It’s that time of year again – tax time 2026. This year, the Australian Taxation Office (ATO) has announced it will be paying close attention to three key areas where errors are commonly made: work-related expense claims, rental property deductions, and omitted income.
With the ATO using increasingly sophisticated data-matching technology and artificial intelligence to identify discrepancies, it’s more important than ever to ensure your tax return is accurate, complete and supported by appropriate records.
This year, their main areas of focus include:
- Work-related expenses – particularly working from home costs, motor vehicle claims, mobile phone expenses, and deductions that are partly personal in nature.
- Rental property income and deductions – ensuring all rental income is declared and that deductions are correctly claimed.
- Income reporting – including side hustles, gig economy income, investment earnings, cryptocurrency transactions and cash payments.
- Small business compliance – including GST reporting, business expenses and record-keeping obligations.
- Cryptocurrency transactions – with increased data matching from cryptocurrency exchanges.
At Colledges, we’re here to help you get tax time ready for 2026 and lodge a return that is accurate, compliant and maximises the deductions you’re entitled to claim.
What is a tax deduction?
A tax deduction lowers the amount of income you’re taxed on and potentially increases your refund. But with the ATO sharpening its focus this year, it’s more important than ever to make sure your claims are legitimate, accurate, and supported by proper documentation.
To be eligible, an expense must:
- Be directly related to earning your income
- Be necessary for your work or business (not for personal use – and if it’s a mix, only the business portion is deductible)
- Be backed by receipts, logbooks, or other records
Before your appointment with your accountant, gather all your documentation – receipts, statements, and logbooks. We’ll review them together and help identify any additional items you can claim to maximise your return.
Getting ready for tax time 2026
Tax time is all about two things: the income you’ve earned and the expenses you’ve incurred while earning that income.
The ATO receives information directly from employers, banks, share registries, government agencies, cryptocurrency exchanges and many online platforms. This means it’s more important than ever to ensure all income is declared correctly and that deductions are supported by records.
That’s why we update the Colledges Tax Time Ready Checklist each year – helping you stay organised, lodge accurately the first time and maximise your refund.
Use this list to tick off the relevant items for your 2026 tax return.
PROVIDE RECORDS OF INCOME SOURCES
Here is a list of the most common sources of income, each of which must be included in your tax return.
Your salary/wages
- Your PAYG salary or wages
- Allowances, bonuses, commissions, tips, director’s fees etc
- Employer lump sum payments
- Employment termination payments
Interest earned
- Distributions from trusts, partnerships, managed superfunds
- Superannuation lump sum payments
- Foreign source income (including foreign pensions) and foreign assets or property
- Bonuses from life insurance companies or friendly societies
Investment income and capital gains tax (CGT)
- Income from investments
- Dividends
- Rental income from properties
- Profits from the sale of assets like real estate, shares, or other investments, subject to capital gains tax (CGT).
Personal or government allowances
- Car and vehicle allowances
- Travel allowances
- Work from home allowance
- Other allowances, such as entertainment, meals etc.
- Pensions and allowances
- Australian Government allowances and payments such as Newstart, JobSeeker, Youth Allowance, Austudy, Family Tax Benefit
- Australian Government pensions
- Australian annuities and superannuation income streams
- Australian superannuation lump sum payments
- Attributed personal services income
Other sources income
- Child support payments (where relevant)
- Rental income
- Dividends and investment income
- Cryptocurrency transactions and capital gains
- Income from online marketplaces and gig economy platforms
- Employee share schemes
- Net income or loss from business activities
- Freelance, consulting or side-hustle income
- Foreign income and investments
LIST YOUR EXPENSES WITH RECEIPTS
Expenses that are tax deductible are any item or service purchased that you or your business required to help you earn an income.
Employment expenses
- Travel costs – national and international
- Training costs
- Work from home expenses
- Courses, education and seminars
- Superannuation contributions
- Notice of intent to claim for superannuation contributions
- Protective clothing and uniforms
Vehicle expenses
- Motor vehicle expenses based on business use percentage (include your logbook, if applicable)
- Travel and accommodation – domestic and overseas
- Vehicle expenses based on logbook method or cents per km
Office expenses
- Home office expenses
- Computer and software
- Telephone, mobile phone, internet
- Utilities – gas, water electricity
- Tools and equipment
- Building and maintenance costs
- Subscriptions and union fees
- Journals/periodicals
- Depreciation of office equipment
- Sun protection products (i.e., sunscreen and sunglasses)
Other expenses
- Interest deductions
- Dividend deductions
- Gifts or donations
- Cost of managing tax affairs
- Freight and transport costs
- Health and medical expenses and insurances
- Childcare expenses
A note on working from home expenses
Working from home remains one of the ATO’s key focus areas in 2026.
If you regularly perform your employment duties from home, you may be eligible to claim a portion of your running expenses, including electricity, internet, phone costs and office consumables.
The ATO requires taxpayers to keep detailed records of:
- Hours worked from home
- Work-related expenses incurred
- Evidence of purchases and payments
Keeping good records throughout the year makes claiming easier and helps ensure your deductions can be substantiated if reviewed.
Learn more here about what you can claim and your reporting obligations if you work from home.
Need a hand with your 2026 tax return?
Whether you’re an employee, business owner, investor or property owner, our team can help you prepare a thorough and accurate return while ensuring all eligible deductions are claimed.
With the ATO continuing to focus on work-related expenses, rental properties and undeclared income, professional advice can help you avoid costly mistakes and maximise your refund.
Call us on (03) 9851 6500 or email: hello@colledges.com.au. We’re here to help you and make 2026 tax time stress-free.
