As the end of the financial year (EOFY) approaches, it’s time to start organising your paperwork and exploring ways to help minimise your tax liability.
We spoke with Dr Adrian Raftery, principal of Mr Taxman and author of ‘101 Ways to Save Money on Your Tax – Legally!’, to uncover potential tax deductions that you could benefit from, and if you’re eligible, how to claim them to help boost your tax refund (or minimise your tax liability) this year.
1. Recoup home office operating expenses and equipment upgrades.
“Many office professionals working from home at least one or two days a week are unaware of just how much money they can claim in deductions for expenses incurred while working remotely,” says Dr Raftery.
“There are two methods. The first being the Fixed Rate Method, which allows you to claim 67 cents per hour worked from home. This covers expenses such as electricity, gas, phone usage, internet, stationery, and computer consumables.”
“The second is the Actual Cost Method, which allows you to claim the actual expenses you’ve incurred as a result of working from home, including the depreciation of home office furniture and equipment.”
2.Work-related courses and training.
Professional development can be tax-deductible if there is a direct relationship to your current employment.
“If you’ve attended conferences, workshops, seminars, and other professional development activities, you can claim the cost to attend as a tax deduction. To be eligible, you’ll need to have spent the money yourself, not been reimbursed, and have a record to prove it, such as a receipt,” says Dr Raftery.
3.Make extra super contributions with a top-up.
Regardless of your income level, investing in your superannuation is a great tax reduction tool.
“Contribute up to $30,000 per financial year into super and you’ll be taxed at 15 percent, which is significantly lower than the marginal tax rate,” says Dr Raftery.
“If your super balance was under $500,000 as of 1 July 2024, you can carry forward up to $132,500 in unused amounts from your annual concessional allocation over the five previous financial years ($25,000 cap in the 2019/20 & 2020/21 years & $27,500 in the 2021/22, 2022/23 & 2023/24 years) and make a higher contribution this year.”
“Additionally, if you’re a low to middle-income earner (less than $60,400) and make after-tax super contribution of up to $500, you may also be eligible for a matching co-contribution from the government.”
4.Upgrade your workplace equipment to keep your business moving.
According to Dr Raftery, poor quality or ageing digital equipment is now seen as unprofessional given technological advances and the affordability of devices.
“Smart business professionals are continually reviewing the lifecycle of their digital and general office equipment to ensure employees remain productive and empowered in their daily work,” says Dr Raftery.
“EOFY is the perfect time to review and invest in technology such as noise-cancelling headphones for meetings, larger desktop monitors, or even workplace furniture such as ergonomic chairs. Even kitchen supplies shouldn’t be forgotten, such as coffee machines, which can make a big difference to your return.”
5.Other work-related expenses.
There are several work-related expenses that may qualify as tax-deductible, depending on your job and individual situation.
According to Dr Raftery “These expenses often go unacknowledged as they are not considered significant. Some examples include union fees, subscriptions for work-related purposes, and food purchased during overtime work. It’s important to note that if you pay your fees or subscriptions in advance for the upcoming tax year before 30 June 2025, you can claim the deduction this year.”
6.Lodge your tax return with a tax professional.
Did you know that you could receive a tax deduction if you paid a tax professional to complete your previous year’s tax return?
“It’s always a good idea to seek the right advice from a registered tax professional when organising your affairs. Make sure to claim any tax accounting or advice from the previous year to maximise your EOFY benefits,” advises Dr Raftery.
Shop our EOFY sale and browse our extensive selection of office supplies, technology, and furniture.
Disclaimer: This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.
