How to Maximise Your 2025 Income Tax Return
Practical tips from a CPA to get the most out of your 2025 Australian income tax return — deductions, prepaying expenses, super contributions and avoiding the Medicare Levy Surcharge.
By AvaShort answer
Whether you're an employee, a freelancer or a small business owner, the biggest wins at tax time come from a handful of things: claiming every deduction you're entitled to, timing expenses well, and using super and private health cover to your advantage. Here's how to approach your 2025 return.
1. Claim every deduction you're entitled to
The ATO allows deductions for expenses directly related to earning your income. Commonly missed ones include:
- Home office expenses (internet, electricity, depreciation on furniture)
- Work-related travel and car expenses
- Tools and equipment (laptops, phones)
- Professional memberships and union fees
- Self-education that relates to your current job
Keep detailed records, or use an app to track receipts and logbooks through the year.
2. Prepay expenses before 30 June
If you have regular expenses like income protection insurance, professional subscriptions or business-related services, you can often prepay up to 12 months and bring that deduction into the current financial year. This is especially useful in a higher-income year.
3. Don't forget investment deductions
If you invest in shares or property, remember to claim:
- Interest on investment loans
- Management fees or subscriptions
- Depreciation on rental property assets
- Repairs and maintenance (not capital improvements)
Just make sure they're genuinely related to producing income.
4. Use the super tax advantages
Adding to your superannuation can give you immediate tax benefits. You can make a personal concessional contribution (within the cap, including employer contributions) and claim it as a deduction — and you'll generally pay just 15% tax on that amount inside super, likely less than your marginal rate.
Make sure contributions hit your fund by 30 June, and lodge a notice of intent if you're claiming the deduction.
5. Avoid the Medicare Levy Surcharge
If your income is above the threshold and you don't hold eligible private hospital cover, you may pay an extra 1–1.5% surcharge. Basic hospital cover is often cheaper than the surcharge itself.
6. Use the ATO app and myGov
The ATO app lets you snap and store receipts through the year, track deductions, and pre-fill income data via myGov — saving time and reducing the chance of missing something.
7. Consider a tax agent
A good tax professional can spot deductions you missed, structure your finances better for next year, and help keep your records audit-ready. The fee you pay a registered tax agent is also deductible next year.
Plan ahead for next year
Tax time isn't only about the past year — it's a chance to plan smarter: track spending more effectively, and consider how investment structures fit your goals. With the right preparation, tax time can be one of your biggest financial opportunities of the year.