Jun 22, 2026 Matthew Hung
2026 Tax Tips
While many year-end strategies remain consistent, 2026 introduces significant changes, particularly in relation to superannuation, payroll compliance, and targeted tax reforms, which should be factored into planning.
For Individuals
Top up your superannuation with concessional (tax deductible) contribution, make a spouse contribution, or access the co-contribution incentive
The concessional contributions cap for the year ended 30 June 2026 is $30,000. Depending on your circumstances, this allows you to contribute a bit extra into your super on a before-tax basis, potentially reducing your taxable income.
If you have any unused concessional contribution amounts from previous financial years and your super balance is less than $500,000, you may be able to “carry forward” these amounts to further top up your super in the 2026 financial year.
If your spouse meets certain criteria, you may also be able to make contributions to their superfund on their behalf and receive a tax offset of up to $540.
If you will earn less than $62,488 in 2026 you may be eligible to benefit from the co-contribution incentive, which provides a government super contribution of up to $500 in return for a personal super contribution of up to $1,000.
Remember that the superfund must receive the contribution before 30th June for it to count for this financial year.
Bring forward expenses
Consider paying for work related items (such as memberships, equipment with a cost up to $300, business car repairs, etc) prior to 30th June to claim a tax deduction in this financial year. Higher cost assets such as laptops and office furniture costing more than $300 will be depreciated separately.
The proposed $1,000 standard deduction for work-related expenses, which would allow taxpayers to claim a fixed amount without substantiating minor expenses, is only expected to apply from 1 July 2026.
Also consider bringing forward any tax-deductible donations to this financial year (note that only donations to specific political parties and eligible Deductible Gift Recipients (DGRs) are claimable).
Note that the proposed removal of the $2 DGR deduction threshold, effective retrospectively from 1 July 2024, remains subject to the passage of legislation.
Defer Income
If appropriate, delaying income into the next financial year may be beneficial, particularly if you expect your income to decrease.
Realise any capital losses
If you have capital gains (e.g. from selling property or shares), consider selling investments with unrealised losses so that the gain and the loss fall in the same tax year. Transactions must be genuine to be effective for tax purposes.
Investment property owners
If you do not have one already, a depreciation schedule is a report that helps you calculate and claim deductions for the natural wear and tear over time on your investment property. Depending on your property, it might help to maximise your deductions.
For Businesses
Pay June quarter employee super contributions now
You need to physically pay June quarter super contributions this financial year if you want to claim a tax deduction in the current year. The next quarterly superannuation guarantee payment is due on 28 July 2026, however some employers choose to make the payment early to bring forward the tax deduction instead of waiting another 12 months. From 1 July 2026, under the new Payday Super regime, super contributions must be received within 7 business days of each payday. Under transitional rules, employers are highly recommended to pay their 30 June 2026 quarter super liabilities before their first payday super payment of the 2027 financial year.
Don’t forget yourself. Superannuation can be a great way to get tax relief and still build your personal wealth. Your personal or employer sponsored contributions need to be received by the fund before 30 June to be deductible. Remember that the key date is the date the Fund receives the money not the date it leaves your account.
Bonuses and Directors fees
If it makes sense to do so, bring forward tax deductions by committing to directors’ fees and employee bonuses (by resolution), and paying June quarter super contributions in June.
Instant Asset write-off
The instant asset write-off remain in its current form until 30 June 2026 for businesses with a turnover of less than $10 million. That means that eligible small businesses will be able to immediately write off the entire value of certain new or second-hand assets up to $20,000 per asset. To be eligible, the asset needs to be installed or ready to be used by the 30th of June 2026. The Government has announced plans to permanently retain the $20,000 threshold.
Obsolete plant & equipment
If you have outdated or unused equipment listed on your depreciation schedule, consider scrapping and writing it off before year-end rather than continuing to depreciate it.
Pay off ATO debts where possible
Interest charges such as GIC and SIC on ATO debts are not tax-deductible. Consider restructuring or repaying debts where possible to minimise these non-deductible costs.
Write-off bad debts
To be a bad debt, you need to have brought the income to account as assessable income and given up all attempts to recover the debt. It needs to be written off your debtors’ ledger by 30 June. If you don’t maintain a debtors’ ledger, a minute confirming the write-off is a good idea.
Bring forward repairs, consumables, trade gifts or donations
To claim a deduction for the 2026 financial year, consider paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June.
Trust Distribution Resolutions by June 30
Trust Distribution resolutions are required to be signed prior to June 30 or as otherwise required by your Trust Deed. In most cases we will assist you with these. If you are distributing to new beneficiaries, you need to quote their Tax File Number to the ATO by 31st July 2026. The federal government has proposed to remove the requirement to quote the TFN for new beneficiaries from 1 July 2026 onwards.
Need Assistance?
Tax planning can be complex, and the right approach depends on your individual circumstances. We recommend consulting with us before implementing any of the above strategies.
📞 Phone: 9878 1477
📧 Email: contact@rdlaccountants.com.au
