Tax time is just around the corner, and for many Australians, it’s a chance to claw back some much-needed cash.
But before you start dreaming about that refund splurge, there’s a costly trap that could be draining your wallet—one that’s catching out thousands of Aussies every year.
According to new research from H&R Block, the average Australian is missing out on a whopping $525.50 simply by overlooking deductions they’re entitled to claim.
In a year when every dollar counts, that’s money most of us can’t afford to leave on the table.
Why are so many Australians missing out?
The culprit? It’s not the ATO making a mistake, but rather, a lack of awareness and a dash of haste.
The research found that two-thirds of people who lodge their own tax returns through the ATO’s MyTax portal are missing out on deductions.
That’s a staggering number, especially when you consider that one in three only realise their mistake after they’ve already lodged, meaning it’s too late to fix for that year.
Mark Chapman, H&R Block’s director of tax communications, puts it bluntly: ‘The ATO doesn’t tell you what you’re entitled to claim—that’s up to you. And in a year where budgets are stretched, getting it right can make a real difference.’
The rush to lodge: Why waiting can pay off
It’s tempting to get your tax return in as soon as the clock strikes July 1, especially if you’re hoping for a quick refund. But the ATO itself is urging Australians to hold off.
Why? Because waiting a few weeks allows the ATO to collect and pre-fill information about your wages, bank interest, private health insurance, dividends, and government payments. This reduces the risk of errors and missed claims.
Last year, a staggering three million individual tax returns were lodged by July 23, ballooning to 5.8 million by August 20.
But rushing can mean missing out on deductions or making mistakes that could delay your refund, or worse, trigger an audit.
The most overlooked deductions—are you missing these?
Financial adviser Ben Nash says many taxpayers are leaving hundreds, even thousands, of dollars on the table. Here are some of the most commonly forgotten deductions:
Work-related education expenses: Short courses, workshops, online learning, and seminar fees can all be deductible if they relate to your current job.
Work from home expenses: The ATO offers two methods—the fixed rate and the actual cost method. While the actual cost method is more work, it can sometimes yield a bigger deduction.
Income protection insurance: If you pay for this outside your super fund, the premiums are deductible.
Investment-related expenses: Interest on loans for investing, property management fees, financial adviser fees, and brokerage fees can all be claimed.
Professional memberships and subscriptions: Fees for industry bodies, relevant magazines, journals, and even some software or tools can be deductible.
Rental property expenses: Don’t forget about gardening, lawn mowing, bank fees, pest control, and extra concessional super contributions.
Tax agent fees: If you paid a professional to do last year’s tax return, you can claim that cost this year.
The big-ticket items: What Australians are claiming most
ATO data shows that car expenses are the biggest work-related claim, totalling $10.3 billion from 3.6 million people in the 2023-24 financial year.
Clothing claims are also popular, with $2.2 billion claimed by 6.5 million people. But while these are the most common, the smaller, less obvious deductions are often overlooked.
How to make sure you don’t miss out
Check the ATO’s occupation guides: These handy resources spell out what you can and can’t claim for your specific job.
Keep good records: Receipts, invoices, and statements are your best friends at tax time.
Consider professional help: If your tax affairs are more complicated than a simple salary, a registered tax agent can help you maximise your refund and avoid costly mistakes.
Don’t rush: Give the ATO time to pre-fill your data, and take the time to double-check your return before lodging.
A final word: Don’t let the ato keep your money
Tax time doesn’t have to be stressful—or expensive. With a little preparation and attention to detail, you can make sure you’re getting every dollar you’re entitled to. And remember, if you do realise you’ve missed a deduction after lodging, you can always amend your return—so all is not lost.
Have you ever missed out on a deduction or found a sneaky way to boost your refund? What’s your best tax-time tip? Share your experiences and advice in the comments below—let’s help each other make the most of tax time!
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered financial advice. Every financial situation is unique, and readers are encouraged to conduct their own research and consult with a qualified financial professional before making any financial decisions or taking action based on the content of this article.
Also read: Getting ready for tax time
“That’s a staggering number, especially when you consider that one in three only realise their mistake after they’ve already lodged, meaning it’s too late to fix for that year.”
That’s not correct. It is possible to submit a correction/alteration the same year, after lodging your return.