As we roll into the 2025 tax season, the ATO has fired a few warning shots across the bow—mainly at some truly creative deduction attempts that didn’t quite pass the pub test.
Yes, tax time can be confusing. But before you try to claim your new beach towel or that home gym upgrade as a “work expense,” it’s worth taking a closer look at what actually flies with the ATO... and what’s likely to raise eyebrows (or trigger an audit).
Let’s break it down in plain English, so you know what’s legit, what’s pushing the boundaries, and where to go for help.
The ATO recently highlighted some eyebrow-raising claims that didn’t make the cut. Here are a few of the more colourful examples:
While entertaining, these examples highlight a common theme: no matter how closely you think a purchase is linked to your job, if it’s personal in nature or lacks clear proof of business use, the ATO won’t accept it.
The golden rule? If in doubt, leave it out—or better yet, run it past your accountant (that’s us).
Each year, the ATO sets its sights on a few key areas where taxpayers commonly get it wrong. Here’s where they’ll be focusing this time around:
Work-related deductions need to tick all three boxes:
Even if something seems “kind of” related to work, it won’t qualify if it’s primarily a personal expense. That includes things like:
The ATO has a handy guide on what’s claimable—but when in doubt, check with your advisor.
With remote work still going strong, many of us are claiming expenses for working from home. But here’s the thing: you’ve got to keep accurate records—guesstimates no longer cut it.
You’ve got two options when it comes to claiming:
- Fixed Rate Method (70 cents/hour): This covers electricity, phone, internet, and depreciation on furniture. It’s simple and doesn’t require a dedicated office—but you must have a log of your actual hours worked from home across the year.
- Actual Cost Method: This one’s more detailed and allows you to claim the real expenses you incurred (like power bills or internet usage), but you’ll need rock-solid records. It’s more effort, but may offer a bigger deduction.
Important: No double dipping. If you’re using the fixed rate method, you can’t also claim your phone bill separately.
The ATO’s working from home page has all the info, but if it’s a bit much, just give us a shout.
Got a side hustle? Drive Uber part-time? Do freelance work or sell on Etsy? You’ll need to declare all income—no matter how small or “casual” it feels.
Each source may have different deduction rules, and not reporting your side gig can lead to penalties down the track. Don’t risk it.
Look, we get it. You’re busy, and tax time can feel like a minefield. But here’s what we always tell our clients:
Trying to squeeze in dodgy deductions could cost you way more in the long run. The ATO is using increasingly sophisticated tools to track data, match records, and sniff out anomalies. Best to stay on the clean side of the spreadsheet.
Whether you’re claiming your WFH setup, juggling multiple income streams, or just want to make sure you’re claiming everything you should (and nothing you shouldn’t), we’ve got your back.
Contact Trekk Advisory and let’s get your tax return sorted—accurately, efficiently, and with zero stress.