The financial year is almost up. Here's how to make sure you're not leaving money on the table.
The end of the financial year might not involve fireworks and prosecco… but it could mean some cash back in your pocket through tax deductions.
The 2025-26 financial year ends June 30 (that's this month). So, if you want to make gain the benefit of the tax deduction in the 2026 financial year tax return, you’ve only got two weeks to make those tax-deductible purchases.
A tax deduction is an expense that you can subtract from your income. Tax deductions include work-related expenses like the costs of buying uniforms, tools and travel for work.
A tax deduction doesn't give you money back dollar-for-dollar. It reduces the amount of income you're taxed on.
So if you earned $80,000 and claimed $2,000 in deductions on a new work laptop, the ATO taxes you on $78,000 instead. How much you actually save depends on your tax bracket, but if you're on the 30 cent marginal tax rate, a $2,000 deduction puts about $600 back in your pocket.
Australians (and their accountants) clearly get this. Around $31 billion worth of work-related expenses have been claimed by Australians in their 2024-25 tax returns so far. The average claim? $3,100.
There's a bunch of work related stuff you could be claiming tax on that you might not realise! Think phones, laptops, work clothing…
But, with the end of the financial year (EOFY) approaching FAST (yup, June 30 is nearly here), you have until then to make any purchases for the current financial year.
Any deductible purchases made after June 30 won't count until next year's tax return.
The financial year runs from July 1 to June 30. At the end of it, individuals (ahem, looking at you) sort their finances to figure out how much tax they're owed or can claim back.
Once the clock ticks over to July 1, the year is locked and those purchases won't count for the previous financial year.
After that, you'll have from July 1 until October 31 to actually sit down and lodge your return or until 15 May of the following year if you lodge via a registered accountant.
To claim a deduction, you need to have paid for it yourself and it must directly relate to earning your income.
Food deliveries, baby expenses and personal gifts don't count (aaand the ATO is actively telling people to stop claiming them).
Plus you might not know you can claim:
You'll need receipts for claims over $300.
Reminder: Eligibility conditions apply to each of these, so it’s worth checking with a registered tax agent or the ATO for your specific situation.
Records can be paper or electronic. Think: receipts, invoices, timesheets and logbooks, and you need to hold onto them for five years.
The ATO's free myDeductions app lets you snap receipts throughout the year so you're not left scrambling come June.
So a bit of admin and planning now could mean a meaningful refund landing in your account later this year….sooooo it’s probably worth 30 minutes of your time.
All information contained in the Flux app, www.flux.finance, www.joinflux.com, app.flux.finance and any podcast of Flux Media Pty Ltd (ABN 27 639 804 345) is for education and entertainment purposes only. It is not intended as a substitute for professional financial, legal or tax advice. While we do our best to provide accurate information on the podcast, we accept no responsibility for any inaccuracies that may be communicated.
Flux does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) and ASIC RG 36.66. Flux Technologies Pty Ltd provides general advice on credit products under our own Australian Credit Licence No. 530103. The product information presented does not constitute an offer and we are not recommending or suggesting any particular product.
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