I'm a tax accountant and these are the four biggest mistakes you're making on your returns – and it's costing you money

By MAX ALDRED FOR DAILY MAIL AUSTRALIA

Published: 09:06 BST, 21 June 2025 | Updated: 09:06 BST, 21 June 2025

Australians are forgetting to claim work-related expenses and often select the wrong work from home deduction in their tax returns.

That’s according to a leading taxation accountant who has singled out the top five errors taxpayers make as tax time approaches on July 1.

Belinda Raso from Tax Invest Accounting said taxpayers are missing out on hundreds of dollars by making little mistakes.

‘They just rush in and lodge way too early and usually don’t claim what they are entitled to,’ Ms Raso said.

WFH deductions

One of the most common tax mistakes involves deductions made for working from home.

Ms Raso said people who WFH do not always apply for the maximum deductions they can receive.

Work from home expenses can be worked out via two different methods: the fixed rate ‘shortcut’ method of 70 per cents per hour, or the actual cost method, where they calculate their total expenses.

Belinda Raso from Tax Invest Accounting said many Australians make mistakes as they rush through their end of the financial year paperwork

‘It is very important that you work out both methods to ensure that you’re getting the largest possible deduction,’ she said.

‘Another thing that people forget to do is, if they are going by that fixed rate method of 70 cents per hour… they’re forgetting to claim everything else, and this includes computer equipment, it includes furniture, it includes software, the list is endless.’

Medicare levy surcharge

The next mistake Australians often make is incorrectly recording their liability for a Medicare levy surcharge – the additional charge on taxpayers who do not have private health insurance.

Ms Raso said that the tax office will change the return if they have proof workers are liable for the levy.

Australians forget to work out the most savings-efficient method for determining their claimable work-from-home expenses, Ms Raso warned

‘It is up to you to understand when you are and when you’re not liable for this,’ Ms Raso said.

Work related allowances

The experienced accountant said some Australians make a huge mistake by failing to claim work-related expenses, such as claiming goods that they use for both personal and work use.

‘As an example, one of the most common ones is a computer or laptop,’ Ms Raso said.

‘You sit there and think, “well, I use this for both personal reasons and for work, I can’t claim it then”. That’s not true.

They also make critical errors when it comes to their liability for the Medicare levy surcharge

‘Any expense that you’re claiming, you can apportion a personal element to it and just claim whatever percentage is for work. It doesn’t mean that you can’t claim it.’

Logbook

Her final tip was for Australians who use a personal vehicle for work purposes.

She said workers should ensure they are recording their usage accurately in a logbook.

‘If you are travelling over 5,000 kilometres for work, for actual work-related travel, you should be keeping a logbook,’ Ms Raso said.

‘But this is more than just tracking your kilometres in a logbook.’

Workers should also keep records of their fuel and oil costs, or odometer readings.

They will also need evidence of other car expenses.