2026 ATO personal income tax checklist: what to organise from January

In Australia, “tax time” is tied to the financial year, not the calendar year. Each year starts on 1 July and ends on 30 June. That’s why January is often the best moment to get organised: it’s early enough to build good habits, and late enough that most people can see what income and spending patterns are actually showing up in daily life.

For 2026, the big picture is simple but important: the ATO continues to expand data matching across common income sources, and taxpayers still need to be able to back up deductions with appropriate evidence. On top of that, further personal income tax cuts are scheduled to begin from 1 July 2026, which makes it even more important to understand which income belongs to which financial year.

This explainer is a practical checklist for everyday taxpayers — employees, sole traders, side-hustlers, investors and families — focused on documents, deductions and refund timing. It’s general information only, and eligibility can depend on your circumstances.

What changes in 2026 and why it matters

1) Know what “2026” means in tax terms. People often say “my 2026 tax return” when they mean one of two different things:

• The 2025–26 financial year (1 July 2025 to 30 June 2026), which you typically lodge after 30 June 2026; or
• The 2026–27 financial year (1 July 2026 to 30 June 2027), which includes the first year of the scheduled 1 July 2026 marginal rate reduction.

2) Scheduled rate change from 1 July 2026. From 1 July 2026, the marginal tax rate for taxable income between $18,201 and $45,000 is scheduled to decrease from 16% to 15% (with a further scheduled decrease to 14% from 1 July 2027). This doesn’t change the ATO’s expectations around substantiation, but it does mean that income earned in 2026–27 may be taxed differently to income earned in earlier years.

3) “Tax time” still has a predictable timeline. The ATO notes that pre-fill data starts arriving from 1 July, with most data finalised by the end of July (some categories may be later). For employees, income statements show as “Tax ready” when finalised by the employer, and employers generally have until 14 July to finalise (though delays can happen). If you lodge too early, you may increase the chances of mismatches and amendments later.

4) Lodgment and record-keeping rules matter more than people think. If you lodge your own return, the ATO generally lists 31 October as the due date. For record keeping, a common baseline rule is to keep written evidence for five years from the date you lodge your return (with limited circumstances requiring longer).

Who is most affected and what it may cost (or save)

The dollar impact of tax time usually comes down to three practical questions: (1) did you report all taxable income, (2) did you claim eligible deductions with the right evidence, and (3) did you lodge correctly and on time. The “right” approach is rarely complicated — but it does need consistency.

• Employees on PAYG: much of your income data is commonly pre-filled, but deductions are where many people either miss legitimate claims or overclaim without evidence. Even small items can add up across a year — but only if you have the records and the expense genuinely relates to earning your income.
• Sole traders and side-gig workers: the biggest risks are messy record keeping, mixing private and business spending, and forgetting to report platform income. Good records may help you claim expenses more accurately and avoid stressful “catch-up” work at lodgment time.
• Investors: bank interest and dividends may be pre-filled, but capital gains tax (CGT) depends on your buy/sell dates, cost base information and corporate actions. Missing documentation can make the return harder to complete and harder to fix later.
• Families and higher-income households: private health insurance statements and Medicare-related details can affect the final outcome for some people. Having the correct annual statements helps reduce back-and-forth.

Simple example (illustrative only): An employee who buys job-required protective equipment, pays union fees and completes a role-related course may have multiple deductible items across the year. If receipts are scattered or lost, the person may claim less than they otherwise could — or they may not be able to substantiate a claim if asked. The result may be a smaller refund, a longer processing time, or an amendment later.

Your January-to-June checklist: what to gather (and how to store it)

Think of this as building a “tax folder” that gets updated monthly. A simple setup is enough: one digital folder with subfolders (Income, Work expenses, Investments, Health/Medicare, Donations, Other) plus a short notes file explaining what each receipt relates to.

1) Income documents (don’t assume pre-fill covers everything)

• PAYG income statement (via myGov/ATO Online services) once finalised by your employer and marked “Tax ready”.
• Bank interest summaries (especially if you have multiple accounts or joint accounts).
• Dividend statements, distribution statements, and annual tax statements from managed funds/ETFs.
• Side hustle/platform income: invoices, payment summaries, platform statements, and bank deposits.
• Government payments where relevant (keep annual summaries where provided).
• Capital gains records: contract notes, trade confirmations, dates, and amounts for disposals.

2) Work-related deductions: evidence first, claim second

Work-related deductions generally need a clear connection to earning your income and appropriate records. From January, start collecting:

• Uniforms and protective items (where relevant): receipts and brief notes on why they were required for your role.
• Tools and equipment: receipts, and notes on work use versus private use where applicable.
• Work-related training: course invoices, enrolment evidence, and notes on how it relates to your current income-earning activities (not a new career pathway).
• Union fees and professional memberships: annual statements or receipts.
• Home-based work costs: keep evidence supporting your chosen method and the period you worked from home (for example, diary notes and relevant bills, depending on what you plan to claim).
• Vehicle and travel: keep records supporting work-related travel; commuting is commonly treated differently to travel between work sites (the details depend on circumstances).

3) Self-employed and sole trader essentials

• Separate business and personal spending wherever possible (a dedicated account can make record keeping easier).
• Sales records: invoices issued, platform statements, bank deposits.
• Expense records: receipts for supplies, software, phone/internet (with a work-use basis), insurance, contractor costs, and any fees charged by platforms or payment providers.
• Asset purchases: document purchase date and cost for items used to earn business income, as this may affect depreciation/decline in value calculations.

4) Private health insurance and Medicare-related items

If you have private hospital cover, keep your insurer’s annual statement (commonly used for Medicare levy surcharge checks where relevant). If you don’t have private cover and your income is higher, it may be worth understanding how Medicare-related rules apply to your household before lodgment time arrives.

5) Donations and gifts

If you donate to eligible charities, keep receipts showing the date, amount and recipient. Not all contributions are deductible, so documentation matters.

6) A simple monthly routine that works (January to June)

• End of each month: save receipts to your folder and add one line of context (“what, where, why it relates to work”).
• Quarterly: review your income streams (second job, platform income, investment statements) so nothing gets missed later.
• Before 30 June: check you can locate evidence for your biggest potential claims (tools, training, memberships, home-based work records).

July to October 2026: pre-fill, “tax ready”, and refund timing

Once the financial year ends on 30 June, the ATO begins receiving information for pre-fill. Pre-fill data is available from 1 July, and the ATO notes most data is finalised by the end of July (some categories arrive later). For employees, a common best practice is to wait until your income statement is marked “Tax ready” before lodging, unless you’ve confirmed your information is complete.

Refund timing: When lodging online, the ATO notes that most refunds issue within about two weeks, but timeframes can vary depending on checks, peak demand and whether data is finalised. If you are owed money, that can feel urgent — but lodging accurately can matter more than lodging early.

Due date reminder: If you self-lodge, the ATO generally lists 31 October as the due date. If you use a registered tax agent, your due date may differ under the agent program — your agent should confirm your specific deadline.

Common pitfalls, fine print and red flags

• Claiming without evidence: if you can’t produce records, a deduction may be reduced or disallowed, and processing may take longer.
• Mixed-use expenses without a reasonable basis: phones, internet, tools and vehicles often have private use. Claims typically need sensible apportionment supported by records.
• Forgetting side income: gig platforms, online marketplaces and “odd jobs” may create taxable income. Missing it can lead to corrections later.
• CGT record gaps: investors often underestimate how important cost base records and dates are, especially after multiple purchases or corporate actions.
• Lodging too early: lodging before key pre-fill data is finalised can create mismatches that require amendments.
• Assuming the rules are identical for everyone: some outcomes vary by income level, household circumstances and the nature of the expense.

How to fit tax prep into your broader money plan

Tax time can feel urgent, but strong outcomes usually come from routine habits rather than last-minute scrambling. A simple “tax hygiene” routine can also support bigger goals like stabilising cashflow, tracking variable income, and avoiding unpleasant surprises.

• If cashflow is tight: prioritise record keeping for your biggest, most frequent work-related expenses and any large one-off purchases. The goal is clarity and consistency, not perfection.
• If your income is variable: keep a running total of income and expenses each month so lodgment time doesn’t come with a shock.
• If you invest: save trade confirmations and annual statements as they arrive. For CGT, the value is in your records, not your memory.
• If you expect a refund: treat the amount as changeable. Refunds can shift if pre-fill data updates or if deductions are adjusted after review.

Quick Q&A: 2026 ATO personal tax questions

• Q: When should I lodge — right on 1 July, or later?
  A: Many people prefer to wait until key information is finalised (for employees, when the income statement shows “Tax ready”, and when most pre-fill data is in). Lodging early may increase the chance of amendments if data updates later.
• Q: When is my tax return due if I lodge it myself?
  A: The ATO generally lists 31 October as the due date for individuals who self-lodge. If you use a registered tax agent, your due date may differ.
• Q: How long do I need to keep receipts and evidence?
  A: The ATO’s general rule is to keep written evidence for five years from the date you lodge your return, with limited circumstances requiring longer.
• Q: How quickly do refunds arrive?
  A: The ATO notes most online refunds issue within about two weeks, but timing can vary depending on checks and peak demand.

Disclaimer: This article is for general information only and is not tax, legal or financial advice. Rules can change and individual circumstances differ. Check official ATO guidance or speak with a qualified professional before making major decisions.