Tax deduction tips: act quickly to get in before financial year ends

Time is quickly running out for taxpayers who want to beef up their refund from this financial year. These 10 strategies can deliver big deductions.

Get your deductions sorted before time runs out on June 30. Artwork: Emilia Tortorella

It’s the end of the financial year on Monday, so it’s now-or-never if you want to boost this year’s tax refund.

On average, Australians pocket $2500 in tax refunds, and there are ways to legally squeeze out more cash by focusing closely on work-related expenses, business spending, donations and investment costs.

Of course, it’s super where you can make some big tax moves in June by making voluntary personal contributions, but for most super fund members that ship has sailed. Super funds have cut-off dates typically five to seven days before June 30, for personal contributions to be counted this financial year. People with self-managed super, though, still have time.

There are many other last-minute tax moves people can make before midnight Monday to generate a better tax refund.

While you’ll need to rush to meet the June 30 deadline, the ATO is warning not to rush ahead and prepare your tax return until your income statement is marked as ‘tax ready’. By waiting you’ll avoid having to make amendments.

The ATO says 142,000 people who lodged in the first 2 weeks of July last year had to lodge amendments or had their returns investigated by the ATO. Amendments included income that was not declared properly.

ATO Assistant Commissioner Rob Thomson says waiting until late July allows for the ATO to prefill information in your tax return.

“We know doing your tax return is something to tick off your to-do list each year, but there’s no need to rush. The best time to lodge is from late July once everything is ready.”

1 Prepay today

Financial strategist Theo Marinis says taxpayers can prepay things such as income protection insurance, tax-deductible interest and rents, and various work-related expenses before June 30 and effectively claim an immediate tax deduction.

This can be a good strategy for people with large capital gains or incomes for 2024-25, but they should seek advice around timing and work out whether they expect “another big year next financial year”, he says.

2 Donate and deduct

Donations to charities right up until midnight on June 30 can deliver instant tax deductions, Marinis says.

Statistics show that many people do not claim deductions for their donations, sometimes out of the mistaken belief that they should not be rewarded for giving to others. However, experts say if that is their view they should simply give more and claim the tax deduction so their net outlay is the same.

H&R Block director of tax communications Mark Chapman says people can make charitable donations online at any time before July 1 and “claim a tax deduction, provided you have a receipt and it’s to a deductible gift recipient (most charities)”.

Scoring a bigger tax refund is worth celebrating.

3 Work-related spending

The broadest scope for last-minute tax deductions lies with work-related expenses, where people can claim any costs incurred related to them earning their income.

The Australian Taxation Office has 40 free industry and occupation-specific guides showing what workers can claim for their job. These include nurses, cleaners, teachers, paramedics, police, factory workers, retail and hospitality employees, lawyers and IT professionals.

Deductions vary by job but can include work-related uniforms, professional journals, overtime meals, protective equipment, tools, training courses, sunscreen, phone, internet and union fees. Paying for them before June 30 delivers a tax deduction for 2024-25.

However, be careful with your claims, because the ATO says work-related deductions are a key focus in 2025, after last year it discovered several silly claims including a mechanic claiming an air fryer, a real estate agent claiming dental work, and truck driver claiming swimwear.

4 Work trips

Planning travel for a work conference or seminar, or interstate trip related to your job? Book now.

“Provided you pay for it now, you can claim a deduction, even if the travel is next financial year,” Chapman says.

5 Property investment

Australia’s 2.3 million residential real estate investors have a huge list of potential instant deductions for spending in the coming days, including repairs and maintenance, landlord insurance, depreciation reports, council and water rates, gardening, pest control and security.

The ATO recently released its Rental Properties Guide 2025, which outlines the rules around income and deductions for investors, and includes effective lives of fixtures and fittings for deprecation purposes.

6 Investment loan interest

People can pay a year in advance on their investment loans and deduct the interest, but Chapman says they need to be careful.

“If you are paying an additional amount, you need to liaise with the lender so they understand it is mortgage interest payment and not just a repayment of capital,” he says.

7 Super OK for some

Marinis says many people get caught out making last-minute super contributions beyond the cut-off dates of their industry and retail super funds.

“If you do it Saturday, Sunday or Monday it won’t count as a contribution this year, and will count as a contribution for next financial year,” he says.

However, the 1.2 million Australians with self-managed super funds still can act, Marinis says.

“As long as you transfer from your personal account to your SMSF account by June 30, it’s OK,” he says.

8 Small business moves

Chartered accountant and Mr Taxman founder Adrian Raftery says small business owners can get quick deductions by buying tools and equipment, scrapping obsolete stock, bringing forward expenses and writing off bad debts.

“Note that the debt must have been originally shown as income for the write-off to be allowed,” Raftery says. “Put your decision in writing, such as a board minute.”

Midnight on June 30 is the deadline.

9 Instant asset write-off

There is confusion about the $20,000 instant asset write-off for business purchases, which is scheduled to fall to $1000 from July 1. Labor promised to retain it during the election campaign, but this has not been made law yet.

Chapman says it will continue, while Moneytech head of group sales and distribution Reece Ketu says “time is running out to take advantage of this generous write-off before it effectively disappears”.

This one’s a question of whether business owners trust Labor to follow through and extend the write-off again.

10 Walk on the weird side

Don’t be afraid to think outside the square about deductions appropriate for you, but make sure you get professional tax advice before claiming.

Accounting service Hnry says about 1.6 million Australians are sole traders and are claiming all sorts of wacky deductions related their income.

This includes whips and lingerie for OnlyFans creators, magic tricks and playing cards for magicians, and attending shows, singing and acting classes for entertainers and voice artists, it says.

“If you’re not claiming all you’re entitled to, then you will be paying more than what you need to at tax time,” says Hnry Australia managing director Karan Anand.

“No two sole traders are the same,” Anand says.

Originally published as Tax deduction tips: act quickly to get in before financial year ends