When do I need to file 2026 tax return? Everything Aussie workers should know before lodging as deadline looms

Australian workers are running out of time to submit their tax return without copping a penalty as the lodgment deadline looms.

With just a few weeks to go before the cut-off date, attention is turning to common errors, record-keeping requirements and the rules around deduction claims as Australians prepare their returns.

Here’s what taxpayers should know before hitting ‘lodge’ on their 2025-26 return.

WHEN IS THE 2025/26 DEADLINE?

Taxpayers planning to lodge their return themselves have until Monday, 2 November 2026.

While the usual deadline for self-lodgers is 31 October, the date falls on a Saturday this year, pushing the cut-off date to the next business day.

Those using a registered tax agent may be eligible for an extended lodgment deadline under the accountant’s schedule.

But the Australian Taxation Office warns Aussie workers hoping to buy some more time by engaging an agent will still need to book an appointment with an accountant before October 31 to be eligible.

WHAT YOU CAN CLAIM

Director and owner of Pine Accounting Hamza Maqbool urged taxpayers to familiarise themselves with the deductions they are eligible to claim to ensure they maximise their return without falling foul of the rules.

“Simply just spending money for work is not in itself claimable,” he told The Nightly.

“It needs to be a direct connection between your income and the money that you’ve spent. It’s very occupation specific.”

Mr Maqbool advises workers to consult the ATO’s website for guidance on the deductions available to their profession and the amount that is claimable.

Work-related deductions can include:

• Travel expenses, excluding normal home-to work commuting
• Percentage of electricity, internet, phone and stationary for people working from home
• Compulsory uniforms, occupation-specific clothing or protective gear
• Laundry and dry cleaning expenses for protective clothing or distinctive uniforms
• Union fees, job-specific licenses and subscriptions
• Courses, education, seminars or conferences in connection to employment
• Sunscreen and sunglasses for people required to work outdoors

COMMON MISTAKES

Knowing which expenses are eligible is only half of the battle, with accountants warning taxpayers must also calculate the correct work-related percentage before making a claim.

Mr Maqbool said one of the most common mistakes was failing to account for the personal use of items that are also used for work, with some taxpayers incorrectly claiming the entire cost as a deduction.

“Most people think if they spend something, they can claim it 100 per cent,” Mr Maqbool explained.

“But there might be some private percentage as well. And only a work usage percentage is claimable. So you need to pro rata.”

Tax Accountant at Y&S Accounting Rodrigo Cordeiro said he often encountered this issue in taxpayers’ claims and warned calculating each portion was key to a successful claim.

“For example, people use their own phone for work, but not necessarily 100 per cent is for work,” Mr Cordeiro explained.

“So it requires you to calculate a percentage of how much of your phone is work related.

“That works with other types of expenses like working from home as well as Wi-Fi and subscriptions that you could potentially claim in your return.”

Mr Maqbool said taxpayers could use a sample period to help calculate the work related portion of their expenses.

“You can take out three months of your bills and highlight the ones that are for work, and then take out a percentage and use that percentage as a representative of the full year,” he said.

“You can have like a sample of three months and then use that.”

HOW TO SUPPORT YOUR CLAIMS

Keeping itemised receipts and accurate records throughout the financial year is essential to ensuring tax deductions can be substantiated if the ATO requests evidence.

Mr Maqbool said many taxpayers failed to keep track of their expenses, leaving them scrambling to gather the necessary paperwork for their return.

“Most of the people are not keeping record of all the expenses they’ve incurred throughout the year. But It’s very important to keep records,” he said.

He also said taxpayers should be aware that bank statement may not be sufficient evidence for as deduction as they do not clearly show what was purchased in the transaction.

Mr Cordeiro urged taxpayers to avoid rushing their tax return without the relevant documents as an incorrect submission could prove costly.

“Don’t lodge wrong information. If you reckon that you’re not going to have all the information you need before your deadline, contact a tax agent,” he said.

“Try respect the deadline, but take your time to gather the information rather than just lodging in a rush, and then ATO comes back to you saying that you missed something or you didn’t report an income that should have been reported, and you could be essentially fined.”

Both accountants stressed that keeping records of supporting documents as expenses arise was the best way to avoid becoming overwhelmed when tax time rolls around.

“You can access your ATO portal. And within that, they have my deduction section, and this helps you to keep track of kilometres that you drive to work and pictures that you take of work-related receipts,” Mr Cordeiro said.

PENALTY FOR LATE SUBMISSIONS

Aussies who miss the deadline on November 2 still need to file their return as soon as possible.

According to the ATO’s website, the agency considers individual circumstances before deciding whether to apply a failure-to-lodge penalty, and generally does not penalise isolated cases for late submissions.

“We recognise that sometimes people don’t meet their lodgment obligations on time, even with the best intentions. Generally, we don’t apply penalties in isolated cases of late lodgment,” the agency said.

“We consider your circumstances when deciding what action to take.”

Taxpayers will generally receive a warning by phone or email in writing before a penalty is applied, giving them the opportunity to lodge their return or explain why they are unable to meet their obligations.

People experiencing exceptional circumstances, such as family domestic violence, natural disaster or a serious illness, can also apply to have a penalty reduced or cancelled.

The ATO says it calculates failure-to-lodge penalties based on how late a return is and the size of the entity.

For individuals, the penalty generally increases by one unit for every 28 days a return is overdue, with up to a maximum of five units.

Higher penalties apply to medium and large businesses, depending on their size and withholding obligations.