Why My 2026 Australian Tax Refund Was Higher Than Normal (And How You Can Maximise Yours)

Why My 2026 Australian Tax Refund Was Higher Than Normal (And How You Can Maximise Yours)

The 2026 tax season is here, and a lot of Australians are wondering why their refund looks different this year. In my case, my 2026 tax refund ended up higher than normal, and in this email I’ll walk you through the key reasons why — plus the steps you can use to maximise your own refund.

If you prefer video, I break everything down here:


What’s Actually Changed for 2026

There’s been a lot of confusion this year, so here’s the quick version:

  • The new personal income tax cuts start 1 July 2026, so they don’t apply to this return.
  • Proposed changes to negative gearing and CGT are not law yet.
  • Everything for the 2025–26 return follows the current rules.


Why I Waited Until Mid‑July to Lodge

  • Employers need time to finalise income statements
  • Pre‑fill data isn’t ready on 1 July
  • Lodging too early increases the chance of ATO follow‑ups

Deadlines:

  • 31 October 2026 if you lodge yourself
  • 15 May 2027 if you use a tax agent


Easy Wins That Increased My Refund

1. The $300 No‑Receipt Rule

You can claim up to $300 in work‑related expenses without receipts. A $299 claim increases the average refund by around $103.

2. Work‑From‑Home: 70c Per Hour

The simplified fixed‑rate method lets you claim 70c per hour for work done at home.

Example: 1,252 hours = $876 deduction, adding roughly $302 to your refund.

3. Car Expenses: 88c Per Kilometre

For 2025–26, the rate is 88c/km, up to 5,000 km.

Example: 3,200 km = $2,816 deduction (Remember: home → work is not deductible.)

4. Phone & Internet Deductions

If you use your phone or internet for work, you can claim a percentage of your bill. Most people fall between 10% and 40%.

5. Capital Gains Tax (CGT)

If you sold shares, crypto or property:

  • Include all gains and losses
  • The 50% CGT discount still applies
  • Proposed changes don’t start until 1 July 2027

6. Last Year’s Tax Agent Fee

If you used a tax agent last year, that fee is deductible this year, even if you lodge yourself now.

7. Clothing, Laundry & Dry Cleaning

Up to $150 without receipts — but only for:

  • Protective clothing
  • Compulsory uniforms
  • Items with a logo

Everyday clothes don’t count.

8. Union Fees & Professional Memberships

Fully deductible. Often pre‑filled, but worth checking.

9. Income Protection Insurance

If paid outside super, it’s deductible. Life, TPD and trauma insurance are not deductible.

10. Franking Credits

Make sure franking credits are included correctly — they can increase your refund if your tax rate is lower than the company tax rate.

11. Private Health Insurance

Your health fund statement affects:

  • Your private health rebate
  • Whether you pay the Medicare Levy Surcharge

If it’s missing or wrong, the ATO may adjust your return.

The Big One: The Self‑Education Deduction

This is one of the most powerful deductions available.

You can claim self‑education expenses if the course:

  • Relates to your current job
  • Helps you maintain or improve skills you already use

You can claim:

  • Course fees
  • Textbooks
  • Stationery
  • Equipment
  • Travel from work to your course
  • Internet and computer use for study

This can easily add up to hundreds or thousands in deductions.

Before You Lodge: Key Takeaways

  • Know what’s changed
  • Wait for your pre‑fill data
  • Claim everything you’re entitled to
  • Don’t overlook simple wins like phone, internet, CGT and tax agent fees
  • Use self‑education if it relates to your current job

Download the free 2026 Tax Return Checklist in the video description.

Watch the Full 2026 Tax Refund Video