Record-keeping pays: Experts say detailed receipts and logs can boost deductions, while poor documentation risks missed claims and ATO attention.
Super deadline looms: Australians have until late June to make extra super contributions that could significantly cut their tax bill and grow retirement savings.
Travel claim traps: Misunderstanding work-related travel rules or using the wrong car expense method can lead to reduced claims or compliance issues.
ATO and experts sound alarm on ‘lazy tax’ ahead of EOFY
Finance experts Adrian Raftery and Mark Chapman have warned that taxpayers who fail to keep receipts, rely solely on pre-filled ATO data, or leave lodgement to the last minute risk losing legitimate deductions. Shortcuts like the fixed-rate home office method may leave extra potential unclaimed, while gig workers, investors and those on the ATO’s annual ‘hit list’ are urged to maintain meticulous records. They also caution that attempting to deceive the ATO can result in severe penalties, including fines of up to 75% of any shortfall or $19,800 if no shortfall exists.
Why this matters for millions of Australian taxpayers
Tax experts emphasise that meeting the 31 October deadline is critical to avoid fines, and lodging too early can risk missing key pre-fill data, leading to amendments. The ATO advises following three rules for deductions: the expense must be personally incurred without reimbursement, directly related to income, and supported by proof. Taxpayers are warned against relying on unregistered advisers, social media ‘finfluencers’, or AI-generated tax tips, and instead should use registered agents or verified ATO resources.
Superannuation deadline could mean thousands in savings
Australians have until late June to make extra concessional super contributions taxed at 15%, potentially saving higher-income earners a substantial amount compared to their marginal rate. The concessional cap is $30,000, including employer contributions, with catch-up rules available for balances under $500,000. Experts warn contributions must reach the fund by cut-off dates—some as early as 22 June—to count for this year, and low-income earners may benefit from government co-contributions or spouse contribution offsets.
Common pitfalls: motor vehicle and travel deductions
Motor vehicle and travel deductions remain a common source of ATO scrutiny, with errors including claiming home-to-work travel or estimating kilometres without records. Taxpayers can use the cents-per-kilometre method (88c/km up to 5,000km) for simplicity, or the logbook method for potentially larger claims if business use is high. Other deductible travel costs include parking, tolls and work-related public transport, but all require clear documentation to withstand ATO checks.
Tips for claiming travel deductions
• Cents-per-kilometre method allows 88c/km up to 5,000km, covering all vehicle running costs.
• Logbook method calculates actual costs and applies business-use percentage, requires 12-week records.
• Parking fees, tolls, airfares, accommodation, taxis, and public transport may also be deductible.
• Compare methods to maximise deductions based on kilometres travelled and vehicle operating costs.