Let\u2019s face it: taxes in Australia aren\u2019t getting any lighter, but there are ways to reduce the sting of that ATO bill. And here\u2019s the good news: you don\u2019t need to dive into dodgy loopholes or complex strategies to make a real difference. A few well-timed moves, some basic knowledge of the rules, and a bit of planning can help you keep more of your income. Here\u2019s how you can start preparing now for a lighter tax load in 2026.<\/p>\n\n\n\n
The first thing you need to wrap your head around is how tax brackets work. It\u2019s easy to think that once you hit a higher income threshold, all your income is taxed at that rate\u2014but that\u2019s not the case. For example, let\u2019s say you\u2019re making $200,000. Even though you\u2019re in the 47% tax bracket (for income over $190,000), the first $18,200 you earn is tax-free, the next $26,800 is taxed at 18%, and so on, reports Yahoo Finance<\/a>. This means that your income gets taxed incrementally based on each bracket, not all at once. Knowing this helps you make sense of how tax deductions can be maximized as you move up the income scale.<\/p>\n\n\n\n