Tax Time 2026: How to Check Tax Advice Before You Act

Tax Time 2025–26 · Tax & Accounting

Tax Time 2026: How to Check Tax Advice Before You Act

Tax Time brings no shortage of advice.

Social media posts, online forums, videos, AI tools and conversations with friends may all offer ideas about deductions, refunds and ways to reduce tax.

Some of that information may be useful. It may also be incomplete, out of date or written for circumstances that differ from yours.

A claim that is valid for a content creator, business owner or tradesperson may not be available to an employee. A deduction that was allowed in an earlier income year may now be calculated differently. An expense may be partly deductible but still require an adjustment for private use.

Before adding a claim to your 2025–26 tax return, check the source, the current rules and the records required to support it.

The frameworkFive checks before relying on a tax claim

Who published the information?

Start with the source. Ask whether the person providing the information is:

a registered tax agent
a qualified accountant or tax adviser
an Australian government body
a recognised professional organisation
someone describing only their personal experience

Personal experience can be useful, but it is not the same as tax advice. A person may accurately explain what they claimed without explaining their occupation, business structure, private use, reimbursement arrangements or supporting records.

The claim may be valid for them and still be unsuitable for you.

Which income year does it cover?

Tax rates, thresholds, deduction methods and record-keeping requirements can change. A post written several years ago may still appear in search results or social feeds without showing that the rules have since been updated.

Before relying on a figure or method, check:

when the content was published
which income year it refers to
whether the source has been updated
whether the rule has commenced
whether it was only announced or proposed

A correct answer for 2022–23 is not automatically a correct answer for 2025–26.

Does it apply to your circumstances?

Tax outcomes depend on the facts. Two people may buy the same item or incur the same expense but receive different tax treatment because of how the cost relates to their work.

Relevant factors may include:

whether you are an employee or running a business
how the expense helps you earn assessable income
whether the item was also used privately
whether your employer reimbursed you
whether the expense was capital or ongoing
when the expense was incurred
which records you hold

Don't start with“Can this be claimed?”

Start with“How does this expense relate to my income and circumstances?”

What evidence is required?

An expense does not become deductible simply because it appears work-related. You may need records showing:

what you purchased
when you incurred the expense
how much you paid
how the expense related to your work
how you calculated the work-related portion
whether you were reimbursed
how many hours, kilometres or days were involved

The evidence required depends on the type of claim. A bank statement may show that you paid an amount, but it may not explain what was purchased or how it related to your work. A receipt may show the purchase, but not the percentage of business or work use.

Keep the records needed to explain both the expense and your calculation.

Is it general information or advice about you?

Articles, videos and AI tools usually provide general information. They cannot account for facts they have not been given, and they may not identify exceptions or interactions with other tax rules.

General information can help you:

understand a tax term
identify questions for your accountant
organise your records
learn which issues may need review

It should not be treated as a final decision about what belongs in your return.

In practiceThree examples where context changes the answer

Example 01

Working from home

A social media creator says:

“I work from home, so I claim part of my rent, electricity and internet.”

That may be valid for their circumstances, but it does not mean the same claim applies to everyone who works from home.

The available deductions depend on whether you are an employee or operating a home-based business, which calculation method you use, what additional costs you incurred and what records you hold.

For 2025–26, eligible employees using the fixed-rate method may claim 70 cents for each hour worked from home. The rate covers specified running expenses, including certain phone, internet, electricity and stationery costs. Records of the hours worked from home are required.

Employees generally cannot claim rent, mortgage interest, council rates or home insurance simply because they sometimes work from home. Different considerations may apply where part of a home is used as a place of business.

The important question is not whether someone else works from home. It is whether their working arrangement and calculation method match yours.

Example 02

Side-income

A post may describe income from freelancing, selling products, creating content or providing services as “just a side hustle”.

That label does not decide the tax treatment. Income earned through freelance work, online platforms, consulting, content creation or other paid services may need to be reported in your tax return.

You may also be entitled to claim expenses directly related to earning that income. Any private portion must be excluded, and the treatment may differ depending on whether the activity is a business or another income-producing activity.

Keep records of:

payments received
platform statements
invoices issued
fees and commissions
related expenses
equipment purchases
business and private use

Receiving the money outside your main job does not make it tax-free.

Example 03

Car and phone expenses

A colleague may say:

“I use my car and phone for work, so I claim both.”

That statement leaves out the calculation. Using a car to travel from home to a regular workplace is generally private travel. Different treatment may apply to eligible work-related trips, such as travel between separate workplaces.

Phone and internet claims must also reflect work-related use. You cannot generally claim the full cost where the service or device is also used privately.

Depending on the claim, you may need:

a logbook
records of eligible work-related kilometres
an itemised bill
a representative usage diary
receipts or invoices
a reasonable calculation of work-related use

The fact that an item is used for work does not automatically make its full cost deductible.

A note on AIHow AI can and cannot help at Tax Time

AI tools can help explain general concepts, summarise information and prepare questions for your accountant. They can also:

rely on outdated information
overlook Australian tax rules
miss exceptions
confuse announced measures with current law
apply the wrong income year
provide an answer without enough facts
present an uncertain answer confidently

AI can help you ask:

“What records may be needed for a working-from-home claim?”

It should not be the only basis for deciding:

“How much should I claim in my tax return?”

Use AI to support research and preparation. Check important claims against current ATO guidance and qualified advice before acting.

Be readyWhat records should you retain?

The records required will depend on your income and deductions, but may include:

receipts and tax invoices
bank and credit card statements
payment-platform reports
employment income statements
dividend and interest records
rental property statements
vehicle logbooks
records of work-related travel
working-from-home hour records
phone and internet usage calculations
contracts and invoices for freelance work
records explaining reimbursements
evidence supporting business and private-use calculations

Records should show what happened, how the transaction related to your income and how the amount claimed was calculated.

Do not wait until your return is being prepared to work out what evidence exists.

Working with usHow Modoras can help

Tax advice should reflect your income, expenses, records and circumstances—not a generic online example. A Modoras accountant can help you:

assess whether a tax claim applies to you
identify deductions you may be entitled to
calculate work-related and private-use portions
confirm which income needs to be reported
review the records supporting your claims
identify areas that require further evidence
address questions raised by the ATO

Preparing an accurate return does not mean claiming less. It means claiming what you are entitled to and being able to support it.

Unsure whether a tax claim applies to you?

Bring the claim and your supporting records to your Modoras accountant before lodging. We can help assess whether it applies to your circumstances and what evidence may be required.

Speak with Modoras before including an uncertain claim in your tax return.

Speak with Modoras

This information is general and does not take account of your personal circumstances. Tax rules and their application may change. Seek professional advice before acting.