Ten Smart Ways to Boost Tax Deductions Now

Australians looking to maximise this year’s tax return have until midnight on June 30 to take action. Waiting too long or rushing through the process can cause serious issues with the ATO. Experts advise that prepaid expenses, donations and business asset purchases can help boost your refund if done properly and on time.

With the end of financial year just days away, many people are reviewing their finances. The average Australian refund is around $2,500 and there are legal ways to increase this amount. Whether you're a salaried worker, investor or small business owner, there are still steps available to reduce your taxable income. The key is acting before the new financial year begins.

One of the most effective methods is to prepay eligible expenses before June 30. These can include income protection insurance, work-related costs, rental property maintenance or interest on investment loans. These payments may be claimed as deductions this financial year even if the goods or services are received later. However, superannuation contributions made now to most funds won’t count for this year unless you’re contributing to a self-managed fund.

Donations made to registered charities before July 1 are fully deductible and yet many Australians fail to claim them. In some cases, people assume they shouldn’t benefit from giving. As long as the charity is eligible and you have a receipt, the donation can reduce your taxable income.

Work-related expenses cover a broad range of items. Depending on your job, this may include uniforms, tools, mobile phone use, home internet, union fees, overtime meals or even sunscreen. The ATO has published 40 tailored guides for specific occupations to help clarify what is allowable. They are also focusing more closely on incorrect or inflated claims for 2025 so providing accurate records is essential.

Paying for job-related travel now can also be beneficial. If work trips or conferences are booked before the end of June, the costs are deductible even if the travel takes place in the next financial year. Likewise, landlords may prepay for services such as pest control or council rates and bring forward expenses to decrease this year’s taxable income.

Share investors and investment property owners can also benefit by prepaying interest or scheduling repairs before June 30. The ATO recently released updated rental property guidelines so getting the figures right is more important than ever. With more than 2 million Australians owning investment properties, there is little room for error.

For small businesses, this is the final opportunity to clear out outdated stock, invest in business tools or write off bad debts. The timing is crucial. Debts must have been previously recorded as income and write-offs must be documented. The widely discussed $20,000 instant asset write-off for small business purchases remains uncertain beyond this month, adding extra pressure when planning major buys.

Sole traders including content creators and performers may be surprised by what they can claim. If expenses relate directly to earning income, items like acting classes, props or specialised tools may be eligible for deductions as long as proper records and advice support the claim.

Although acting now can lead to higher returns, the ATO warns against filing too soon. Last year, more than 140,000 taxpayers needed to amend their returns due to missing or incorrect information. By waiting until late July, pre-filled data such as income statements will usually be available and could reduce the risk of errors, audits or lost deductions.

Source: The Australian, Carbon Group, KPG Taxation