Learn about the top tax deductions available to Australians in 2025. Discover practical tips to maximise your refund and keep more of your hard-earned money this tax season.
Best Tax Deductions Aussies Can Claim in 2025: Maximise Your Refund
Tax time can be a confusing and stressful period for many Australians, but knowing which deductions you can claim legally can make a big difference to how much money you get back. In 2025, the Australian Taxation Office (ATO) continues to emphasize transparency, record-keeping, and valid claims — so understanding and applying eligible deductions properly is key to maximising your tax refund without risking audits or penalties.
This detailed guide explains the most common and often overlooked deductions for everyday Aussies and provides practical advice for boosting your refund in 2025.
1. Work-Related Expenses
If you spend money on things needed for your job that your employer doesn’t reimburse, you can potentially claim a deduction. Here are some of the most common categories:
Vehicle and Travel Expenses
You can claim travel costs if you use your own vehicle for work-related trips (excluding commuting from home to your regular workplace). This includes travel between multiple workplaces or to temporary job sites. Claims can cover fuel, repairs, parking fees, and depreciation using either cents-per-kilometre or logbook methods.
Clothing, Laundry and Dry-Cleaning
Deductions apply for:
- Occupation-specific uniforms
- Protective clothing (e.g., safety boots, high-visibility vests)
- Compulsory work uniforms with logos or badges
You cannot claim everyday clothes or casual wear, even if you wear them for work.
Home Office Expenses
With more Aussies working from home, you can claim a portion of running costs such as electricity, internet, phone, heating/cooling, and office equipment or furniture. Claims must relate directly to your work activities.
Phone and Internet
If you pay for your own phone or internet, claim the work-related percentage based on your calls, data, or usage logs.
Self-Education
Costs related to courses, training, or seminars that maintain or improve your current job skills may be deductible, including course fees, textbooks, travel, and stationery.
2. Investment and Rental Property Deductions
If you own investment properties, you can claim various expenses against your rental income, reducing your tax:
- Interest on loans for the property
- Council and water rates
- Property management fees
- Repairs and maintenance (but not renovations)
- Depreciation on fittings, furniture, and capital works
For shares or managed funds, you can deduct investment-related expenses like financial advisor fees or interest on investment loans.
3. Donations to Charity
Donations of $2 or more to registered deductible gift recipients are tax deductible. Keep receipts as proof, and ensure the charity is listed with the ATO. Donations lead to tax deductions, but can’t create a tax loss.
4. Costs of Managing Your Tax Affairs
You can claim fees paid for:
- Tax return preparation by a registered tax agent
- Accounting software subscriptions related to tax
- Tax advice or representation fees
5. Superannuation Contributions
If you make personal (after-tax) super contributions and meet the eligibility criteria, these may be deductible, reducing your taxable income. This includes salary sacrifice arrangements. There are annual caps, so it’s important to ensure contributions don’t exceed limits to avoid extra tax.
Lesser-Known Deductions to Check
- Income Protection Insurance: Premiums (if held outside super funds) can be deductible.
- Tools and Equipment: If you buy tools specifically for your work, claim the purchase or depreciation based on work use percentage.
- Union and Professional Association Fees: Payments related to your profession may be claimed.
- Overtime Meals: If you receive an overtime meal allowance and include it as income, you can claim meal expenses up to that allowance amount.
Table: Summary of Key Tax Deductions in 2025
| Deduction Category | What You Can Claim | Notes |
|---|---|---|
| Vehicle and Travel Expenses | Fuel, parking, maintenance for work trips | Not commute between home and workplace |
| Clothing and Laundry | Occupation-specific, protective uniforms | Regular clothes not deductible |
| Home Office | Utilities, internet, equipment | Proportion of work use only |
| Self-Education Costs | Course fees, materials, travel | Must relate to current job |
| Rental Property Expenses | Interest, rates, repairs, management fees | Renovations not deductible |
| Charitable Donations | Donations to registered charities | Keep all receipts |
| Tax Agent and Accountant Fees | Tax preparation and advice | Includes software fees for tax |
| Super Contributions | Personal deductible contributions | Subject to caps and criteria |
| Tools and Equipment | Work-specific tools or equipment | Claim based on work use |
| Income Protection Insurance | Premiums paid outside super | Make sure it’s income protection |
| Union Fees and Subscriptions | Union membership and professional bodies | Related to your employment |
Practical Tips for Maximising Your Refund
- Keep detailed records and receipts all year round. Use apps or folders to avoid last-minute scrambles.
- Don’t guess or inflate amounts. Claim only what you can prove and what truly relates to work or investments.
- Consider using a registered tax agent. They know all the latest rules and help identify deductions you may miss.
- Review changes to tax laws for 2025. The government introduced an instant $1,000 work-related expenses deduction for eligible employees—check if this applies to you.
- Plan super contributions strategically. Use carry-forward caps to maximise tax benefits.
- Avoid common mistakes like repeating claims or personal expenses. Being accurate avoids audits and penalties.
Aussie Story: Sarah’s Tax Season Success
Sarah, a marketing consultant in Sydney, wasn’t sure which expenses to claim in 2025. She used a tax agent who helped her identify everything from home office costs to new software she bought mid-year. By keeping clear records and applying the instant deduction for vehicle costs incurred delivering client materials, she maximised her refund to over $2,000—more than double what she expected.
Frequently Asked Questions
Q: Can I claim my daily commute?
No, travel between home and your main workplace isn’t deductible.
Q: What if I work part-time and from home?
You can claim a proportional amount of home office running expenses based on actual work hours and space used.
Q: Are receipts mandatory?
Yes, you need evidence for all work-related expenses to substantiate claims.
Q: How do I claim depreciation on expensive tools?
Items over $300 can be depreciated over their effective life; under $300 can be claimed immediately.
Q: Can I claim mobile phone expenses?
You can claim the work-related proportion supported by usage records or bills.
Final Thoughts
Knowing your tax deductions well and applying them correctly can significantly boost your 2025 tax refund. Thoughtful record-keeping, understanding eligibility, and timely lodgement are all part of smart tax management. Being proactive means keeping more money in your pocket and improving your financial health year-round.
Call to Action
Ready to maximise your tax return this year? Gather your receipts, review this checklist, and consider seeking expert advice for peace of mind. Visit au.savewithrupee.com for more tips and personalised financial guidance tailored to Australian taxpayers. Make 2025 your smartest tax year yet!
