Key takeaways
- Claiming every legitimate deduction with good records is the foundation.
- Concessional super contributions are taxed at 15% in the fund, within the cap ($32,500 for 2026–27).
- Appropriate private hospital cover can avoid the Medicare levy surcharge.
- Avoid any scheme that promises guaranteed tax savings.
There's an important difference between legitimate tax planning and tax avoidance. Everything below is a normal, legal part of managing your affairs — but whether each option suits you depends on your circumstances.
1. Claim everything you're entitled to
The simplest saving is claiming legitimate deductions you'd otherwise miss — supported by records. Keeping receipts and a working-from-home log through the year makes a real difference at tax time.
2. Think about timing
Individuals can generally claim some deductible expenses prepaid for up to 12 months — such as income protection premiums or interest on an investment loan — in the year paid. If you expect your income to fall next year, deferring income or bringing forward deductions may help.
3. Use super contributions wisely
Concessional contributions — employer contributions, salary sacrifice and personal contributions you claim as a deduction — are generally taxed at 15% in the fund rather than at your marginal rate. The concessional cap is $30,000 for 2025–26 and $32,500 for 2026–27. If your total super balance was under $500,000 at the previous 30 June, you may be able to use unused cap amounts from up to five earlier years.
To claim a deduction for a personal contribution, you must lodge a notice of intent with your fund and receive an acknowledgement before lodging your return.
4. Check your private health insurance
If your income is above the Medicare levy surcharge threshold — $105,000 for singles in 2026–27 — and you don't hold appropriate private hospital cover, you may pay an extra 1% to 1.5%. For some people, the cost of cover is less than the surcharge.
5. Donate to registered charities
Donations of $2 or more to deductible gift recipients are generally deductible. Keep your receipts.
6. Review your structure
For investors and business owners, the way assets and businesses are held — individually, jointly, through a company or a trust — affects tax. Structures have costs and rules of their own, so get advice before changing anything.
Official sources
General information only. This article doesn't take into account your personal circumstances and isn't a substitute for professional advice. Tax rules and thresholds change — check current details with the ATO or contact us for advice specific to you.
Published by
ANS Taxation & Accounting
Melbourne accounting and tax practice