Ross Steele

The ATO has updated its guidance on rental property income and expenses from 1 July 2026, including for properties that are also used as holiday homes. Where a property is a holiday home, it must be used (or held for use) mainly to produce rental income before the owner can claim any expenses relating to its ownership and use.

The Government has recently introduced legislation that would make the $20,000 instant asset write-off permanent for small businesses (as announced in the 2026 Federal Budget).

2026 Budget: The Big Changes! Delivering a new Working Australians Tax Offset ('WATO') to provide a permanent annual $250 tax offset to all eligible Australian workers. This applies to eligible income earned from 1 July 2027 (i.e., from the 2027/28 income year). Introducing a $1,000 instant tax deduction to allow workers to deduct up to $1,000 of work-related expenses without keeping receipts from 1 July 2026.