Since July 1, more than 6.1 million tax returns have been lodged with the Australian Taxation Office (ATO), triggering 4.5 million refunds to taxpayers across the country. The total amount refunded has reached $12 billion, with an average of $2,639 returned to each eligible filer.
According to data cited by Yahoo Finance, the current filing period has highlighted a wide range of outcomes, from substantial refunds to lower-than-expected returns and emerging tax debts. The early figures released by the ATO reveal general trends but don’t yet provide a complete picture of the 2024–25 season or its broader financial impact.
Some Taxpayers Face Debts as Others Cash In
Tax Invest Accounting director Belinda Raso described this tax season as a clear case of the “haves and have-nots.” She noted that while many clients were pleased with their returns, a significant portion either received very modest refunds or were hit with tax debts.
Tax time isn’t just June and July – aso told Yahoo Finance.
Your result for your tax is going to be dependent on what you are doing now. September and October are very important times when it comes to what happens next year.
Confusion Over $1,000 Deduction and Limited Refund Impact
Raso said she’s seen a growing number of clients mistakenly believe they’ll receive a larger refund next year thanks to the government’s proposed $1,000 instant tax deduction for work-related expenses.
Clients are assuming they’ll get a better refund because of that $1,000 deduction, but that’s not how it works – she said.
The policy — which won’t take effect until July 1, 2026 — is also often misunderstood in terms of its actual benefit. For those earning between $45,000 and $135,000, the deduction would result in a refund of approximately $320, not the full $1,000. And while many anticipate a streamlined process, the government hasn’t confirmed details of the deduction yet, leaving uncertainty about eligibility and requirements.
As Raso put it, “There’s no such thing as a free lunch,” emphasizing that even under simplified schemes, evidence will still be required to substantiate claims.
How to Take Control of Next Year’s Tax Return
For Australians who found themselves below the national average of $2,639, Raso laid out several immediate actions that could help improve outcomes for the 2025–26 tax return season.
Log Vehicle Use Now — Not Later
Raso recommends starting a motor vehicle logbook right away if you use your car for work purposes.
The best time to get a logbook going is right now because you want to have a full 12-week period without any holidays — and we’ve got Christmas around the corner – she said.
Without this uninterrupted record, claims using the logbook method may not hold up under ATO review.
2. Work-From-Home Hours Must Be Documented
Many taxpayers working from home are relying on the shortcut method, assuming they’ll get a flat 70 cents per hour claimed easily. But without the right documentation, those claims are being rejected.
We’re seeing people getting knocked back to even claim 70 cents per hour because they don’t have that record going – Raso warned.
She advises tracking both the fixed-rate and actual cost methods to determine which delivers the best result. That includes keeping a record of electricity, internet, stationery, and even having a designated workstation at home.
3. Purchase Work Items Over $300 Before It’s Too Late
If you’re considering buying work-related equipment, timing your purchase can impact your ATO deduction. Items over $300 must be depreciated over their effective life, and that starts from the purchase date — not when the item is used.
It goes by the date when you purchase it – Raso explained.
She provided a breakdown:
- Laptops and iPads: 2-year effective life
- Mobile phones: 2 years
- Desktops: 4 years
If you’re looking to maximize deductions this season, she says,
Look at it now, rather than looking at it three or four days before June 30.
4. Never Throw Out Receipts — Even for Small Things
Keeping receipts may sound tedious, but Raso insists it’s one of the easiest ways to protect your tax return.
We would never throw out a receipt if we think we’re going to have to return something – she said.
You need to have that same mindset when it comes to any purchases for work.
Her practical tip: take a photo of each receipt and save it in a phone folder labeled ‘Tax 2026’. Even if you’re unsure whether the item is claimable, it’s best to let your tax agent decide next year.
