A few updates have landed for the 2025–26 financial year that could change how much you claim — and what lands in your refund.

Every new financial year brings a fresh set of tax changes — and the FY26 tax changes Australia introduced are no exception. Some are small. Others could make a real difference to your refund, what you can claim, and how much tax you pay when you lodge your individual tax return.

The trouble is, most people only find out about a tax change after it has already affected them — usually when they sit down to do their tax return, at which point it is too late to do anything about it. So here is a quick snapshot of the FY26 tax changes Australia to keep an eye on this year.

FY26 Tax Changes at a Glance

• Working-from-home claims: The fixed-rate method and record-keeping rules continue to apply — keeping a proper log of your hours matters more than ever.
• Tax rates & thresholds: Stage 3 tax cuts are now in full effect, which changes the tax withheld from your pay and how your final position is calculated.
• Rental property & crypto: The ATO is sharpening its data-matching on rental income and crypto transactions — accurate reporting is essential this year.
• Deductions under the microscope: Work-related expense claims remain a key ATO focus — the right records make all the difference to what you can safely claim.

Let us walk through each of these FY26 tax changes Australia has brought in — plus a few other updates worth knowing about before you lodge.

1. Working-From-Home Claims: Records Matter More Than Ever

Working from home is now normal for millions of Australians — and it is one of the FY26 tax changes Australia that catches people out most often at tax time.

The fixed-rate method remains at 70 cents per hour for time worked from home. But the record-keeping rules are strict: you need a record of the actual hours you worked across the year. A rough estimate, or a single sample week, is no longer enough.

The ATO has made it clear that this is an area it is watching closely. If you claim working-from-home expenses on your PAYG tax return without proper records to back them up, your claim is at risk.

What it means for you: if you work from home, start keeping a simple log of your hours now. A good tax agent in Australia can then make sure every eligible hour is claimed correctly.

2. Tax Rates & Thresholds: Stage 3 Cuts Now in Full Effect

Among the FY26 tax changes Australia, this is the one that touches almost every wage earner. Stage 3 tax cuts are in full effect from 1 July 2024.

This changes two things: the amount of tax withheld from your pay during the year, and how your final position is calculated when you lodge. For anyone lodging a PAYG tax return, your refund or bill at tax time may look different from previous years.

The tax-free threshold remains at $18,200, and the revised brackets continue to apply, so most people see a little more take-home pay through the year.

What it means for you: do not assume this year's refund will match last year's. A tax accountant in Australia can show you exactly where you stand under the new rates.

3. Rental Property & Crypto: ATO Data-Matching Is Sharper Than Ever

This is one of the most important FY26 tax changes Australia — because it is about what the ATO already knows. The ATO is sharpening its data-matching on two areas in particular: rental income and cryptocurrency.

Rental income

The ATO receives data from property managers, rental platforms, and financial institutions. Rental income and the deductions claimed against it are being cross-checked more closely than ever. If you own an investment property, an accurate rental property tax return is essential — over-claimed deductions and under-reported rent are high on the ATO's radar.

Crypto transactions

If you bought, sold, swapped, or earned cryptocurrency, the ATO likely already knows — it collects data directly from Australian crypto exchanges. A common myth is that crypto is only taxable when you "cash out" to dollars, but swapping one coin for another can also trigger tax. A correct crypto tax return reconciles every transaction so nothing is missed.

What it means for you: accurate reporting is essential this year. If you have rental or crypto activity, our team prepares your tax return so the figures match what the ATO already holds.

4. Deductions Under the Microscope

Work-related expense claims remain a key ATO focus — and that is not changing among this year's FY26 tax changes Australia.

Every year, the ATO highlights work-related deductions as a top compliance priority. Claims for car expenses, travel, self-education, tools, uniforms, and home office costs are all checked against what is reasonable for your occupation and income.

The single biggest factor in whether a deduction stands up? Records. The right receipts and documentation make the difference between a deduction you can safely claim and one that creates a problem. This is exactly where a registered tax agent in Australia earns their fee — helping you claim everything you are entitled to, safely.

What it means for you: claim everything you are genuinely entitled to — but make sure you can back it up.

5. Superannuation Guarantee Increased to 12%

From 1 July 2025, the Superannuation Guarantee rate increased from 11.5% to 12% — another of the FY26 tax changes Australia that affects almost everyone who earns a wage.

This is the minimum percentage of your ordinary earnings your employer must pay into your super, and 12% is the final scheduled step. It means a little more going into your retirement savings with every pay.

What it means for you: employees get more superannuation contributions on their behalf. If you employ staff, make sure your payroll reflects the 12% rate.

6. Selling Property? One Change to Watch

If you sold a property recently or are planning to, the foreign resident capital gains withholding rules have changed. The withholding rate increased to 15%, and the previous value threshold was removed — so the rules now apply to property sales regardless of value.

Even Australian residents are affected: to avoid an amount being withheld at settlement, sellers generally need the right clearance documentation. This often ties in with a capital gains tax review or a rental property tax return if the property was an investment.

What it means for you: if a property sale is on the horizon, plan the paperwork ahead of settlement to avoid delays.

7. Already Lodged — Or Got It Wrong Last Year?

Not all of the FY26 tax changes Australia is making are about the year ahead. If you have already lodged and later realise something was missed — a deduction left out, crypto not reported, or rental figures wrong — you are not stuck with it.

An amended tax return lets you correct a return you have already submitted. Whether it means claiming a bigger refund you missed or fixing an error before the ATO finds it, lodging an amended tax return is often straightforward with the right help.

What it means for you: if a past return needs fixing, we can handle the whole amended tax return process for you.

8. Other Updates Worth Knowing

Rounding out the FY26 tax changes Australia, a handful of other numbers shifted for 2025–26:

• ✓ Transfer balance cap — indexed up to $2 million, giving more room to move savings into the tax-free pension phase
• ✓ Contribution caps — the concessional cap remained at $30,000 and the non-concessional cap at $120,000
• ✓ Student loans (HECS-HELP) — the way study loans are indexed was reformed, with further measures proposed
• ✓ Instant asset write-off — still valuable for small businesses and sole traders, though the threshold can change year to year

If you run a business, a sole trader tax return review can help you make the most of write-offs and contribution caps before year-end.

Why Choose Tax NextGen for Your FY26 Tax Return?

Tax time is usually about numbers — income, deductions, refunds, and deadlines. But with Tax NextGen, your FY26 tax return can also become part of something bigger.

The FY26 tax changes Australia introduced may not seem dramatic on their own. But together, they can quietly affect your refund, your deductions, and your obligations in ways that are easy to miss. That is why choosing the right tax agent in Australia matters.

As a trusted online tax return Australia specialist, Tax NextGen makes lodging your return fast, affordable, and stress-free. Whether you need help with an individual tax return, PAYG tax return, crypto tax return, rental property tax return, sole trader return, or amended tax return, our experienced tax accountant in Australia team helps you lodge correctly and claim what you are entitled to.

• ✓ Free tax consultation — check your refund before you proceed
• ✓ 48-hour returns and a maximum tax refund guarantee
• ✓ Low-cost fees from just $99, with a friendly, multilingual team
• ✓ Fast refunds through a fully online tax return Australia process
• ✓ AUD $5 from every tax return supports the NextGen Global Foundation Inc.
• ✓ File your return with confidence — and with purpose

Disclaimer: Information contained in this publication is general in nature and has been prepared for information purposes only. It does not constitute legal, taxation, or financial advice. Tax rules and thresholds can change, and some measures referred to may be subject to legislation. Professional advice should be sought before acting on any information contained in this publication.