If you want a better tax outcome (and fewer surprises), you need more than a few rushed deductions and a last-minute dash to lodge. You need structure. You need visibility. And you need to stop leaving everything until the end of the financial year, when most of your options have already vanished!
Here’s what matters in 2025 — and how you can set yourself up for a result that not only ticks the compliance box but supports your bigger financial goals.
Commonly Missed Tax Deductions
You’d be surprised how many people leave money on the table each year — not because they’re doing anything wrong, but simply because they don’t know what they can claim.
Here are some of the most commonly missed (but totally legitimate) deductions I see in my work with clients:
- Business coaching or mentoring
- Software subscriptions (Canva, Adobe, Zoom, Xero, etc.)
- Prepaid expenses made before 30 June
- Home office running costs (especially internet, phone, and depreciation on office furniture)
- A portion of your home rent, if your setup qualifies as a home office
- Travel to meet clients or attend training
- Bank fees and merchant charges on business accounts
- Protective workwear or branded uniforms
- Super contributions made by sole traders
- Depreciation on rental properties (see below — this one’s a big deal)
The key isn’t claiming everything under the sun. It’s making sure you’ve got a clear link to your income, the documentation to support it, and a tidy system to keep it all safe. That’s why I encourage clients to use our Freshwater Portal (on desktop or the app) throughout the year to upload receipts, add notes, and stay audit-ready without the stress.
Rental Property Owners: Don’t Skip Depreciation
If you’ve got an investment property, claiming depreciation properly can save you thousands in tax — and yet I still see people miss it completely.
When you order a depreciation report from a qualified quantity surveyor, it outlines two key types of deductions:
Division 40 – depreciation on plant and equipment like air conditioners, hot water systems, carpets, ovens, blinds, and more.
Division 43 – the capital works deduction, which covers the structural elements of the building (brickwork, concrete, windows, roofing etc.) over 40 years.
Even older properties may still qualify for substantial Division 43 claims, and newer properties often come with generous deductions across both categories.
The report usually costs around $600–$1,000, and that fee is 100% deductible in the year you pay it. The real value lies in the fact that the actual report itself can generate thousands in annual deductions — often for 10+ years.
If you’re already claiming interest, council rates and repairs, don’t forget depreciation. It’s a key part of the full picture — and one of the easiest to miss if you don’t know what to look for.
Technology Isn’t a Tax Strategy — Unless You’re Actually Using It
Just because you’ve got Xero, QuickBooks, Dext or Hubdoc doesn’t mean you’re on top of your finances. I see a lot of business owners with the right tools but no real idea what their numbers are telling them.
That’s why I send our Xero, MYOB and QuickBooks clients a clear set of financial reports on the 15th of every month — covering profit, cash flow, and key trends. They’re not just for filing. They’re there to help you make decisions, improve margins, and feel more in control.
If you’re not sure how to interpret them, we can talk it through — I’m always happy to jump on a quick call or Zoom. The goal isn’t just to collect data. It’s to understand it and plan accordingly.
The ATO Is Watching (And Audit Revenue Is Up)
The Federal Budget confirmed what most accountants already knew: the ATO has been given more power and more money to catch non-compliance — and it’s already working. Audit revenue is rising fast.
They’re targeting:
- Work-from-home deductions
- Car claims without a valid logbook
- Rental property expenses
- Trust distributions
- Small business income that doesn’t add up
Their systems are more sophisticated than ever, and they know what they’re looking for. If your deductions don’t match your income or industry, expect questions.
Smart Tax Strategy = Smart Money Habits
Forget loopholes. The best results I see come from structure, discipline and habits. Here’s what I recommend to almost every client:
- Keep your bank accounts separate — use them like buckets for GST, super, tax and business income
- Have extra tax withheld — it’s a form of forced savings and can take the sting out of tax time
- Get your tax done earlier — the sooner you know where you stand, the more time you have to adjust
- Claim what’s fair, but be organised enough to back it up
Act like you’re already paying PAYG instalments, even before you’re formally required to — that way it’s not a shock when it happens
This isn’t about being perfect. It’s about being prepared.
Understand PAYG Instalments — Before They Catch You Off Guard
If your tax bill is over $1,000, the ATO may enrol you into the PAYG instalments system the following year. These are quarterly payments towards your next tax bill — based on your last tax return.
The problem is, most people don’t know they’ve been enrolled until they receive their first bill — and by then, it’s already due.
I recommend estimating your instalments in advance and planning as if they’re already in place. That way you’re in control — not caught off guard. If you’d like help forecasting your PAYG instalments, I can help you map it out clearly so it fits into your broader cash flow.
Business Owners: Don’t Claim Everything If You’re Trying to Get a Home Loan
This one comes up all the time — especially with sole traders and small business owners.
If you’re hoping to get a home loan in the next year or two, don’t go too hard trying to make your taxable income disappear. I know it’s tempting to claim everything you possibly can to get a lower tax bill — but lenders don’t care about tax minimisation. They care about consistent, assessable income.
A beautifully low taxable income might win you a refund — but it could lose you your home loan.
Refunds Are Nice — But Clarity Is Better
At Freshwater, we help clients get clear on where they stand, build smart systems, and make decisions that actually serve their long-term goals — whether that’s buying a home, growing a business, or finally feeling in control of money instead of constantly catching up.
If you’re still guessing what your refund will be, still leaving things until the last minute, or still crossing your fingers that the ATO won’t look too closely — let’s do better this year.
Log in to your Freshwater Portal or reach out to get started.
You bring the receipts. We’ll bring the clarity, the structure, and the plan.
