30-07-2025
ATO warning as common mistake costs Aussies $7 billion: ‘No chance'
Australians have started lodging their tax returns for the 2025 financial year and some have been left disappointed with their refunds, or lack thereof. While you might not be able to change the result of your return, there are some ways to set yourself up for the upcoming year and potentially pay less tax.
H&R Block director of tax communications Mark Chapman told Yahoo Finance the biggest thing Aussies should be doing now is getting into the habit of keeping good records. Lost receipts are estimated to cost Aussies around $7 billion in unclaimed tax deductions each year, Intuit QuickBooks research found, or around $341 each.
'If you think you can claim it, or even if you're not sure, keep the invoice or receipt. If you lose it or throw it out now, you have no chance of making the claim in your tax return this time next year,' Chapman said.
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Chapman urged Aussies to file their invoices and receipts properly and use technology to their advantage.
'Take a photo of each one with your smartphone and store them safely online. Modern paper invoices and receipts fade fast, so by next July that taxi receipt you kept could be just a blank slip of paper,' he said.
The ATO app has a myDeductions tool you can use to keep your records in one place, while H&R Block's Receipts Hub app is another option.'There are lots of apps on the market which allow you to record tax-deductible expenses as you go and even store the receipts,' Chapman said.
'Using an app will reduce stress next tax time and may well reduce the fee you have to pay to your accountant.'
The federal government has promised to introduce a $1,000 instant tax deduction from the 2026-2027 financial year with no receipts needed. But this is not yet law and won't apply to this current financial year.
Common tax deductions Aussies can claim
Chapman said it was important to keep documents like payslips, receipts for work-related expenses, bank statements, logbook entries and summaries of payments throughout the year.
'If you have spent money on something as part of your work, and you have the paperwork to prove it, claim it,' he said.
"You can only claim what you've spent. So don't inflate deductions in order to get a bigger refund and only claim for costs you can prove you spent by producing an invoice, receipt or bank statement."
Here are some common deductions you may be able to claim:
Costs of using your own car for work, not including driving to and from work
Costs of travelling for work if you are required to work away from home, such as spending money on meals and accommodation
Costs of tools and other equipment, such as tools for tradies, a laptop for an office worker or a handbag or briefcase to carry work papers. Items costing $300 or less will be deductible immediately, while those over $300 will be deductible over several years
You'll need to save your documents and receipts for the full five years required by the ATO.
