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Tax Time 2025 – 7 Top Tips – What to Know, Do and Don’t Do!

Tax Time It's that time of year! 

Follow these 7 Tips to take the worry out of your Tax-Time. 

  1. Prepare now. Start gathering all the information you need.  Receipts, tabs stored in a shoebox or bottom drawer, it’s time to take action. Sort, file, label and get your records up to date. You will need documents such as Income statements, bank statements, investment records, and private health insurance statements. If you are self-employed or a freelancer, you need Business income and expense records. 

  1. Getting it right the first time saves both you, your accountant and ATO Office valuable time, work and effort.  Make sure your end of year Income Statement is complete with all relevant details before submitting. Don’t guess vital facts. Mistakes can be costly, causing delays in processing and attracting potential penalties. It also slows down receiving your refund if you are due.  

  1. Declare all sources of income. This includes all types of employment and occupations, such as ‘side-hustles’, or selling services via an app. Each source of income will have different deductions available, depending on the nature of the income and the occupation. 

     

  1. Know what is claimable. Items need to meet strict criteria. Avoid claiming ‘creative’ or exaggerated work-related expenses. The ATO offers more information on specific deductions for different jobs at their website (Occupation and Industry specific guides). The ATO offers 3 golden rules if making a work-related claim. ‘You need to have paid for it yourself, it directly relates to the income that you're earning, and that it can’t be private in nature’. 

  1. Messages from the ATO. The assistant Commissioner has warned, avoid making ‘unbelievable and funny claims’ and think again as cheats are caught, including for GST fraud.  

  1. Support your deductions with evidence. If you are claiming any expenses, such as ‘remote’ or working from home costs, know what is and isn’t eligible. And be prepared to provide proof (receipts/ documents) to support eligibility. All deductions require evidence to back up a claim. 

  1. Speak with Blackburn Accounting. We can deal with all your accounting and tax-related matters. We will work closely with you to help avoid any mistakes, stay in compliance with tax laws, and make sure you claim all the deductions you are entitled to.