Tax Time 2026: what to know before you lodge

A plain-English guide to records, work-from-home claims and car expenses for the 2025–26 tax year.

The 2025–26 financial year ended on 30 June. A little preparation can make your return faster to complete, easier to support and less likely to need follow-up.

Three basic tests for deductions

For most work-related deductions, you need to have spent the money yourself without reimbursement, the expense must directly relate to earning your income, and you need a record to support the claim.

Working from home

The fixed-rate method for 2025–26 is 70 cents for each hour worked from home. The rate covers specified energy, internet, phone, stationery and computer-consumable costs. You still need a record of the actual hours worked from home across the year and evidence that you incurred the covered expenses.

Car expenses

For 2025–26, the cents-per-kilometre method uses 88 cents per eligible business kilometre, up to 5,000 business kilometres per car. You need a reasonable basis for the distance claimed. The rate already covers eligible running costs, so those costs cannot also be claimed separately under the same method.

What to gather

  • Income statements and any other income records
  • Bank interest, dividend, managed-fund and crypto records
  • Rental-property income and expense records
  • Work-related expense receipts and travel records
  • Donation receipts and tax-agent fee records
  • Private health insurance and government-payment details where relevant

Pre-filled information is helpful, but it should still be checked against your own records before lodging.

General information only. This article is not personal tax, financial or legal advice. Rules, thresholds and administrative guidance can change. Please obtain advice for your circumstances before acting.

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