As the end of financial year looms, millions of Australians are preparing to lodge their tax returns — and many are wondering what exactly they can claim.
According to the Australian Taxation Office (ATO), being aware of your entitlements can significantly increase your refund, provided you’re claiming within the rules.
Whether you’re a salaried employee, freelancer, or investor, there are a range of deductions available. Here’s what to keep in mind when preparing your 2024–25 tax return.
Work-related expenses remain the most common — and scrutinised — claims.
These include costs directly linked to earning your income.
Common deductible items include:
– Vehicle use: for work purposes (excluding travel to and from your regular workplace)
– Uniforms and protective clothing
– Home office expenses, especially for remote workers or hybrid employees
– Tools and equipment, needed for your job
– Self-education costs, that relate directly to your current employment
The ATO warns that deductions must meet three golden rules: you must have spent the money yourself, the expense must be directly related to earning your income, and you must have a record to prove it.
With more Australians working
from home, the ATO has refined its guidelines.
The revised fixed rate method allows taxpayers to claim 67 cents per hour for home office use, covering electricity, internet, and phone. Alternatively, you can opt for the actual cost method, which may offer higher deductions — but requires more detailed record keeping.
OTHER COMMONLY
CLAIMED ITEMS
– Donations: Gifts of $2 or more to ATO-registered charities are claimable.
– Union and professional membership fees are deductible if related to your work.
– Income protection insurance premiums (outside superannuation) may also be claimed.
– Investment expenses, such as interest on loans, financial advice, and account-keeping fees tied to income-generating investments, are deductible.
– Rental property owners can claim expenses including interest on the mortgage,
council rates, repairs, depreciation and property management fees.
WHAT NOT TO CLAIM
Despite myths to the contrary, you can’t claim:
– The cost of commuting to and from work
– Everyday clothing, even if worn at work
– Meals and entertainment (unless travelling overnight for work)
– Expenses already reimbursed by your employer
The ATO recommends keeping records for five years.
Digital apps like the ATO’s myDeductions tool can help track expenses throughout the year, making tax time less stressful.
If you’re unsure about what you can claim, consult a registered tax agent or visit the ATO website for up-to-date information.
The ATO begins accepting returns from July 1, but for most taxpayers, it’s best to wait until late July when income statements are finalised by employers and pre-fill data is available.
With the right preparation and awareness, tax time doesn’t have to be taxing—and you might even get a bigger refund than expected.
