The new financial year has officially begun, and with it comes a familiar task—lodging your tax return. For some, it’s straightforward. For others, it’s a scramble for receipts, logbooks, and last-minute Google searches about “what counts as a deduction.”
So let’s cut to the chase: Are you actually ready to do your tax properly this year?
If your answer is “not yet,” you’re in good company. Many Australians delay getting organised for tax time, but that last-minute dash can cost you, whether it’s missed deductions, errors that lead to delays, or worse, an unexpected tax bill.
Here’s what you need to know right now, and how to get ahead of the rush (without giving yourself a headache).
Hoping for the best isn’t a strategy.
If you’re thinking, “I’ll just lodge it quickly and hope for the best,” that’s not the move.
Each financial year brings small changes—new rules, different thresholds, shifting entitlements. Even if your job and income haven’t changed much, your tax outcome might.
Lodging too early, before all your income data has been pre-filled by the ATO, can also lead to mistakes. The result? Delays in processing, possible amendments, and more time spent fixing things that could’ve been avoided with a little prep.
It’s 1 July… but should you lodge your return today?
Short answer: Probably not just yet.
While you can technically lodge from today, the ATO advises waiting until late July, when most income statements, bank interest, and health fund details have been pre-filled. That way, you’re working with complete information and reducing the chance of errors.
In the meantime, get your house in order:
- Link your myGov account to the ATO (if you haven’t already)
- Locate your TFN and check that your personal details are up to date
- Gather receipts and records for work-related expenses, donations, and other deductions
- Note the deadline: If you’re lodging on your own, you have until 31 October. Using a tax agent? You’ll need to engage them before that date.
Do you even need to lodge?
Not everyone does. If you earned below the tax-free threshold or only received certain government payments, you might not have to lodge a return this year.
That said, don’t assume, check using the ATO’s online tool. And even if you don’t need to lodge, you still need to submit a non-lodgment advice to avoid future complications.
What can you actually claim?
This is where things become unclear for a lot of people.
To claim a deduction, you must:
- Have spent the money yourself (and not been reimbursed)
- Have proof (receipts or detailed records)
- Be able to show that the expense is directly related to earning your income
If you worked from home at any point during FY24–25, you may be eligible to claim part of your electricity, internet, stationery, and even equipment depreciation, but only with the right records.
No receipts? No claim. It’s as simple as that.
Medicare levy and surcharge: know the difference.
Most people pay the 2% Medicare levy to support the public health system.
But if you’re a higher-income earner without eligible private hospital cover, you could also be hit with the Medicare levy surcharge. The threshold for this kicks in around $93,000 (or $186,000 for families), and it applies even if you only earned that much for part of the year.
The kicker? Your private cover needs to meet specific standards. Otherwise, it doesn’t count.
Got a student loan (HECS/HELP)?
If your income was above the repayment threshold, part of your return will go towards repaying your loan.
Your employer might have withheld some extra tax throughout the year, but that doesn’t automatically mean your loan has been paid. It’s only calculated after you lodge your return. Underpaid? You’ll owe. Overpaid? You might get a refund.
Don’t leave out your partner.
If you had a spouse (married, de facto, or domestic partner) at any point during the financial year, you’ll need to include their income details.
It helps the ATO assess your eligibility for things like tax offsets, the Medicare levy surcharge, and family entitlements. Miss it, and you could either miss out, or end up with an unpleasant correction notice down the line.
What if you get it wrong?
Mistakes happen. If you lodge and later realise there’s an error, wait for your notice of assessment, then submit an amendment. No need to panic.
If you receive a bill, the standard payment deadline is 21 November, regardless of when you lodge. Can’t pay in full? You may be able to set up a payment plan.
It’s a new year, time to do things right.
Ask yourself:
- Am I waiting for all my income to be pre-filled?
- Do I know what I can (and can’t) claim?
- Have I included all income, including side hustles and investments?
- Did I consider my Medicare levy or any private health impacts?
- Have I included my partner’s income?
If you hesitated on any of those, it might be time to speak to someone who knows their way around the tax system.
Clear Tax can help.
At Clear Tax, we help individuals, freelancers, and small businesses navigate tax season with clarity and confidence. Whether you’re ready to lodge now or just want to get organised for later this month, we’re here to guide you every step of the way.
We’ll help you claim what you’re entitled to, avoid costly mistakes, and lodge with confidence, minus the stress.
Don’t wait until October to start thinking about your return.
Reach out to Clear Tax today, and let’s get your 2025 tax sorted the smart way.
Disclaimer: This website is designed for informational and educational purposes. Although we exert diligent efforts to maintain the accuracy and reliability of the content, we must disclaim liability for any errors, omissions, or inaccuracies. The content provided is “as is” and is not accompanied by warranties, whether expressed or implied. It should not serve as the sole basis for financial or legal decisions.
Given the evolving nature of financial regulations and conditions, the accuracy and reliability of information may change over time. Users are urged to exercise due diligence and consult with a qualified financial professional for personalised advice. ‘Clear Tax Accountants’ bears no responsibility for direct or indirect consequences, encompassing financial loss or legal matters stemming from the use or misuse of the information on this website.
Please be aware that the information, by no means, is a substitute for financial advice.
