As tax time approaches, it’s essential to ensure you’re maximizing your entitlements and complying with current regulations. To help guide your conversation with your tax advisor, we’ve outlined some important tax planning opportunities that could be relevant to your situation.
Essential Criteria for Claims
To claim any deductions, the expenses must be:
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Personally paid by you for income-producing purposes
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Not reimbursed
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Supported by valid receipts
1. Home Office Deductions
If you worked from home during the year, you might be eligible to claim a deduction for home office costs. Two calculation methods are available:
Fixed Rate Method
From 1 July 2022, a flat rate of 67 cents per hour can be claimed. This covers:
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Electricity and gas
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Phone and internet usage
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Stationery and computer consumables
Separate deductions for these items aren’t allowed under this method. However, depreciation on home office furniture and equipment can still be claimed.
Requirements:
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Must have worked from home to earn income
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Incurred extra running costs
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Kept records of hours worked and receipts for expenses
Note: As of 1 March 2023, the ATO requires a detailed log of hours worked; general estimates or representative diaries are no longer accepted.
Actual Cost Method
This method allows you to claim the exact work-related portion of your expenses, calculated on a reasonable basis. You must retain detailed records such as a work diary and relevant receipts.
2. Personal Super Contributions
The concessional contributions cap is $30,000 for 2024/25. You may also carry forward unused cap amounts from the past five years, provided your super balance was under $500,000 on 30 June of the prior year.
Making additional contributions within these caps could provide a tax deduction, although the contribution is taxed at 15% (or 30% for high-income earners). A “Notice of Intent to Claim or Vary a Deduction” must be submitted before lodging your tax return or by the end of the following financial year.
High Income Earners
If your income exceeds $250,000, an extra 15% tax applies to concessional contributions, which should be considered before contributing further.
3. Spouse Super Contributions
You could receive a tax offset of up to $540 for contributing to your spouse’s super fund. The offset is 18% of the lesser of:
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$3,000, reduced by $1 for every $1 your spouse’s income exceeds $37,000
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The total amount you contributed
4. Superannuation Co-Contribution
If you earn under $45,400 and make an after-tax super contribution of $1,000, you could receive a government co-contribution of up to $500. This benefit phases out completely once income exceeds $60,400.
5. Study and Training Loan Repayments
HELP, TSL, and similar loans become repayable when your repayment income hits $54,435 for 2024/25. Repayment rates rise with income. Consider making voluntary repayments before 1 June to reduce the balance before indexation applies.
After full repayment, inform your payroll to stop additional withholdings—this boosts your take-home pay sooner.
6. Motor Vehicle Expenses
If you use your personal car for work duties (excluding commuting), deductions may apply.
Cents per Kilometre Method
Claim 88 cents/km, up to 5,000 km.
Logbook Method
Track usage over 12 consecutive weeks to calculate the business-use percentage for ongoing expenses like fuel, insurance, registration, and maintenance.
7. Medicare Levy Surcharge
If your income exceeds $97,000 (single) or $194,000 (family, plus $1,500 for each additional child), and you don’t have suitable hospital cover, a surcharge of 1% to 1.5% may apply.
Check if private health insurance could be more cost-effective than the surcharge. The surcharge is prorated based on the days without coverage.
8. Charitable Donations
You can claim donations over $2 made to Deductible Gift Recipients (DGRs). Note that many crowdfunding campaigns are not eligible. Use the DGR search tool to verify the organisation’s status.
9. Cryptocurrency Transactions
Gains from crypto trading or NFT sales are subject to capital gains tax. The ATO closely monitors digital asset activity and has access to exchange data. Keep thorough records of all transactions to report accurately.
10. PPE for Work
You can claim protective gear such as masks, gloves, and sanitiser if your job involves close contact or cleaning responsibilities. Relevant sectors include healthcare, cleaning, teaching, beauty services, retail, and hospitality.
11. Zone and Overseas Forces Offsets
You might qualify for a zone offset if you live in a remote area for 183+ days. Members of the Australian Defence Force or UN forces stationed overseas in non-exempt income locations may also be eligible for an overseas forces tax offset.
12. Medicare Levy Exemption
You may qualify for a Medicare levy exemption if you:
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Received certain Centrelink payments
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Are a blind pensioner
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Are a foreign resident
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Hold a Veterans’ Gold Card
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Were not entitled to Medicare due to residency status
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Serve in a diplomatic or consular post
13. 2024/25 Income Tax Rates for Residents
| Taxable Income ($) | Tax Rate (%) |
|---|---|
| 0 – 18,200 | 0% |
| 18,201 – 45,000 | 16% |
| 45,001 – 135,000 | 30% |
| 135,001 – 190,000 | 37% |
| 190,001+ | 45% |
A 2% Medicare levy may also apply.
About Tax Visory
Tax Visory offers financial and advisory services across Australia and New Zealand, with over 100 locations. Our local expertise, combined with global reach, empowers communities and individuals to thrive through personalised financial guidance.
Next Steps
To maximise your tax benefits and ensure compliance, consider speaking with a Tax Visory Tax Advisor.
Contact Us
📞 Call: 0434 070 000
🌐 Visit: taxvisory.com.au
