Wondering What You Need for Your 2025 Tax Return? We Break it Down.
Tax time doesn’t have to be a headache. If you’re feeling overwhelmed by paperwork or unsure what you can actually claim, don’t worry. You’re not alone, and we’ve got your back.
After helping thousands of Australians through tax season over the past fifty years plus, we’ve seen every scenario imaginable: The FIFO worker unsure about travel deductions, the new parent discovering childcare rebates for the first time, the small business owner who forgot to track home office expenses, and the cryptocurrency trader learning their digital assets aren’t invisible to the ATO.
Getting your 2024-25 tax return right isn’t just about avoiding penalties (though the ATO issued over 2.1 million penalty notices in the last financial year). It’s about claiming every legitimate deduction you’re entitled to and maximising your refund potential.
The landscape has changed significantly this year. With inflation hitting household budgets hard, the ATO has tightened scrutiny on work-from-home claims, cryptocurrency transactions, and cash economy participants. Meanwhile, new deductions have emerged around electric vehicle expenses and renewable energy investments.
Whether you’re a wage earner with straightforward PAYG income, a freelancer juggling side gigs, or someone dealing with complex investment structures, preparation is your best friend. This comprehensive guide walks you through every document category, common pitfalls we see in our practice, and insider tips that can save you both time and money.
From essential receipts to records most people forget, we’ll make sure you don’t leave money on the table this tax season. Need help along the way? Book a consultation with your nearest ITP office — our experienced tax agents will walk you through it all.
What You Need for Your Tax Return: Essential Personal Information
Here’s where most people think they’re safe. After all, how hard can personal details be? Yet our experience shows that outdated or incorrect personal information causes more refund delays than almost any other factor.
Your Tax File Number (TFN) is your unique identifier in the ATO system. We’ve had clients wait six weeks for TFN processing, completely missing early refund opportunities. Banking details seem straightforward until you realise your account was closed or changed — the ATO can’t send refunds to closed accounts, adding 2-3 weeks to processing times.
Address changes are more critical than most people realise. If you’ve moved during 2024-25, the ATO needs your address history for Medicare levy calculations.
Medicare and health insurance documentation directly impacts your bottom line. For couples with combined income exceeding $194,000 (2024-25 threshold), you’ll face Medicare levy surcharge unless you have appropriate private hospital cover. We’ve seen families pay thousands unnecessarily because they couldn’t provide their health fund policy numbers.
Essential details to verify:
- Tax File Number and Medicare card details
- Current bank account information (BSB and account number)
- Complete address history for the financial year
- Private health insurance policy numbers and coverage dates
- Spouse income and dependent information for family offsets
- •Previous year information for carrying forward losses or credits
Pro Tax Tip: Create a simple spreadsheet with all family members’ key details and update it annually. This five-minute investment saves hours during tax time and prevents costly errors that trigger ATO reviews.
Income Documentation: Beyond the Obvious
Income reporting has become significantly more complex in the digital economy era. While the ATO’s Single Touch Payroll system captures most employment income automatically, our experience shows that many taxpayers who rely solely on pre-filled data still miss numerous income sources.
Remember: Employment income goes beyond your main job. We regularly find clients with multiple employers whose income statements don’t align with actual earnings. One recent case involved a healthcare worker with three hospital contracts — the ATO pre-fill only captured two, creating a $4,200 discrepancy. Don’t forget overtime shifts, Christmas bonuses, or salary sacrifice arrangements that affect reportable fringe benefits.
Investment and rental income catches many off-guard. That $50 in savings interest is still reportable, as are dividend statements and rental property records. Cryptocurrency gains have become particularly scrutinised — the ATO now receives data directly from major exchanges like Coinbase and Binance, so trying to save on tax by not declaring these earnings can get you into big trouble with the taxman.
Did You Know: Side hustle and gig economy earnings represent the fastest-growing missed income category. Uber driving, Airbnb hosting, freelance work, tutoring — all reportable regardless of the amount.
Essential documents to gather:
- All employer income statements and payment summaries
- Centrelink statements (JobSeeker, Family Tax Benefit, etc.)
- Bank statements showing interest earned
- Share dividend and managed fund distribution statements
- Rental property income and expense records
- Cryptocurrency transaction records and exchange statements
- Foreign income documentation for Australian tax residents
Deductible Expenses and Supporting Documents
This is where your tax refund gets genuinely exciting (or is it just us?) — and where our experience helping thousands of clients really pays off. The more eligible expenses you can prove with proper documentation, the more your taxable income is reduced. We’ve seen clients increase their refunds by $2,000-$5,000 simply by claiming legitimate deductions they didn’t know existed.
Work-related expenses remain the biggest opportunity most people miss. These include costs directly related to earning your income — uniforms, tools, safety gear, professional development, and home office setups.
Self-education costs are particularly valuable in today’s upskilling economy. Course fees, textbooks, stationery, and study-related technology can all be claimed — provided the education relates to your current role, not a career change.
Investment expenses catch many by surprise. Bank fees, investment advice costs, property management fees, and interest on investment loans are all potentially deductible. A recent client with a modest share portfolio saved $340 by claiming previously ignored brokerage fees and financial planning advice.
Other often-missed deductions include:
- Income protection insurance premiums
- Union and professional membership fees
- Charity donations over $2 (to registered DGRs)
- Tax agent fees from previous years
Documentation requirements: Clear, dated receipts with GST details where applicable. Digital records are perfectly acceptable — just ensure they’re backed up and legible.
Record-Keeping Requirements: Your Audit Insurance
After many decades in tax practice, we can tell you that good record-keeping isn’t just ATO compliance — it’s your insurance policy against audit stress and your key to maximising legitimate claims. Loads of our clients put off doing their taxes and face ATO penalties just because they either don’t understand what they need to lodge their tax returns, or are worried about being audited. That’s why we always advise using a credible tax professional like those at ITP. We will not only ensure you get the maximum refund, but we’ll ensure you against unnecessary audits or penalties.
Retention Periods (or ‘How Long Do I Have to Keep My Receipts?’): That’s five years from lodgement date for most records. This isn’t a suggestion — it’s the law. We’ve seen clients face significant penalties because they couldn’t substantiate claims from three years prior.
Essential records vary by claim type, but here’s what we see trip people up most:
Car logbooks must cover at least 12 continuous weeks of representative travel. A client recently lost $4,800 in car expense claims because their logbook only covered holiday periods, not typical work patterns.
Home office documentation requires detailed work diaries showing hours, tasks, and space usage. With remote work deductions under increased ATO scrutiny, incomplete diaries now trigger automatic reviews.
Investment property records need comprehensive income and expense tracking. Rental statements, maintenance receipts, property management fees, and loan interest statements all require systematic filing.
Digital record keeping has revolutionised compliance. Clear, legible digital copies are fully acceptable, but they must be properly backed up. We recommend cloud storage with regular backups — too many clients have lost years of records to hard drive failures.
Practical Systems That Work: Monthly expense scanning sessions, dedicated tax folders (physical or digital), and expense tracking apps like Receipt Bank or simply your phone’s camera for immediate capture.
Red Flags: Clients with poor record-keeping face audit rates 300% higher than organised taxpayers. The ATO’s data analytics can identify inconsistent claiming patterns, making documentation your first line of defence.
Professional insight: Invest 30 minutes monthly in record organisation. It’s cheaper than audit penalties and more profitable than missed deductions.
Lodgement Deadlines and Methods: Choose Your Path Wisely
Your 2024-25 tax return deadline runs from July 1, 2025, to October 31, 2025 — but timing and method choice can significantly impact your outcome.
You can lodge online for straightforward situations: Single employer, minimal deductions, no investment income. It’s free and fast, with refunds typically processed within two weeks. However, our experience shows DIY lodgers often miss hundreds, if not thousands of dollars, in legitimate deductions annually.
Using a registered tax agent provides multiple advantages beyond expertise. Our clients gain handy deadline extensions (often to May 2026 or beyond), professional audit support, and access to deductions many miss independently.
Paper lodgement remains available but offers no advantages — processing takes 6-10 weeks longer, with higher error rates and no digital integration benefits.
Strategic Timing Considerations: Early lodgement (July-August) ensures faster refund processing when ATO systems aren’t overloaded. However, rushing without proper documentation review often results in missed opportunities or errors requiring amendments. Don’t rush it if you aren’t ready. Speak with your ITP professional and be sure you’ve got everything you need first.
Ready to Make Tax Time Easy? Your Next Steps
Lodging your tax return doesn’t have to be the annual stress marathon that keeps you up at night, frantically searching for receipts and second-guessing every claim. With proper documentation, strategic planning, and professional expertise, you can transform tax time from a dreaded chore into a refund-maximising opportunity.
Book a consultation with one of ITP’s registered tax agents. We’ll review your situation, identify optimisation opportunities, and ensure your return is prepared accurately and strategically.