February 2026 Newsletter

Please click on the following link to view this month's newsletter for February 2026. We would like to highlight the following articles:-

Student Loan Debt Relief and Repayment Changes

The Australian Government has commenced a 20% reduction of eligible student loan balances. This reduction is applied by the ATO to loan balances as at 1 June 2025, before indexation, with 2025 indexation recalculated on the reduced amount. No action is required from taxpayers. Most reductions were processed by the end of 2025, with more complex cases being finalised in early 2026. Individuals will be notified by SMS, email, or through their myGov inbox once their adjustment is complete.

If a loan account moves into credit after the reduction, a refund may be issued. However, any outstanding tax or Commonwealth debts will be offset first.

From 1 July 2025, the compulsory repayment income threshold increased to $67,000 for the 2025–26 income year. Repayments are now calculated on a marginal basis, applying only to income above this threshold rather than total income, reducing repayments for most taxpayers. For those earning $179,286 or more, compulsory repayments remain capped at 10% of total repayment income.

Maximising GST and Fuel Tax Credits in 2026

As the new year begins, businesses are encouraged to review their eligibility for GST and fuel tax credits to avoid missing potential refunds.

GST credits (input tax credits) allow GST-registered businesses to claim back GST paid on business purchases, provided the expenses relate to business activities and not personal use. A valid tax invoice is required for purchases over $82.50 (including GST). Importantly, GST credits must be claimed within four years of the BAS due date for the period in which they could first be claimed.

Fuel tax credits may also be available where eligible fuel is used in certain business vehicles, machinery, or equipment. Rates vary by activity and are indexed twice yearly. Fuel used in passenger cars or light vehicles on public roads is generally excluded due to the road-user charge. Like GST credits, fuel tax credit claims are subject to a four-year time limit.

Early review of entitlements can improve cash flow and reduce compliance pressure later in the year.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.