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Tax time can feel overwhelming, but getting organised early makes the process much easier. Preparing your tax return correctly helps you avoid mistakes, maximise deductions, and stay compliant with the Australian Taxation Office (ATO). This Australian tax return guide for 2024-2025 will walk you through everything you need to know, from key deadlines and required documents to claiming deductions and submitting your return efficiently.
The 2024-2025 financial year has introduced several key changes, including updates to income tax rates and superannuation contributions.
From 1 July 2024, the stage three tax cuts have:
Additionally, on 1 July 2024, the Superannuation Guarantee increased to 11.5%. It will rise again by 0.5% on 1 July 2025, reaching 12%.
Having these documents ready before starting your tax return helps prevent errors and ensures you claim all deductions legally available to you.
Claiming tax deductions can lower your taxable income and increase your refund. However, deductions must be directly related to earning your income and supported by records. Common deductions include:
Understanding what you can claim helps you avoid over- or under-claiming, which could trigger an ATO review.
Maximising your tax return starts with good record-keeping. Throughout the year, track all work-related expenses and store receipts digitally or in a folder. The ATO provides deduction guides for different industries, so check what applies to your job to avoid missing potential claims.
Consider all tax offsets and rebates you may qualify for. These could include private health insurance rebates, low-income tax offsets, and deductions for charitable donations. Reviewing available offsets ensures you claim everything you’re entitled to.
Lodging your return correctly also plays a role in optimising your refund. Double-check all figures, ensure your details match ATO records, and seek professional help if your situation is complex. If you are unsure about any claims, a tax agent can help you get the most from your return while ensuring compliance with tax laws.
Collect income statements, bank records, and receipts before starting your return to ensure accuracy.
Lodging your tax return online in Australia via myGov is free and quick.
A registered tax agent can assist with complex returns and may provide deadline extensions.
Accountants can help optimise deductions and ensure compliance.
Declare all sources of income, including salary, freelance earnings, investment returns, and government payments.
Carefully enter eligible deductions and tax offsets. Ensure all claims are work-related and backed by records.
Check all details for accuracy before submission. Errors can delay your refund or result in ATO audits.
Overclaiming deductions is one of the most common tax return mistakes. Claiming expenses that are not directly related to your work, or failing to keep receipts, can lead to audits and repayment of excess refunds. Ensure all deductions are eligible and have supporting evidence.
Failing to report all income is another frequent issue. The ATO receives financial data from banks, employers, and investment institutions. Omitting bank interest, rental income, or freelance earnings can trigger red flags and lead to penalties.
Simple errors such as incorrect tax file numbers (TFN), bank account details, or employer information can delay processing. Always review your tax return before submitting to avoid mistakes that could hold up your refund.
The ATO website has tools that provide official tax lodgement services, deduction checklists, and tax calculators. Tax calculators help estimate refunds and liabilities based on income and deductions.
Record-keeping apps assist with tracking work-related expenses, making tax time easier.
Tax returns can be lodged from 1 July 2025 for the 2024-2025 financial year. Filing on the early side helps you receive refunds sooner but ensure all income details are finalised before submission.
From 1 July 2024, the following income tax rates apply:
No, tax returns can only be lodged for completed financial years. You cannot file your 2025-2026 tax return until after 30 June 2026.
Preparing your tax return properly ensures a smooth ATO tax return process for 2024-2025, maximises deductions, and helps you avoid penalties. If you’re unsure about any aspect of tax lodgement, contact us today at Darcy Bookkeeping and Business Services or call us on 1300 728 875.
