Tax time is just around the corner, and while some of us might be looking forward to a tidy little refund, others could be in for a nasty surprise—especially if we fall into some of the most common traps that catch out Aussies every single year.

The Australian Taxation Office (ATO) is sharpening its pencils, and experts warn that a few simple mistakes could cost you hundreds, or even an extra $1,000, on your return.

Let’s break down the biggest tax return blunders, how to avoid them, and how you can make sure you’re getting every cent you’re entitled to.


It’s tempting to get your tax return in as soon as July 1 hits—after all, who doesn’t want their refund ASAP?

But according to Belinda Raso, director at Tax Invest Accounting, rushing is one of the biggest mistakes people make.


When you file too early, you might not have all your information ready, or you could miss out on deductions you’re entitled to.

The ATO often pre-fills your data (like bank interest, dividends, and private health insurance details) a few weeks into July, so waiting until late July or early August can help you avoid errors and maximise your refund.

With more Aussies working from home—either full-time or in a hybrid arrangement—work-from-home deductions are more important than ever.


But many people are missing out on hundreds of dollars by not understanding the two primary methods:

The Fixed Rate Method allows you to claim 67 cents per hour worked from home, covering costs like electricity, internet, phone, stationery, and some consumables (though rates can change, so it’s best to check the ATO website).

The Actual Cost Method involves more record-keeping but may offer a larger deduction as you calculate the exact additional costs you’ve incurred, including a share of your electricity and internet bills, as well as depreciation on office equipment.

Here’s the kicker: If you use the fixed rate method, you can still claim separate deductions for items it doesn’t cover—like computers, office chairs, printers, and other equipment. Many people forget this and lose out!

The Medicare Levy Surcharge can be a confusing beast, especially for single parents.

The threshold for the 2024-25 financial year is $97,001 for singles and $194,001 for families. But here’s where people trip up: If you’re a single parent, you’re actually classified as a 'family' for this purpose—even if your child doesn’t live with you full-time.

Misunderstanding this can result in an unnecessary $1,000 payment. If you’ve made a mistake, don’t panic—you can amend your return within two years of your notice of assessment.

If you receive a motor vehicle allowance, laundry allowance, or mobile phone allowance from your employer, it’s crucial to know the difference between an allowance and a reimbursement.

If your employer reimburses you for actual expenses (like handing in a fuel receipt), you can’t claim a deduction.

But if you’re paid an allowance (like a cents-per-kilometre payment), it’s taxable income—and you should claim the related expenses as a deduction.

Otherwise, you’re paying tax on money you spent for work!

Many people think they can’t claim a deduction for items used for both work and personal purposes—like a laptop or mobile phone. But you can! Just work out the percentage of time you use the item for work versus personal use and claim that portion.


For example, if you use your laptop 60 per cent for work and 40 per cent for personal, you can claim 60 per cent of the cost (or depreciation, if it’s over $300).

Use your car for work (not including commuting to and from your regular workplace).

You can claim expenses using either the cents-per-kilometre method (up to 5,000 business kilometres per year) or the logbook method (for more than 5,000 km).

The logbook method can give you a bigger deduction, but you need a valid logbook covering 12 continuous weeks in the financial year you’re claiming.

If you haven’t started your logbook yet, unfortunately, it’s too late for this year—but make a note for next year!

Bonus Tips for Seniors:

Medical Expenses: While the net medical expenses tax offset has been phased out, some specific medical expenses (like disability aids or aged care) may still be claimable. Check the ATO website or speak to your tax agent.
Superannuation Contributions: If you’ve made after-tax contributions to your super, you may be able to claim a deduction—just make sure you lodge a notice of intent with your super fund first.
Private Health Insurance: Make sure your details are up to date to avoid unnecessary surcharges or missed rebates.

If you make a mistake, don’t stress! You can amend your tax return online, through your tax agent, or by contacting the ATO.

You have up to two years (less than one day) from the date of your notice of assessment to make changes.

Tax time doesn’t have to be stressful or costly. By taking your time, double-checking your details, and understanding what you can (and can’t) claim, you can make sure you’re getting every dollar you deserve.

And if you’re ever unsure, it’s worth speaking to a registered tax agent—they can often save you more than their fee!


Have you ever made a tax time mistake or found a sneaky deduction you didn’t know about? Share your stories, tips, or questions in the comments below.

Read more: From Swimwear to $58,000 Weddings: Inside the ATO’s Outrageous Tax Deduction Hall of Shame