Tax time is coming – and with it, the unfortunate reality of needing to do something to get ready.
Don’t put your head in the sand and ignore it. That’s how you can end up missing the October 31 deadline and potentially end up with fines and penalties.
And don’t risk taking tax advice from unofficial sources.
This year, the Australian Taxation Office (ATO) has warned against relying on online tips or “tax hacks” from ” finfluencers “: financial influencers on social media. It’s also warned artificial intelligence platforms can draw from outdated, inaccurate or foreign sources – so using them for your tax can be risky.
If you’re seeking advice, always ensure you are dealing with a registered tax agent .
Luckily, the ATO has been improving its online tax tools, so lodging your tax yourself is not as daunting as it once was.
A growing trend to DIY taxes
More than 6.1 million Australians (around 43%) did their own tax online with MyTax in 2025.
More than 8.1 million (around 57%) still choose to use a tax agent.
But doing your own tax has been a steadily growing trend for more than a decade, as more people realise the ease of using MyTax.
The tax office knows a lot
As a taxpayer, you have the obligation to tell the ATO what you have earned – even if you think you don’t have to pay any tax.
While the ATO know a lot more about you than you might realise, they are not mind readers.
The tax office collects more than 600 million transactions annually from various third parties. Sometimes they share the information with you – such as when they pre-fill sections of your MyTax form – but sometimes they don’t.
While articles like this about tax time often focus on claiming deductions, being transparent about your income is non-negotiable.
Whatever you claim on your tax return, the onus is on you to get it right.
If you have deposits in your bank account, can you explain where those came from? If not, the ATO may deem that those deposits were income. Then it is up to you as the taxpayer to prove otherwise.
Claiming work deductions
When you get to your deductions, there are three ” golden rules ” to remember:
- you have to have spent the money and not been reimbursed (such as if your employer paid for your phone or petrol expenses)
- your spending must be directly related to earning your income
- you must have proof (usually a receipt).
If you are claiming working from home, there are two options to reduce your tax bill: the fixed rate or actual cost approaches.
The $0.70 per hour fixed-rate method is much simpler. For most people doing their own tax, it’s the one you’re more likely to use.
But watch out for traps. To claim this deduction, you need to keep records the entire year.
And the fixed-rate method includes common expenses such as phones and stationery, so don’t double dip by claiming those separately.
You cannot claim rent or interest for working from home, unless your home is an actual place of business , such as a doctor’s surgery or hair salon.
Similarly, you cannot claim everyday clothing . To claim a deduction on clothing, it needs to be occupation specific, protective (such as steel-capped boots), a compulsory uniform (likely to be written into your employment contract) or a registered non-compulsory work uniform .
You cannot claim private travel . This includes driving to and from work, or commuting on public transport. There are very limited exceptions.
Don’t just rollover your claims from last year, either. What have you actually spent this year – and have you got the receipts to back it up?
Why you can’t claim a $1,000 ‘instant’ deduction just yet
There’s been a lot of coverage about the $1,000 “instant” tax deduction and the “working Australians tax offset” of $250, announced in last month’s federal budget.
These are not relevant for this tax season. Those are due to start from next financial year and beyond, assuming they’re passed by parliament .
When it’s better to lodge early or later
Taxpayers should lodge when required . Think Goldilocks here: not too soon – and not too late.
If you try to do it too early, ATO data matching may not be complete. Generally that’s done by around end of July.
You’re better off waiting until all the information is there, otherwise the ATO is likely to amend your return. You can either lodge yourself or use a registered tax agent .
Expecting a tax refund? You’re better off lodging earlier, from late July on. For simple, self-lodged tax returns, you can generally expect to get a refund within about two weeks. So that means you’ll have more money in your bank account sooner.
Expecting a tax bill? That’s when you’re better off lodging just in time: by October 31 if you’re submitting yourself, or making sure you have a tax agent locked in by then.
Where to get help
The ATO provides a variety of guidance and advice to support taxpayers, while tax agents can help you to pay the right amount of tax.
Be careful of unregistered tax agents, particularly those tax “influencers” offering huge refunds. If you’re unsure, check this official register .
Never give out your login details to myGov or myTax. Registered tax agents will never ask for your passwords.
If you’re facing financial, social or personal challenges and need help, free tax clinics can provide targeted assistance.
And if you’re having difficulties meeting your tax obligations, or are unable to lodge on time, contact the tax office or a registered tax agent as soon as possible.
Disclaimer: This is not tax advice, it is for educational purposes only. Taxpayers should seek advice from a registered tax agent or suitably qualified professional.
