Maximise Your 2024–25 Tax Return

If you’re getting organised for your 2024–25 tax return, now’s the perfect time to ensure your deductions are in order. Two common areas the ATO (Australian Taxation Office) often reviews are working from home claims and car usage for work. Here's how to stay compliant while maximising your return.

Work From Home Tax Deductions in 2024–25

Still working from home a few days a week? You may be eligible to claim running costs, even if you don’t have a dedicated home office. A shared space like your dining table can still count! Just keep in mind, you generally can’t claim occupancy costs like mortgage interest, rent, council rates or home insurance unless your home is your principal place of business.

Use the Fixed Rate Method – 70c/hour

The ATO’s fixed rate method allows you to claim 70 cents per hour worked from home. This includes:

• Home and mobile internet
• Phone bills
• Electricity and gas
• Office stationery and computer consumables

On top of that, you can also separately claim depreciation and repair costs for home office assets worth over $300 – think desks, chairs or your laptop.

Alternatively, you can use the actual cost method, but this requires full records and receipts for every expense.

What You Need to Claim:

1. Keep a daily record of all hours worked from home – for the entire financial year. A four-week sample is no longer acceptable.
2. Save one current invoice for each major cost category (internet, phone, electricity) to support your fixed rate claim. Store them now to avoid headaches if the ATO requests evidence down the track.

Claiming Car Expenses for Work in 2024–25

If you use your personal vehicle for work-related travel, you may be entitled to a deduction – even if your employer doesn’t reimburse you.

There are two methods you can use:

1. Cents per Kilometre Method – Easy & Quick

• Claim up to 5,000 work-related kilometres
• For 2024–25, the rate is 88 cents per km
• Example: 4,000 km × $0.88 = $3,520 deduction
• You don’t need a logbook, but keep a diary or note of how you calculated the distance. The ATO may ask!

What Travel is Deductible?

• Travelling to non-regular worksites
• Visiting clients or suppliers
• Attending training or seminars
• Going from job to job if you have multiple employers
• Carrying large tools or equipment that can’t be stored at work

Daily commutes to your regular workplace or travel where expenses are paid by your employer can’t be claimed.

2. Logbook Method – Ideal for High Usage

• Keep a 12-week logbook during 2024–25
• Log the date, purpose, start/finish odometer readings and distance
• Calculate your work/business-use percentage and apply it to all car costs, including fuel, maintenance and depreciation
• Keep all receipts and invoices as supporting evidence
• Your logbook remains valid for five years, as long as your travel habits don’t change

Tip: You can purchase a logbook from Officeworks or online.

Final Thoughts

ATO is tightening its scrutiny, so keeping accurate records is more important than ever. Whether you're working from home or driving your car for business, staying on top of your documentation will help you claim confidently and avoid issues later.

Need help tracking your deductions or understanding which method suits you best? Speak to us to get tailored advice and make the most of your return.