How to Get a Bigger Tax Refund in 2025

Want to know how to get a bigger tax refund in 2025? The straightforward answer is to stay organised, make use of every legitimate deduction, and keep clear, accurate records.

The good news is that these steps can often be simpler than you might think. In this blog, our tax refund specialists with over 40 years’ combined experience have outlined their top 10 tips (with one bonus tip) that can help you maximise your tax refund in 2025.

Quick Summary

1. Document every work-related expense, no matter how small
2. Properly track vehicle use if you drive for work
3. Tap into valid home office deductions
4. Deduct self-education expenses tied to your current job
5. Factor in union fees or industry-specific costs
6. Explore salary sacrificing options
7. Declare all income correctly and on time
8. Take advantage of charitable donations
9. Plan for investment-related deductions
10. Stay organised to make next year’s tax return hassle-free
11. Understand the ‘No Receipts’ Threshold
12. Seek Professional Tax Advice

1. Document Every Work-Related Expense

Paying attention to day-to-day out-of-pocket costs can significantly increase your refund come tax time. Even small costs like stationery, union fees, or a quick purchase made during work hours may be eligible for deductions. Maintaining a diary, spreadsheet, or mobile app where you snap and store receipts ensures you do not forget anything.

A few dollars here and there might seem insignificant, but they add up. By keeping a record year-round, you can accurately claim the total amount spent on legitimate work-related purchases.

Example

You buy a box of pens and a notepad for work costing $15. Take a photo of the receipt with a phone app and record the date, cost, and purpose.

2. Maintain a Vehicle Logbook (If You Drive for Work)

Many people rely on their personal car for work-related tasks such as traveling between office sites, picking up supplies, or visiting clients. Two common methods of claiming these expenses exist:

• Logbook Method: Requires detailed tracking of each trip (date, purpose, distance), offering a precise view of work-related driving.
• Cents-Per-Kilometre Method: Allows a simpler approach but caps at 5,000 km per year, per vehicle.

If you rack up significant work-related kilometres, a carefully maintained logbook might lead to a larger claim. If your annual distance is moderate, the cents-per-kilometre method could be more convenient.

Example

Each time you drive from your main office to a second job site, note the date, distance traveled, and reason for the trip.

3. Leverage Home Office Deductions

With remote and hybrid work on the rise, the Australian Taxation Office (ATO) provides clear guidelines on claiming home office expenses. You can claim a proportion of your power bill, internet costs, and office equipment (like desks or computers) through one of two approaches:

• Fixed Rate Method: Claim a set rate (cents per hour) covering standard expenses (electricity, internet, and other running costs).
• Actual Cost Method: Deduct the exact work-related portion of your expenses, which usually requires more thorough record-keeping.

Pro Tip: Maintain a one-month usage diary to confirm the work-related percentage of bills such as internet and electricity. This record will clarify how you calculated your claim and ensure you remain compliant with ATO requirements.

Example

You work remotely three days a week and track how many hours you spend working at home, then apply the fixed rate method to claim part of your electricity and internet bills.

4. Deduct Self-Education Expenses

Furthering your skills in a field you already work in often leads to tax savings. If your course, seminar, or qualification directly improves your ability to do your current job, you can typically claim expenses like:

• Tuition fees
• Course materials (books, stationery)
• Internet costs linked to study or research
• Travel and accommodation if you must attend in-person sessions

Important Note: This deduction strictly applies to education that enhances the skills needed in your existing role. A course aimed at a future career change usually will not qualify.

Example

You enrol in an advanced Excel course to improve the spreadsheet skills you already use in your accounting job; you keep the receipts for course fees and textbooks.

5. Claim Union Fees and Industry-Specific Deductions

Many Australians belong to unions or professional associations specific to their industry. Membership or union fees can often be claimed as a deduction if they directly relate to your work. Protective clothing, annual licensing costs, and certain work tools may also qualify.

Why This Matters:

• Automatic payroll deductions for union fees are easy to overlook.
• Different professions (healthcare, construction, teaching, hospitality, etc.) have unique allowable expenses set by the Australian Taxation Office (ATO).

Example

Each fortnight, $10 is deducted from your pay for union dues; you check your payslips at year-end to calculate your total annual membership fees.

6. Consider Salary Sacrificing

If your employer offers salary sacrificing, you may be able to reduce your taxable income and ultimately get a bigger tax refund next year. Common salary sacrifice options include superannuation contributions and work-related items like laptops or phone plans.

Why This Matters

• Lower taxable salary means you could pay less tax overall.
• Contributions to super can improve your retirement savings without significantly affecting take-home pay.

Note: Be mindful of superannuation contribution caps and check your employer’s policies before making any decisions.

Example

You arrange with your employer to direct $200 of your monthly pre-tax salary into superannuation, effectively lowering your taxable income.

7. Declare All Income Accurately

While it might seem counterintuitive, declaring every source of income (including side gigs, rental properties, and investment returns) is crucial. Correctly reporting ensures you remain compliant and can claim all eligible deductions associated with those income streams.

Key Takeaways:

• Omissions or inaccuracies may trigger audits and penalties.
• Proper reporting of income, followed by accurate expense claims, can actually increase your net refund if you have relevant deductions.

Example

You sell homemade crafts on weekends, making $1,000 in extra income. You record every sale so you can declare this amount in your tax return.

8. Make Charitable Donations Count

Donations to registered charities (Deductible Gift Recipients) can offset your taxable income. Keep receipts for gifts above $2, and remember that certain types of fundraising events may require adjustments if you receive any material benefit (e.g., a dinner or event ticket).

Pro Tips:

• Confirm the charity’s deductible gift recipient status.
• Retain official receipts for a clear paper trail.
• Only claim the portion that does not include the “benefit” value.

Example

You donate $50 to a registered charity, keep the receipt, and confirm that the charity has Deductible Gift Recipient (DGR) status.

9. Consider Investment-Related Deductions

If you have shares, cryptocurrency, or an investment property, there are multiple potential deductions from interest on loans to management fees. Maintaining proper records of all transactions and expenses is critical to ensure you claim the correct amounts.

Examples

• Property owners can often deduct repairs, council rates, insurance, and agent fees.
• Share or managed fund investors may deduct platform costs, ongoing broker fees, or loan interest if applicable.
• Document each expense carefully and separate what is personal vs. investment-related.

10. Stay Organised to Make Next Year Easier

Staying on top of your records throughout the year minimises stress and maximises accuracy. Whether you use cloud-based tools or physical folders, consistent organisation leads to more comprehensive and legitimate claims.

Pro Tips:

• Allocate a specific place (physical or digital) for invoices, receipts, and statements.
• Update mileage or expense logs monthly instead of waiting until tax time.
• Use secure backup options so you never lose vital records.

Example

You scan all receipts monthly and save them in a cloud folder labeled “2024-2025 Tax Documents,” making everything easy to find when lodging time arrives.

To find exactly what you should be collecting, check out our tax checklist for 2025.

11. Understand the ‘No Receipts’ Threshold

The Australian Taxation Office (ATO) allows you to claim up to $300 in total for work-related expenses without needing official receipts. However, you must still demonstrate how you calculated these costs and show that they are genuinely work-related. Valid proof may include bank or credit card statements, diary entries, or statutory declarations. Just remember that the $300 rule does not apply to travel, car, or overtime meal allowance expenses, which usually require more detailed record-keeping.

Why This Matters:

• Even if you do not have receipts, you can still claim smaller expenses as long as you can substantiate them through alternative forms of evidence.
• Exceeding the $300 mark means you will need formal receipts for all work-related deductions, not just the amount above $300.
• Relying on price tags, catalogues, or just stating you paid cash without proof will not be accepted by the ATO and could result in disallowed claims or penalties.

Example

Suppose you buy multiple small tools for work throughout the year—none costing more than $30 each—and the total adds up to $250. You did not keep the individual receipts but tracked the purchases in your diary and can show corresponding transactions on your bank statement. Because the total is under $300, you can claim it without formal receipts, as long as you have this alternative evidence to back it up.

12. Seek Professional Tax Advice

Even when your circumstances seem simple, consulting a registered tax agent can help ensure you are maximising every eligible deduction. A professional can identify overlooked expenses, confirm that your supporting documents meet ATO standards, and reduce the risk of errors or penalties.

Why This Matters:

• Provides you with expert insights into industry-specific deductions.
• Minimises the chance of audit triggers due to incorrect or incomplete documentation.
• Offers peace of mind by ensuring you lodge a thorough, accurate return.

Example

After spending money on a range of items (like new software for work and some borderline personal expenses), you feel unsure if they qualify as deductible. A registered tax agent reviews your receipts, bank statements, and work requirements. They confirm which items clearly count as work-related and identify additional expenses you missed—leading to a higher, fully substantiated claim on your tax return.

Stage 3 Tax Cuts: What You Need to Know

The Australian Government’s Stage 3 tax cuts are set to reshape how individual income tax is calculated from 1 July 2024 onward. Under these changes, certain tax brackets will be removed or reduced, effectively lowering the marginal tax rate for many middle- to high-income earners. This means you could see an increase in your take-home pay, which in turn may affect your tax refund calculations.

Key Points:

• Higher Thresholds: Some income brackets will disappear, allowing more Australians to qualify for a lower rate of tax.
• Less “Bracket Creep”: If you receive a pay rise, you may still remain in a lower tax bracket than you would have under the older system.
• Planning Opportunities: With potentially more disposable income, you could choose to make extra super contributions, pay off debts faster, or invest the surplus to reduce your taxable income.

For those wondering how to get a bigger tax refund in Australia with these changes on the horizon, the strategy remains the same: keep thorough records, claim all eligible deductions, and consider professional guidance if your financial situation becomes more complex.

Conclusion

Boosting your tax refund is about making the most of what is legally available to you. By following the ten tips outlined, staying organised, and taking advantage of any new opportunities (such as the Stage 3 tax cuts), you can confidently approach tax time and potentially see a bigger return.

If you need extra help or simply want to ensure you are on the right track, consider working with a trusted tax agent. A professional eye can help you identify missed deductions, keep your documents in order, and prepare you for changes in the tax landscape.

In short, how to get a bigger tax refund next year and beyond comes down to consistent record-keeping, informed planning, and making the most of every legitimate tax-saving opportunity.