Start the Year Right: 2026 Personal Tax Planning Checklist

Starting the year with a clear tax plan can save you money and stress.

Our 2026 personal tax planning checklist helps you stay on top of obligations, maximise deductions, and navigate the complex Australian tax system confidently.

Why Early Tax Planning Matters

Let’s be honest. Taxes aren’t exactly the most thrilling topic, but ignoring them can turn a simple headache into a full-blown migraine.

Whether you’re a student juggling part-time work, a professional climbing the career ladder, or a business owner managing multiple income streams, early planning can make a huge difference.

2026 brings its own set of tax changes, thresholds, and super rules.

The sooner you start, the smoother the year will go, and the better chance you’ll have of keeping more of your hard-earned cash.

What Does 2026 Mean for Your Taxes?

Here’s a quick snapshot of key 2025–2026 figures:

Tax-free threshold:

Taxable Income (2025-26 year)	Marginal Rate	Tax Payable on this Income
$0 – $18,200	0%	Nil
$18,201 – $45,000	16%	16c for each $1 over $18,200
$45,001 – $135,000	30%	$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000	37%	$31,288 plus 37c for each $1 over $135,000
$190,001+	45%	$51,638 plus 45c for each $1 over $190,000

Medicare Levy: 2% of taxable income
Superannuation Guarantee: 11%
GST Threshold: $75,000 (small business turnover)

Knowing these numbers helps you plan contributions, deductions, and payments more accurately.

Where Do You Start? Your 2026 Tax Planning Checklist

Here’s your actionable checklist to kick off the year right.

1. Review Your Income Streams

List all income sources: salary, freelance work, investments, rental property.
Check if any income is not taxed at source (e.g. dividends or overseas earnings).
Consider adjusting PAYG instalments if your income changes.

Pro Tax Tip: Set up a dedicated folder (physical or digital) for receipts and invoices, it saves a headache come EOFY.

2. Super Contributions

Concessional contributions: Up to $30,000
Non-concessional contributions: Up to $120,000, tax-free in the fund.
Review if topping up super this year is better than paying extra tax later.

Case Study: Supercharged Savings with Smart Contributions

Sarah, a 34-year-old marketing professional based in Sydney, was looking for ways to reduce her 2025-2026 tax liability while also thinking about her long-term financial security. With a taxable income of $95,000, she knew she could benefit from concessional super contributions, which are tax-deductible and count towards her retirement savings.

After reviewing her finances, Sarah decided to contribute an extra $5,000 to her super fund before 30 June 2026. By doing so, she reduced her taxable income from $95,000 to $90,000. This not only lowered her overall income tax payable for the year but also allowed her to grow her super balance faster.

The Outcome:

Immediate Tax Benefit: She reduced her tax by about $750 after contributions tax.
Long-Term Growth: Her super now has an extra $5,000 compounding over time, significantly boosting her retirement savings.
Peace of Mind: Sarah feels confident knowing she is using legitimate tax strategies while also investing in her future.

Pro Tax Tip: Concessional super contributions can be a strategic tool to reduce taxable income while supporting long-term financial goals. Speak with a registered tax agent to ensure contributions don’t exceed the annual cap of $30,000.

3. Maximise Deductions

Common deductions include:

Work-from-home expenses (electricity, internet)
Self-education costs
Charitable donations
Tax agent fees
Tools, equipment, or professional subscriptions

Pro Tax Tip: Keep receipts, digital photos are fine if originals aren’t handy. The ATO accepts them.

4. Consider Offsets & Rebates

Low-income or seniors tax offsets
Private health insurance rebate to reduce Medicare levy surcharge
Spouse contributions offset

Case Study: Maximising Offsets Without Losing Benefits

Tom, a 32-year-old secondary school teacher in Melbourne, earns a modest income of $52,000 per year. Like many Australians in similar income brackets, he was looking for ways to reduce his tax bill without sacrificing the benefits he already enjoys, particularly his private health insurance.

After a consultation with his tax advisor at ITP, Tom learned about the Low Income Tax Offset (LITO). By claiming LITO for the 2025–2026 financial year, he was able to reduce his taxable income and, ultimately, his tax payable.

Importantly, he also ensured that his private health insurance coverage remained intact, avoiding the Medicare Levy Surcharge, which can apply if higher-income earners don’t maintain appropriate private health cover.

The Outcome:

Tax Savings: Tom saved $700 in income tax simply by claiming the Low Income Tax Offset.
No Impact on Health Cover: He kept his private health insurance benefits without triggering additional levies.
Financial Confidence: By understanding available offsets, Tom feels more in control of his finances and better prepared for EOFY planning.

Pro Tax Tip: Always review eligibility for offsets such as LITO, seniors and pensioner tax offsets, or private health rebates. Even small offsets can add up and make a noticeable difference to your cash flow.

5. Plan for Capital Gains & Investments

Review investment portfolio: sell underperforming shares before EOFY to offset gains.
Consider CGT discounts (50% for assets held >12 months).
Track dividend reinvestments, they’re taxable even if automatically reinvested.

Pro Tax Tip: A mid-year portfolio review can prevent nasty surprises at EOFY.

6. Business Owners & Freelancers

Keep business and personal accounts separate.
Claim business expenses: equipment, software, travel, vehicle usage.
Ensure BAS and PAYG instalments are up-to-date.
Check for small business concessions on assets under $20,000. (Subject to current government thresholds, which may change annually.)

7. Centrelink & Other Considerations

Update income estimates for any Centrelink benefits to avoid overpayment.
Check eligibility for any government rebates or incentives (energy, childcare, or study-related).

What This Looks Like in Real Life

Case Study: Freelancer with Multiple Clients

The Problem:
Jane is a freelance consultant who worked with four different clients throughout 2025. Each client paid her differently, some monthly, some ad hoc, and none withheld tax. Her income records were spread across bank statements, invoices, and emails. As tax time approached, Jane was overwhelmed and worried she’d be hit with a large, unexpected end-of-financial-year (EOFY) tax bill.

How ITP Helped:
ITP stepped in to consolidate all income streams into a clear, compliant structure. We reviewed her invoices and bank statements, reconciled earnings, and ensured all income was accurately reported. Jane was advised on setting up PAYG instalments so future tax obligations would be spread across the year rather than landing in one lump sum. We also identified legitimate deductible expenses, including home office costs, software subscriptions, and professional expenses, that Jane hadn’t realised she could claim.

The Outcome:
Jane avoided a stressful EOFY tax shock, gained better control over her cash flow, and reduced her taxable income. By claiming overlooked deductions, she saved $3,500 and now has a clear system in place for managing her freelance income going forward.

Case Study: Property Investor

The Problem:
Mike purchased a rental property midway through the financial year. While he correctly declared his rental income, he didn’t realise he was eligible to claim property depreciation, one of the most valuable deductions available to property investors. As a result, he overpaid tax and missed out on improving his cash flow.

How ITP Helped:
ITP reviewed Mike’s tax return and identified the missed opportunity. We arranged a professional depreciation schedule, capturing both building write-offs and depreciable assets. An amended tax return was lodged to include these deductions, ensuring everything was compliant with ATO requirements.

The Outcome:
Mike received an additional $2,200 in tax savings, boosting his cash flow and improving the overall return on his investment. He now understands how to maximise deductions on his rental property in future years and has a long-term tax strategy in place.

Frequently Asked Questions

When should I start tax planning for 2026?

Start now! Early planning gives you flexibility with deductions, super contributions, and PAYG instalments.

Can I claim super contributions made mid-year?

Yes, as long as they don’t exceed contribution caps. Speak to ITP about optimising timing.

Are work-from-home expenses still deductible in 2026?

Yes, including electricity, internet, and home office equipment.

How do I avoid surprises with investment income?

Track dividends, CGT events, and consider pre-EOFY portfolio reviews.

Do I need a tax agent?

While optional, a registered agent like ITP ensures compliance, maximises deductions, and reduces stress.

Can students claim deductions?

Yes. Self-education expenses and work-related costs are deductible.

What happens if I miscalculate Centrelink income?

You may have to repay overpayments. Regular updates prevent this.

Unlock Your 2026 Tax Savings

Starting 2026 with a clear personal tax plan isn’t just smart, it’s empowering.

By reviewing income, maximising deductions, managing super, and consulting a trusted tax professional, you’ll avoid surprises and optimise your finances.

Book a consultation with ITP today and let us guide you through your 2026 tax planning

Start the Year Right: Your 2026 Personal Tax Planning Checklist