As tax season approaches, Australians are urged to avoid procrastination and steer clear of unofficial tax advice. The Australian Taxation Office (ATO) has specifically cautioned against relying on financial influencers, or "finfluencers," on social media, as well as artificial intelligence platforms that may draw from outdated or inaccurate sources. Always ensure you are dealing with a registered tax agent for guidance.
DIY Tax Returns on the Rise
In 2025, over 6.1 million Australians (about 43%) filed their own taxes using MyTax, while 8.1 million (57%) used a tax agent. This trend toward self-lodgement has been growing steadily for over a decade, thanks to the improved ease of the ATO's online tools.
What the ATO Knows About You
Taxpayers are obligated to report all income, even if no tax is owed. The ATO collects over 600 million transactions annually from third parties, often pre-filling MyTax forms, but not always. It is your responsibility to ensure accuracy. If unexplained deposits appear in your bank account, the ATO may consider them income, and you must prove otherwise.
Claiming Work Deductions
Remember the three golden rules for deductions: you must have spent the money and not been reimbursed, the expense must be directly related to earning income, and you must have proof (usually a receipt). For working from home, you can use the fixed-rate method ($0.70 per hour) or actual costs. The fixed-rate method is simpler but requires records for the entire year and includes common expenses like phone and stationery—do not double dip. You cannot claim rent or interest unless your home is a genuine place of business, nor can you claim everyday clothing. Clothing deductions require occupation-specific, protective, compulsory uniform, or registered non-compulsory uniform items. Private travel, including commuting, is not deductible. Do not simply roll over claims from last year; ensure you have receipts for this year's expenses.
New Measures Not Yet Available
The $1,000 instant tax deduction and $250 working Australians tax offset announced in the federal budget are not applicable for this tax season. They are proposed for future financial years, pending parliamentary approval.
When to Lodge Early or Later
Lodge at the right time: not too early, not too late. If you lodge before the ATO's data matching is complete (typically by end of July), your return may be amended. Expecting a refund? Lodge early from late July onward to receive your refund in about two weeks. Expecting a tax bill? Lodge just before the October 31 deadline, or ensure you have a tax agent booked by then.
Where to Get Help
The ATO offers guidance, and registered tax agents can help you pay the correct tax. Beware of unregistered agents promising huge refunds; check the official register. Never share your myGov or myTax login details—registered agents never ask for passwords. Free tax clinics are available for those facing financial or personal challenges. If you cannot lodge on time, contact the ATO or a registered agent promptly.
Disclaimer: This information is for educational purposes only and does not constitute tax advice. Seek advice from a registered tax agent or qualified professional.
