How do you maximise your Australian tax return in 2025?
Tammy chats with tax expert Craig Whiteman from Ernst & Young
If you’re anything like most Australians, you probably wouldn’t say no to a bigger tax refund. And, if you take a smart, organised approach, it’s absolutely possible. As someone who’s been helping people make the most of their money for over 25 years, I know the difference a well-prepared tax return can make.
With a few expert strategies (and yes, keeping those pesky receipts), you could unlock extra dollars that might otherwise slip through the cracks when doing this year’s tax return. So, whether you’re lodging your return yourself or through a tax agent, this guide is here to help you maximise your refund, legally and confidently.
In this insightful webinar, I caught up with Craig Whiteman, Partner at Ernst & Young, to break down everything you need to know about your tax return, including key changes for this year, how to maximise deductions and credits, and common mistakes to avoid.
As the cost of living rises, it’s never been more important to take advantage of every opportunity to reduce your tax burden and keep more money in your pocket. Whether you’re battling credit card debt, trying to save for a big goal, or just need a better budgeting strategy, the insights in this webinar can help you plan for a financially secure future.
Key topics covered in the tax webinar:
- when your tax return is due
- how to maximise deductions and credits this year
- what the Australian Taxation Office (ATO) is watching closely
- common tax-time mistakes to avoid
- best practices for receipts and documentation
- how tax planning supports your long-term financial goals.
Do you know what tax bracket you’re in?
In the tax webinar, we ran a quick poll and found that only 23% of attendees knew which tax bracket they were in. Knowing where you sit on the current tax rates 2025 table can make a big difference when it comes to understanding your marginal rate, and how much of your income is taxed at each threshold.
Use this table to get a clear idea of where your taxable income lands. It also helps if you’re picking up a second job, taking on a side hustle, or just want to plan better for the year ahead.
Not sure where your income fits? A quick look at your income statements (or MyGov portal) should help. On top of the standard tax rates 2025, don’t forget to factor in the Medicare levy, an additional 2% added to your taxable income for most Australians.
What’s the secret to getting a bigger tax refund?
If you’re wondering, What can I claim on tax?, it all comes down to one word: preparation. Keeping track of your income, expenses, and receipts throughout the year makes tax time smoother, and could lead to a larger tax refund.
It’s also the best way to make sure you don’t miss out on common claims like taxable income adjustments, allowable deductions, and additional expenses.
Here’s what good preparation looks like:
- recording all income sources (yes, even your side hustle!)
- categorising work-related expenses like travel, uniforms, equipment, and tools
- including eligible donations, self-education expenses, and home office costs.
Don’t forget to keep digital or physical receipts for every claim. The ATO can ask for proof, and scrambling to find documentation mid-audit? Not fun.
What taxable deductions can you legally claim?
If you’re searching for answers about ATO work-related deductions or tax deduction tips, this is where you start.
As Craig Whiteman, tax expert and Partner at Ernst & Young, explains, “You can claim a deduction when you’re incurring expenses that are related to you earning your assessable income, whether that’s your wages as a driver, nurse, teacher or doctor. It all comes down to the connection between your expenses and your income.”
Here are a few frequently missed deductions to talk to your tax agent about:
- tax agent fees (including travel to and from their office)
- union fees, membership fees, and registrations
- uniforms, laundry, and work-related protective gear
- mobile phone and internet expenses if used for work
- home office expenses, which can now be claimed via the fixed rate or actual cost method.
The ATO’s website has a full list of allowable deductions, but if in doubt, ask a registered tax agent.
Can you claim home office expenses in 2025?
Wondering if it is tax deductible to work from your lounge room? In many cases, yes, you can claim home office expenses against your taxable income.
According to Craig, the ATO changed the rules in March 2023, so from now on, you need to keep a record of the hours you work from home: “That could be as simple as whatever calendar app you’re using. If it shows you worked from home that day from 8am to 3pm, that’s enough evidence.”
Yes, and it’s easier (and more generous) than it used to be. Thanks to evolving work-from-home setups, you might be eligible to claim:
- office furniture (desk, chair, monitor)
- internet and mobile phone costs
- electricity and gas used for work
- stationery, printer ink, and home office consumables.
Whether you choose the new 2025 fixed rate method (70 cents per hour) or the actual cost method, make sure to keep a log of your work hours and receipts.
Are self-education expenses tax-deductible?
When it comes to maximising your tax refund, it’s worth checking if your education costs are deductible expenses under current ATO guidelines.
Only if they relate directly to your current income. For example, if you’re a graphic designer taking an advanced Adobe course, that’s likely tax deductible. But if you’re studying astronomy for fun while working in retail… that might be cause for further investigation from the ATO.
Eligible tax deductible expenses in this category might include:
- course fees (excluding HECS/HELP)
- textbooks and stationery
- internet and phone usage
- depreciation on computer equipment.
Can protective clothing and tools be claimed this tax season?
If you’re wondering if it is tax deductible to buy gear for work, the answer is yes, if they’re essential to your job and not reimbursed by your employer. For example:
- high-vis or safety clothing
- sunscreen and sunglasses for outdoor workers
- laptops, bags, and even backpacks if used for transporting work equipment.
Again, proof of purchase is key.
Do you need receipts for every tax return claim?
Wondering what details the ATO might ask for? Craig reminds us that the ATO is very focused on substantiation: “By all means, make a claim you think is viable, just be prepared. If the ATO asks, what would you show them?”
If your total work-related expenses are under $300, you won’t need receipts (except for dry cleaning). But over that? You’ll need to provide evidence.
That includes:
- itemised receipts (not just bank statements)
- proof of usage (like phone logs or home office timesheets)
- a paper trail showing that the expense wasn’t reimbursed.
How long should you keep receipts for everything you claim in your tax return?
Answer: 5 years from the date you lodge your tax return. If you claim a deduction for the decline in value of depreciating assets, keep your records for 5 years from the date of your last claim.
Is there an app that helps with tax deductions?
If you’re dreading tax season, the ATO’s My Deductions tool can help keep track of work-related expenses, travel expenses, and internet costs or mobile phone charges that may be claimable.
It’s a great option if you’re self-lodging, or even if you’re seeing a tax agent and want to come prepared.
Should you use a tax agent or do it yourself?
Choosing how to lodge your Australian tax return depends on your financial situation. If you’re confident in navigating ATO guidelines, free tools like myTax may be all you need for a simple return, plus, you could save between $100 to $800 in fees.
That said, many Australian income earners still turn to the experts. In fact, Finder reports that around 70% of Australians use a registered tax agent, with peace of mind, accuracy, and bigger refunds topping the list of reasons.
The difference can be significant, according to H&R Block, self lodgers received an average tax refund of $2,576, while tax agent clients averaged a return of $3,550.
So while DIY tax returns work well for straightforward situations, engaging a registered tax agent may help uncover hidden deductions. Ensure you’re up to speed with tax rates 2025, and avoid any surprises when it comes to income, expenses, and ATO compliance.
Are TikTok ‘tax hacks’ worth trying?
Short answer? No. The ATO is cracking down on suspicious claims, especially those pushed by so-called fin-fluencers (financial influencers) on social media.
Craig emphasises the importance of staying within the rules: “You don’t want to be in a situation where you’ve claimed something and really shouldn’t have. There are a lot of myths out there, make sure you’re following genuine advice.”
You could face delays in processing, audits, or even penalties. If it sounds too good to be true, it probably is. Always stick to legitimate, ATO-approved deductions and if you are unsure, seek professional advice.
What’s the best way to use your tax refund?
Whether you’re reviewing your tax return now or already planning on how to spend your refund, knowing how to use it wisely can help support your financial goals, and potentially reduce any tax debt.
Whether you’re expecting a few hundred or a few thousand, use your refund to get ahead:
1. Pay off high-interest debt
According to Finder, the average Aussie credit card balance is around $3,461. With the average refund at $3,063 (H&R Block), you could nearly pay off an entire credit card balance.
2. Make a lump sum mortgage payment
Putting a $3,063 lump sum payment halfway through a $500,000 loan at 6% interest over 30 years would save you approximately $4,000 in interest over the remaining life of the loan.
We used MyBudget’s free Home Loan Repayment Calculator to model this scenario, and you can too. Want to know how much interest you could save with a lump sum repayment? Jump on the calculator and run the numbers for your own home loan.
3. Boost your emergency savings
Set it aside in a high-interest savings account. It could be the cushion that helps cover the unexpected, like a broken fridge or car repair.
4. Grow your super with a one off lump sum payment
Adding even a small amount to your superannuation today could mean extra luxury in retirement. Plus, depending on your income, you may get a tax offset for your contribution.
5. Treat yourself (strategically)
Need a new fridge or work laptop? Now’s the time to buy outright (and potentially claim it if it’s work-related!). Just avoid blowing it all on impulse purchases.
Need a plan to maximise your tax refund?
MyBudget has helped over 130,000 Australians gain control of their finances. We’ll work with you to:
✅ create a budget that includes tax planning
✅ pay bills on time
✅ build long-term savings
✅ set achievable financial goals.
Ready to feel confident this tax season? Whether you’re chasing a bigger refund or just want to be more organised this tax time, our money experts are here to help. From setting aside savings for tax debt or planning how to make the most of your tax refund, we’ll get you prepared for the end of financial year, and beyond.
Get in touch online or call us on 1300 300 922. There’s no obligation, just a tailored plan to help you live life free from money stress.