Your tax return checklist: what to claim, what to avoid, and how to get it right in 2025
Tax time can be confusing, but it doesn’t have to be with MyBudget’s free resource for all Australians this tax time.
Whether you’re lodging your first return or your fifteenth, knowing what to prepare, what to claim, and what to avoid makes a big difference. That’s why at MyBudget we’ve created this clear, easy-to-follow guide with our free downloadable Tax Return Checklist to help you get the best possible result this financial year.
Download your free Tax Return Checklist
Our Tax Return Checklist is designed to jog your memory, help you gather documents, and reduce the risk of missing deductions or making mistakes. It’s completely free and available to anyone.
From maximising your deductions and avoiding common mistakes with the ATO (Australian Taxation Office), this article is your complete 2025 tax preparation resource.
What income must I declare?
Declaring all sources of income is critical. The ATO automatically matches data from banks, employers, and other institutions, so it’s easy for them to spot omissions but also to help them prefill your tax return online.
Here’s what you’ll need to check and make sure is included when you jump online to do your tax return this year:
- salary and wages
- PAYG summaries (via MyGov)
- government payments (e.g. Centrelink, JobSeeker)
- interest from bank accounts
- dividends (including imputation credits)
- rental income
- income from trusts or partnerships
- capital gains (e.g. from shares or property)
- cryptocurrency or foreign income
- business or freelance income
- super income streams or annuities.
Missing or under-declaring income is one of the most common tax return errors. Always double-check your MyGov income summary and financial statements before you lodge.
What deductions can I claim in 2025?
The more valid deductions you claim, the less tax you pay. To be eligible, expenses must meet the ATO’s three rules:
- You must have spent the money yourself and not been reimbursed
- The expense must relate directly to earning your income
- You must have a record (like a receipt or logbook).
Tammy explains all in this video:
Here’s a breakdown of what you can claim this year:
Work-related expenses
- vehicle and travel between job sites (not home to work)
- home office expenses (based on hours worked or actual costs)
- tools, uniforms, safety gear
- mobile phone and internet (for work use)
- courses and training related to your current role
- union fees and professional memberships.
If you’re working from home, you can use the ATO’s 70c/hour fixed rate method or calculate actual costs. Just make sure to track your hours and keep receipts, and if you’re unsure which method to use or what qualifies, we’ve broken it down for you in our full guide dedicated to claiming work-related expenses.
Investment or rental property expenses (also known as ‘negative gearing’)
- loan interest
- rates and strata fees
- repairs and maintenance
- insurance and property management fees
- depreciation on fixtures or fittings.
Investment-related deductions
- tax agent or accounting fees
- interest on investment loans
- income protection insurance (if paid personally)
- bank fees where the account earns assessable income.
Charitable donations
If you donated $2 or more to a registered Deductible Gift Recipient (DGR), you can claim the amount. Make sure you have receipts.
What can’t I claim?
The ATO has tightened its auditing in recent years, especially on inflated deductions. Here are some things you can’t claim:
- travel from home to work
- everyday clothes, even if worn at work
- personal grooming, gym memberships
- entertainment expenses
- meals, coffee, and snacks
- courses unrelated to your current job
- TikTok “tax hacks” or advice from influencers.
What if I don’t have receipts?
The ATO allows certain claims without receipts, but only up to set limits. You still need a reasonable explanation or supporting evidence like bank statements.
You can claim:
- up to $300 of work-related expenses without receipts (but you must have spent it)
- up to $150 for laundry (if related to deductible uniforms)
- cents per kilometre for car use (max 5,000 km without a logbook)
Still, keeping receipts is the safest way to protect your claim.
Common tax return mistakes to avoid
Each year, thousands of tax returns are amended or audited. Here are the top mistakes:
- forgetting bank interest or dividends
- claiming deductions you weren’t entitled to
- omitting side income or freelance work
- using last year’s deduction without records
- overclaiming home office or car expenses
- relying on viral tax tips that don’t pass the ATO’s “pub test”.
Start early and stay organised
Tax time is easier when you’re prepared. Our free Tax Return Checklist is designed to help you stay on top of your income, expenses, and records, so you don’t miss anything important.
How can MyBudget help at tax time?
Stressing about your tax return? MyBudget takes the pressure off by helping you stay organised, keep on top of your finances, and prepare with confidence. We’ll help you understand what’s coming up, track your expenses, and build good financial habits that go beyond tax time.
Book a free consultation or give us a ring on 1300 300 922 to get expert help planning ahead and making the most of your money.
Looking for more tax related tips?
- Can I claim my mobile phone, laptop, internet or car on tax?
- What can I claim on my tax return in Australia? | A 2025 guide