Get a jumpstart on your finances for 2026

The new year is just around the corner and, while many are thinking about the holidays, a little planning now can help get your finances off to a flying start in 2026.

It’s not just getting your paperwork done or starting your end-of-financial-year preparations, it’s also about spending some time considering the strategic side of your personal finances or business operations to make it more successful.

Where the ATO is focusing

With some changes to personal tax rules this financial year, it may be time to take a closer look at your tax affairs, particularly given the ATO’s focus is on personal deduction claims.

The tax regulator is continuing to emphasise its concern about some taxpayers’ work-related expense claims, deductions for investment properties and holiday homes, income from the sharing economy and cryptocurrency.ⁱ

Given this focus, it’s sensible to check you are following all the current tax rules and have the necessary documents to substantiate any deduction claims or income sources come 30 June.

For businesses, keep an eye on BAS lodgement dates and super contribution deadlines early in the new year to avoid missing them and copping a fine.

Upcoming tax rate changes

Another thing to consider is the upcoming tax rate changes. From 1 July 2026, the tax rate for individual income between $18,201 and $45,000 will be reduced from 16 per cent to 15 per cent.ⁱⁱ

From 1 July 2027, there will be a further reduction to 14 per cent for individual taxpayers. It’s worth checking the potential impact of these changes as you may need to update your existing salary packaging or super contribution arrangement with your employer.

It may also be worthwhile reviewing your likely capital gains tax obligations for this financial year if your investments have made strong returns. It may be time to consider offsetting them against any capital losses.

Review your super position

With higher non-concessional contributions and total super balance caps in place for 2025-26, it’s sensible to think about whether you intend to make extra contributions into your super account prior to 30 June. For some contribution types, you need to check your account balance for the prior year to avoid exceeding your annual cap limits.

You should also check whether you are on track to achieve your retirement savings goal. Are your employer’s contributions enough to ensure you hit your target, or should you be making additional contributions from your before or after-tax income?

People with higher super account balances (over $3 million) should also review the Treasurer’s revisions to the Better Targeted Superannuation Concessions (Division 296) legislation.ⁱⁱⁱ

These adjustments include the introduction of a second threshold on balances above $10 million and indexing of the threshold for balances between $3 million and $10 million.

Getting your business’ paperwork in order

Business taxpayers also need to focus on super, as 1 July will see the start of the new Payday Superannuation rules, which requires employers to make their Super Guarantee (SG) contributions at the same time they make wages and salary payments.^iv

Preparations for this major change include checking whether your payroll software will be ready to cope with the shift from quarterly to more regular contribution payments.

At an operational level, employers traditionally paying their SG contributions on a quarterly basis should model the likely impact of the new payment rules on their business cashflow.

And don’t forget to ensure your digital records are secure and backed up. With the ever increasing threat of cybercrime, it’s important to enable two-factor authentication, update passwords and review your data storage practices.

Strategic issues to consider

Now is also a good time to review your budget and financial position. Identify any potential bad debts that should be followed up in the new year.

Consider timing income and expenses strategically, where possible. For example, you may be able to defer income or bring forward tax deductible expenses. Depending on how the business is performing, start evaluating any planned deductible purchases or expenses now, rather than waiting until just prior to EOFY.

Although the government’s announced extension of the $20,000 instant asset write-off to this financial year is yet to be made law, consider whether you will take advantage of it. For new business assets to be eligible, they must be installed and ready to use by 30 June.

If you need help preparing your tax affairs or business strategy for 2026, contact our office today.

i ATO unveils ‘wild’ tax deduction attempts and priorities for 2025 | Australian Taxation Office

ii Personal income tax – new tax cuts for every Australian taxpayer | Australian Taxation Office

iii Reforms to support low-income workers and build a stronger super system | Treasury.gov.au

iv Payday superannuation | Australian Taxation Office