What You Can (and Can’t) Claim This Tax Time
Claiming tax deductions in 2025
As we get closer to the end of financial year, the pressure to optimise claiming tax deductions in 2025 starts to build. Especially for business owners and individuals hoping for a decent refund.
But before you rush to submit your return, it’s worth checking that what you’re planning to claim is actually allowed. Tax rules change, and assumptions can be costly.
Here’s what you need to know this tax time about claiming tax deductions in 2025.
Common Mistakes Business Owners Make
Business owners often have the most to gain (and lose) at tax time. While there are plenty of legitimate deductions available, claiming incorrectly (even by accident) can lead to ATO scrutiny, penalties, or missed opportunities.
Here are some of the most common issues we see.
1. Mixing personal and business expenses
If you’re using one account for both business and personal spending, it’s hard to prove what’s deductible. A clear separation of business finances helps support your claims and makes life easier come tax time.
2. Motor vehicle claims
You can only claim the business portion of car expenses, and you need to back it up with a logbook or consistent records. Business owners often either underclaim out of caution or overclaim without proper evidence.
3. Overclaiming on tech and subscriptions
Just because you bought a new laptop doesn’t mean it’s 100% deductible right away. The same goes for software subscriptions or office equipment. It depends on business use and depreciation rules.
4. Incorrect home office claims
This is where things get messy. The rules have changed in recent years, and there’s confusion around what you can deduct if you work from home.
Need help navigating your business deductions? Get in touch with ASB Consulting & Tax to make sure you’re claiming correctly.
ITR Claims That Often Get Missed
If you’re an employee lodging your own tax return, there’s a good chance you’re leaving money on the table.
Here are some common deductions that DIY filers overlook.
Home office running costs
Even if you only work from home part of the time, you may be able to claim a portion of your electricity, internet, phone, and other home office costs.
Internet and mobile phone
You can claim the work-use portion of your internet and phone bills, but you need a reasonable basis, like a log of usage over a representative 4-week period.
Tools, equipment, and uniforms
These are often forgotten, especially if they were small purchases made during the year. If you’re required to use or wear specific items for work, check your receipts.
Donations
Only donations to registered charities (with DGR status) are deductible, and you’ll need a receipt.
Want to make sure you’re not missing a refund? Let ASB Consulting & Tax review your return and find out what else you may be entitled to claim.
Claiming Home Office Deductions (Without the Confusion)
This is one of the most common areas where both business owners and employees get it wrong.
The ATO currently allows two methods for home office deductions:
1. Fixed rate method (67 cents per hour)
This covers electricity, internet, mobile and home phone, stationery, and computer consumables. You can’t claim these expenses separately if you use this method. You do need a record of your working-from-home hours (e.g. a diary or log).
2. Actual cost method
This involves working out the actual costs of your home office use (like electricity, internet, etc.) and calculating the work-related portion of each. It takes more effort and detailed records, but can lead to a larger deduction.
ASB Consulting & Tax can help you work out which method gives you the best result based on your situation.
Not sure which method to use? Book an appointment with ASB Consulting & Tax to get clarity on your home office deductions.
Set and Forget? Not a Good Idea
Just because you claimed something last year doesn’t mean it’s valid this year.
The ATO has changed rules around working-from-home deductions, car claims, and instant asset write-offs. That’s why working with a qualified accountant matters, especially if your work patterns have changed or you’ve made new purchases.
If you want peace of mind when claiming tax deductions in 2025, make sure you’re working with an advisor who understands the current rules.
Avoid guesswork this tax time. Ask ASB Consulting & Tax to review your records and make sure you’re up to date with the latest rules.
How ASB Consulting & Tax Can Help
Whether you’re a business owner or an individual, we offer advice that’s personal, practical, and current. We’ll help you:
- Work out what you can actually claim
- Avoid the common mistakes that lead to ATO trouble
- Maximise your refund or minimise your tax
- Understand any rule changes affecting your situation
If you’re unsure about anything, or just want peace of mind that your tax return is spot on, now’s the time to act.
Talk to us today.
Contact ASB Consulting & Tax to get your tax return sorted properly and confidently.
