Maximise Your Tax Deductions & Super Contributions
Work-Related Car Travel
For the 2025 financial year, you can claim 88 cents per business kilometre travelled, up to a maximum of 5,000 business kilometres.
While receipts are not required for the cents per kilometre method, you must be able to prove:
• Ownership of the vehicle, and
• How you calculate your work-related kilometres (e.g., by keeping a diary).
If you travel more than 5,000 business kilometres, using the logbook method may be more tax-effective. If this is the first year you have used the logbook method, you must keep a logbook for at least 12 continuous weeks during the income year. Logbooks are valid for five years. You must also retain receipts for all car expenses (e.g., fuel, servicing, registration, insurance).
Home Office Deductions
You can claim home office tax deduction if you:
• Work from home regularly to fulfil your employment duties,
• Incur additional expenses as a result of working from home, and
• You maintain adequate records of your hours worked (eg. diary or timesheets) and expenses incurred.
Computer and Office equipment costing over $300 are required to be depreciated over its useful life.
Self-Education & Training Expenses
If you incur education costs to improve or maintain your skills in your current role (e.g., courses, seminars and workshops), you may be able to claim these as a tax deduction. The course must be directly related to your current employment and not a new career path.
Other Tax-Deductible Expenses
• Accounting fees relating to tax planning fees are tax deductible in the income year paid.
• Donations over $2 to registered charities / deductible gift recipients are tax-deductible – be sure to keep your receipts.
• If you have income protection insurance outside of super, the premiums are tax deductible.
Super Contributions
From 1 July 2024, the concessional contributions cap increased to $30,000.
You can claim a deduction for personal super contributions you make to a complying super fund. To claim a deduction, you must first give your super fund a valid notice of intent and receive an acknowledgment form from your fund.
Check with your super fund for the cut-off date to make personal contributions for the current financial year.
It is important to note that super funds will close their contributions window early, you must confirm with you’re fund.
Carry forward Unused Contribution cap amounts
If you have unused concessional cap amounts from previous years and your total super balance is less than $500,000 as at 30 June 2024, you may be able to carry them forward to increase your contribution caps during the 2025 year.
Your available carry-forward contribution amounts are shown on ATO online services (select Super -> Information -> Carry forward concessional contributions).
Long-term and short-term rental
The ATO have escalated its audit focus on this area to ensure claims are legitimate and accurately reflect expenses incurred.
Repairs vs Capital Improvements:
• Repairs: Expenses incurred to restore an item to its original condition (e.g., fixing a leaking tap or replacing broken tiles) are immediately deductible.
• Capital Improvements: Expenses that enhance the property’s value or extend its life (e.g., a kitchen renovation or building a deck) must be depreciated over time and are not immediately deductible.
Interest deductions:
• Only the interest on loans used to purchase or renovate a rental property is deductible. If a loan is used for both personal and investment purposes, it must to be apportioned.
• Property owners may have the option to prepay interest in advance—speak to your bank about options
Private Use considerations:
• Expenses related to periods when the property is used for private purposes (e.g., occupied by the owner) are not deductible.
• For short-term rentals such as Airbnb, deductions can only be claimed for periods when the property is genuinely available for rent.
• The ATO closely scrutinises cases where owners block out peak holiday periods (e.g., Christmas, Easter) for personal use. In these cases the ATO may only allow deductions relating to period when the property was actually rented out.
Special Strata Levies
• Special levies may not be immediately deductible if the levies are used for capital improvements, such as major renovations or structural upgrades. These costs must be depreciated over time.
• Property owners should obtain documentation from strata manager to confirm the purpose of the levy in order to determine tax treatment.
Tax Depreciation:
• Obtaining a quantity survey depreciation report will allow you to claim capital allowance and capital works deductions.
• Please note that there are however some restrictions to claiming capital allowance deductions on previously used plant and equipment found in second-hand residential properties as legislation changed in May 2017.
Record-Keeping Reminder
The ATO is actively monitoring work-related deductions. To avoid potential audit, ensure you keep detailed receipts, logbooks, and records for all your claims.