Take the guesswork out of your tax return this end of financial year (EOFY). We asked Australian Taxation Office (ATO) Assistant Commissioner and tax time spokesperson Rob Thomson for answers to some tricky tax time questions that will help make the process easier for you, whether you’re lodging an individual return or one for your small business.
How can I claim expenses that are used for both work-related and personal purposes? For example, if I often make work calls from my personal phone?
If you have an expense that relates to both work and private purposes, you’ll need to apportion your deduction. This means working out what percentage is work-related and only claiming that amount. In the example of your phone, this could be a spreadsheet where you keep track of your work versus private calls for one month and apply that to the full income year.
Just remember, if you work from home and claim the fixed rate method, your phone expenses are already covered in that deduction, so no double dipping.
SEE ALSO: Mistakes to Avoid When Claiming Work from Home Tax Deductions
For EOFY 2025, who has to lodge, when should I lodge and what happens if I lodge late?
Most individuals who earn income need to lodge a tax return. The deadline for self-preparers is 31 October. If you use a registered tax agent, you may have longer, but you must engage them before 31 October.
It’s best to wait until late July to lodge your return. This allows the ATO to pre-fill information like wages and bank interest into your return for you, making it easier to get it right the first time. Use the ATO app to check if your pre-fill is ready. It’s important to lodge and pay on time. If you’re worried about meeting deadlines, contact your registered tax agent or visit the ATO website for support options.
I’m a hybrid worker and I purchased a new backpack to carry equipment on my commute to work. Can I claim this on tax?
There are a few conditions you’ll need to meet before claiming a work bag as a deduction. For example, the bag needs to have been purchased by you to carry items to and from work, and must be suitable for carrying work items – which means you can’t claim that sparkly gold purse. You’ll also need to make sure you’ve kept records, like your receipt. Check out our occupation guides for more information.
SEE ALSO: Useful Online Tools From the ATO
If my total claim for work-related expenses is $300 or less, can I claim a deduction without providing receipts?
Yes, if your total claim for eligible types of work expenses is $300 or less, you don’t need receipts, but you may still need to show you spent the money and how you calculated your claim. Keep in mind, this limit is available to make things simpler. It doesn’t mean you can just claim an automatic deduction. It’s also unlikely you’ll know throughout the year what your total claim for work expenses will be – so it’s best to just keep your receipts.
The $300 limit does not apply for certain work-related expenses, including car expenses and travel allowance expenses. You can learn more about the records you need to keep on the ATO website.
I’ve updated my work-from-home setup with a new desk, chair and monitor that were more than $300. Are these items tax deductible? What is the best way to claim these?
You can claim a deduction for the work-related use of technology and office furniture you use to work from home, such as chairs, desks, computers and bookshelves. These are depreciating assets that decline in value over time.
If an item you buy is more than $300, you can claim a deduction for the decline in value over the effective life of the item. The ATO has an online tool that can help you with this.
SEE ALSO: 5 of the Best Office Chairs Tried and Tested
I need to buy a new laptop and printer to run my small business, but my kids will also use them from time-to-time to do their homework. Can I still claim these on tax?
As a business owner, you can claim most expenses if they have a direct connection to your business. If you’re using your laptop and printer for work, you can claim them, apportioned for your business use. If your kids use your laptop and printer for homework, that’s personal use. You’ll need to apportion your deduction based on how much they use them.
What are the best ways to file or manage physical receipts throughout the financial year to be ready for EOFY?
There are lots of ways you can keep and manage receipts throughout the year – and in fact, you’ll need to keep those records for another five years after you lodge your return. You can keep your records in paper or electronic format, including photos, as long as they’re true and clear.
If you’re an employee or sole trader, the myDeductions tool in the ATO app is a great record-keeping tool you can use to keep track of your records electronically whether you lodge yourself or use a tax agent.
SEE ALSO: Tax Return Tips to Get the Most Out of Your Return in 2025
What’s your number one tip for managing my small business’ tax return?
If you’re running a business, you need to lodge a tax return, regardless of how much profit or loss you made. My number one tip for managing your tax return is to keep good records throughout the year. Filling in your deductions in your return becomes a lot easier when you’ve already got them recorded.
If you’re lodging your own tax return, you generally need to lodge by 31 October. Sole traders can lodge online using myTax. If your business is a partnership, trust or company you need to lodge using Standard Business Reporting enabled software. You can also lodge through a registered tax agent.
I've been receiving a lot of messages that might be scams – how do I know I’m getting official correspondence from myGov and the ATO?
The ATO may contact you via phone, SMS or email. To help make it easier, here are some red flags to help you spot scams:
- The ATO never sends unsolicited emails or SMS with QR codes or links to log in.
- The ATO never asks for passwords, account numbers or sensitive data via emails, SMS or unsolicited calls.
- Calls from the ATO will show as ‘No Caller ID’.
- The ATO never threatens you with immediate arrest or demands you stay on the line until payment is made.
Always access any correspondence by typing my.gov.au into your browser or using the official myGov app. If you’re unsure about a call or think you’ve been scammed, call us immediately at 1800 008 540 to verify or report it.
What are the key tax deductions small businesses should know about for EOFY 2025?
If you run your business from home, you may be able to claim a deduction for extra expenses you incur from working from home. This includes expenses like electricity and internet. If your expenses are for both work and personal use, you’ll need to make sure you only claim the work-related amount.
Once again, there’s also been a few changes to motor vehicle expenses. This year the car limit has increased to $69,674. The cents per kilometre method for car expenses has risen to 88 cents per kilometre for 2024–25. However, not all business structures are eligible to use this method.
This is general information only and does not constitute financial or legal advice. Other requirements under the law apply. Seek professional financial and/or legal advice to determine the right outcomes for you and your business.
