As another tax season rolls around, we’re seeing a number of changes, proposed reforms and ongoing ATO focus areas that could affect many Australian taxpayers.
Not every item below will apply to everyone, but they’re all areas where we regularly see mistakes, and where the ATO is paying closer attention.
To help explain each topic, Nathan has also recorded a series of short videos that break everything down in plain English.
1. The New $1,000 Standard Deduction – Don’t Throw Away Your Receipts
One of the biggest tax announcements has been the proposed $1,000 standard deduction for work-related expenses.
However, there’s one very important point:
It does not apply to the 2026 tax return.
If the legislation proceeds as proposed, it will first apply to the 2027 tax year.
Even when it does commence, we still recommend keeping all your receipts.
Why?
Because if your eligible work-related expenses are more than $1,000, you may be better off claiming your actual expenses instead.
The proposed standard deduction also won’t replace deductions such as:
- Donations
- Tax agent fees
- Investment expenses
- Income protection insurance
- Union fees
- Professional association fees
Those may still be claimable separately where the normal deduction rules apply.
▶ Watch Nathan explain the proposed $1,000 deduction here:
2. Airbnb & Holiday Homes: The ATO Is Looking Closer
Rental properties remain one of the ATO’s biggest focus areas.
This is especially true if you own:
- A holiday home
- An Airbnb or Stayz property
- A granny flat
- A room rented from your own home
- A property used by family or friends
Many owners don’t realise that deductions often need to be apportioned.
If you use the property privately, allow friends or family to stay at reduced rates, or only make it available for rent during part of the year, you may not be entitled to claim all of the property’s expenses.
The ATO has also released updated guidance on holiday homes, making it even more important to understand when ownership costs such as interest, rates and insurance are deductible.
▶ Watch Nathan explain the new holiday home rules:
3. Investment Property Loans: Offset vs Redraw Matters
Another area attracting ATO attention is interest claimed on investment property loans.
Interest is generally deductible only where the borrowed funds are used to produce income.
Problems often arise when people:
- redraw money for private purchases
- Refinance loans incorrectly
- create mixed-purpose loans
For example, paying extra into an investment loan and later redrawing those funds to buy a car or fund a holiday can create two separate loan purposes. That means part of the interest may no longer be deductible.
In many situations, an offset account can provide interest savings while preserving the tax deductibility of your original investment loan.
▶ Watch Nathan explain mixed-purpose loans and offset accounts:
4. Is Your Car Logbook Still Valid?
Motor vehicle claims remain a common review area for the ATO.
If you’re claiming car expenses using the logbook method, remember:
- A logbook generally remains valid for five years, provided your travel patterns haven’t changed.
- If you purchased a new vehicle, changed jobs, moved home, or your work travel changed significantly, you’ll usually need a new logbook.
- Your business trip descriptions should clearly explain the purpose of each journey.
Good record-keeping today can save a lot of stress if your claim is ever reviewed.
▶ Watch Nathan explain the ATO’s logbook requirements:
5. Personal Super Contributions: Don’t Miss This Step
Making personal super contributions can be a great tax planning strategy, but only if you follow the correct process.
Before claiming a deduction, you generally need to:
- Make the contribution.
- Lodge a Notice of Intent with your super fund.
- Receive written acknowledgement.
- Then lodge your tax return.
Getting the order wrong may result in losing the deduction altogether.
If you’re considering making personal super contributions or using catch-up concessional contributions, speak with your accountant or licensed financial adviser before acting.
▶ Watch Nathan explain how to claim personal super contributions correctly:
Tax law continues to evolve, and the ATO is using increasingly sophisticated data-matching and compliance systems to identify errors.
The good news?
Most issues can be avoided by:
- Keeping good records.
- Asking questions before making major financial decisions.
- Speaking with your accountant early rather than after the fact.
If any of these topics apply to you, we’d love to help.
Get in touch with the team at NGR Accounting before lodging your tax return to make sure you’re claiming everything you’re entitled to—and nothing that could create problems later.
Need help navigating the new financial year?
👉 https://ngraccounting.com.au/contact-us/