With the FY26 tax return deadline fast approaching, many Australians are asking how they can legally minimise their tax.
The good news is that you still have several options.
The catch is that some of the most useful doors have already closed.
The financial year ended on 30 June 2026, which means a handful of tax-planning moves for FY26 are now locked in.
Plenty can still be done at lodgement time, however.
Image source: Getty Images
When is the FY26 tax return deadline?
If you lodge your own return, the deadline is 31 October 2026.
Because that date falls on a weekend this year, the effective cut-off shifts to the next business day. Miss it, and the ATO can apply late-lodgement penalties.
If you use a registered tax agent instead, you may have until 15 May 2027, although you must be on that agent's books before 31 October to qualify for the extension.
Any bill from a self-lodged return is generally due by 21 November 2026.
Claim every deduction you are entitled to
The simplest way to cut your tax is to claim everything you are owed.
Work-related expenses are the most common deductions of all. These can include tools, uniforms, self-education and working-from-home costs.
Investment expenses, such as certain adviser fees, may also be deductible.
So can donations to registered charities made before 30 June.
Good record-keeping is absolutely essential, because the ATO expects evidence for every claim you make.
Use franking credits to lower your tax
ASX dividend shares come with a valuable and often overlooked tax benefit.
When a company like Commonwealth Bank of Australia (ASX: CBA) pays a fully franked dividend, it has already paid company tax on those profits.
Each $100 of fully franked dividends carries around $43 in franking credits, which are applied directly against your tax bill.
If those credits exceed the tax you owe, the difference is refunded to you in cash.
For retirees on low marginal rates, that can mean a welcome refund each year.
As a result, franking credits are one of the most powerful tax tools available to Australian investors.
Don't forget the capital gains discount
Selling shares at a profit will trigger capital gains tax. But if you held the asset for more than 12 months, only half the gain is taxable.
This 50% discount can dramatically reduce the tax you pay on a sale.
Therefore, timing your disposals matters enormously, although the deadline of the 30th of June 2026 has come and past.
Super contributions and planning ahead
Personal deductible super contributions can also reduce your tax.
For FY26, the concessional contributions cap was $30,000.
However, contributions had to reach your fund before 30 June 2026 to count toward the FY26 return.
If you made one, be sure to lodge a notice of intent to claim it as a deduction.
Looking ahead, the cap rose to $32,500 from 1 July 2026, which gives you more room to plan for next year well in advance.
Foolish takeaway
The FY26 tax return deadline is a hard stop, so it pays not to leave things late.
Claim every deduction, use your franking credits, and apply the capital gains discount where you can.
Together, these steps can meaningfully and legally lower your tax bill.
