Australian tax questions, answered simply

When is my tax return due in Australia?

If you lodge your own return, it's due by 31 October each year. If 31 October falls on a weekend, it's due the next business day.

If you use a registered tax agent, they generally have a special lodgment program and can lodge for you after 31 October, but you need to engage them before 31 October. If you lodge yourself between 1 July and 31 October and end up with a tax bill, payment is due by 21 November.

ATO: Preparing your tax return

What is the Australian financial year for tax?

The income year runs from 1 July to 30 June. For example, the 2025–26 income year is 1 July 2025 to 30 June 2026, and you lodge that return from 1 July 2026.

ATO: Preparing your tax return

Should I lodge myself with myTax or use a tax agent?

Both are valid. myTax is free and online; a registered tax agent costs a fee but prepares the return for you and can usually lodge later than 31 October.

• myTax is accessed through myGov (linked to the ATO). The ATO pre-fills most information from employers, banks, health funds and other third parties by late July, and refunds generally arrive within 2 weeks.
• Registered tax agents must be registered with the Tax Practitioners Board, and they're the only people who can charge a fee to prepare your return. The ATO lists the cost of managing your tax affairs, such as lodging with a registered agent, as something you can claim.

ATO: Lodge online with myTax · Lodge with a registered tax agent · Deductions you can claim

Do I need to lodge a tax return?

Most people who earned income or had tax withheld need to lodge, but not everyone. The ATO has a short "Do I need to lodge a tax return?" tool that checks your situation. If you don't need to lodge, you may need to lodge a non-lodgment advice instead.

ATO: How to work out if you need to lodge · Non-lodgment advice

What are the Australian resident tax rates for 2025–26 and 2026–27?

The first $18,200 is tax-free. The rate on income between $18,201 and $45,000 is 16% for 2025–26 and drops to 15% for 2026–27. The higher brackets are unchanged.

These rates are for full-year Australian residents entitled to the full tax-free threshold, and they don't include the 2% Medicare levy.

ATO: Tax rates – Australian residents

What is the Medicare levy?

The Medicare levy is generally 2% of your taxable income, on top of income tax. People on low incomes pay less or none.

For 2025–26, a single person (not eligible for the seniors and pensioners tax offset) pays no Medicare levy on taxable income up to $28,011, and a reduced levy between $28,011 and $35,013. Different thresholds apply to families and seniors. Separately, the Medicare levy surcharge can apply to higher earners without private hospital cover.

ATO: Medicare levy · Reduction for low-income earners

What is the low income tax offset (LITO)?

LITO reduces the tax payable for residents earning up to $66,667. You don't need to claim it: the ATO works it out when you lodge.

• Taxable income of $37,500 or less: your tax is reduced by $700
• $37,501 to $45,000: reduced by $700, minus 5 cents for every $1 above $37,500
• $45,001 to $66,667: reduced by $325, minus 1.5 cents for every $1 above $45,000

It can reduce your tax to $0, but any unused amount isn't refunded.

ATO: Low income tax offset

What can I claim as a tax deduction?

To claim a work-related deduction, the ATO says three things must all be true:

• you spent the money yourself and weren't reimbursed
• the expense directly relates to earning your income
• you have a record to prove it (usually a receipt).

Private, domestic and capital expenses aren't deductible. Normal travel between home and work and buying your lunch are private. If something is used for both work and private purposes, you can only claim the work-related portion.

ATO: Claiming deductions

What records do I need to keep, and for how long?

Keep written evidence, such as a receipt or invoice from the supplier, for 5 years from the date you lodge your return.

A bank or card statement on its own isn't enough, because it doesn't come from the supplier and usually lacks the required details. For depreciating assets, keep records for 5 years from your last claim for decline in value. You can keep records electronically, including photos of receipts, as long as each copy is a true and clear copy of the original.

ATO: Records you need to keep

How do I claim working from home expenses?

There are two methods: the fixed rate method (a set rate per hour worked from home, plus some separate claims) and the actual cost method (the actual work-related portion of each expense, with detailed records).

Whichever you choose, you must keep records showing you incurred the expenses as a result of working from home.

ATO: Working from home expenses

What is the working from home fixed rate for 2025–26?

The fixed rate is 70 cents per work hour for 2024–25 and 2025–26 (67 cents for 2022–23 and 2023–24).

The rate covers home and mobile internet and data, phone usage, electricity and gas for heating, cooling and lighting, and stationery and computer consumables. You can't claim those separately. You can separately claim the decline in value of work-related furniture and technology (desks, chairs, computers) and their repairs.

As at October 2026, the ATO hasn't listed a rate for 2026–27 on this page. Check before you claim.

ATO: Fixed rate method · Try our work from home calculator

What records do I need for the fixed rate method?

You need a record of the actual hours you worked from home for the whole year, such as a timesheet, roster or diary kept at the time. An estimate isn't accepted.

You also need at least one record (for example a bill) for each type of running expense the rate covers that you incurred, such as one quarterly electricity bill. Keep these records for 5 years.

ATO: Fixed rate method

How can I claim car expenses for work?

For a car you own or lease, there are two methods: cents per kilometre (a set rate per work kilometre, up to 5,000 km) and the logbook method (your work-use percentage of actual car costs).

Only work-related trips count. Normal travel between home and your usual workplace is generally private.

ATO: Expenses for a car you own or lease

What is the cents per kilometre rate?

88 cents per km for 2024–25 and 2025–26, and 91 cents per km for 2026–27, for up to 5,000 work-related km per car per year.

The rate covers all car expenses (fuel, registration, insurance, servicing, repairs and decline in value), so you can't add any of them on top. You don't need receipts, but you should be able to show how you worked out your work kilometres, for example with a diary.

ATO: Cents per kilometre method

What are the ATO car logbook rules?

Your logbook must cover at least 12 continuous weeks that are broadly representative of your travel, and it's valid for 5 years.

• For every work trip, record the reason and destination, odometer readings at the start and end, and the kilometres travelled, written up at the end of the trip or as soon as possible afterwards.
• Record the odometer at the start and end of the logbook period.
• Your work-use percentage is work km ÷ total km for the logbook period.
• Keep receipts for fuel, registration, insurance, servicing and other car costs, plus records for decline in value.
• If your circumstances change (new job, new house), start a new 12-week logbook.

ATO: Logbook method · Try our car logbook calculator

Which rental property expenses can I claim straight away?

Expenses such as loan interest, council rates, repairs and maintenance, and depreciating assets costing $300 or less can generally be claimed in the year you incur them.

Capital works, borrowing expenses and depreciating assets costing more than $300 are claimed over several years. Personal expenses, some capital costs and second-hand depreciating assets bought after 9 May 2017 can't be claimed. If you co-own the property, income and expenses are split according to your legal interest.

ATO: How to claim rental expenses

How are borrowing expenses on an investment loan claimed?

If your total borrowing expenses are more than $100, they're claimed over 5 years or the term of the loan, whichever is shorter. If they're $100 or less, you claim them in full in the year you incur them.

Borrowing expenses include loan establishment fees and lender's mortgage insurance billed to you.

ATO: Borrowing expenses

What are capital works deductions?

Capital works cover the cost of building the property and structural improvements, alterations and extensions. They're generally deducted at 2.5% a year over 40 years or 4% a year over 25 years, depending on the property.

You can only claim them once construction is complete, and the total can't exceed the construction cost. Many investors get a depreciation schedule from a quantity surveyor to work out the amounts.

ATO: Capital expenses

When do I need to register for GST?

You must register when your business's GST turnover (gross income minus GST) reaches $75,000 or more. Register within 21 days of reaching it.

Taxi, limousine and ride-sourcing drivers (such as rideshare) must register regardless of turnover. If you're not registered, check each month whether your current or projected turnover has reached the threshold.

ATO: Registering for GST