As we close out the 2024–25 financial year and look ahead to 2025–26, many Australians are gearing up for that annual ritual: tax return prep. Whether you’re an early bird lodging your return now or plan to file closer to October, knowing exactly what you can claim and what might trip you up is key to making the most of your refund.
At our firm, we work closely with individuals and business owners to make sure they don’t miss out on legal deductions or fall into common traps. Here’s a breakdown of the major claims you may be eligible for this year.
1. Work-Related Expenses
If you’re spending money to earn money, some costs may be deductible, so long as they’re not reimbursed and are directly tied to your role.
- Home Office Costs: Remote and hybrid work is still going strong. You may qualify to claim internet, electricity and equipment depreciation using the fixed rate method (70c/hour). Just remember: documentation is everything.
- Tools & Uniforms: Required uniforms, protective gear, and laundry costs are often overlooked but claimable.
- Training: Upskilling for your current job? Expenses for approved education, travel, and materials might be deductible as long as the course doesn’t lead to a new career.
2. Travel & Vehicle Use
Driving for work (not your daily commute) could mean a claimable deduction. The cents-per-kilometre rate is 88c/km for 2024–25. Maintain a logbook or diary to prove your usage.
Note: Travel between home and one regular workplace is not deductible, unless you’re moving between sites or transporting heavy tools.
3. Donations That Count
If you’ve donated $2 or more to a registered charity with DGR status, you can claim it, just hold onto that receipt.
4. Costs of Managing Your Tax Affairs
Engaging a registered tax agent like us? Fees for preparing your return are tax-deductible, along with related costs like travel to your appointment and subscriptions to tax publications.
5. Investment-Related Expenses
If you’re earning income from investments, certain costs may qualify:
- Interest on loans used for investing
- Property repairs, maintenance, and depreciation
- Financial advice and management fees
Just remember: deductions must relate to income-generating periods, not future gains.
Why Professional Advice Pays Off
The ATO has sophisticated data matching tools, and small errors can create big headaches from audit flags to refund delays. Software is helpful, but doesn’t replace nuanced, personalised advice, especially if your circumstances have shifted.
We’re here to:
- Identify all valid deductions for your situation
- Minimise audit risk with compliant claims
- Help you plan ahead for 2025–26
Tax rules change fast, what was deductible last year may not be this year. If you’re seeking clarity, accuracy and a better outcome, book your appointment with our team today.Your Return With Smart Claims