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28 February 2026

February - Tax Updates

Here are this month's key tax, business and finance updates ATO UPDATES Working from Home Deductions The ATO has confirmed the fixed rate method for working from home deductions remains at 67 cents per hour for the 2025-26 income year. You must keep a record of the total number of hours worked from home. Common mistakes include claiming the full internet bill without apportioning for private use, and forgetting to keep diary records. BUSINESS Small Business Energy Incentive Eligible small businesses may be able to claim a bonus deduction of 20% on the cost of electrification and energy efficiency assets. The asset must be first used or installed ready for use between 1 July 2023 and 30 June 2024. PROPERTY Negative Gearing Update Rental property investors should ensure all interest expenses are correctly apportioned where a loan is used for both private and investment purposes. The ATO continues to flag this as a key audit risk area.