Tax Time 2025: Are You Ready to Lodge Your Return?

While the ATO began accepting lodgments from 1 July 2025, most pre-fill data—such as income statements from employers, interest from banks, and government payments—won’t be finalised until late July or even later. Lodging too early can lead to processing delays or the need to amend your return. Waiting until your data is pre-filled can help ensure a smoother, more accurate experience.

What You Need to Declare

When it’s time to lodge—whether you’re submitting your own return or preparing documents for your tax agent—you must include all sources of income. This includes:

• Salary and wages
• Government payments
• Rental income
• Bank interest
• Share dividends
• Gig economy earnings
• Cryptocurrency transactions

These newer income streams are still a focus for the ATO, so reporting them accurately is crucial. If you’ve sold shares, property, or crypto assets, you’ll also need to report any capital gains or losses. Some of this data may appear in your pre-fill, but it’s still your responsibility to keep records and report correctly.

What You Can Claim

To get your return right, it’s important to understand which deductions you’re eligible for.

If you work from home, the ATO’s 67 cents per hour fixed rate method remains available in 2025. This shortcut method covers costs for energy, phone, internet, and office supplies—as long as your employer hasn’t reimbursed you. To claim it, you’ll need to keep evidence of your working hours (such as timesheets or a work log).

Alternatively, you can claim actual expenses, but you’ll need detailed records and receipts to support your claims.

Other common deductions may include:

• Work-related vehicle and travel costs
• Self-education or training expenses
• Uniforms and protective clothing
• Interest and fees on certain investments

If you own a rental property, you may be able to claim for maintenance, depreciation, loan interest, and property management fees. However, the ATO has again flagged over-claiming and private use of rental properties as key audit risks in 2025.

ATO Focus Areas for 2025

Each year, the ATO highlights areas of increased scrutiny. In 2025, the key focus areas include:

• Rental property deductions, particularly overstated repair costs or depreciation
• Work-from-home claims, especially where evidence of hours worked is insufficient
• Gig economy and side hustle income
• Capital gains, particularly from cryptocurrency and share trading

Refund or Tax Bill?

If you’re expecting a refund, lodging after your data is fully pre-filled can reduce the risk of errors and delays.

On the other hand, if you anticipate a tax bill—due to investment gains, business income, or unpaid HECS/HELP debt—the ATO offers payment plans via its online services.

Be aware: From 1 July 2025, interest on ATO debts is no longer tax deductible, so deferring payment may cost more in the long run.

What to Do Now

Before you lodge, make sure you have all your necessary documentation:

• Income statements
• Bank and investment records
• Receipts and invoices
• Rental property summaries
• Work-related deduction logs

Remember to keep all records for at least five years.

By preparing carefully, verifying your pre-fill data, and knowing what you’re entitled to claim, you’ll be in a strong position to lodge your return with confidence this tax season.