Most of my Tuesday this week has been individual returns. The same three questions keep coming up, so I thought I'd write down what's actually changed for FY26 — not the headline-grabbing parts, the ones that move dollars on a normal return.
The bracket cut is real but smaller than the news made it sound
The 19% bracket dropped to 16% from 1 July 2024 and the 32.5% bracket became 30%. For someone on $75,000, that's roughly $1,679 less tax across the year. Useful, but it's already in your PAYG withholding — so don't expect the whole amount to land as a refund. If your employer updated the tax tables on time, the refund effect is tiny. If they didn't, you'll see it now.
Working-from-home: 70¢ per hour, and the diary still matters
The fixed rate moved from 67¢ to 70¢ per hour for the year ended 30 June 2025. The substantiation rules didn't change — you still need a record of every hour worked from home for the full year, not a four-week sample. I see this fail every cycle. A calendar export from Outlook or Google works. A back-of-the-envelope estimate doesn't.
Car claims: the cents-per-km cap moved to 88¢
Up from 85¢. The 5,000 km ceiling is unchanged. If you're close to the cap, run the logbook method on your own numbers before you lodge — for higher-km drivers it's usually a few hundred dollars better, and we'll do that comparison for you on request.
What didn't change but people keep asking about
Self-education has the same rules. Donations need a receipt from a DGR. Income protection premiums are still deductible; life insurance inside super is not. The Medicare Levy Surcharge thresholds shifted slightly with indexation, so if your private hospital cover lapsed mid-year and you're close to the threshold, send through your statements — that one's worth checking.
If your situation is straightforward and you want it lodged this week, send through your group certificate, private health statement, and any deduction receipts. We'll have a draft back to you within 48 hours.
