It is that time of year again, and once again, there are a few points that would confuse even the well-prepared taxpayers. Nothing critical, but little nuances that, unless acted upon successfully, will result in a loss of money or a stressful end of October.
That is why our motto in SBX is to address all these changes in advance and not to allow any surprises to happen at the last moment. Knowing what has changed this year will take you ten minutes; fixing a rejected deduction or a missed deadline will take much longer, though.
You’re Still Lodging Under the Old Rates
Here’s one area in which we are receiving questions: most clients have been informed that the lowest marginal tax rate decreased from 16% to 15%, and they believe that this reduction should be reflected in the tax return they are about to file.
However, this is not the case.
The tax return that you are working on now is for the financial year 2025-26, which is the period from 1 July 2025 until 30 June 2026. During this period, the tax rates used in this tax return were those that were in force prior to 1 July 2026, i.e. the lower rates are not applicable until next year when the tax returns for the year 2026-27 will be lodged.
This is a particular point that should be kept in mind when clients are calculating their tax refunds or attempting to organise their cash flow based on the present tax changes.
The Deadline Has Shifted & By More Than You’d Think
The last day you can submit your tax returns is 31 October. However, in 2026, it is also a Saturday, which means that the due date is pushed to Monday, 2 November 2026.
While an extra weekend certainly appears to be a bonus, that doesn’t give you as much time as you might think. What you should consider with greater attention is the option of lodging your tax return through the services of a tax agent. Tax agents participate in a different lodgment program with due dates that are considerably extended, sometimes by many months, provided they receive your request before the final day of filing on 31 October.
The importance of timing becomes evident right here. For instance, if you contact your tax agent in September, you will most probably have sufficient time on your hands to make your taxes right. However, if you make a phone call on 30 October, you will find yourself in the same position as everyone else with no chance of planning your actions previously.
Working From Home? The Record-Keeping Bar Has Risen
The second change is, in fact, the one we predict will catch the greatest number of people by surprise in 2023, namely the change concerning the work-from-home deduction.
It is important to note that for the 2025-26 tax year, the fixed rate is 70 cents for every hour spent working from home; this rate covers all costs associated with the activities of working from home, including costs for electricity, gas, home and mobile internet, phone costs, etc., as well as costs of stationery and consumables such as computers.
In order to calculate your deduction, you need to take the total number of hours worked from home and multiply it by 70 cents, if you do so, you cannot claim this deduction again for the above-mentioned expenses separately.
Regarding equipment, it is entirely different from the hourly rate. For instance, office chairs, desks, and laptops do not fall under the hourly rate. In respect of the cost of a particular item, if its value is below $300, you may claim it right away; if the value exceeds $300, the item is put in the depreciation process.
Here’s what is truly new, and what most people are not prepared for: the ATO is now asking for a current record of your work-from-home hours throughout the year and not just an estimate prepared at tax time.
This means that you need to produce a timesheet, work roster, diary, table, or calendar entry rather than recalling them from memory in October. Without a record of your working hours throughout the year, you will only be able to claim the amount that you have evidence for and in many cases this means only a small amount being claimed.
If you have not been keeping track of your working hours this year, it is worth starting now, so that come the 2026–27 returns you are not in the same situation.
Why These Details Matter More Than They Seem
These changes are not going to be difficult in themselves, but they demonstrate how small things throughout tax-clientele show how important numerous things can be in making your taxation smoother or revealing unsettling surprises (which depend on how early you work with them).
At SBX, we consider tax time not as only a once-a-year occurrence that happens to be within a single month of the year. Rather, it is only a fraction of the big financial conversation we often hold throughout the year.
This means that a client who has been tracking their hours since July knows the significance of the stuff they were supposed to do the week before the deadline.
No matter if you are a person trying to understand what deductions you should take into account or a business that has too many issues to follow the latest events in your tent at the same time, we are always here to explain the technicalities to you and make sure that the client receives no nasty surprises while dealing with the tax period.
Let’s Get Ahead of It Together
If you’re unsure whether your work-from-home records will hold up, want clarity on how the new tax rates will affect your 2026–27 position, or simply want your return handled properly and on time, now is the right moment to have that conversation, not the last week of October.
Get ahead of tax time this year.
Book a Strategy Session with SBX, and let’s make sure your 2026 return and next year’s are in good shape.
