toward your goals.

Track Your Progress: Regularly monitor your finances to see how you are progressing toward your short-term objectives. Adjust your budget and spending as needed to stay on track.

2. Spend less

In a world filled with enticing advertisements and pressure to keep up with the latest trends, reining in your spending is a fundamental resolution. Understand that every dollar saved today contributes to being more financially secure tomorrow.

Consider creating a budget, differentiating between needs and wants, and finding ways to cut unnecessary expenses. Be mindful of your financial goals, and let them guide your spending choices  and be aware of how other people’s financial goals might be impacting yours.

3. Save more

In times of uncertainty, a resilient emergency fund serves as your financial safety net, becoming even more crucial than ever.

Ensure the presence of a sufficient cushion to address unforeseen expenses or potential job loss. Take advantage of the current higher interest rates by exploring savings accounts that offer more favorable returns. While these elevated interest rates may have posed challenges for mortgages, they have proven advantageous for our savings accounts.

This year, I’ve observed high-interest savings accounts with rates ranging between 4 and 5.70 percent. Enhance the productivity of your money by optimizing your existing savings strategy. Consider automating your savings process to maintain consistency and foster discipline in fortifying your financial safety net.

4. Get your personal insurances in order

As we face an undoubtedly challenging year ahead, ensuring the stability of your income ranks among the most crucial steps you can take. It’s perplexing to think that people invest in insurance for their cars but often neglect to safeguard their income, despite the fact that we rely on income to replace a damaged vehicle.

Life and personal insurance can serve as a protective shield in the event of job loss, life-altering illnesses, or unfortunate accidents. These policies create a financial safety net for your family, offering peace of mind during tumultuous times. Make it a priority to commit to this resolution in order to protect both your financial well-being and that of your loved ones – it’s a step that can significantly enhance your peace of mind.

5. Schedule a monthly check in

Regular monitoring and adjustment play a pivotal role in achieving financial success. Mark a monthly date on your calendar to assess your financial progress, whether individually or with your partner. This routine check-in enables you to track accomplishments, pinpoint areas for improvement, and uphold accountability to your goals.

The lack of planning has hindered many in the past, but a dedicated monthly review ensures that you stay on course and make necessary adjustments as needed. Consistently checking in allows you to pause, reflect, and redirect if a goal isn’t progressing as anticipated.

This is the year for you to transform your financial habits, and by embracing these five money resolutions, you’ll not only navigate the challenges of the current economic landscape but also lay the groundwork for a secure and successful future – irrespective of your starting point.

Remember, it’s not about making grand gestures; it’s about taking consistent, intentional steps that will guide you toward financial well-being.

6. Get reacquainted with your credit score

Enter the new year knowing what lenders see when they look at your financial profile — and avoid potential future headaches. You have a right to obtain a copy of your credit report for free every three months from reporting agencies Experian, illion, and Equifax.

Make sure to check the report carefully for any inaccuracies.

Money Smart suggests checking that:

• All the loans and debts listed are yours
• Details such as your name and date of birth are correct

If you do find an error, you can contact the agency and ask them to fix it. This is a free service.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

The start of the new year brings a myriad of changes, influencing various aspects such as the tax rates for many Australians and the amount of superannuation they are entitled to receive. We have put together a list of the major changes that will apply in 2024.

1. Austudy and Youth Allowance payments – Jan 1, 2024

Hundreds of thousands of Australians will start to receive a 6% increase in their Austudy, Disability Support Pension (under 21) and Youth Allowance payments after new payment rates came into effect on January 1.

Fortnightly payments will increase by between $36.20 and $45.60 for those on Austudy, between $22.40 and $45.60 for those receiving Youth Allowance and between $31.10 and $44.90 for Disability Support Pension recipients below the age of 21. The government also says that 600,000 carers will see their Carer Allowance increase by $8.70 a fortnight.

2. Pensioner Work Bonus limits – Jan 1, 2024

Eligible pensioners will be able to earn more income without having their pension reduced following the government’s decision to permanently increase the maximum Work Bonus income bank balance limit to $11,800. The balance had originally been set to fall back to $7800 from January 1.

Pensioners can currently earn up to $300 in income each fortnight without it being counted under the pension income test. That means, for example, that when also taking the pension income free area into account, a single pensioner can earn $504 a fortnight while still receiving the maximum pension.

3. Medicare Safety Net thresholds – Jan 1, 2024

The amount that Australians will need to spend on out of hospital expenses before they qualify for a reimbursement under the various Medicare Safety Nets has increased.

The Medicare Safety Nets thresholds are indexed in line with the Consumer Price Index, so as a result of inflation, the Original Medicare Safety Net threshold rose from $531.70 to $560.40 on January 1.

So too did the Extended Medicare Safety Net ($2414 to $2544.30) for non-concession cardholders and the Extended Medicare Safety Net ($770.30 to $811.80) for concession holders and families that are eligible for the Family Tax Benefit Part A.

4. Victorian land tax surcharge – Jan 1, 2024

A  temporary land tax surcharge has been introduced in Victoria which will increase the amount of tax payable on landholdings, though family homes are exempt.

The initiative, which is planned to run for the next decade, will see taxable landholdings valued between $50,000 and $100,000 attract a $500 surcharge and those between $100,000 and $300,000 attract a $975 surcharge. For landholdings valued over $300,000 a $975 flat surcharge and a 0.10% land tax increase will apply.

5. Electric vehicle rebates – Jan 1, 2024

Would-be electric vehicle (EV) buyers in both New South Wales and South Australia will no longer be entitled to a $3000 rebate after both states ended their respective incentives.

EV purchases made up to the December 31 deadline (including putting down a deposit) will still be eligible for the $3000 rebate, though in New South Wales the vehicle will need to be registered and the rebate application made by June 30. Dedicated electric vehicle rebate schemes are still operating in Queensland ($3000 to $6000 available) and Western Australia ($3500 available).

6. Reserve Bank schedule – Feb 5, 2024

Following on from the government’s review of the Reserve Bank of Australia last year, there will be a new look schedule for Reserve Bank Board monetary policy meetings starting at the first meeting of 2024 on February 5.

Rather than 11 meetings a year held on the first Tuesday of every month (aside from January), the Board will now meet eight times each year and the meetings themselves will be spread out over a Monday afternoon and Tuesday morning before a decision is announced on Tuesday afternoon.

For homeowners with a mortgage one expected benefit of the new schedule is less frequent home loan rate changes, though there’s nothing stopping lenders lifting or dropping their rates between meetings.

7. Stage three tax cuts – July 1, 2024

Barring any last-minute surprises, the much-discussed stage three tax cuts will finally come into effect on July 1 which will have an impact on the amount of tax many Australians will pay going forward.

There are currently five tax brackets (including the tax-free threshold), but this will be cut to four from July 1 when Australians earning between $45,001 and $200,000 will be merged into a single bracket with a 30% tax rate rather than the existing 32.5% or 37% tax rates that apply for incomes in that range.

Additionally, the income threshold for the highest 45% tax rate will be lifted from $180,001 to $200,001.

New income tax rates

Income	Tax rate
$0 – $18,200	Nil
$18,201 – $45,000	19 cents for each $1 over $18,200
$45,001 – $120,000	$5092 plus 32.5 cents for each $1 over $45,000
$120,001-$180,000	$29,467 plus 37 cents for each $1 over $120,000
$200,001 and up	$51,667 plus 45 cents for each $1 over $180,000

8. Superannuation guarantee rate – July 1, 2024

Many Australian workers will receive another increase in the regular superannuation contributions they receive from their employers when the Superannuation Guarantee rate is increased from 11% to 11.5% from the start of the new financial year (July 1).

This will be the latest annual uptick in the rate which has risen in 0.5% increments from 9.50% in 2021 and is scheduled to reach 12% in July 2025.

• From 1 July 2022, the work test no longer applies to retirees aged between 67 and 75 for specific contributions. Both non-concessional and salary sacrifice contributions can be contributed to super assuming their total super cap is below $1.9 million for non-concessional contributions without passing the work test.
• The work test, a requirement to work 40 hours in any 30 day period within the financial year, still applies to other contribution types including personal concessional contributions.
• Individuals up to the age of 75 may now be able to use the bring forward rule which previously cut off at 67 years. Prior to making any non-concessional contributions, the member must review their total super balance cap and any non-concessional contributions made in the last 2 years.
• The bring forward non concessional rule effectively allows an individual to contribute up to 3 years of non-concessional contributions in the one year – potentially $330,000! We would recommend reaching out to our office to ensure this applies to you prior to making any contributions.

9. Help To Buy scheme – TBA

While there’s no official start date yet, the federal government has indicated that its new Help To Buy scheme will be up and running this year once the states pass the legislation needed to participate.

What is Help To Buy? It’s a shared equity scheme in which, in order to help homebuyers enter the market, the government will provide an equity contribution of up to 30% of the value of an existing home or 40% of a new home.

The government says that the scheme will assist 40,000 low and middle income families to purchase a property, though applicants will need a minimum 2% deposit and it’s anticipated that the contribution will either need to be paid back over time or when the home is sold.

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General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.