Tax Savings Australia 2025-26: Deductions and Salary Sacrifice Checklist

2025-26 Australian Tax Savings Checklist

A practical framework for reviewing tax planning before lodging returns — clean records and timing, not last-minute guesses.

1. Check Your Taxable Income Before Hunting Deductions

Start by calculating gross salary, taxable allowances, investment income and any side income to establish a baseline. Understanding how income changes throughout the year helps determine whether deductions affect refund amounts.

• PAYG payment summaries or income statements
• Bank, brokerage and dividend records
• Work-related expense receipts
• Super contribution notices and fund acknowledgements
• Capital gains tax event records

2. Keep Deduction Records That Match the Claim

Work-related deductions require clear documentation linking expenses to income generation. The fixed-rate work-from-home method requires records of actual hours worked from home plus proof of running expenses.

• Work-related phone, internet, stationery and equipment
• Protective and occupation-specific clothing plus laundry
• Professional subscriptions, union fees and continuing education
• Car and travel expenses for work-related trips only (excludes commuting)

3. Review Salary Sacrifice and Super Paperwork Early

Salary sacrifice reduces taxable salary when arranged prospectively with employers. After-tax personal super contributions require lodging a valid notice of intent with your fund before claiming deductions. Timing and contribution caps are critical.

4. Use Capital Losses Correctly

Capital losses offset only capital gains — not salary or contractor income. Excess losses carry forward indefinitely for future gains. Documentation should include purchase dates, sale dates, proceeds, cost base details and brokerage statements.

5. Check Offsets and Key Lodgement Dates

Tax offsets reduce tax payable rather than taxable income. The Low Income Tax Offset (LITO) applies automatically at assessment for lower incomes. Meeting deadlines prevents penalties and cash-flow disruption.