Your Tax Return Checklist: How to Maximise Your Refund

Feeling a bit overwhelmed by all the paperwork? You’re not alone. When tax time rolls around each year, it’s easy to feel like you’re drowning in a sea of receipts, statements, and confusing jargon from the ATO. But it doesn’t have to be a massive headache.

Truth is, a little bit of prep work goes a long way. Getting organised now not only saves you a heap of stress but also puts you in the best position to legally maximise your refund. Think of this as your ultimate, no-nonsense checklist to get you sorted for the 2025 Australian tax return. Let’s get stuck in and make sure you’re not leaving any of your hard-earned cash on the table.

The Basics: Your Personal Details Checklist

Before we even think about income or deductions, let’s get the absolute essentials out of the way. Having this info handy from the get-go will make the whole process a lot smoother. It’s like gathering your ingredients before you start cooking – it just makes sense.

Core Information

Make sure you have these details ready. It’s the bare minimum you’ll need, whether you’re lodging yourself or using an agent.

• Your Tax File Number (TFN): This one’s a no-brainer, but you’d be surprised how many people have to scramble to find it.
• Your myGov login details: If you’re lodging online, this is your key to the castle.
• Your bank account details (BSB and account number): The ATO needs to know where to send your refund! Double-check these to avoid any delays.

Dependants and Spouse Details

Are you married, in a de facto relationship, or have kids? You’ll need their details, too. This includes your spouse’s estimated income for the financial year, which is crucial for working out things like your Medicare levy surcharge and eligibility for certain tax offsets.

Step 1: Tallying Up Your Income

Right, now for the money part. You need to declare all the income you’ve earned from 1 July to 30 June. The ATO is pretty switched on these days with its data-matching technology, so they likely have a fair idea of your income already. But the responsibility to declare it all correctly is still yours.

Employment Income

For most of us, this is the biggest chunk. Your employer reports your salary or wages directly to the ATO. This information is found on your “income statement” in your myGov account (these replaced the old paper “group certificates”). This includes any bonuses, allowances, or lump sum payments you received.

Government Payments

Did you receive any support from Centrelink? Payments like JobSeeker, Austudy, or the age pension are generally considered taxable income and must be included in your return. Centrelink will provide you with a payment summary to make this easier.

Investment Income and Expenses

This is where it can get a bit more complex. Your investment income includes:

• Interest: Even a few dollars from your savings account needs to be declared. Most banks report this to the ATO, but it’s good to check your statements.
• Dividends: If you own shares, you’ll need to report the dividend income. Don’t forget to include any franking credits.
• Rental Income: If you’re a landlord, all rental income must be declared. On the flip side, you can also claim a wide range of expenses. If you have a rental, it’s often a smart move to chat with an investment property accountant to ensure you’re claiming everything correctly.

Capital Gains or Losses

This is a big one that’s often overlooked. Did you sell any assets during the year? A Capital Gains Tax (CGT) event happens when you sell things like shares, cryptocurrency, or an investment property. You need to report any profit (capital gain) or loss. Keeping detailed records of purchase and sale prices is essential here.

Heads up: Even a few dollars in interest from your savings account needs to be declared! The ATO gets this data directly from the banks, so there’s no hiding it.

Sole Trader & Gig Economy Income

More and more Aussies have a side hustle these days, whether it’s freelancing, driving for a rideshare service, or selling goods online. If you’re earning money this way, you need an Australian Business Number (ABN) and you must declare all of that income. Good record-keeping here is absolutely critical.

Step 2: The Fun Bit! Claiming Deductions to Boost Your Refund

This is where you get to claw some money back. The golden rule for deductions is simple, and the ATO drills it down to three key points:

1. You must have spent the money yourself and weren’t reimbursed.
2. The expense must be directly related to earning your income.
3. You must have a record (like a receipt) to prove it.

Work-Related Expenses (The Big Ones)

This is the largest category for most people. Let’s break down the common claims:

• Vehicle and travel expenses: This doesn’t include your normal trip from home to work. But if you use your car for work-related travel, like driving between job sites or visiting clients, you can claim it. You’ll need to use either the cents per kilometre method or a logbook.
• Clothing and laundry: You can’t claim a standard office suit, but you can claim costs for a compulsory uniform, or protective clothing specific to your job (like steel-capped boots).
• Tools and equipment: If you buy items for work, like a laptop for an office worker, you can claim the cost. For items over $300, you’ll claim the depreciation over time.

Working From Home (WFH) Deductions

Since 2020, this has become a huge area for claims. For the 2025 tax year, you can generally use two methods:

Feature	Revised Fixed Rate Method	Actual Cost Method
What’s Included	Set rate per hour covering electricity, gas, internet, phone usage, and stationery.	The work-related portion of all your actual home office running expenses.
Record Keeping	A record of total hours worked from home (e.g., a timesheet or diary).	Detailed records and receipts for all expenses, plus a diary of hours worked from home.
Best For	Simplicity and convenience.	Those with high running costs who are diligent record-keepers.

Self-Education Expenses

If you’ve undertaken a course or study that has a direct link to your current job, you can claim the expenses. This includes course fees, textbooks, and stationery.

Other Common Deductions

• Donations: If you’ve donated $2 or more to a registered charity, you can claim it.
• Income Protection Insurance: The premiums you pay are usually tax-deductible.
• Cost of Managing Tax Affairs: Yes, the fee you paid your tax agent last year is deductible this year!

Let’s see a practical example: Imagine Chloe, a graphic designer working from home in Melbourne. For her return, she gathers her income statement, the interest from her savings, and income from a small freelance job. For deductions, she calculates her WFH expenses using the fixed rate method, claims the cost of her new Adobe software subscription (tools/equipment), and the fee for an online specialisation course (self-education). By organising everything this way, Chloe ensures she doesn’t miss a single deduction she’s entitled to.

Step 3: Records, Records, Records!

The ATO’s mantra is “no proof, no claim.” Keeping good records is non-negotiable. The easiest way is to go digital. You need to keep records for at least five years after lodging.

• Use the myDeductions tool: The ATO’s app is free and built for this. Snap a photo of the receipt and log the expense on the spot.
• Create an email folder: Have a dedicated folder in your email for all digital invoices and receipts.
• Take photos of paper receipts: Paper fades, but a digital photo lasts. Save it to a dedicated folder in the cloud (like Google Drive or Dropbox).

Common Tax Time Mistakes (And How to Avoid Them)

Even the most organised person can slip up. Here are a few common mistakes to watch out for:

• Forgetting side hustle income: All income, no matter how small, needs to be declared.
• Claiming 100% of an expense that’s also for personal use: You must correctly apportion costs for things like your mobile phone or internet if you also use them privately.
• Relying solely on pre-filled data: The data from the ATO is a great starting point, but it can be incomplete. It’s your responsibility to check it and add anything that’s missing.
• Missing the deadline: Lodging late without a good reason can result in penalties.

Step 4: How to Lodge Your Return

You’ve got everything organised. Now, how do you actually get it to the ATO? You have two main options.

Lodging Online with myTax

This is the ATO’s free online portal, accessed via myGov. It’s a great option for people with straightforward tax affairs. A lot of your information will be pre-filled, but it’s on you to check it’s correct and add all your deductions.

Using a Registered Tax Agent

If your situation is complex—you’re a sole trader, have a rental property, or just aren’t confident—using a tax agent is a wise move. They know the tax laws inside and out and can help you claim deductions you might not have known about. The fee is deductible, and they can often get you an extension. When looking, search for professional tax agent services to ensure they are registered and qualified.

The Final Check: Before You Hit ‘Submit’

You’re on the home stretch! Before you lodge, run through this final checklist:

• [ ] Have you included all your income sources (including capital gains)?
• [ ] Have you double-checked your bank account details?
• [ ] Have you claimed all the deductions you’re entitled to?
• [ ] Do you have records to back up all your claims?

Conclusion: You’re All Set for a Smooth Tax Time!

And there you have it. By following this checklist, you’ve turned a potentially daunting task into a manageable process. The key is organisation. When you know what you need and have it all in one place, you can approach tax time with confidence, ready to claim every dollar you deserve.

If you end up with a decent refund, don’t just let it sit there. It could be a fantastic opportunity to pay down debt, boost your super, or start an investment. If you’re not sure what to do, having a chat with a financial advisor could be one of the smartest money moves you make all year.

Frequently Asked Questions (FAQ)

1. What’s the deadline for lodging my 2025 tax return in Australia?

If you’re lodging your own tax return, the deadline is typically 31 October. If you use a registered tax agent, they usually have a later deadline, but you need to be on their books before 31 October.

2. How long does it take to get my tax refund back from the ATO?

If you lodge online, the ATO aims to process returns within two weeks (14 days). However, it can sometimes take up to 30 days, especially if they need to check any details.

3. I’ve lost some receipts. Can I still claim a deduction?

It’s tricky. The ATO requires you to have proof. However, for small work-related expenses, you may be able to claim a total of up to $300 without receipts, provided the claims are legitimate. For laundry expenses, you can claim up to $150 without written evidence. It’s always best to have the receipts, though.