McKinley Plowman's Tax Tip Toolbox

McKinley Plowman’s Tax Tip Toolbox

McKinley Plowman’s Tax Tip Toolbox

Tax time can be both exciting and overwhelming—especially when you realise just how many deductions you could be entitled to. Whether you’re a salary earner with straightforward tax obligations or a business owner juggling multiple income streams, it pays to stay informed. The Australian Taxation Office (ATO) offers a range of concessions, but also monitors claims rigorously to ensure they’re legitimate.

In this guide, you’ll find practical tips for lodging on time, making the most of available deductions, and understanding how changes to super, work-from-home rules, and record-keeping requirements might affect your tax return. Keeping good records and staying up to date on ATO guidelines can reduce stress, maximise your refund, and keep you on the right side of the law.

Below is an expanded and updated set of tax tips, incorporating your existing guidance as well as the additional content you provided. As always, the tips here are for general information—please seek personalised advice from a qualified tax professional (like McKinley Plowman) to ensure they apply to your specific circumstances.

Quick Jump:

1. Lodge Your Return on Time

What to Do

If you’re lodging through myGov, submit by 31 October each year.
If you can’t meet the deadline, register with a registered tax agent (RTA) before 31 October so they can lodge later on your behalf.
Declare all sources of income (employment, gig/cash economy, investment returns, capital gains).

Why

Late lodgement can lead to penalties and interest charges.
RTAs can extend your lodgement deadline and help ensure accuracy.

2. Prepay Expenses for an Instant Deduction

What to Do

Consider pre-paying some next-year expenses (for example, interest on investment loans, insurances, professional fees) before 30 June.
This strategy can be especially valuable if you expect lower income in the next financial year (e.g. retirement, maternity leave).

Why

You may be able to claim an immediate deduction in the current financial year, reducing your taxable income right away.

3. Boost Your Superannuation

What to Do

Concessional Contributions: If you haven’t reached your $27,500 annual concessional contributions cap, consider making extra contributions and claiming a deduction.
Catch-Up Contributions: If you didn’t use your full contributions cap in prior years, you may be able to carry forward unused amounts.
Government Co-Contribution: If you earn below $58,445 and contribute after-tax dollars to super, the government may match a portion (up to $500).

Why

Super contributions may lower your taxable income and boost your retirement savings at the same time.
The government co-contribution is essentially free money for eligible low-income earners.

4. Claim Work-Related Deductions (Including the Unusual Ones!)

What to Do

Claim legitimate work-related expenses like uniforms (with logos), safety equipment, and laundry costs, if they are required for your job.
More unusual deductions can include performance-related items (musical instruments, magic equipment for a professional entertainer), or even a work-appropriate handbag used strictly for carrying work papers.
For certain occupations (for example, a journalist attending events to report on them), some social function costs may be deductible.

Why

Many people don’t realise certain specialised or “unusual” items are valid work-related deductions—provided they’re genuinely required and not for private use.

5. Keep Track of Charitable Donations

What to Do

Any donation of $2 or more to an eligible Deductible Gift Recipient (DGR) is tax deductible.
Keep receipts or records. If you make “bucket donations” of $2 or more, you can claim up to $10 total without a receipt.
Ensure you don’t claim donations that give you a personal benefit (for example, raffle tickets, fundraising dinners).

Why

Charitable giving can lower your taxable income if the charity is a DGR.
Having proper documentation ensures your claim stands if the ATO reviews your return.

6. Maximise Rental Property Deductions

What to Do

Go beyond mortgage interest: claim gardening, lawn mowing, bank fees, pest control, security patrols, letting agent fees, maintenance/repairs, and end-of-lease cleaning.
Capital works deductions (building depreciation) can be substantial; consider a quantity surveyor’s report for older or renovated properties to accurately capture depreciation items (for example, fences, pools).
If you’re temporarily working in another city and rent or buy an apartment instead of using hotels, you may be able to claim those temporary accommodation costs (subject to ATO guidelines).

Why

Many landlords miss out on legitimate expenses or capital works depreciation.
You could be forgoing hundreds or even thousands of dollars in allowable deductions.

7. Declare Cryptocurrency Transactions

What to Do

Include any gains or losses from crypto trades, swaps, or disposals in your tax return.
Keep clear records (purchase price, sale price, dates, and any associated fees).

Why

The ATO data-matches with crypto exchanges, so undeclared profits can lead to audits or penalties.
Properly accounting for losses can help reduce future capital gains.

8. Mobile Phone & Internet Costs

What to Do

If you use your personal mobile or internet for work, you can claim only the business-use portion.
Keep a four-week diary (or similar record) showing how often your phone or internet is used for work.
If you opt for the fixed rate method for working from home, you cannot separately claim mobile or internet use for out-and-about work tasks—you’d need the actual cost method to separately claim.

Why

Ensuring accurate business versus personal use is crucial for substantiating these deductions.
A diary helps you calculate the correct percentage and avoid over-claiming.

9. Understand Working-from-Home (WFH) Deductions

What to Do

From 1 July 2022, the revised fixed rate method is 67 cents per hour, covering energy, phone, internet, stationery, and computer consumables.
From 1 March 2023, you must keep a log of all hours worked from home; estimates or four-week diaries are no longer acceptable for any period after this date.
If you want to claim actual usage for phone or internet, or you have higher costs not covered by the 67-cent rate, you must use the actual cost method for all WFH expenses.

Why

The ATO has tightened substantiation rules to prevent over-claiming.
Choosing the correct method and keeping the right records can maximise your WFH claims.

10. Occupancy Expenses if Running a Business from Home

What to Do

If you run a business from home (for example, a hairdresser’s salon, or an electrician using home as a base), you may claim a portion of occupancy costs (mortgage interest, rent, council rates).
Ensure you separate private versus business areas in the home.

Why

These can be substantial deductions if part of your home is genuinely used as business premises.
You may lose part of your main residence CGT exemption when you sell.

11. Car & Travel Expenses

What to Do

You can claim work-related car expenses if you travel between different jobs or worksites, or to meetings and offsite training.
Keep a logbook or accurate records if using the cents-per-kilometre method for up to 5,000 km, or track total usage for the logbook method.

Why

Commuting (home to work) is not deductible.
Clear documentation helps you claim legitimate costs.

12. Self-Education & Training

What to Do

If the course or training relates directly to your current job, you may claim tuition fees, textbooks, stationery, travel, and other incidentals.
For example, an accountant studying advanced tax law or a teacher upgrading qualifications could be eligible.

Why

Further education can boost your career prospects and be partially financed by tax savings.

13. Consider Timing for Selling Assets

What to Do

If you’re selling an asset (like shares or property) at a gain, finalising the sale after 30 June can defer the CGT liability for a whole year.
If you have investments at a loss, selling them in the same year as your gains may offset your capital gains.
Remember that capital losses can only offset capital gains, not other income.

Why

Strategic timing can reduce or defer CGT and help with cash flow.

14. Maximise Spouse Contributions

What to Do

If your spouse earns under $40,000 per year, consider contributing up to $3,000 into their super.
You may receive up to $540 as a spouse tax offset.

Why

Helps reduce your own tax liability while boosting your spouse’s retirement savings.

15. Income Protection Insurance

What to Do

Premiums for income protection insurance (outside of super) are generally tax-deductible.
Note that life, trauma, or critical illness policies are not deductible.

Why

Income protection can safeguard your earnings in case of illness or injury.
Deducting premiums reduces your taxable income.

16. Deduct Tax-Related Expenses

What to Do

Claim costs for engaging a tax agent or accountant in the previous financial year.
You can also deduct any travel expenses incurred to see your accountant, plus costs of tax advice or representation.

Why

Professional advice can ensure compliance and potentially maximise your refund.
Deducting these costs reduces your taxable income.

17. Keep Organised Records Year-Round

What to Do

Maintain receipts, invoices, and statements for at least five years.
Use apps (for example, Dext or Driversnote) or spreadsheets to track expenses, mileage, and WFH hours as they occur.

Why

If the ATO audits your return, you’ll need to substantiate every deduction.
Good record keeping makes tax time faster, cheaper, and more accurate.

18. Consider Strategic Leave Timing (If You’re Retiring)

What to Do

If you have accrued annual or long-service leave, taking it in a lower-income year can reduce the marginal tax payable on that lump sum.
If you’re close to 30 June, weigh whether to push your retirement into the next financial year.

Why

Lump sums can push you into a higher tax bracket if taken in a year you’re already earning a full wage.

19. Plan Property Improvements and Maintenance

What to Do

If you own an investment property, schedule repairs or maintenance when you’re on a higher marginal tax rate (for example, before 30 June if you expect lower income next year).
Obtain a depreciation report if you’ve never had one, as it can uncover significant deductions for fixtures and fittings.

Why

Timing repairs can maximise tax benefits.
Depreciation reports often reveal extra deductions overlooked by property owners.

20. Get Professional Advice

What to Do

Engage the team at McKinley Plowman (or another trusted, qualified practitioner) for tailored advice.
Especially important if you have multiple income streams, significant investments, or complex deductions.

Why

Tax laws continually change. Experienced professionals stay current and help you legally minimise your obligations while maximising deductions.

Final Thoughts

With the average Australian tax refund nearing $3,000, it’s crucial to keep thorough records and be aware of all potential deductions.
The ATO’s tightening stance on substantiation means accurate record keeping—diaries, receipts, and clear evidence of business vs private use—has never been more important.
If in doubt, seek professional guidance from an accountant or RTA.
The tips above cover a range of scenarios, from working from home to investment property strategies, unusual deductions for performers, charitable donations, super contributions, and more.

Disclaimer: This information is general in nature and does not constitute personalised tax advice. Always consult a qualified adviser to determine the strategies that apply to your specific situation.