Tax Relief Measures You Need to Know & 4 EOFY Updates
4 EOFY Updates & Tax Relief Measures You Need to Know
As we head towards the end of the financial year, the ATO and Federal Government have rolled out several practical updates. From new EV charging rates and fuel disruption relief to scam protection and superannuation cap increases, here is the plain-English breakdown of what you need to know.
Here are four major updates you can skim through right now.
1. ATO Updates EV Home Charging Rate: What It Means for You
If you drive an electric vehicle (EV) or plug-in hybrid for work and charge it at home, the ATO has just made claiming your electricity costs a bit more generous.
The Update: From 1 April 2026 (for FBT) or 1 July 2026 (for income tax), the standard home-charging rate increases from 4.20 cents per kilometre to 5.47 cents per kilometre.
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Why it matters: This rate is a shortcut. Instead of trying to figure out exactly how many kilowatt-hours your car used, you just multiply this cents-per-km rate by your work kilometres. The higher rate means a bigger tax deduction or lower FBT bill.
- For Employers: If you provide EVs to staff, this higher rate increases the electricity cost attributed to the vehicle, which can increase employee contributions and directly lower your FBT bill.
- For Individuals: If you use the logbook method, apply this new rate to your business kilometres for the 2026–27 year onwards.
📖 What do these words mean?
- EV / PHEV: Electric Vehicle (runs entirely on battery) or Plug-in Hybrid Electric Vehicle (runs on battery and petrol).
- FBT (Fringe Benefits Tax): A tax employers pay when they give staff non-cash perks (like a company car, free gym membership, or paying a personal bill).
2. Practical Help for Businesses Hit by Fuel Disruptions
With global fuel supply chains strained by Middle East conflicts, many Australian businesses are feeling the squeeze through higher transport costs and delayed deliveries.
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The Relief Package: The Treasurer and ATO have announced a temporary, case-by-case support package. If your business has been affected, the ATO now has discretion to offer:
- Flexible payment plans to spread tax debts over a manageable timeframe.
- Remission of interest and penalties so a temporary cash-flow issue doesn't escalate into a massive debt.
- Easier variation of PAYG instalments to reflect your current, reduced trading reality.
- Reduced compliance activity (scaling back audits) and pauses on debt recovery.
📖 What do these words mean?
- PAYG Instalments: Pay-As-You-Go. A system where you pay your expected tax bill in regular installments throughout the year, rather than one lump sum at tax time.
- GIC (General Interest Charge): Interest the ATO charges on late payments of tax debts.
3. New ATO ‘Verify Call’ Feature: Instant Scam Protection
As tax time approaches, scam calls and emails pretending to be from the ATO skyrocket. To fight this, the ATO has launched a brilliant new tool in their free app.
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How it works:
- You get a call from someone claiming to be the ATO.
- Open the ATO app and tap ‘Verify Call’.
- The app instantly tells you if the call is genuine.
- If there's no confirmation, hang up. It’s a scam.
📖 What do these words mean?
- myID: The Australian Government's secure digital identity app that lets you prove who you are when logging into services like myGov and the ATO.
4. Superannuation Contribution Caps to Increase
Good news for your retirement savings: the government has confirmed that the amount you can legally put into super will increase from 1 July 2026.
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The New Caps:
- Concessional (Pre-tax) Cap: Increasing from $30,000 to $32,500.
- Non-Concessional (After-tax) Cap: Increasing to $130,000.
Why it matters: If your employer's compulsory super isn't enough to hit the cap, you can top it up yourself (via salary sacrifice or personal deductions) to reduce your current tax bill. You might also be able to use unused caps from the last 5 years if your balance was under $500k. For after-tax contributions, you may even be able to bring forward two years' worth of caps to contribute a lump sum of $390,000.
📖 What do these words mean?
- Concessional Contributions: Pre-tax money going into super (like employer guarantee payments or salary sacrifice). It's taxed at a discounted rate of 15% inside the fund.
- Non-Concessional Contributions: After-tax money you put into super from your own bank account. You don't get a tax deduction for it, but it grows and is eventually taxed much more gently inside the super environment.
- TSB (Total Super Balance): The total amount of money you have across all your superannuation funds combined.
The Bottom Line
From bigger EV deductions and fuel relief to better scam protection and higher super caps, there are a lot of moving parts right now. Don't leave money on the table or get caught out by compliance changes. If any of these updates apply to your business or personal finances, reach out to make sure your setup is optimised.
Disclaimer: This blog is for educational purposes only and does not constitute formal financial or tax advice. Please consult a professional for advice specific to your situation.