Tax Deductions Action Plan

Pick your stage (track, prepay, or claim), enter your numbers, and we'll rank the tax deduction decisions that apply to you — ordered by dollar impact and deadline urgency. 14 levers covering WFH, car, IAWO, super, and more.

Lifecycle stage

Employment type

Taxable income

Has investment property

Weekly WFH hours

Annual work km

Occupation

Has charitable donation strategy

No fixed deadlines for this stage — below are strategic opportunities.

Track: set up your year right (Up to):

$8,256

Levers don't fully stack — most people action 1-3 of these. Warnings excluded from total.

Urgent: 0·2 of 14 levers apply·employee · $90,000

Start a 12-Week Car Logbook

Any time

Up to $7,450

Why: A 12-week logbook is valid for 5 years. At 10,000 work km/yr, the logbook method typically claims ~$12,000 vs ~$4,550 with cents-per-km — ~$7,450 extra.

Do: Start a 12-week continuous logbook now. Record odometer start/end, date, purpose for every work trip. The logbook is valid for 5 years.

Logbook captures actual running costs (fuel, rego, insurance, depreciation, repairs). Cents-per-km capped at 5,000km. If you drive >5,000 work km, logbook is almost always better.

Open the car expense optimizer →

Track Your WFH Hours

Ongoing

Up to $806

Why: At 24 WFH hours/week, the fixed-rate method (70c/hr) gives a ~$806 deduction. Track your hours now — you need a record (timesheet, roster, or diary) for the ATO.

Do: Keep a weekly log of WFH hours. A simple spreadsheet or calendar entry is sufficient. The fixed rate covers electricity, internet, phone, stationery — no need for individual receipts.

ATO fixed rate: 70c per hour (2026-27). Covers energy, internet, mobile, stationery. Actual-cost method may yield more if you have high bills — use the WFH calculator to compare.

Open the WFH calculator →

More tax deduction tools

WFH calculator Car expense optimizer Occupation deduction wizard Prepaid expenses calculator Work deductions calculator Depreciation calculator IAWO calculator EOFY action plan Property investor action plan Sole trader plan

What tax deduction decisions should an Australian taxpayer make across the journey of tracking expenses, prepaying before EOFY, and claiming at tax time?

Track: start a 12-week car logbook before the EOFY rush, record weekly WFH hours, keep receipts for tools and equipment, and check occupation-specific deductions. Prepay: prepay investment loan interest up to 12 months forward (s82KZL), time IAWO purchases before 30 June on assets under $20,000, make DGR charitable donations, prepay income protection insurance premiums, and consider concessional super contributions up to the $32,500 cap. Claim: compare WFH methods (fixed-rate 70c/hr vs actual cost), compare car methods (cents-per-km capped at 5,000km vs logbook), claim self-education expenses that maintain or improve current employment skills, choose between diminishing value and prime cost depreciation, and claim laundry up to $150 without receipts (TR 98/5). The Action Plan above ranks these for your specific situation.

Formula lever_score = dollar_impact x urgency_multiplier (3.0 if ≤14d, 2.0 if ≤30d, 1.5 if ≤90d, 1.0 otherwise). Stage-conditional input reveals; cross-stage links preserve shared inputs.

FAQ

Should I use the fixed rate or actual cost method for WFH?

The fixed-rate method (70c per hour for 2026-27, unchanged since PCG 2024/2) is simpler — just track your WFH hours and multiply. The actual-cost method requires you to calculate your share of electricity, internet, phone, stationery, furniture depreciation, and cleaning, then apportion by floor area and work hours. Fixed rate wins if you work fewer than ~20 hours/week from home. Above that, actual cost typically gives a larger deduction, especially if you have a dedicated home office. Use the WFH calculator to compare both methods with your real numbers.

When should I switch from cents-per-km to the logbook method?

Cents per km is capped at 5,000 business km per year ($4,550 at 91c/km for 2026-27). If you drive more than 5,000 work-related km, the logbook method will give you a larger deduction — you claim the actual percentage of all car expenses (fuel, rego, insurance, servicing, depreciation) based on your 12-week logbook. The Action Plan above tells you where your breakeven is. Note that you need to keep a valid 12-week logbook and it remains valid for 5 years unless your circumstances change materially.

What's the $150 laundry rule - do I need receipts?

Under ATO ruling TR 98/5, you can claim up to $150 per year in laundry expenses (washing, drying, ironing work clothes) without keeping written receipts, as long as you can show you incurred the expense — for example, by showing you wore a work uniform and did a reasonable number of washes. If your laundry costs exceed $150, or if the ATO asks for evidence, you'll need receipts or a reasonable basis for your calculation. Above $150, written evidence is required.

Can I prepay my investment loan interest before 30 June?

Yes, under section s82KZL of the ITAA 1936, you can prepay up to 12 months of investment loan interest before 30 June and claim the full deduction in the current tax year. This is a powerful EOFY strategy — you bring forward a full year's deduction into the current year at your current marginal rate. The Action Plan above evaluates whether this is worth doing for your specific loan balance and tax bracket. Note: this only applies to investment properties, not your main residence.

What's the instant asset write-off threshold for 2026-27?

The 2026-27 Instant Asset Write-Off (IAWO) threshold is $20,000 per asset for small business entities with aggregated turnover under $10 million. Budget 2026-27 proposed making this level permanent from 1 July 2026, and the amending bill passed both Houses of Parliament on 19 August 2026 and received Royal Assent on 26 August 2026 as Act No. 71 of 2026 — the $20,000 threshold is now permanent law, with no annual cliff. Each asset costing less than $20,000 can be immediately deducted in full in the year of purchase. The timing matters: buy and install (or ready-for-use) the asset before 30 June to claim it in the current year. The Action Plan above flags if you have eligible purchase value and reminds you of the EOFY deadline.

How does diminishing value compare to prime cost for depreciation?

Diminishing value (DV) gives you a larger deduction in the early years — it applies 200% of the prime-cost rate to the declining balance each year. Prime cost (PC) spreads the deduction evenly over the asset's effective life. DV is usually better if you expect to hold the asset long-term and want to maximise early deductions; PC is simpler and may be better if you expect to sell within a few years (since DV front-loads deductions, you'll have a lower written-down value and larger balancing adjustment on disposal). The Action Plan's depreciation lever links to the full depreciation calculator to compare both schedules.

Deduction guides by occupation

Accountant and Bookkeeper Tax Deductions 2025-26: What You Can and Can't Claim ATO-aligned deduction guide for accountants and bookkeepers: memberships, CPD, software, home office running costs, and what you can't claim. Aged Care and Disability Support Worker Tax Deductions 2025-26: What You Can and Can't Claim ATO-aligned guide for aged care and disability workers: client-to-client travel, protective items, and why sleepover allowances aren't deductible. Apprentice and Trainee Tax Deductions 2025-26: What You Can and Can't Claim ATO-aligned apprentice deduction guide: tools under and over $300, trade school travel, laundry rules, and why low wages cap your tax saving. Bus and Train Driver Tax Deductions 2025-26: What You Can and Can't Claim ATO-aligned deduction guide for bus and train drivers: uniforms, licences, mandatory rest breaks, and common claim traps. Call Centre Operator Tax Deductions 2025-26: What You Can and Can't Claim ATO-aligned call centre deduction guide covering headsets, working from home, and why the 70c fixed rate blocks a separate phone claim. Cleaner Tax Deductions 2025-26: What You Can and Can't Claim ATO-aligned cleaner deduction guide covering cleaning products, equipment, protective items, the bulky-equipment car exception, and laundry rules.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2026-27

This calculator is an estimate tool and may not cover all personal circumstances. For state-based taxes, confirm details with your state or territory revenue office.

ATO: Tax rates for Australian residents