Though it’s hardly anyone’s favourite season, tax season can be a golden opportunity for many Australians to boost their bank balance.
With a little forward planning and a few clever strategies, you could see your tax refund jump by more than $1,300 next year.
Sounds too good to be true? Read on, because the key is acting now, not waiting until July.
Why most Aussies miss out on bigger refunds
The average tax refund in Australia sits at around $2,228, but with some smart moves, you could push that up to $3,550 or more.
That’s a difference of $1,322—money that could go towards a holiday, home improvements, or simply padding your savings for a rainy day.
So, why do so many people miss out? The answer is simple: most of us only start thinking about tax after the financial year ends.
By then, it’s often too late to make the changes that really move the needle on your refund. The real secret is to start planning before 30 June.
The most overlooked tax deductions—are you missing out?
The Australian Taxation Office (ATO) allows a range of work-related deductions, but many people don’t claim everything they’re entitled to. Here are some commonly overlooked deductions you should check:
Home office expenses: If you work from home, even part-time, you may be able to claim a portion of your electricity, internet, and phone bills.
Mobile phone and internet: If you use your phone or internet for work, a percentage of your bill could be deductible.
Professional education or training: Courses, seminars, and even some subscriptions related to your job can be claimed.
Work equipment and tools: Computers, printers, and even stationery may be deductible if used for work.
The ATO website has detailed guides to help you understand what you can and can’t claim. It’s worth becoming familiar with these now, so you don’t leave money on the table.
Prepay expenses before 30 June for a faster refund
Here’s a little-known trick: if you have work-related expenses planned for the next financial year, consider bringing them forward and paying before 30 June.
This means you can claim the deduction in this year’s tax return, getting your refund a whole year sooner.
For example, if you prepay $2,000 in eligible expenses and your income is above $45,000, you’re likely in the 32 per cent tax bracket. That’s an extra $640 back in your pocket, just for being proactive.
Superannuation contributions: a double win
If you’re still working, making extra contributions to your super fund can be a powerful way to reduce your taxable income.
The current cap for tax-deductible contributions is $30,000 (including your employer’s contributions).
Any extra you put in (up to the cap) is fully tax-deductible, and the money is then taxed at just 15 per cent inside your super, much lower than most personal tax rates.
For many, this is a particularly attractive strategy, as it boosts your retirement savings and delivers a healthy tax refund.
Advanced tax strategies for the savvy
If you’re comfortable with more complex financial moves, consider strategies like:
- Franked dividend share investing
- Debt recycling
- Negative gearing (especially for investment properties)
These aren’t for everyone, and it’s wise to seek professional advice before diving in. But for those with higher incomes or investment portfolios, these strategies can save thousands in tax—not just this year, but for years to come.
Why a good accountant is worth their weight in gold
Statistics show that Australians who use a professional tax agent receive, on average, a 59 per cent higher refund than those who lodge their own return.
That’s $3,550 versus $2,228—a difference that more than pays for the accountant’s fee.
A good accountant or financial adviser can help you:
- Identify every possible deduction
- Plan your super contributions
- Structure your investments for maximum tax efficiency
- Avoid costly mistakes that could trigger an ATO audit
Professional advice is more valuable than ever if your financial situation is getting more complex as you approach or enjoy retirement.
Start planning now for a bigger refund next year
The earlier you start, the more options you have. With a longer runway, you can:
- Smooth out your prepayments
- Spread super contributions over the year
- Consider setting up trusts or investment bonds
- Implement advanced tax strategies
These moves take time to set up, so don’t leave it until the last minute.
A quick checklist to maximise your 2025 tax refund
- Review your work-related expenses—what can you claim?
- Prepay any eligible expenses before 30 June
- Top up your super (within the cap)
- Consider advanced strategies if you have investments
- Book a meeting with your accountant or adviser
- Keep good records and receipts for all claims
Final thoughts: Don’t let the ATO keep more than they should
Getting a bigger tax refund isn’t about gaming the system—it’s about knowing the rules and making them work for you. The window to act is closing fast, so take a little time now to review your options. Your future self (and your bank account) will thank you.
Have you discovered any clever tax tips or had a great experience with a tax agent? Share your stories and questions in the comments below—we’d love to hear from you!
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: Fake news alert: ATO sets the record straight on 1 June rule changes
