Tax Deductions to Know for 2024-2025: A Guide for Individuals Preparing Their Return

As the 2025-26 financial year kicks off and the 2024-25 ends, it heralds the start of another tax season of receipt-chasing, deductions and paperwork.  

Whether you're lodging your return early or waiting until the October deadline, understanding what you can legally claim as a tax deduction can make a real difference to your refund — or your bill.

As accountants, we know how easy it is to overlook deductions or make assumptions that don’t align with current ATO rules. That’s why seeking professional advice can be invaluable. Below, we break down some of the key deductions that may apply to you this year.

1. Work-Related Expenses

If you incur expenses as part of earning your income, you may be able to claim them — but they must be directly related to your job, and not reimbursed by your employer. Some commonly claimed deductions include:

• Home office expenses: With hybrid and remote work now the norm for many, you may be eligible to claim a portion of your electricity, internet, and depreciation of office equipment. For 2024–2025, the ATO continues to allow the fixed rate method (currently 70c/hour), but accurate records of hours worked from home are essential.

• Tools, uniforms, and protective gear: If your job requires a specific uniform, protective clothing, or tools, you may be able to claim these costs — including laundry expenses for eligible workwear.

• Education and training: Courses that directly relate to your current job (not a new career path) may be deductible, including fees, textbooks, and travel.

2. Vehicle and Travel Expenses

If you use your personal vehicle for work-related travel (excluding your usual commute), you may be able to claim a deduction. The cents-per-kilometre method remains popular, with the 2024–2025 rate set at 88 cents per km. Keep a logbook or detailed diary to support any claim.

Note: Travel between home and work is generally not deductible unless you're carrying heavy tools or moving between worksites.

3. Donations and Gifts

Did you donate to a registered charity this year? Donations of $2 or more to organisations with Deductible Gift Recipient (DGR) status are claimable — just make sure you have a receipt.

4. Cost of Managing Tax Affairs

Fees paid to a registered tax agent or accountant to prepare and lodge your return are tax-deductible. This includes associated costs like travel to your accountant or subscriptions to tax-related publications.

5. Investment-Related Deductions

If you earn income from shares, rental properties, or managed funds, there are a range of deductions you may be entitled to, including:

• Interest on loans used to invest

• Management fees

• Accounting advice

• Repairs and maintenance for rental properties

• Depreciation on eligible assets (like appliances or furniture)

Keep in mind that deductions must relate to the period the property or investment was generating income — not just held for future gain.

Why Getting Professional Help Matters

The ATO’s data matching capabilities are stronger than ever, and simple errors — such as claiming deductions without proper substantiation — can trigger audits or delays. 

While tax software has become more accessible, it can’t always replace the tailored advice and strategic insight of an experienced accountant.

At tax time, every dollar counts. We’ll help you:

• Maximise your eligible deductions

• Avoid costly mistakes or red flags

• Plan for the year ahead (especially if you’ve had changes in work, income, or investment strategy)

The tax rules change frequently, and what was deductible in the 2023-24 financial year may not be in the 2024-25 year.

If you want peace of mind — and potentially a better result — reach out to our team to book your tax return appointment today.