EOFY 2025: Top Tax Planning Tips to Maximise Your Refund

The end of the financial year is just around the corner, and while June 30 might seem far off, it always arrives faster than we think. Whether you’re a salary earner, sole trader, or small business owner, EOFY is your golden opportunity to get on the front foot and set yourself up for a bigger refund—or at the very least, a smaller tax bill.

Here at ITP, we’ve been helping Aussies get the most out of their tax returns for over 50 years. So, if you’re ready to go beyond the standard deduction and make EOFY 2025 work harder for you, we’ve got the practical tips—and the tax-time insights—you need.

Let’s walk through our top tax planning tips to help you maximise your refund before the 30 June deadline.

Know What’s Changed for 2025

Tax planning starts with staying informed, and there are a few important updates to be aware of this year.

Updated Income Tax Rates for the 2024/25 Financial Year

The individual tax brackets have changed for the 2024–25 financial year. These new rates aim to simplify the tax system and reduce the burden on middle-income earners.

According to the ATO’s updated tax rates, this year’s brackets look like this:

$0 – $18,200: tax-free threshold
$18,201 – $45,000: taxed at 16c for each $1 over $18,200
$45,001 – $135,000: $4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000: $31,288 plus 37c for each $1 over $135,000
$190,001 and over: $51,638 plus 45c for each $1 over $190,000

If you’ve had a pay rise, changed jobs, or taken on extra income this year, this shift might affect where you land—and it’s worth reviewing your PAYG withholding and potential deductions to avoid an unexpected bill.

Superannuation Updates

The Super Guarantee rate has also increased to 11.5%. If you’re an employer, it’s your responsibility to make sure your team’s super is paid at the right rate. And if you’re an employee, it’s a good time to check your payslips and make sure those contributions are being made correctly.

Additionally, the concessional contributions cap—that’s pre-tax contributions like salary sacrifice and personal deductible contributions—has increased to $30,000. That means you’ve got more room to make voluntary contributions and claim a deduction before EOFY.

Prepay and Save: Bring Forward Deductions

One of the easiest ways to reduce your taxable income before 30 June is to prepay certain expenses.

If you’ve got work-related subscriptions, insurance, income protection, or even business rent, you can often claim a deduction in the current financial year by paying upfront—even if the service or coverage extends into next year.

This strategy is especially helpful for small businesses and sole traders. By bringing forward expenses, you reduce this year’s profit—and the amount of tax owed.

Just make sure the expense is related to your income and the prepayment is for no more than 12 months.

Contribute to Super (and Get Rewarded)

One of the smartest moves you can make before EOFY is to top up your super—and there are a few ways to do it, depending on your income and goals.

Claim a Deduction

If you make a personal super contribution and notify your fund with a valid notice of intent, you may be able to claim the amount as a tax deduction—reducing your taxable income for the year.

The cap is now $30,000, but if you haven’t used up your full cap in the last five years and your super balance is under $500,000, you may be eligible to carry forward unused amounts thanks to the ATO’s carry-forward contributions rule.

Low Income? You Could Get a Boost

If you earn under $58,445 and make after-tax super contributions, you could receive a government co-contribution of up to $500.

You may also be eligible for the Low Income Superannuation Tax Offset (LISTO) if you earn less than $37,000—the ATO will automatically apply it if you’re eligible, but it’s worth understanding how it fits into your refund expectations.

Use the Instant Asset Write-Off (While It’s Still Here)

Small businesses can continue to benefit from the $20,000 instant asset write-off until 30 June 2025.

That means if you’re running a business and purchase an asset under the $20,000 threshold—such as office equipment, a new laptop, or tradie tools—you may be able to immediately deduct the cost in your 2025 return.

To qualify, the asset must be:

First used or installed ready for use by 30 June 2025
Used for business purposes
Cost less than $20,000 (excluding GST for GST-registered businesses)

Read more about eligibility on the ATO’s instant asset write-off page.

Watch the ATO’s Hotspots

The ATO has flagged a few key areas where they’ll be sharpening their pencils this year. If you fall into any of these categories, it’s best to be extra diligent with your reporting.

Cryptocurrency and Digital Assets

If you’ve been trading crypto, dabbling in NFTs, or staking coins—even just once—you have tax obligations. All crypto transactions must be tracked and reported accurately.

Unsure where you sit? We recently broke it all down in our crypto trader vs investor guide.

Gig Economy Income

Think Uber, Airbnb, Airtasker, OnlyFans, Upwork. If you’ve earned even $1 through one of these platforms, the ATO likely already knows about it.

This income must be declared—and you can claim related expenses, but only if you have solid records. Find more info in the ATO’s gig economy guidelines.

Rental Income

Own a rental property? The ATO continues to audit undisclosed rental income and overstated deductions. Make sure your claims are legit—especially for things like interest deductions, capital works, and private vs. business use.

Keep Records Like a Tax Pro

No matter what you’re claiming, documentation is everything.

Here’s what to do now so you’re not scrambling in July:

Save receipts digitally (and name your files!)
Use a spreadsheet or the ATO myDeductions app
Track vehicle use with a logbook (if claiming cents per km or actual expenses)
Record your home office hours for the fixed-rate method

Bonus: staying organised not only helps you claim more confidently, but also protects you in case of an ATO review.

Start Strong. End Smart.

EOFY doesn’t have to mean stress and spreadsheets. With a bit of smart planning now—from topping up your super to logging your work-from-home hours—you can set yourself up for a better refund and a smoother tax season.

And if you’re not sure where to begin, you don’t have to go it alone. At ITP, our expert tax agents are ready to help you claim everything you’re entitled to, avoid the traps, and take the headache out of tax time.

Book your appointment with ITP today and make EOFY 2025 your most rewarding yet.

What Can I Claim on Tax Without Receipts? Here’s What the ATO Actually Allows

Every year, thousands of Australians wonder if they can claim a few tax deductions here and there without needing to keep a shoebox full of receipts.

The good news? You can.
The better news? The ATO has laid out exactly when that’s okay—and when it’s not.

Whether you’ve lost a receipt, made small work-related purchases throughout the year, or just don’t know where to start, this guide will walk you through what you can legally claim on tax without receipts, and how to make sure those claims hold up if the ATO comes knocking.

Understanding the $300 No-Receipt Rule

Let’s start with the rule most people have heard of: the $300 work-related expense threshold.

The ATO allows you to claim up to $300 in work-related expenses without providing receipts. But (and it’s a big but), this isn’t a blank cheque.

You still need to:

Have personally paid for the expenses
Not have been reimbursed
Ensure they directly relate to your job
Be able to explain how you calculated the amount

This rule applies to all work-related expenses combined, not per item. So, if you spent $100 on work-from-home stationery, $120 on office supplies, and $80 on protective gear, you can claim the $300 total without receipts—as long as you can reasonably demonstrate the spending.

For more, see the ATO’s guidance on how to claim deductions.

Pro Tax Tip: If your total work-related expenses are more than $300, you must provide receipts for the entire amount—not just the amount over $300.

Common Tax Deductions You Can Claim Without Receipts

While you’ll always be in safer territory with documentation, here are a few deductions the ATO explicitly allows without receipts—as long as you meet the conditions.

Laundry Expenses (Up to $150)

If you wash, dry, or iron eligible work clothing, such as uniforms or protective wear, you can claim up to $150 per year without written evidence.

How it works:

$1 per load if the load only contains work clothing
$0.50 per load if it’s a mixed load with personal clothing

Keep a simple record of your loads per week and the types of clothes washed to support your claim.

Full details on laundry claims here.

Small Work Expenses (Under $10, Up to $200 Total)

If you bought work-related items under $10 each (think notebooks, pens, USB sticks, etc.), and the total across the year is under $200, you don’t need a receipt. But you do need to:

Note what the item was
Record the date and cost
Explain how it related to your job

Keeping a digital log or diary works well here.

Car Expenses (Cents per Kilometre Method)

If you use your car for work-related travel (excluding commuting), you can claim up to 5,000 km per year without receipts using the cents per kilometre method.

For the 2024–25 tax year, the rate is 88 cents per kilometre.

To claim:

You must own the car
Travel must be for work (not getting to and from your regular office)
You need a reasonable estimate of your travel, such as a diary or logbook

You Don’t Need Receipts—But You Do Need Records

The ATO is clear: even if you’re not required to keep receipts, you must still keep records. If you can’t produce a paper receipt, you can usually still back up your claim with:

Bank or credit card statements
Invoices or confirmation emails
Diary entries with dates and details
Photographs of items
Copies of warranty or user manuals

If you’re claiming uniform expenses, for example, a payslip noting uniform allowances or a photo of you wearing the uniform can help support your claim.

Here’s what the ATO says about record-keeping requirements.

Pro Tax Tip: Store all receipts and documentation digitally using the ATO’s myDeductions app or a spreadsheet synced with cloud storage.

Claims That Do Require Receipts

Not everything gets a free pass. Some deductions are too complex or variable to claim without proper documentation. These include:

Travel expenses (flights, accommodation, meals)
Overtime meal claims
Work-related phone or internet usage over the flat rate threshold
Depreciation on equipment over $300
Self-education expenses
Tools and tech (computers, cameras, etc.) costing more than $300
Donations (unless under $2 and bucket-based)

If your job involves regular travel, working from multiple sites, or large one-off purchases, you’ll need proper records to support your claim.

How to Stay Organised (and Audit-Ready)

Let’s be real: nobody enjoys tracking receipts or logging work mileage. But getting into the habit now can save you hours (and hundreds of dollars) come tax time.

Tools to Try:

myDeductions: The official ATO app. Easy, free, and ATO-approved.
Expensify / Receipts by Wave: Good for small business owners or tradies.
Google Sheets or Excel: Old-school, but effective. Keep it in the cloud so it doesn’t disappear with your laptop.

Tips to Remember:

Snap a photo of every receipt as soon as you get it.
Keep a running diary of travel days and locations.
Create a folder in your inbox for invoices and purchase confirmations.
Review your expenses monthly rather than leaving it all until June.

For more smart tax tips, check out ITP’s blog on tax record-keeping.

When It’s Time to Call in the Experts

If your expenses are straightforward and under the ATO thresholds, you might not need help filing your return. But if:

Your total work-related deductions exceed $300,
You’re juggling multiple income streams or side hustles,
You’re claiming car use, home office costs, or depreciation,
Or you just want to make sure you’re getting it right—

…it’s worth speaking to a tax pro.

ITP’s team of experienced tax agents can help you:

Maximise your tax refund
Identify deductions you might be missing
Avoid ATO red flags
Keep everything compliant and audit-proof

Ready to take the guesswork out of your tax return? Book an appointment with ITP and let us sort it out for you.

Claim Smarter, Not Riskier

Yes, you can claim some tax deductions without receipts—but that doesn’t mean you can be careless. The ATO wants to see that you understand what you’re claiming, why you’re claiming it, and how you calculated it. Vague guesswork or “everyone claims it” logic won’t fly.

By knowing the rules, using the available tools, and getting expert help when needed, you can claim with confidence—and potentially pocket more come tax time.

Looking for more ways to reduce your tax bill this year? Check out our latest tax-saving strategies on the blog.

EOFY 2024–25 Tax Tips for Small Business: How to Maximise Your Deductions and Minimise Your Tax Payable

The end of the 2024–25 financial year is fast approaching—and for small business owners, that means one thing: tax time. Whether you’re a sole trader, freelancer, or running a growing company, there are smart ways to wrap up the year that can save you money, reduce stress, and keep the ATO happy. This guide breaks down the key strategies, updates, and deductions you should know about to finish the financial year strong—and set yourself up for an even better one ahead.

Make the Most of the $20,000 Instant Asset Write-Off (While it Lasts)

If you’ve been eyeing that new laptop, toolset, or espresso machine for your café, now might be the perfect time to pull the trigger—at least from a tax perspective.

The $20,000 instant asset write-off has been extended for the 2024–25 financial year, and it’s one of the most powerful tools small businesses have to reduce their taxable income. Under this scheme, eligible small businesses with an aggregated turnover of less than $10 million can immediately deduct the cost of eligible assets that are under $20,000 (excluding GST if you’re GST-registered). But here’s the catch: the asset must be first used or installed and ready for use before 30 June 2025.

So, What Does This Actually Mean?

Let’s say you run a landscaping business and pick up a ride-on mower for $18,000 in May 2025. As long as it’s delivered and ready to roll before 30 June, you can write off the full cost as a business deduction in your 2024–25 tax return. No waiting. No depreciation over years. Just instant relief.

A few important reminders:

The $20,000 threshold applies per asset—not in total. So, if you buy three separate items at $19,000 each, they all qualify individually.
Assets over the $20,000 threshold can’t be written off instantly, but they can be depreciated using the simplified depreciation rules.
The asset must be used for business purposes. Personal use? Sorry, that’s not going to cut it.

Timing is Everything

The ATO has made it clear that your asset must be installed and ready for use before 30 June 2025 (and it looks like the instant asset write-off hasn’t been extended for another year, so now might be your last chance). Ordering something in June that doesn’t arrive until July? That’s going in next year’s return, not this one.

You can find more details on eligibility, asset types, and timing on the ATO’s Instant Asset Write-Off page.

Pro Tax Tip: If you’re not sure whether to claim the write-off or depreciate, an ITP small business tax expert can help you make the most tax-effective choice based on your broader strategy.

Claiming Work-From-Home Expenses in the 2024–25 Financial Year

Still working from home—either full-time, part-time or just a few days a week? Good news: you may be able to claim some of your running costs as tax deductions. But the ATO has made some important changes to how those claims work, so it’s worth getting across the updated rules before tax time.

As of 1 July 2022, the 80 cents per hour shortcut method is no longer available. Instead, the ATO has introduced a revised fixed rate method of 67 cents per hour, which applies for the entire 2024–25 financial year.

What’s Included in the Fixed Rate Method?

The 67c/hour rate covers:

Electricity and gas (for lighting, heating/cooling)
Internet expenses
Mobile and home phone usage
Stationery and computer consumables (like printer ink and paper)

To use this method, you must keep a record of your actual hours worked from home. The ATO no longer accepts estimates or four-week diary samples. If you’re claiming under this method, you also can’t separately claim any of the above expenses.

However, you can still claim depreciation on office furniture and equipment (like your work desk or laptop), as long as you keep receipts and records.

Prefer to Claim the Actual Costs?

You can choose the actual cost method instead, where you calculate the work-related portion of each expense based on your usage. This method is more work, but it may result in a larger deduction—especially if you have high electricity or internet costs.

Whichever method you choose, good record-keeping is essential. And if you’re not sure which option will give you the best result, we can help you do the maths. Ask an ITP accountant to help crunch the numbers and choose the best option for you.

Keep Accurate Records—It’s Not Optional

It should come as no surprise that at the top of our list for EOFY 2024–25 tax tips for small businesses is this: Records. Records. Records.

EOFY is crunch time—and your records are your best defence against errors, audits, and missed deductions. The ATO requires businesses to keep records for at least five years, and in some cases (like for companies and payroll records), you’ll need to hold onto them for seven.

Smart Record-Keeping Tips:

Keep receipts, invoices, contracts, and other source documents for all business transactions
Store records by financial year for easier sorting
Use reliable accounting software like Xero, MYOB, or QuickBooks to keep everything organised
Store records digitally—they don’t need to be paper-based, but they must be easily retrievable

Want to know exactly what the ATO expects? See their full rundown on record keeping for business.

Pro Tax Tip: Good records make tax time faster and less stressful. They also help your accountant spot deductions you might miss on your own.

Need help setting up your record-keeping system or switching to accounting software? We’ve got your back.

Quick-Fire Round: Bonus EOFY 2024–25 Tax Tips for Small Businesses

If you’ve already got everything above covered, but are looking for some last-minute ways to trim your tax bill before 30 June, here are four EOFY 2024-25 tax tips every small business owner should have up their sleeve:

Claim Everyday Operating Expenses

Don’t underestimate the value of your day-to-day costs. Common tax-deductible expenses include advertising, office utilities, accounting fees, employee wages, training costs, and insurance premiums. Even smaller items—like your Canva subscription or branded uniforms—can add up to meaningful deductions.

If it helps you earn assessable income and isn’t private in nature, chances are it’s claimable. Just be sure to keep records—even for expenses under $82.50.

Prepay to Bring Forward Deductions

Expecting a drop in income next year? Prepaying up to 12 months of business expenses—like rent, insurance, or subscriptions—before 30 June could allow you to deduct the full amount this year. Just make sure your business has an aggregated turnover under $50 million and that the service will be delivered within 12 months. The ATO has more on prepaid expenses here.

Do a Stocktake

Got inventory? A stocktake isn’t just a box-ticking exercise—it can directly reduce your taxable income. Write down the value of damaged, outdated, or unsellable stock and claim it as a deduction. Learn more on the ATO’s stocktake and inventory page.

Don’t Miss the Super Deduction Deadline

The Super Guarantee rate is now 11.5%, and the rules haven’t changed: super is only deductible when it’s received by the employee’s fund. Pay by 30 June or risk losing the deduction (and facing penalties). Get the full SG payment rules from the ATO here.

Want personalised guidance? Speak to an ITP tax agent and we’ll help you make EOFY work for your business, not against it.

Let the Experts Help You Make EOFY Count

Tax time doesn’t have to be a scramble. With the right advice and a solid understanding of what you can claim and how, EOFY becomes more than just another deadline to scramble for—it’s a chance to take control of your finances and plan for a stronger year ahead.

Over 90% of small businesses already use a registered tax agent, and it’s easy to see why. A good agent isn’t just there to lodge your return—they’re your partner in minimising your tax, navigating the latest ATO updates, and spotting opportunities you might otherwise miss. From super strategies and asset write-offs to loss carry-back rules and fringe benefits, a tax pro knows how to make the numbers work for you.

You can even claim their fees as a deduction!

At ITP, our accountants live and breathe small business tax. Whether you’re navigating your first EOFY or want to sharpen your tax strategy this year, we’re here to help.

Book a consultation and make this EOFY your smoothest one yet.

Ultimate Guide to Tax Deductions for Individuals in 2024–25

You’ve worked hard all year—and chances are, you’ve also shelled out for a bunch of work-related expenses. Now that it’s tax time, it’s your chance to claw some of that money back. But let’s be honest: plenty of Aussies still toss their tax return into the ‘too-hard basket’… or worse, the ‘I can’t be bothered’ pile. And that kind of thinking could leave hundreds—maybe even thousands—of dollars on the table.

Tax time doesn’t have to be a headache. With a little knowledge (and the right support), it’s a real opportunity to put some money back in your pocket. In this guide to tax deductions for employees in Australia in 2025, we’ll walk you through what you can claim, what’s changed, and how to make sure you don’t miss out. After all—it’s your money. Let’s help you get it back.

What Is a Tax Deduction?

Let’s start with the basics. A tax deduction is a work-related expense you can claim that reduces your taxable income—which is the amount the ATO uses to figure out how much tax you owe.

The more eligible deductions you claim, the lower your taxable income. And the lower your taxable income? The less tax you have to pay. It’s that simple.

Say you earned $80,000 and claimed $2,000 in deductions. You’ll only be taxed on $78,000. That could mean a bigger tax refund—or a smaller tax bill. Win-win.

Heads up: You can only claim deductions for expenses that directly relate to earning your income. No, your dog walker or gym membership doesn’t count—unless your job involves sprinting after golden retrievers for a living (and even then, ask your accountant).

What Is a Tax Credit (or Offset)?

A tax credit—also called a tax offset—is even more powerful than a deduction. Why? Because instead of reducing your taxable income, it slashes your actual tax bill, dollar for dollar.

For example, if your tax payable is $2,000 and you’re eligible for a $500 tax offset, you’ll only pay $1,500. That’s real money staying in your bank account.

There are lots of offsets available depending on your situation, including:

The Low Income Tax Offset (LITO)—up to $700 for those earning under $66,667
Spouse or carer offsets
Zone tax offsets for those living in remote areas

Pro Tax Tip: Offsets aren’t always something you need to “apply for.” The ATO usually calculates them automatically based on your income and return—so long as your info is accurate.

How to Claim Tax Deductions (It’s Not as Confusing as it Sounds)

Here’s the good news: claiming tax deductions for employees in Australia in 2025 is easier than you think—especially if you keep decent records.

Here’s how it works:

Track your expenses: Keep receipts, logbooks, or bank statements showing your work-related spending.
Work out what’s claimable: The ATO has pretty strict rules. If it wasn’t essential to your job, it probably doesn’t count.
Lodge your tax return: You can do this yourself via myTax or get help from a tax agent (who’s also tax-deductible—how good is that?).
Claim deductions and offsets: Include everything you’re entitled to, backed up with evidence.
Calculate your refund (or bill): Your deductions reduce your taxable income. Any offsets then reduce your tax payable.

A final word: Don’t guess your claims. Overclaiming can trigger an audit. Underclaiming means you’re leaving money on the table. Neither is ideal—so when in doubt, ask an ITP pro.

Common Tax Deductions for Employees

There’s a surprising number of everyday expenses you might be able to claim, if you know what to look for. Let’s break down the most common tax deductions for individual employees in Australia in 2025, starting with one that’s often underestimated: travel.

Vehicle and Travel Expenses

Use your own car for work this year? You may be able to claim a juicy deduction—just not for your commute (sorry, your daily drive to work is still on your own dime).

But if your boss had you running between job sites, delivering goods, or hauling heavy equipment that wouldn’t fit in your handbag, you’re in luck.

Claimable travel expenses include:

Trips between two separate jobs (like your 9–5 and your side hustle).
Travel from your usual workplace to an alternate location (like a meeting or training off-site).
Carrying bulky equipment your employer needs you to bring (think ladders, toolboxes—not your reusable coffee cup).

Two ways to claim:

Cents per kilometre method: Claim 88 cents per kilometre (2024–25 rate) for up to 5,000 work kilometres per year—no receipts needed, but keep a record of how you worked it out.
Logbook method: Track everything—fuel, servicing, rego—and apportion your actual costs using a 12-week logbook showing your work vs personal travel.

Need more info? You can visit the ATO’s website here to learn more about making deductions when using your own car.

Pro Tax Tip: If you’re bad with receipts but good at remembering to fill up on Fridays, the cents-per-kilometre method might be your best friend. Otherwise, the logbook method can offer a bigger return if you’re on the road a lot.

Clothing, Laundry, and Dry-Cleaning Expenses

If your workwear isn’t something you’d wear to brunch, it might be deductible.

You can claim clothing expenses if:

You wear a compulsory uniform with a logo.
You need protective gear, like fire-resistant overalls, steel-capped boots, gloves, or hi-vis vests.
Your job requires occupation-specific clothing, like a nurse’s scrubs or a chef’s jacket.

You can also claim the cost of cleaning these items—just keep receipts or a reasonable diary of laundry loads.

Pro Tax Tip: If it’s something you could reasonably wear outside work (hello, black pants and business shirts), the ATO doesn’t want to know about it. Even if your boss says it’s part of the ‘dress code,’ it doesn’t count.

Home Office Expenses

Working from home is now the norm for many Aussies, whether it’s one day a week or the whole shebang. The ATO lets you claim costs—but only if you do it the right way.

Here’s what’s on offer for the 2024–25 financial year.

The Fixed Rate Method (70c per hour)

Covers:

Electricity and gas
Phone and internet usage
Computer consumables (like ink and paper)
Stationery

What you’ll need:

A record of your actual hours worked from home (estimates are out).
At least one bill or receipt for each cost category you’re claiming.

The Actual Cost Method

This one’s more fiddly—but could mean a bigger deduction if your bills are sky-high or your home office setup is premium.

You’ll need to track:

Work-related portions of power, phone, and internet
Depreciation on furniture and equipment
Repairs and cleaning
Stationery and consumables

Pro Tax Tip: Choose the method that gives you the best result—but remember, both require detailed records. If you’re not sure which works in your favour, chat with an ITP tax agent who can run the numbers with you.

Self-Education Expenses

If you’ve enrolled in a course this year to upskill or boost your current job performance—good news, it might be tax-deductible. The ATO allows you to claim a range of self-education expenses, as long as the course relates to your current employment (sorry, no tax breaks for a mid-career pivot into underwater basket weaving—unless you’re already a professional diver).

Claimable expenses include:

Course or tuition fees (excluding HECS-HELP, FEE-HELP and similar loan repayments)
Textbooks, stationery, printing and photocopying
Travel between your workplace and your place of study (but not from home)
Internet usage, and depreciation on study tools like laptops and headsets

To claim, your course must:

Maintain or improve the skills you need in your current role, or
Be likely to lead to a salary boost in your current line of work

Pro Tax Tip: From 1 July 2022, the old $250 ‘self-education expense threshold’ was scrapped—so you can now claim the full amount (if it’s eligible). Just make sure you’ve kept your receipts and course documentation to prove it.

Tools, Equipment, and Other Assets

Bought something this year to help you do your job better or faster? You may be able to deduct the cost from your tax—whether it’s a laptop, a new drill, or even a fancy ergonomic chair to save your back during those long Zoom calls.

Eligible items include:

Tools of trade (think drills, hammers, sewing machines)
Laptops, tablets, mobile phones
Office furniture like desks, lamps, and chairs
Safety gear and technical equipment
Briefcases, professional bags, and even toolboxes—if they’re for work

How to claim:

$300 or less: Instant deduction (win!)
Over $300: Depreciate the cost over the item’s effective life

Pro Tax Tip: If you also use the item for personal stuff (streaming Netflix on your work iPad, for instance), you’ll need to estimate your work-use percentage. Only the work-related portion is claimable.

Other Work-Related Deductions

These lesser-known deductions can pack a surprising punch. So don’t skip them—especially if you’re trying to maximise your refund.

You may be able to claim:

Tax agent fees for managing your return (yes, even this one!)
Union or professional association memberships
Gifts or donations to registered charities (with a receipt)
Income protection insurance (if it’s outside your super)
Personal super contributions you’ve made voluntarily—just be sure to lodge a notice of intent to claim

Pro Tax Tip: Every claim needs documentation. Keep your receipts, statements, and letters so you’re ready if the ATO comes knocking.

Final Thoughts: Don’t Let the ATO Keep More Than It Should

Getting the most out of your tax return isn’t about gaming the system—it’s about knowing your rights, staying organised, and claiming what you’re genuinely entitled to. Whether it’s your work uniform, home office hours, or a shiny new laptop, every legitimate deduction adds up. And in a cost-of-living crisis, who wants to leave money on the table?

The key to maximising tax deductions for employees in Australia in 2025 is twofold: know the rules and keep the receipts. Even better? Get an expert in your corner.

At ITP, our friendly tax agents make sense of the fine print, flag extra savings you might’ve missed, and ensure you’re staying compliant while getting the biggest refund possible. Whether it’s your first time lodging or you’re just sick of guessing what’s deductible, we’ve got you.

Book an appointment today and take the stress out of tax time.

When It Comes to Tax on Cryptocurrency: Are You a Trader or an Investor?

Once upon a time, cryptocurrency felt like the wild west of finance—unregulated, unpredictable, and totally off the grid. But these days? The ATO is well and truly in the saddle. Whether you’re buying and holding, staking for passive income, flipping NFTs, or mining altcoins in your garage, the tax office wants to know what you’re up to.

And the first thing they’ll want to figure out is this:

Are you a cryptocurrency investor or a trader?

The answer isn’t just semantics. It determines how you’re taxed, whether you’re eligible for capital gains discounts, and what kind of records you’ll need to keep.

The ATO has made it clear: crypto is taxable. But how it’s taxed depends on how you use it. So, if you’ve dipped a toe (or dived headfirst) into the crypto pool, here’s what you need to know about how the Australian Taxation Office (ATO) treats your activity—and how to stay on the right side of the rules.

Investor vs. Trader: What’s the Difference?

The ATO doesn’t set a fixed threshold for when someone becomes a trader. It’s all about the nature of your activity.

The key distinction lies in intent, scale, and structure. You’re likely to be classified as an investor if you’re holding crypto for long-term capital growth. You’re likely a trader (or running a business) if you’re frequently buying and selling crypto with the intent of making a profit—and doing so in a business-like way.

The ATO looks at several key factors when determining if you’re an investor or a trader:

Intent:
- Investor: Focused on long-term wealth building through capital growth.
- Trader: Aiming for short-term profit through regular buying and selling activity.
Repetition:
- Investor: Trades are occasional or infrequent.
- Trader: Engages in frequent, repeated transactions.
Structure:
- Investor: Operates casually, without formal systems or business planning.
- Trader: Runs operations in a structured, business-like way—possibly with an ABN, business name, and record-keeping systems.
Capital Involved:
- Investor: Typically using personal funds or small amounts of capital.
- Trader: Uses a larger capital base and may reinvest profits or operate through a company structure.
Record-Keeping:
- Investor: Keeps basic records required for capital gains tax events.
- Trader: Maintains detailed business records, tracks stock/inventory, and reports like a business.
Tax Treatment:
- Investor: Reports capital gains and losses under CGT rules.
- Trader: Reports business income and expenses as part of assessable income—CGT discounts do not apply.

For more detail, the ATO provides a helpful comparison for investing vs trading shares, which also applies to crypto.

If You’re a Crypto Investor

For most Australians dipping their toes into cryptocurrency, the ATO is likely to view you as an investor rather than a trader. This classification typically applies when you’re engaging with crypto as a form of long-term wealth building, rather than running a structured, profit-driven enterprise. In other words, if you’re buying Bitcoin or Ethereum with the goal of holding onto it for months or years in the hope that its value will increase over time, you’re probably operating on what’s called the capital account—which means capital gains tax (CGT) rules apply.

You’re likely to be an investor if:

You buy and hold cryptocurrency for extended periods, often waiting for the market to appreciate before making a sale or swap, rather than executing frequent trades or using advanced trading strategies.
Your main objective is long-term capital growth, rather than earning regular income through short-term profits. You’re investing, not “working” the market daily.
Your crypto activity is secondary to your main job or business—you might hold a salaried position, freelance, or run a small business, with your crypto portfolio simply acting as a side investment.
You haven’t structured your crypto activity in a way that resembles a business—meaning there’s no formal business plan, no branding, no registered business name or ABN, and you don’t treat your crypto trading as a commercial operation.
You treat your digital assets the same way you would shares or exchange-traded funds (ETFs)—buying, holding, and selling occasionally, but not engaging in systematic buying and selling activity.

While there’s no hard-and-fast checklist, the ATO will consider all of these factors together when determining whether your crypto activity is investment-based or business-like. If most of your actions resemble those of a casual investor, you’ll be taxed accordingly.

How You’re Taxed as an Investor

If you fall under the “investor” category, you’re taxed under the capital gains tax (CGT) regime, just as you would be with traditional assets like shares or property.

Any disposal of cryptocurrency triggers a CGT event. This includes not just selling your crypto for fiat currency like Australian dollars, but also swapping one cryptocurrency for another, gifting it to someone else, or even using it to purchase goods or services. These are all considered disposals under tax law, regardless of whether you made any actual profit at the time.
If you hold your crypto for more than 12 months before disposing of it, you may be eligible for the 50% CGT discount. This can significantly reduce your tax liability, especially for large gains.
If you make a capital loss, you can use that loss to offset capital gains you’ve made in the same financial year. If your losses exceed your gains, the leftover amount becomes a net capital loss, which you can carry forward to future tax years to offset future gains. However, capital losses can’t be used to reduce other types of income, such as salary or business income.

Common Examples of CGT Events

Here are some typical scenarios that would trigger a CGT event for crypto investors:

Selling crypto for AUD – For example, cashing out your Ethereum after a price increase.
Swapping one crypto for another – If you trade Bitcoin for Solana, even though you haven’t converted anything to cash, the ATO still considers this a disposal and acquisition event.
Gifting crypto to a friend or family member – Yes, even gifts are treated as disposals under tax law. You’ll need to calculate the gain or loss as if you sold it at market value.
Spending crypto on goods or services – Paying for a holiday, buying a laptop, or purchasing a concert ticket using crypto are all considered CGT disposals.

In each case, the ATO will require you to determine the cost base of your crypto (what you paid for it, including any fees or costs of acquisition) and subtract it from the capital proceeds (what you received or what the asset was worth at disposal). The result is your capital gain or loss.

A Practical Example

Let’s say you bought 1 ETH back in early 2023 for $2,000, including transaction fees. You held it for 18 months and then sold it in 2025 for $3,000.

Cost base = $2,000
Capital proceeds = $3,000
Capital gain = $1,000

Because you held the asset for over 12 months, you’re likely eligible for the 50% CGT discount, which means you’ll only need to include $500 of the gain in your taxable income.

This discounted gain will be added to your other assessable income and taxed at your marginal income tax rate.

Staying Compliant as a Crypto Investor

Even as a casual investor, the ATO expects you to keep detailed records of every crypto transaction that could impact your tax position. This includes:

Dates of purchase and disposal
The AUD value of the crypto at the time of each transaction
What the transaction was for (e.g. swap, sale, gift, spend)
The fees or costs incurred (brokerage, exchange costs)
Transaction IDs and wallet addresses

You’ll need to keep these records for at least 5 years after a CGT event. Tools like CoinTracking, Koinly, and CryptoTaxCalculator can help automate this process and produce tax reports compatible with the ATO’s expectations.

Read the ATO’s full guide on crypto as an investment

If You’re a Trader (Running a Business)

On the flip side, if you’re trading crypto frequently, treating it as your job or main income source, and you operate in a structured, commercial manner, the ATO may consider you to be carrying on a business.

You’re likely a trader if:

You execute high-volume or high-frequency trades
You operate through an ABN or company structure
You keep detailed records like a business (inventory, journals, financial reports)
You market your activity (e.g. via a website or trading service)
You’re aiming to generate short-term income, not just long-term gains

How You’re Taxed:

Proceeds from crypto sales are treated as business income (revenue account)
Your crypto is classified as trading stock, not capital assets
You’re not eligible for the 50% CGT discount
You can deduct business-related expenses, such as:
- Internet and software subscriptions
- Platform or brokerage fees
- Cost of crypto used in transactions
- Accountants or legal fees related to the business

ATO guidance on crypto used in business

A Quick Case Study:

Jake runs a small-scale NFT flipping operation.
He buys and sells dozens of NFTs per month, keeps detailed sales records, uses pricing tools, and earns $40k/year from this alone.

The ATO is likely to classify Jake as a trader, and his earnings will be taxed as ordinary income, not capital gains.

Staking, Airdrops & Forks: Income First, CGT Later

Crypto isn’t just about trading anymore. ATO guidance now covers:

Staking Rewards: If you earn crypto through staking, the tokens received are taxed as ordinary income at the time you receive them. Later, when you sell or swap those tokens, CGT applies on any gain (difference between value at time of receipt vs disposal).

Airdrops: Same deal. Airdropped tokens = income when received, CGT when disposed.

Forks: Forked tokens aren’t taxed when received unless the fork has an identifiable value. If it does, income tax may apply.

ATO guide on staking, forks and airdrops

DeFi and Wrapped Tokens: Yes, They’re Taxable Too

2025 ATO guidance makes it clear that DeFi and “wrapped” tokens can trigger CGT events.

Examples:

Wrapping ETH into wETH is a CGT disposal
Lending crypto via a smart contract = disposal and reacquisition
Borrowing against your crypto = not a disposal unless the protocol auto-sells or transfers assets

The ATO treats these actions as changing ownership or asset structure, even if you haven’t cashed out.

ATO guidance on DeFi and wrapped assets

Don’t Forget About NFTs

Non-fungible tokens (NFTs) are treated just like crypto assets when it comes to tax. Unless you’re buying a digital collectible purely for personal use (rare), any sale, swap, or use is a CGT event.

You’ll need to report gains or losses in your return—just like you would with Bitcoin or Ethereum.

ATO guide to NFTs

How to Keep Records the ATO Will Accept

Record-keeping might not be exciting, but it’s essential—especially in a space as complex as crypto.

What You Need to Keep:

Buying (Acquisition):

Date of transaction
AUD value at time of purchase
Transaction ID or reference
Fees or commissions paid
Source of funds (bank transfer, card, etc.)

Holding:

Wallet address and keys (keep secure!)
Details of staking or airdrop activity
Records of any forks

Selling/Swapping:

Date and time of disposal
Amount received (in AUD)
Recipient address or transaction reference
Calculations of gain/loss
Network fees

You must keep these records for at least 5 years after the event.

Want to know more about cryptocurrencies and tax? Have a read of The Bottom Line: Is There GST on Cryptocurrency? for must-know info on crypto.

The ATO Is Watching

The ATO has significantly ramped up its data-matching capabilities and receives information directly from major crypto exchanges. If you’ve traded under your real name, the ATO likely knows—and can match your wallet to your activity.

That means:

Crypto gains you forget to report might trigger a review or audit
“Anonymous” wallets aren’t as anonymous as you think
Pre-fill information in your tax return may already include your crypto trades

Final Thoughts: Get Help, Not Headaches

Crypto tax in Australia is complex. And with the ATO catching up to the technology fast, the risk of getting it wrong is higher than ever.

If you’re not sure whether you’re an investor or a trader, if you’re dealing with staking, NFTs or wrapped tokens, or if you’ve simply lost track of what happened when—it’s time to call in the experts.

Book a consultation with ITP.
Our accountants are across the latest ATO updates, and we’ll help you:

Work out your crypto classification
Organise your records
Maximise your deductions
Stay compliant

Don’t leave it to guesswork—crypto tax is one area where getting it right could save you thousands.

The 6-Year Capital Gains Tax Exemption: A Homeowner’s Guide

Imagine being offered a financial lifeline that allows you to pursue your career dreams, travel the world, or adapt to life’s unexpected twists—all without being penalised for moving away from your principal place of residence. Welcome to Australia’s six-year capital gains tax exemption, a tax provision that could save you thousands of dollars in unexpected tax bills.

Consider these real-life scenarios:

You get a dream job in Singapore, but you aren’t ready to sell your Sydney apartment. Instead of losing the tax benefits of it being your main residence, the six-year rule allows you to rent out the property while maintaining your main residence CGT exemption.
You want to travel for a year and rent out your first home instead of selling. The 6-year rule ensures you won’t be hit with a massive tax bill when you return.

These are just a couple of the situations in which the six-year CGT exemption could be a life-saver. Since the possibilities are just about endless, we thought it was about time we gave you a detailed guide to the six-year CGT exemption.

In this comprehensive guide, we’ll fill you in on:

The exact mechanics of the 6-year rule
Detailed eligibility criteria
How to calculate potential tax implications
Strategies to maximise your tax efficiency
Common pitfalls to avoid
Practical examples that bring the rule to life

Whether you’re a property investor, a professional in a mobile career, or simply someone planning for life’s uncertainties, this guide will equip you with the knowledge you need to make informed decisions about your most valuable asset—your home.

What Exactly is the 6-Year Rule?

The 6-year rule is a nuanced provision that allows Australian homeowners to maintain their main residence exemption even after moving out and renting their property. It’s essentially a tax concession that recognises the fact that life doesn’t always follow a predicatable path.

The 6-year rule can kick in if you’ve purchased a home, lived in it for a while, but then circumstances require you to move or work elsewhere. Instead of immediately losing your CGT exemption when you decide to rent the property out, the Australian Taxation Office (ATO) gives you a generous window of opportunity to figure out what you want to do long-term.

How Does the 6-Year Rule Work?

After moving out, you can continue treating a property as your main residence for up to six years while earning rental income from it. This means when you eventually sell, you might still qualify for a full or partial main residence exemption.

While you can earn rental income during this period, it’s crucial to understand that the rental income will be taxable, and the property must maintain its potential as a principal residence.

Eligibility Criteria for the 6-Year Main Residence Exemption

Not everyone can take advantage of this tax benefit. There are specific conditions you’ll need to meet:

Prior Residence Status: The property must have been your principal place of residence before you moved out. You can’t apply this rule to a property you’ve never lived in.
Singular Main Residence: During the six-year period, you cannot nominate another property as your main residence. This is a crucial point that catches many property owners by surprise.
Rental Potential: You’re allowed to rent out the property during this period, but it must maintain its status as a potential principal residence.

Limitations of the 6-Year Rule to Keep in Mind

The six-year rule isn’t an unlimited get-out-of-tax-free card. Several important limitations exist:

If you rent the property for more than six years, CGT will apply to the additional time.
The rule doesn’t apply if you were never a resident of the property.
The rule doesn’t come into effect if you don’t actually move out (i.e., It doesn’t apply if you simply rent part of the property out while still living there).
Partial income use of the property (like running a home business) might still attract CGT for that portion.

It’s also crucial to understand that you cannot use this exemption as a permanent tax escape hatch. The six-year period is a carefully designed provision meant to provide flexibility for homeowners facing temporary life changes. It’s not a loophole for long-term tax avoidance.

For this reason, your documentation matters significantly. The ATO will require clear evidence that the property was genuinely your main residence and that your move was temporary.

This means keeping detailed records covering:

Evidence of your connection to the property
Proof of your original residency (electoral roles, drivers license etc matching the address during your period of residing as a principle residence before renting out)
Rental agreements
Documentation of any periods the property was vacant
Your intent to return

Pro tax tip: Vague or incomplete documentation could compromise your tax exemption, turning what seemed like a straightforward situation into a serious tax challenge.

If you’re considering applying for the main residence exemption, it’s worth speaking to one of ITP’s accountants to ensure you have all your bases properly covered. We live and breathe this stuff, so we can help you get the most out of the six-year rule without slipping into dangerous territory.

6-Year Rule Examples: The Main Residence Exemption in Action

Understanding the Capital Gains Tax (CGT) implications when selling your main residence can be extremely complicated. While your primary residence is generally exempt from CGT, the situation becomes more nuanced when the property has been used to generate income, such as through renting.

Adding to the confusion, there are many other factors that can impact your eligibility for the main residence exemption. The easiest way to wrap your head around it all is to take a look at a few real-world examples.

Before we get started, here’s a breakdown of how the exemption works:

Years as Main Residence: These years are typically fully exempt from CGT.
Years Generating Income: These years may be subject to CGT, depending on the circumstances.
Total Ownership Period: This period is crucial for calculating the proportional exemption.

Okay, now let’s see all these rules in action with a few scenarios:

Scenario 1: The Six-Year Rule and Early Termination

Meet David, a construction worker from South Australia:

In 2015, David purchased a property in Adelaide and lived there for the next three years.
In 2018, he relocated for work and rented out the property.
He purchased a new main residence in 2022.
He sold the Adelaide property in 2024.

David can choose to treat the Adelaide property as his main residence for the period he rented it out, up to six years from when he first moved out. However, since he purchased a new property and began living in it in 2022, the Adelaide property will be subject to CGT from 2022 up to the date he sold it in 2024.

David’s story demonstrates that the six-year rule can be ended early by the purchase of a new main residence.

Scenario 2: The Six-Year Rule with Intermittent Income Production

Meet Michelle, a real estate agent from Queensland:

Michelle bought a house in 2010 and lived there until 2017.
From 2017, she rented it out for three years.
She then left it vacant for two years before renting it out again for two years.
At the end of the last tenancy, it remained vacant until she sold it in 2025.

Because the total time the property was used to produce income was less than six years, and the vacant periods do not count towards income generation, Michelle can treat the entire period from 2017-2025 as her main residence for CGT purposes.

As you can see from Michelle’s example, the six-year rule can apply cumulatively across multiple rental periods.

Scenario 3: Resetting the Six-Year Limit

Meet Simon, a small business owner from Western Australia:

Simon purchased a property in 2009 and lived in it until 2014.
He rented it out from 2014 to 2019.
He then moved back in for two years before renting it out again for three years.
In 2025, he sold the property.

For Simon, each period of absence immediately following a period of residing in the house, is entitled to its own six-year CGT exemption. Therefore, because each rental period was less than six years long, Simon can claim the main residence exemption for the entire period.

Scenario 4: What Happens When the Six-Year Limit Is Exceeded?

If a property is used to generate income for more than six years during a single absence, CGT applies to the period exceeding the limit.

To demonstrate this, let’s take a look at Olivia’s situation in the Northern Territory:

In 2013, Olivia bought a remote property and lived in it for two years.
She moved out in 2015 and rented it for 10 years.

CGT will apply to the four years that exceed the six-year limit. The cost base of the property for CGT purposes is the market value at the time it was first used to generate income.

Scenario 5: Income Production Before Moving Out

If part of your home is used to generate income before you cease living in it, that portion is not eligible for the continuing main residence exemption.

Let’s consider Mark’s experience in Victoria:

In 2010, Mark purchased a house in Melbourne and moved in.
From 2012 to 2018, he used 30% of the house as a professional photography studio, while the remaining 70% was his main residence.
In 2018, Mark moved out and rented the entire property.
He sold the property in 2024, realising a capital gain.

The 30% of the property used as a photography studio means that portion will be subject to Capital Gains Tax for the entire ownership period. This means when Mark sells the property, 30% of his capital gain will be taxable.

The big thing to remember from Mark’s story is that using part of your home for business before moving out can have long-term tax consequences, permanently affecting the CGT treatment of that portion of the property. Renting out part of your home whilst living in it may also have the same consequences.

How to Maximise Your Tax Efficiency With The 6-Year Rule

Tactics That Can Help You

These steps can help you the best possible result when using the six-year rule:

Timing is Everything: Consider selling within the six-year window to get the most out of the main residence exemption.
Cost Base Management: Keep detailed records of all property-related expenses. These can be added to your cost base, effectively reducing your capital gain.
Market Value Assessment: Understanding your property’s market value at different points can help strategic decision-making.
Track Everything: Maintain comprehensive documentation of property use and document all periods of personal residence and rental.

Potential Pitfalls to Avoid

Some common mistakes can unexpectedly trigger full CGT. Be careful of the following:

Multiple Residence Claims: Claiming another property as your main residence during the six-year period automatically disqualifies you from the CGT exemption, potentially exposing you to full capital gains tax.
Exceeding the six-year rental window: Going beyond the six-year period means you’ll be liable for CGT on the additional rental years.
Poor Documentation: Without clear records, you may struggle to prove your eligibility for the CGT exemption, leaving you vulnerable to an ATO audit.
Income Generation: This can permanently reduce or eliminate your main residence CGT exemption.
Incorrect Calculations: Simple errors can lead to unexpected tax liabilities or missed opportunities for tax savings.

Pro tax tip: Foreign residents cannot claim the main residence exemption. So if your residency status changes, you might lose the ability to use the six-year rule.

Making the 6-Year Rule Work for You

The ATO’s six-year CGT exemption offers Australians a genuinely helpful way to account for the career changes, relocations, and personal transitions that are commonplace in modern life. It provides flexibility for property owners, giving you the freedom to take on new challenges and opportunities without stressing about the tax implications.

However, this powerful tax strategy comes with equally powerful implications. A single misstep can transform a massive tax advantage into an unexpected financial burden. The risks are significant. Incorrect documentation can invalidate your exemption. Misunderstood rental periods might trigger full capital gains tax. Partial property use can permanently reduce tax benefits.

With so much at stake, professional guidance is essential. A qualified tax professional can help you understand and work within the rules, protecting you from ATO scrutiny and developing strategies specific to your situation.

Contact ITP today, and we can help you get your strategy underway. Our accountants are absolute tax nerds who get ridiculously excited about helping people navigate these rules—we promise to turn this potential tax minefield into a brilliant financial adventure!

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