Why Does Tax Time Matter to Your Bigger Financial Picture?

People get excited at this time of the year for their tax refund, but Tax time isn’t only about looking backwards at what you earned and spent during the year.

Tax time is a powerful opportunity to look at your Wealth Plan and your overall financial position and consider whether anything needs attention for the year ahead.

When we review Tax returns and discuss we end up discussing:

  1. Your investments and investment structure.
  2. Your superannuation strategy.
  3. Your debt and cash flow.
  4. Your tax position.
  5. Your retirement plans.
  6. Your longer-term financial goals.

Your tax return only tells part of the story, you tell us the rest!

Understanding how your tax position fits within your broader wealth strategy can help you make more informed decisions for the future.

Please contact us for our complimentary Vision call or to find out more.

 

The following information will assist you to get ready for Tax Time 2026:

Before lodging, take the time to make sure your information is complete, your records are organised and you understand the deductions that may apply to your circumstances.

If tax time has raised questions about your investments, superannuation or broader financial strategy, we’re here to help.

Talk to us about making sure your financial strategy continues to work towards your longer-term goals, and speak with your accountant or registered tax professional for advice about your individual tax return and tax obligations.

Are You Claiming Everything You’re Entitled To?

For most Australians, tax time is about more than simply submitting a return and hoping for a refund.

Taking the time to check your income, deductions, investments and records can help you lodge accurately and make sure you’re claiming what you’re entitled to.

Don’t Rush to Lodge

  • While you may be keen to get your tax return completed, there can be benefits to waiting until your information is ready.
  • Employers, banks, health funds and government agencies report information to the ATO, which is then used to pre-fill your tax return.
  • The ATO recommends waiting until late July to lodge, when most information should be available. (ATO Community)
  • Before lodging, make sure your income statement is marked “Tax ready” and check your pre-filled information against your own records. (Australian Taxation Office)

Even when information is pre-filled, you are responsible for making sure your tax return is complete and correct.

Make Sure You Declare All Your Income

Don’t forget about other income you may have received during the year, including:

  1. Interest from bank accounts.
  2. Dividends and investment distributions.
  3. Rental property income.
  4. Capital gains from selling investments.
  5. Foreign income and investments.
  6. Government payments.
  7. Side hustles and sharing economy income.
  8. Cryptocurrency income or capital gains.

The ATO receives information from a range of third parties, so it’s important to make sure all relevant income is included, even if it hasn’t automatically appeared in your return. (Australian Taxation Office)

What Can You Claim as a Deduction?

You may be able to claim expenses that are directly related to earning your income.

The ATO’s basic rules for work-related deductions are:

  • You must have paid for the expense yourself and not been reimbursed.
  • The expense must directly relate to earning your income.
  • You must have records to support your claim. (ATO Community)

Depending on your occupation and circumstances, deductions could include work-related travel, car expenses, tools and equipment, education, professional memberships, phone expenses and working from home costs.

If an expense was partly private and partly work-related, you can generally only claim the work-related portion. (Australian Taxation Office)

Working From Home

If you worked from home during the 2025–26 financial year, you may be able to claim some of the additional costs.

  • The fixed rate method for 2025–26 is 70 cents per hour worked from home.
  • Alternatively, you may be able to use the actual cost method.
  • If you use the fixed rate method, you need a record of the hours you actually worked from home during the financial year. (ATO Community)
  • You also need to meet the ATO’s eligibility and record-keeping requirements. (Australian Taxation Office)

Using Your Car for Work

If you use your own car for eligible work-related travel, you may be able to claim a deduction.

For the 2025–26 financial year, the cents per kilometre rate is 88 cents per eligible work-related kilometre. (ATO Software Developers)

Remember, ordinary travel between your home and regular workplace is generally considered private and is not deductible. (Australian Taxation Office)

Do You Own an Investment Property?

Tax time can be more involved if you own a rental property.

  • You need to declare your rental income.
  • You may be entitled to deductions for eligible expenses associated with earning that income.
  • Your property generally needs to be rented or genuinely available for rent for associated expenses to be deductible. (Australian Taxation Office)
  • Private use of the property or private portions of expenses need to be treated appropriately.

Good records are particularly important for property investors, not only for annual deductions but also when calculating a future capital gain or loss.

Don’t Forget Your Investments

If you’ve sold shares, property, managed investments or cryptocurrency during the year, there may be Capital Gains Tax (CGT) implications.

Investment income such as interest, dividends and managed fund distributions also needs to be included in your return.

Selling or otherwise disposing of shares, investment property or crypto can trigger a CGT event, so keeping accurate purchase and sale records is important. (Australian Taxation Office)

Keep Your Records

Keeping the right records can make tax time much easier.

  • In most cases, records supporting your deductions should be kept for five years from the date you lodge your tax return. (Australian Taxation Office)
  • Receipts, invoices and other supporting documents can be kept electronically.
  • The ATO’s myDeductions tool can also be used to keep track of expenses and receipts throughout the year. (Australian Taxation Office)

And remember, the $300 rule does not mean you can automatically claim $300 without evidence. If your total work-related deductions are $300 or less, you may not need receipts in some circumstances, but you still need to be able to show how you calculated your claim. (Australian Taxation Office)

Important Notice:

The information contained in this article is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for your circumstances before acting on it and seek advice from a qualified professional.

Personal financial advice can only be provided after considering your individual circumstances and providing the appropriate disclosure documentation. VJC Wealth accepts no liability to any party for any loss arising from reliance on this information unless it has been provided as part of a formal advice engagement.