Your 2025 Guide to Maximising Individual Tax Deductions

Individuals – key tax deductions and considerations for 2025!

Work From Home Expenses 

The two methods to claim working from home expenses remain this year. See below for more information.

Actual Cost Method

Covers:

  • data and internet
  • mobile and home phone usage
  • electricity and gas
  • computer consumables (e.g. printer ink)
  • stationery
  • the decline in value of assets used while working from home, such as computers and office furniture, as well as any maintenance and repairs of these items
  • cleaning (only if you have a dedicated home office)

Please note the above requires detailed notes on how they relate to your working from home. I.e. calculating unit costs of electricity, calculating square meterage of your home office as a proportion of your home, etc.

 

Fixed Rate (Now 67 cents)

Covers:

  • data and internet
  • mobile and home phone usage
  • electricity and gas
  • computer consumables (e.g. printer ink)
  • stationery

You can claim a separate deduction for the other items listed under the actual cost method.

To claim this, you will need to keep a record of all the hours worked (e.g. a timesheet, diary, etc.) and evidence that you paid for the expenses covered.

 

Motor Vehicle Expenses  

See below for the two methods available.

Cents per kilometre method

  • 88 cents per kilometre for the 2025 financial year
  • Maximum of 5,000kms can be claimed per car
  • Diary or work trip logs can be used to estimate total kms

Logbook method

  • Claim based on the work-related portion of actual expenses
    for the car
  • Valid logbook required, for a minimum 12 consecutive week period
  • Actual costs of repairs / servicing, registration, insurance etc. are required
  • Fuel costs can be estimated using total kms travelled

We find for those who have a higher than 40% business use of their car, the logbook method, whilst more record keeping, is often more advantageous.

 

Work Related Travel Expenses – Ubers, taxis, flights, parking, tolls. Note these require evidence of business use and receipts.

 

Uniform/Occupation-specific clothing – Do you have any protective, compulsory, non-compulsory or occupation specific clothing?

 

Self-education Expenses – Course fees, student union fees, textbooks, stationery that relate to your income earning capacity.

Please note that some courses paid through HELP loans may still be claimable if they relate to your current employment.

 

Other Work Expenses

  • Seminars and Training
  • Memberships, subscriptions, Union fees, Licence Fees

 

Donations – Only donations to a deductible gift recipient are deductible

 

Investment Deductions – E.g. interest charged on money borrowed to buy shares

 

Accounting Fees, Income Protection and Wealth Fees  – Please note, if your Income Protection Insurance is paid out from your superannuation, it will not be personally deductible

 

Personal superannuation – You may wish to make contributions to catch up on super under the rules that allow you to carry forward unused contributions (the current year cap for deductible contributions is $30k – it is important to note this includes employer contributions). You can carry forward any unused cap up to five years.

Important note: if you make any personal concessional contributions, for them to be an allowable deduction a notice of intent to claim form must be submitted with the superfund before lodgment of the tax return or end of the following financial year, whichever is earliest.

 

Voluntary Higher Education Loan Program (HELP) Repayments – With the pending anticipated 20% reduction in HELP loan balances expected to be applied on 1 June it could be more beneficial to make any anticipated voluntary repayments to HECS after this date as the repayment will go further off a lower loan base.

 

Each client will have their own considerations and structures, the above is a general guide only and not personal advice. If required please seek tailored advice for your specific situation before 30 June.