Tax time can feel a bit like opening the fridge at 5pm and hoping dinner magically appears. You know it has to be dealt with, but you’d rather do almost anything else.
The good news? Learning how to maximise your tax return in Australia doesn’t mean doing anything dodgy. It means claiming what you’re legally entitled to, keeping proper records, and not missing the boring little deductions that can add up.
This guide is general information only, not personal tax advice. If your situation is complicated, especially if you have a business, investment property, crypto, side hustle income, or a messy year financially, chat with a registered tax agen M,
First, what tax year are we talking about?
Your 2026 tax return covers income and expenses from 1 July 2025 to 30 June 2026.
You can usually start lodging after 1 July, but rushing in too early can backfire. The best time to lodge is usually from late July, because most of your income information should be pre-filled by then. myGov says this is when most income information has been added to your return. Your employer also has until 14 July to finalise your income statement as “Tax ready,” so don’t panic if it’s not there on 1 July.
Before you lodge, check:
- Your income statement says “Tax ready”
- Bank interest has pre-filled
- Private health insurance details are showing, if relevant
- Government payments are included, if you received any
- Dividends, investment income, or rental income are ready
- You’ve added any side hustle income manually
- You’ve checked every deduction against your records
No one wants to amend a tax return because they got a bit too keen on 2 July. Been there, regretted that.
What’s changed for 2026 tax returns?
A few things matter this year.
The old COVID working from home shortcut method is gone. For the 2025 to 2026 income year, the ATO’s current working from home options are the fixed rate method and the actual cost method. Under the fixed rate method, the ATO example for 2025 to 2026 uses 70 cents per work hour.
There has also been talk of a proposed $1,000 standard deduction for work-related expenses. The ATO says this does not apply to your 2025 to 2026 tax return. For this return, you still need to claim deductions the normal way, with records.
New personal income tax cuts start from 1 July 2026, with the 16 percent rate reducing to 15 percent from that date, then reducing again from 1 July 2027. That affects the 2026 to 2027 income year, not the 2025 to 2026 tax return you’re lodging now.
The three golden rules of tax deductions
Before we get into the fun part, or as fun as tax can be without snacks, remember the ATO’s basic deduction rules.
To claim a work-related deduction:
- You must have spent the money yourself and not been reimbursed.
- The expense must directly relate to earning your income.
- You must have a record to prove it, usually a receipt.
If something is partly private and partly work-related, you can only claim the work-related bit. So if your phone is used for work emails, kids’ school messages, Woolies orders, and doom-scrolling in bed, you’ll need to claim a reasonable work percentage only.
21 smart ways to maximise your tax return
1. Don’t lodge before your income statement is ready
This is the least exciting tip, but it can save you a headache.
Wait until your income statement is marked Tax ready in myGov or the ATO app. Employers have until 14 July to finalise their data, and lodging before then can mean your income or tax withheld is wrong.
If you use a tax agent, they can also see your income statement, but they still need to wait until it’s marked Tax ready.
2. Claim working from home expenses the right way
If you worked from home during the 2025 to 2026 year, you may be able to claim home office running expenses.
The ATO has two main methods:
- Fixed rate method: claim a set rate per hour worked from home.
- Actual cost method: claim the actual additional expenses you incurred because you worked from home.
Under the fixed rate method, the ATO’s 2025 to 2026 example uses 70 cents per hour. This rate covers things like electricity, internet, mobile, home phone, and stationery for the time you work from home.
That last bit matters. If you use the fixed rate method, you generally can’t then claim a separate deduction for home internet or stationery used while working from home. Double dipping is not the vibe.
3. Check whether the actual cost method gives you a better result
The fixed rate method is easy, but easy isn’t always best.
The actual cost method lets you work out the real additional expenses you incurred while working from home. This can include work-related portions of energy, phone, internet, stationery, printer ink, cleaning a dedicated home office, and decline in value of office furniture or equipment.
This method needs better records, so it’s not for everyone. But if you bought a proper desk, chair, monitor, laptop, or other office gear, it’s worth doing the sums.
4. Claim phone and internet expenses carefully
If you use your phone or internet for work, you may be able to claim the work-related portion.
The ATO says you need written evidence of the expense and records showing how you worked out the work-related use. If your plan is shared with the whole household, you’ll need to be realistic. Your toddler watching Bluey on the iPad does not count as work, sadly.
A simple way to work it out is to keep a four-week diary showing work versus private use, then apply that percentage to your yearly cost.
5. Claim car expenses if you use your car for work
Driving from home to your regular workplace is usually private travel, even if the commute feels like a full emotional journey.
But you may be able to claim car expenses for work trips, such as driving between job sites, travelling between workplaces, or visiting clients.
For 2025 to 2026, the ATO’s cents per kilometre method is 88 cents per work-related kilometre, up to 5,000 work-related kilometres per car, per year. You don’t need a full logbook for this method, but you do need records showing how you worked out your kilometres.
If you do a lot of work driving, compare the cents per kilometre method with the logbook method. The logbook method takes more effort, but it may give a bigger deduction if your work use is high.
6. Don’t forget taxis, ride-share, public transport, and tolls
Work-related transport isn’t just about your own car.
If you pay for taxis, ride-share, public transport, parking, tolls, flights, trains, or buses while performing work duties, those costs may be deductible. This does not include ordinary home-to-work travel.
Keep receipts, screenshots, booking confirmations, calendar notes, and anything else that shows why the trip was work-related.
7. Claim overnight work travel properly
If you travel and stay away from home overnight for work, you may be able to claim accommodation, meals, and incidental expenses.
The key is that you must be travelling in the course of performing your work duties. Living far from work or choosing to stay near work usually won’t count.
If your employer pays you a travel allowance, check whether it appears on your income statement and whether you need to declare it. Keep records anyway. Allowances are not magic free money.
8. Claim overtime meals only when the rules fit
You can’t claim everyday lunches, coffees, snacks, or the emergency servo chocolate bar that got you through a rough Tuesday.
You may be able to claim an overtime meal if you buy and eat the meal while working overtime, receive an overtime meal allowance under an award or agreement, and declare the allowance as income where required.
If your boss bought pizza for the team, you can’t claim it. Delicious, yes. Deductible, no.
9. Claim uniforms, protective clothing, and laundry
You may be able to claim the cost of buying, repairing, or laundering:
- Compulsory work uniforms
- Occupation-specific clothing
- Protective clothing
- Protective footwear
- Safety glasses or sun protection used for work
The ATO has specific rules for clothing, laundry, and dry-cleaning expenses. Ordinary clothing usually won’t count, even if you only wear it to work. Black pants for retail shifts are still just black pants unless they meet the uniform rules.
10. Claim tools, equipment, computers, and software
If you buy tools or equipment for work, you may be able to claim a deduction.
This can include:
- Tools
- Laptops
- Software
- Monitors
- Headsets
- Calculators
- Work-specific apps
- Repairs or insurance for work tools
For depreciating assets costing $300 or less, you may be able to claim an immediate deduction if the conditions are met. More expensive items usually need to be claimed over time as decline in value.
If an item is used for both work and home, claim only the work portion. Yes, even if the kids “borrowed” your work laptop and changed the wallpaper to Minecraft.
11. Claim stationery and office supplies
Pens, paper, printer ink, diaries, logbooks, envelopes, and other office supplies can be deductible if you use them for work.
If you use the fixed rate method for working from home, be careful. The ATO says stationery and office supplies used while working from home are included in that rate, so you can’t claim them again separately for that same working from home period.
12. Claim work bags and cases if they genuinely carry work items
You may be able to claim a bag, case, satchel, laptop bag, or briefcase if you use it to carry work items and your job requires you to transport those items.
The ATO says the bag must be suitable for that work purpose, and you need records of the cost and work use. A handbag mainly used for lunch, keys, lip balm, and random kid treasures won’t cut it.
13. Claim self-education expenses when they connect to your current job
Self-education can be deductible when it has a clear connection to your current work.
The ATO says your course must either maintain or improve the specific skills or knowledge you need in your current job, or be likely to increase your income from your current employment activities.
Examples that may qualify:
- A nurse studying further nursing qualifications
- A teacher completing relevant professional development
- A bookkeeper studying an advanced accounting course
- A hairdresser doing colour correction training
A course for a totally new career usually won’t be deductible against your current job income.
14. Claim professional memberships, accreditations, and union fees
Union fees, professional association fees, accreditations, annual practising certificates, and some work-related checks may be deductible if they relate to your job.
This is one of those boring deductions people forget because it’s often paid once and buried in bank statements. Go hunting. The receipt is probably hiding in your inbox under a subject line like “renewal confirmation.”
15. Claim the cost of managing your tax affairs
You may be able to claim costs for managing your tax affairs, including:
- Tax agent fees
- Tax advice from a recognised adviser
- Tax software
- Tax reference material
- Some travel costs to get tax advice
The ATO lists registered tax agent fees and tax advice costs as examples of deductible costs for managing your tax affairs.
Before paying someone to lodge your return, check they’re registered with the Tax Practitioners Board. Their public register lets you search tax and BAS agents.
16. Claim gifts and donations to approved charities
You may be able to claim donations of $2 or more, but only if the organisation is a deductible gift recipient, often called a DGR.
You also need to have made a genuine gift. If you bought raffle tickets, chocolates, a pen, a ticket to a fundraising dinner, or anything where you received something in return, the rules are different and it may not be deductible.
Keep the receipt. Your bank statement alone may not be enough if the ATO asks questions.
17. Claim income protection insurance premiums
If you pay for income protection insurance that protects your salary or wages, you may be able to claim the premiums.
The ATO says only premiums you pay to protect your income are deductible. If you receive a payment under an income protection policy that replaces salary or wages, you generally need to include it in your tax return.
Don’t mix this up with life insurance, trauma insurance, or total and permanent disability cover. Different products have different tax treatment.
18. Consider personal super contributions
If you make personal super contributions, you may be able to claim them as a tax deduction.
There’s a big catch: you need to give your super fund a valid notice of intent and receive an acknowledgement before you claim the deduction. The ATO says you’re not entitled to the deduction until your fund acknowledges your valid notice.
This is one to handle carefully because it can affect your super and your tax. Get advice if you’re unsure.
19. Claim investment-related expenses
If you earn interest, dividends, or other investment income, you may be able to claim expenses directly connected to earning that income.
Examples may include account-keeping fees for investment accounts, interest on money borrowed to buy income-producing investments, and some ongoing investment advice fees. The rules can be fiddly, especially for financial advice, so don’t guess.
You also need to declare the investment income. No hiding the bank interest and then claiming the account fee. Nice try.
20. Don’t forget rental property expenses
If you own a rental property, you need to declare rental income and you may be able to claim eligible rental expenses.
Some expenses can be claimed straight away, while others need to be claimed over several years. You may also need to apportion expenses if the property was only rented for part of the year, partly private, or not available on commercial terms for the whole period.
Rental property tax is an area where mistakes can get expensive, so use the ATO’s rental property guide or a tax agent if you’re not sure.
21. Declare side hustle and online income, then claim the right expenses
Selling online, freelancing, creating digital content, ride-share driving, delivery work, renting out assets, or doing task-based work through apps can all create taxable income.
The ATO says money earned through digital platforms or apps is sharing economy income and needs to be reported in your tax return. This can include ride-sourcing, delivery services, short-term accommodation, renting out assets, creating or selling digital content, selling goods, and freelance services arranged online.
The upside? If the income is taxable, related expenses may also be deductible. Keep proper records of both income and costs.
Deductions parents often ask about
Can I claim childcare?
No. You can’t claim childcare, before-school care, or after-school care as a tax deduction. The ATO says these are private expenses, even if you need childcare so you can work.
Annoying? Yes. Deductible? No.
Can I claim school fees?
No. You can’t claim your child’s school fees, university fees, TAFE fees, uniforms, laptops for school, or other education costs for your child as work-related deductions.
Can I claim groceries or coffee while working?
Usually no. Food and drink during normal working hours are private expenses, even if you’re working a long day. Limited exceptions apply for overtime meal expenses and overnight work travel.
Can I claim sunglasses?
Maybe. If the sunglasses protect you from a real work-related risk while you work outdoors, they may qualify as protective items. If they’re just your nice driving sunnies, probably not. The ATO’s clothing and protective items guidance covers glasses and protective gear.
Can I claim Netflix, Spotify, or streaming services?
Only in very limited work-specific situations. Most people can’t. If you’re claiming any subscription, it needs a clear work connection and you’ll need to apportion private use.
Record keeping: the bit that saves your backside
The ATO can ask for proof, so don’t rely on “I’m sure I bought that sometime in August.”
Keep:
- Receipts
- Tax invoices
- Bank records
- Email confirmations
- Work diaries
- Logbooks
- Rosters
- Payslips
- Income statements
- Donation receipts
- Super contribution notices
- Travel records
The ATO says you generally need to keep records for five years from the date you lodge your tax return. It also says a bank or credit card statement on its own is not an acceptable record.
A simple hack: use the ATO app’s myDeductions tool to store expenses, work-related trips, and photos of receipts. Employees can record expenses and work trips, and sole traders can also record income.
A quick tax return checklist
Before you press lodge, check you have:
- Income statement marked Tax ready
- Bank interest
- Dividend statements
- Managed fund or investment statements
- Private health insurance statement, if relevant
- Government payment details, if relevant
- Rental property income and expenses
- Side hustle income and expenses
- Work from home hours and method
- Phone and internet work-use calculation
- Car kilometre records or logbook
- Travel receipts
- Uniform and laundry records
- Self-education receipts
- Donation receipts
- Tax agent invoice from last year
- Personal super contribution acknowledgement, if claiming
- Records saved somewhere you can actually find them again
Future you will be grateful. Future you is already tired.
Common tax return mistakes to avoid
Claiming everything because “everyone does it”
Nope. The ATO doesn’t care what your mate at school pick-up reckons they claimed. If it doesn’t relate to your income and you don’t have proof, leave it out.
Claiming private expenses as work expenses
Private expenses stay private. Childcare, school fees, normal food, commuting, most everyday clothes, and family internet use are common traps.
Double claiming working from home costs
If you use the fixed rate method, don’t claim separate deductions for expenses already included in that rate, such as home internet, mobile, stationery, and electricity for your working from home hours.
Forgetting side hustle income
If money came in from an app, online platform, freelance job, market stall, or digital content, check whether it needs to be declared. The ATO has data-matching programs for sharing economy platforms, so pretending it didn’t happen is not a plan.
Guessing instead of calculating
Round numbers everywhere can look suspicious. If every claim ends in “00,” go back and check your records properly.
When should you use a tax agent?
A simple employee tax return can often be done through myTax.
A registered tax agent may be worth it if you:
- Have investment properties
- Earn side hustle or business income
- Bought or sold shares, crypto, or other assets
- Made personal super contributions
- Worked multiple jobs
- Claimed complex work expenses
- Had overseas income
- Separated, changed family circumstances, or had a messy financial year
Use the Tax Practitioners Board public register to check whether a tax agent is registered before paying them.
Frequently asked questions
How much should my tax refund be?
There’s no “normal” refund. Your refund depends on your income, tax withheld, Medicare levy, offsets, deductions, HELP debt, private health cover, investments, and any extra income.
A bigger refund isn’t always better. Sometimes it means too much tax was withheld during the year.
Can I claim a laptop?
Yes, if you use it for work and you paid for it yourself. If it cost $300 or less and meets the ATO conditions, you may be able to claim it immediately. If it cost more than $300, you’ll usually claim its decline in value over time. You’ll also need to claim only the work-use portion.
Can I claim my internet?
Yes, if you use it for work and keep records showing your work use. But if you claim working from home expenses using the fixed rate method, your home internet for those work-from-home hours is already included in that rate.
Can I claim my car trips to work?
Usually no. Travel between home and your regular workplace is normally private. You may be able to claim work-related trips while performing your duties, such as travel between workplaces or to clients.
Can I claim donations?
Yes, if the donation meets the rules and is made to a deductible gift recipient. You need a record, and you can’t usually claim if you received something in return.
Can I claim childcare?
No. Childcare, before-school care, and after-school care are private expenses and can’t be claimed as tax deductions.
How long do I need to keep tax records?
Usually five years from the date you lodge your tax return. If you claim depreciation on an asset, you may need to keep records for longer, based on the last year you claim decline in value.
Can I amend my tax return if I make a mistake?
Yes. If you forgot something or made a mistake, you can update your return after lodging. myGov says you can check your tax return progress and update your return if something was missed.
The bottom line
The best way to maximise your tax return isn’t to claim everything and hope for the best.
It’s to claim everything you’re legally entitled to, keep proper records, use the right ATO method, and get help when your situation gets complicated.
So before you lodge, make a cuppa, open your receipts folder, check your income statement, and go through the list properly. Boring? Absolutely. Worth it? Also yes.
Sources:
- myGov Tax Time
- ATO Access Your Income Statement
- ATO Working From Home Expenses
- ATO Fixed Rate Method
- ATO Actual Cost Method
- ATO Claiming Deductions 2026
- ATO Cents Per Kilometre Method
- ATO Records You Need to Keep
- ATO myDeductions
- ATO Child Care, School Fees and Other Child Education Expenses
- ATO Gifts and Donations
- ATO Self-Education Expenses
- ATO Side Hustle and Online Income
- ATO Rental Properties Guide 2026
- Tax Practitioners Board Public Register
Very tasty, thankyou!