The 2026 tax changes you need to know about

A number of tax changes and adjustments – such as income tax threshold and many rates – were made in 2025-26, and although there are more on the way, here are the main ones you need to be aware of.

At a glance: The 2025-26 tax changes tradies need to know

• Vehicle rates that have changed include the home charging rate for plug-in electric vehicles.
• The small business instant asset write-off $20,000 limit has been extended to June 30, 2026.
• The super guarantee rate for 2025-26 has increased to 12 per cent.
• ATO interest charges that accrued on or after July 1, 2025 will no longer be able to be claimed as a tax deduction.
• There are changes to the minimum repayment threshold for study loans, including Australian Apprenticeship Support Loans.

Your vehicle rates round-up

There are various per kilometre rates that can be used to work out your usage expenses. Here’s what has changed and what remains the same:

• If you use the cents per kilometre method for car expenses, the rate remains 88 cents per kilometre for 2025-26.
• If you have an electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV), and use the logbook method for car expenses or actual costs method for vehicle expenses, the EV home charging rate remains at 4.2 cents per kilometre for 2025-26.
• If you have a PHEV and you want to use the home charging rate, there are additional calculations you need to do before applying the rate – check the ATO website and search QC 72124 for more information. (Remember, when it comes to calculating deductions for car expenses or electricity costs for charging vehicles, you can use the method that gives you the highest deduction, provided you are eligible and have kept the right records.)
• The car depreciation limit remains unchanged at $69,674 for 2025-26.

Instant asset write-off extended

If you’re a small business owner, you may have come across the instant asset write-off. The limit was increased to $20,000 from July 1, 2023 and this has been extended to June 30, 2026. This means eligible small businesses can continue to claim an immediate deduction for eligible assets costing less than $20,000. The limit applies to each asset, so if you purchase multiple eligible assets, you can claim an immediate deduction for each one.

Superannuation changes

Employers need to know the super guarantee rate for 2025-26 has increased to 12 per cent. You should already be paying this higher percentage of your employees’ ordinary time earnings to their super fund. Further updates are coming in the 2027 tax year. From July 1, 2026, the super guarantee rate stays the same, but will be calculated based on their qualifying earnings instead of ordinary time earnings. For most employers, it likely won’t change the amount paid, but do check out the new rules on the ATO website. Super will also need to be paid every payday at the same time as wages.

Changes to interest claims

It’s no longer possible to claim ATO interest charges that accrued on or after July 1, 2025 as a tax deduction. Read more about denying deductions for ATO interest charges on the ATO website.

Apprenticeship loan repayments altered

In training? The minimum repayment threshold for study loans, including Australian Apprenticeship Support Loans, has increased to $67,000 as of July 1, 2025 and compulsory repayments are only calculated on your income above that amount. So you may have less of a repayment to make in your 2026 return, or even none at all! Find out what the new rates are and how much you will pay by visiting the ATO website.

Got more tax questions?

Check out our Q&A with the ATO to find out everything tradies need to know about tax time.

Disclaimer

The information in this article is general in nature. It doesn’t take into account your specific financial position, needs or circumstances.

You should look at your own financial position, objectives and requirements and seek professional advice before making any financial decisions.