Once the financial year ticks over on 30 June, it’s tax-return season again. A little preparation makes your return faster, more accurate, and more likely to claim everything you’re entitled to. Here’s the short version for individuals.
The three golden rules for deductions
Whatever you’re claiming, the ATO applies the same three tests. To claim a work-related deduction:
- You must have spent the money yourself and not been reimbursed.
- The expense must directly relate to earning your income.
- You must have a record to prove it — usually a receipt.
If a claim doesn’t clear all three, leave it out. If you’re not sure, keep the receipt and ask us.
Working from home
If you work from home, the fixed-rate method lets you claim 70 cents for each hour you work from home for the 2024–25 and 2025–26 years. That rate covers things like electricity, internet, phone and stationery. The catch is records: you need a log of the actual hours you worked from home across the year (not an estimate), so if you haven’t kept one, start now for next year.
Car and travel
If you use your own car for work, the cents-per-kilometre method covers running costs up to a set number of business kilometres, and you’ll need a reasonable basis for the kilometres claimed (such as a diary). The logbook method can give a bigger deduction if you do a lot of work driving — we can help you work out which suits you.
What to bring (or upload)
- Your income statement / PAYG summaries (these usually pre-fill, but check them).
- Bank interest, dividends, managed funds and any crypto activity.
- Rental property income and expenses, if you have an investment property.
- Receipts for work-related expenses, donations and the cost of managing your tax affairs.
- Private health insurance statement and any government payments.
Can’t make it into the office? You don’t have to. Upload everything through our secure portal and we’ll handle the rest by phone and email.
What’s changing (and what isn’t yet)
Two things worth knowing for your planning:
- Tax cuts are coming. From 1 July 2026 the 16% tax rate drops to 15%, and from 1 July 2027 it drops again to 14%. That’s a small cut for every taxpayer — but it applies to future years, not the 2025–26 return you’re lodging now.
- The proposed $1,000 “instant” deduction is not law yet. You may have read about a $1,000 standard deduction for work-related expenses. It’s proposed to start from the 2026–27 year and is still going through consultation — so for your 2025–26 return, you still claim work expenses the usual way, with receipts.