Tax time is here again, and for many individuals and business owners, it can feel overwhelming trying to work out what you can claim and what you can’t.
The reality is the ATO is continuing to increase its focus on incorrect claims, particularly where records are poor or expenses are overstated. Getting your tax return right the first time is more important than ever.
Below is a practical guide to what you can still claim for the 2026 financial year, and what the ATO is paying close attention to.
What You Can Still Claim in 2026
For Individuals
If you are earning salary or wages, there are still a number of legitimate deductions available, provided you have the correct records:
- Work-related expenses
Expenses directly related to earning your income, such as tools, uniforms, or professional subscriptions. - Motor vehicle expenses
If you use your personal vehicle for work purposes (excluding normal travel to and from work), you may be able to claim a deduction. A valid logbook is critical if you are using the logbook method. - Working from home expenses
You can claim a portion of electricity, internet, and office costs, depending on your circumstances and records. - Donations
Donations to registered charities are deductible where you have a receipt.
For Small Business Owners
If you are running a business, there are additional areas where deductions are commonly missed or incorrectly claimed:
- Business expenses
Ensure all expenses claimed are genuinely business-related and correctly recorded in your accounting software. - Asset purchases
Depending on current rules, you may be eligible to immediately write off certain assets or depreciate them over time. - Motor vehicle usage
As with individuals, proper logbook records are essential if claiming business use. - Superannuation contributions
This is a key area. Super is only deductible when it is paid on time and, under the new rules, this timing is becoming even more critical.
What the ATO Is Watching Closely in 2026
The ATO is using more data matching than ever before and is focusing on the following areas:
- Work-from-home claims
Overstated or unsupported claims are a major focus. - Rental property deductions
Incorrect interest claims and repairs vs capital improvements. - Business deductions
Personal expenses incorrectly claimed through the business. - Superannuation compliance
With the introduction of Payday Super, employers must ensure super is paid in line with wage payments. Late payments are not tax deductible and can attract penalties.
Common Mistakes to Avoid
From experience, the most common issues we see are:
- Claiming expenses without supporting documentation
- Rounding or estimating figures instead of using actual records
- Mixing personal and business expenses
- Incorrect or outdated logbooks
- Not paying super on time
These issues can lead to amended assessments, penalties, or additional tax.
Quick Checklist Before Lodgement
Before finalising your tax return, ask yourself:
- ✔ Do I have receipts for all claims?
- ✔ Is my logbook valid and up to date?
- ✔ Are my records accurate in Xero?
- ✔ Have all business expenses been reviewed?
- ✔ Has super been paid on time?
Final Thoughts
Tax time is not just about lodging a return, it is about making sure everything is correct, compliant, and working in your favour.
If you are unsure about what you can claim, or want to ensure your return is accurate before lodgement, it is always better to review this upfront rather than fix it later.
If you would like assistance or a review of your position, feel free to get in touch.
Need Help With Your Tax Return?
At SWOT Accountants, we work with individuals and small business owners across the Redlands and Bayside region to ensure tax returns are accurate, compliant, and optimised.
If you would like help this tax season, please contact our office on 07-3286 2407.