The new year is a chance to refresh, not just on your diet or gym routine, but on your finances too.
Have you set your 2026 New Year’s financial resolutions?
Smart financial goals can save you money, reduce stress, and support long-term success. Whether you’re building an emergency fund, maximising tax deductions, or planning for retirement, acting early makes a real difference.
With higher living costs and tighter lending rules in 2026, financial planning matters more than ever. Clear resolutions help you control spending, reduce tax, and build long-term security. These goals don’t need to be complex.
Simple steps, taken early and reviewed regularly, create meaningful progress. Whether your focus is saving more, improving your credit, or managing a side hustle, a clear plan turns intention into results.
Let’s explore practical, achievable resolutions for 2026,and how to stick to them.
How Can You Save More Money in 2026?
Saving money is at the top of most people’s financial resolutions. Here’s how to turn your good intentions into real results.
Pay Down High-Interest Debt
Credit cards and personal loans can carry interest rates of 15%–20% or more. Focus on clearing high-interest balances first. The less interest you pay, the faster your savings grow. For example, if you owe $5,000 on a 20% credit card, paying it off in 12 months saves over $500 in interest.
Cut Back on Discretionary Spending
Small changes add up. Consider reducing dining out, subscription services, or luxury shopping. Even saving $50 a week can net $2,600 a year.
Live Below Your Means
Resist lifestyle inflation as your income grows. Continue living like you did on a lower salary and redirect extra cash to savings or investments.
Refinance Loans
If mortgage or personal loan rates are above current market rates, refinancing could save thousands over the life of the loan. Check with your lender or a financial advisor before making any changes.
Review Insurance Policies
Compare home, car, and health insurance regularly. Switching to a better deal or adjusting coverage can reduce premiums without sacrificing protection.
Pro Tax Tip: Combine insurance and investment reviews with your annual tax planning to maximise deductions. Learn more about ITP Tax Services.
How Can You Improve Your Credit Score?
A good credit score reduces borrowing costs and improves financial flexibility.
Pay Bills On Time
Payment history is the biggest factor in your credit score. Use automatic payments for loans, utilities, and credit cards to avoid late fees.
Check Your Credit Reports
Request your free annual credit reports from Equifax, Experian, and illion. Dispute errors immediately, mistakes can drag your score down unnecessarily.
Space Out Applications
Applying for multiple credit accounts in a short period triggers hard inquiries, temporarily lowering your score. Only apply when necessary.
Be Patient
Improving credit takes time. Consistently pay bills on time, reduce debt, and monitor reports over 6–12 months for noticeable improvement.
How Can You Organise Your Side Hustle for Tax Efficiency?
Many Australians start side hustles to earn extra income. Without careful planning, extra cash can also mean higher tax.
Register Your Business
If you earn money through a side hustle, register as a sole trader with the ATO. This allows you to claim deductions for work-related expenses, reducing taxable income.
Keep Detailed Records
Track all expenses: materials, equipment, travel, internet, phone bills, etc. Receipts are essential to substantiate claims.
Choose the Right Structure
An accountant can advise if a sole trader, company, or trust is best for your long-term goals. The right structure maximises deductions and minimises tax.
Consider Super Contributions
Salary sacrificing extra super from your side hustle can reduce taxable income. In 2026, concessional contributions are capped at $27,500 per financial year.
Pay Yourself a Wage
Paying yourself a regular wage instead of withdrawing all profits helps smooth cash flow and creates deductions for your business.
We can help you set realistic financial goals, track progress, and adjust plans as life changes. Book a consultation and turn your resolutions into results with professional support.
Am I Earning Personal Services Income (PSI)?
Personal Services Income (PSI) is money earned primarily from your skills and effort rather than from a business or asset. If more than 50% of your income comes from your labour, PSI rules may apply.
Why It Matters
PSI rules determine how income is reported to the ATO and which deductions are allowed. Misclassification can result in incorrect tax reporting.
How to Check
Examine your contracts and income sources. If your earnings depend mainly on your personal effort, consult an accountant to confirm PSI status.
Pro Tax Tip: Correctly classifying your income ensures you claim all legitimate deductions and avoid penalties. Contact an ITP Tax Accountant.
How Can You Plan to Pay Less Tax in 2026?
Everyone wants to pay less tax, but fewer people plan for it proactively. Year-round strategies make a real difference.
Super Contributions
Making concessional contributions up to $27,500 can reduce taxable income, with contributions taxed at just 15%, lower than most marginal rates.
Claim Work-Related Deductions
Keep records of work-related expenses, donations, interest payments, and investment costs. Also, check eligibility for low- and middle-income tax offsets.
Salary Sacrifice Benefits
Sacrifice pays for super, laptops, or phone expenses. This reduces taxable income dollar-for-dollar.
Long-Term Investments
Assets held over 12 months enjoy a 50% capital gains discount. Investing in shares, property, or your business creates tax-effective wealth growth.
Structure Your Small Business Properly
Companies and trusts provide more deduction opportunities and flexibility. Get professional advice on income splitting, salary vs dividend payments, and tax minimisation strategies.
Stay on Top of Record Keeping
Receipts, invoices, and records support deductions and allow amendments if something was missed. Digital apps make tracking simple.
ITP specialists can help structure your side business, track expenses, and identify deductions to reduce your tax bill. Get personalised advice today.
How Do You Stick to Your Financial Resolutions?
Financial resolutions are goals, and like all goals, they need a plan.
Set Specific, Measurable Targets
Instead of vague goals, try “save $200 per month” or “pay off $3,000 of credit card debt by June 2026.” Clear targets are easier to track.
Create a Monthly Budget
Budgeting income, expenses, and savings helps monitor progress and adjust when necessary.
Automate Savings
Set up automatic transfers to savings or investment accounts each payday, this is “paying yourself first.”
Track Spending
Use apps or a simple spreadsheet to see where your money goes. Awareness is the first step toward control.
Celebrate Milestones
Reward small wins to maintain motivation. Each step forward is progress.
Find an Accountability Partner
A friend, family member, or financial advisor can provide encouragement and advice.
Adjust When Life Changes
Income or expense changes may require modifications to goals, but don’t abandon them. Staying consistent is key.
Get Expert Help to Make 2026 Your Best Financial Year
Starting 2026 with clear financial resolutions gives you control, confidence, and a roadmap for the year ahead.
From saving more to paying less tax, improving credit, and planning your side hustle, small, consistent steps lead to big results.
If you want guidance tailored to your situation, an ITP Tax Accountant can help turn resolutions into achievable goals. Don’t leave your financial future to chance, start planning today.
Disclaimer: This blog is for general information only and does not constitute financial or tax advice. For advice specific to your circumstances, please consult a qualified accountant or financial advisor.