It’s that time of the year again – 2025 tax time. This year, the Australian Taxation Office (ATO) has announced it will be focussing on “unbelievable” or “wild” tax deduction attempts. So take care to report your expenses correctly.
Their main areas of focus include:
- Work-Related Expenses – incorrect claims such as personal items misrepresented as work-related expenses
- Rental Property Income – not reporting rental income or overclaiming deductions.
- Income Reporting – emphasis on ensuring all income, especially from contractors and cash transactions, is accurately reported.
- GST Reporting – businesses with a history of non-compliance may be moved from quarterly to monthly GST reporting to encourage better compliance habits.
- Deductions and Concessions – monitoring claims related to non-commercial business losses and small business capital gains tax concessions.
At Colledges, we’re here to help you get tax time ready for 2025, and lodge a tax return that is accurate and gives you the best refund you’re entitled to. Below we’ve compiled our annual checklist for you to review before you pop in to see us.
What Is a tax deduction?
A tax deduction lowers the amount of income you’re taxed on and potentially increases your refund. But with the ATO sharpening its focus this year, it’s more important than ever to make sure your claims are legitimate, accurate, and supported by proper documentation.
To be eligible, an expense must:
- Be directly related to earning your income
- Be necessary for your work or business (not for personal use – and if it’s a mix, only the business portion is deductible)
- Be backed by receipts, logbooks, or other records
Before your appointment with your accountant, gather all your documentation – receipts, statements, and logbooks. We’ll review them together and help identify any additional items you can claim to maximise your return.
Getting ready for tax time 2025
Tax time is all about two things: the income you’ve earned and the work-related expenses you’ve incurred. It’s easy to miss deductions by overlooking claimable items, or to accidentally overclaim on costs that aren’t fully related to your work.
That’s why we update the Colledges “Tax Time Ready” checklist each year – to help you stay on top of what you can claim, lodge your return accurately the first time, and maximise your tax refund.
Use this list to tick off the relevant items for your 2025 tax return.
PROVIDE RECORDS OF INCOME SOURCES
Here is a list of the most common sources of income, each of which must be included in your tax return.
Your salary/wages
- Your PAYG salary or wages
- Allowances, bonuses, commissions, tips, director’s fees etc
- Employer lump sum payments
- Employment termination payments
Interest earned
- Distributions from trusts, partnerships, managed superfunds
- Superannuation lump sum payments
- Foreign source income (including foreign pensions) and foreign assets or property
- Bonuses from life insurance companies or friendly societies
Investment income and capital gains tax (CGT)
- Income from investments
- Dividends
- Rental income from properties
- Profits from the sale of assets like real estate, shares, or other investments, subject to capital gains tax (CGT).
Personal or government allowances
- Car and vehicle allowances
- Travel allowances
- Work from home allowance
- Other allowances, such as entertainment, meals etc.
- Pensions and allowances
- Australian Government allowances and payments such as Newstart, JobSeeker, Youth Allowance, Austudy, Family Tax Benefit
- Australian Government pensions
- Australian annuities and superannuation income streams
- Australian superannuation lump sum payments
- Attributed personal services income
Other sources income
- Child support
- Income from investments such as rental income, shares, dividends, cryptocurrency
- Employee share scheme
- Net income or loss from business
LIST YOUR EXPENSES WITH RECEIPTS
Expenses that are tax deductible are any item or service purchased that you or your business required to help you earn an income.
Employment expenses
- Travel costs – national and international
- Training costs
- Work from home expenses
- Courses, education and seminars
- Superannuation contributions
- Notice of intent to claim for superannuation contributions
- Protective clothing and uniforms
Vehicle expenses
- Motor vehicle expenses based on business use percentage (include your logbook, if applicable)
- Travel and accommodation – domestic and overseas
- Vehicle expenses based on logbook method or cents per km
Office expenses
- Home office expenses
- Computer and software
- Telephone, mobile phone, internet
- Utilities – gas, water electricity
- Tools and equipment
- Building and maintenance costs
- Subscriptions and union fees
- Journals/periodicals
- Depreciation of office equipment
- Sun protection products (i.e., sunscreen and sunglasses)
Other expenses
- Interest deductions
- Dividend deductions
- Gifts or donations
- Cost of managing tax affairs
- Freight and transport costs
- Health and medical expenses and insurances
- Childcare expenses
A note on working from home expenses
The ATO defines working from home as performing your usual office duties from home instead of your regular workplace. If you work from home, it’s important to keep detailed records and this includes a log of your work hours, start and finish times, and any breaks taken.
You may be eligible to claim a portion of your household running costs, like electricity and internet. Out-of-pocket expenses for items such as stationery or tech equipment (that aren’t reimbursed by your employer) can also be claimed.
Learn more about what you can claim and your reporting obligations if you work from home.
Need a hand with your 2025 tax return?
We’re here to help you prepare a thorough and accurate return ensuring all eligible deductions are included so you don’t miss out on any refunds. With the ATO paying close attention to claims by landlords and remote workers, now is a great time to get expert support.
Call us on (03) 9851 6500 or email: hello@colledges.com.au. Let’s make this tax time stress-free.
