Tax return questions, answered
Straight answers to the questions people ask most often at tax time: rental property, working from home, sole trader returns, negative gearing, capital gains tax, common deduction questions and more. General information only, gathered here to help you know what to discuss with your tax agent.
Important: This page is general information only, not tax advice. Whether something applies to you depends on your individual circumstances and Australian tax law. Tax Insights will review your specific situation before preparing your tax return.
Do I need a tax agent near me in Melbourne, or can I use an online tax agent?
You do not need a tax agent with a physical office near you. Tax Insights is a Melbourne based registered tax agent working with clients across every Australian state and territory, entirely online by video, phone, email or WhatsApp. Registered tax agents lodge directly with the ATO, so your location makes no difference to the outcome, only to how convenient the process is for you.
What does a business tax accountant in Melbourne actually do?
A business tax accountant prepares and lodges tax returns and activity statements, advises on structure and compliance, and helps a business meet its ATO obligations correctly. Tax Insights provides this service to individuals, sole traders and small businesses, based in Melbourne and working with clients online across Australia.
When can I lodge my tax return, and what is the deadline?
If you lodge your own return, the ATO deadline is 31 October. Registering with a tax agent before 31 October generally extends that deadline, often as late as May the following year, and most of your income information is pre-filled from the ATO by late July.
What rental property deductions can I claim?
Rental property expenses commonly discussed include loan interest, council and water rates, insurance, strata fees, repairs and maintenance, advertising for tenants, property management fees, and depreciation on the building and its fittings. Whether a specific expense is immediately deductible, deductible over time, or not deductible at all depends on your circumstances and the nature of the expense, so this list is a starting point for a conversation, not a checklist of guaranteed claims.
One distinction trips up many property owners: a repair that restores something to its original condition, replacing a broken tap, is treated differently from an improvement that adds value, a new kitchen. Repairs are often deductible in the year you pay for them, while improvements are generally depreciated gradually as capital works over a number of years. Loan interest also needs care if the loan has ever been redrawn or refinanced for a private purpose, since only the investment-related portion remains deductible. A depreciation schedule, usually prepared once by a quantity surveyor, is worth having if you haven't already, since it can uncover deductions for the building itself that are otherwise easy to miss.
A tax agent should review your actual records before anything is included in a return. Our Rental Property Records & Expense Checklist lists the records worth gathering.
Can I claim working from home deductions?
The ATO's fixed rate method for working from home is 70 cents per hour for the 2024-25 and 2025-26 income years, covering electricity, phone, internet and stationery. It requires a record of actual hours worked from home for the entire income year, not an estimate. Equipment such as a laptop or desk is claimed separately from the hourly rate. Our Work From Home tracker keeps that record for you as the year goes.
What do I need for a sole trader tax return?
A sole trader tax return generally needs a record of business income, business expenses, any GST collected if registered, and vehicle or home office use if applicable. Good bookkeeping through the year, one bank account for the business and a simple record of receipts, makes a sole trader tax return significantly quicker and more accurate.
What does sole trader bookkeeping actually involve?
Sole trader bookkeeping generally means keeping invoices issued, expense receipts, a record of any cash income, and bank statements for the account the business uses. A simple system kept up through the year, rather than assembled at tax time, is what makes a sole trader tax return quick and accurate. See our Sole Trader Record Book guide for a fuller list.
Is negative gearing still available in Australia?
Negative gearing rules changed under legislation passed by Federal Parliament in June 2026. Current rules continue to apply in full until 30 June 2027. From 1 July 2027, established residential properties bought after 7:30pm AEST on 12 May 2026 will no longer be able to offset rental losses against salary or other income, only against rental or property capital gains, with any excess carried forward. Properties held before that date, and new builds, are exempt from this change. Given the complexity and grandfathering rules, the timing of any property purchase or sale should be discussed with a tax agent.
How does capital gains tax on property work?
For the return being prepared now, the current rules apply: individuals generally receive a 50% capital gains tax discount on a property held longer than 12 months, and a main residence may be exempt in some circumstances. Legislation passed in June 2026 replaces the 50% discount with cost base indexation and a 30% minimum tax on the real gain, applying to gains accruing from 1 July 2027. Given this is a recent and significant change, a property sale should always be discussed with a tax agent before it happens, not after.
What is a tax return checklist and do I need one?
A tax return checklist is a list of the income details, deduction records and other information to gather before preparing a return. Using one before an appointment generally makes the process faster and reduces the chance of missing something. See our free Tax Return Records & Expense Checklist.
How do I register for an ABN?
An Australian Business Number is applied for through the Australian Business Register, free of charge, and is generally required before invoicing as a sole trader or business. Registering for GST is a separate step, generally required once turnover reaches or is expected to reach the GST threshold. A tax agent can assist with both the ABN application and any related registrations.
Can I claim my mobile phone on tax?
You can generally claim the work-related portion of your mobile phone costs, calls, data and the phone itself, if you use it to earn your income. The key word is portion: a phone used for both work and personal calls needs to be apportioned on a reasonable basis, commonly a percentage of work use worked out over a representative four-week period and applied to the full year. For example, if your itemised bill over four weeks shows roughly 40% of calls and data relate to work, that 40% figure is generally applied to your annual phone costs to calculate the claim.
If your total claim for the phone, including any decline in value if it cost more than $300, is $50 or less, the ATO generally accepts a reasonable estimate without a detailed diary. Above that, you need records showing how the work-use percentage was calculated, such as an itemised bill reviewed for a representative period, kept on file in case it's ever asked for. If the phone itself cost $300 or less and is used mainly for work, its full cost can generally be claimed in the year of purchase rather than depreciated. From the 2026-27 income year, a new standard deduction of up to $1,000 for work-related expenses becomes available, which may cover a modest phone claim without needing to calculate a percentage at all, but that option does not apply to the return being prepared now.
Can I claim laundry expenses on tax?
Only if the clothing itself qualifies. The ATO allows a laundry deduction for occupation-specific clothing, protective clothing, or a compulsory uniform, not for everyday clothes your employer happens to require, such as plain black pants or a business suit.
Where the clothing qualifies, the ATO accepts a reasonable estimate for washing, drying and ironing: $1 per load if the load is exclusively that clothing, or 50 cents per load if it's mixed with other washing. If your laundry claim is $150 or less, you don't need receipts, though you still need to be able to explain how you calculated it, for example the number of loads per week. That $150 concession sits inside your overall $300 substantiation-free limit for work-related expenses, it doesn't add on top of it. Dry-cleaning is treated differently and needs written evidence regardless of the amount.
See the ATO's clothing, laundry and dry-cleaning guidance for the full detail.
Can I claim sunglasses on tax?
Sunglasses are deductible only where your work genuinely requires you to be outdoors and exposed to real sun risk, for example a landscaper, courier or outdoor tradesperson, and only for the sunglasses actually worn for that work. Sunglasses worn for driving to the office, general daytime wear or personal use are private expenses and not deductible, even if you also happen to wear them at work occasionally. If you wear the same pair for both work and private purposes, the cost should be apportioned. See the ATO's protective items guidance.
Can I claim a laptop on tax?
Generally yes, for the work-related portion of its use. A laptop used for both work and personal tasks needs to be apportioned, commonly based on a diary of use over a representative period.
How you claim it depends on the price and your role. If it cost $300 or less and is used mainly for work, it can generally be claimed in full in the year you buy it. Above $300, it's a depreciating asset, and its cost is claimed gradually over its effective life rather than all at once. If you're an employee working from home, note that a laptop is claimed separately from the working-from-home fixed rate, not folded into it. For a sole trader or small business, the same depreciation principles apply, and the instant asset write-off provisions in place for the relevant year may allow a faster claim, worth confirming with your tax agent given these thresholds change from year to year.
Do I need receipts for my tax return?
For most work-related expenses, yes. If your total claim for work-related expenses is more than $300, you generally need written evidence, a receipt, invoice or similar, for the whole claim, not just the amount over $300. If your total is $300 or less, you still need a record of how you calculated it, such as a diary or spreadsheet, even though a formal receipt isn't required.
A valid piece of written evidence generally needs to show the supplier's name, the amount, a description of what was bought, the date of the expense, and the date the document was created, a bank or credit card statement alone usually isn't enough on its own since it doesn't describe what was purchased. A photo of a paper receipt, saved as it happens, satisfies the requirement just as well as the original.
A few specific concessions sit inside that $300 limit, most notably laundry claims of $150 or less. From the 2026-27 income year, a new standard deduction of up to $1,000 for work-related expenses becomes available without needing receipts at all, an alternative to itemising, but it does not apply to the return being prepared this tax season. Until then, the safest habit is simple: keep every receipt as it happens, rather than trying to reconstruct records at tax time.
How long should I keep my tax records?
Generally at least five years from the date you lodge the return the records relate to. For some records, such as those supporting a capital gain or loss on an asset like a rental property or shares, you need to keep them for five years after you dispose of the asset, which can mean holding records for well over a decade if you own the asset for a long time. If the ATO is reviewing a return, that period can extend further. Keeping digital copies, scanned or photographed, satisfies the requirement just as well as paper originals.
When do I need an ABN?
Generally once you are carrying on a business or enterprise, rather than working as an employee. Common triggers include starting as a sole trader, invoicing clients for contract work, or running any activity with the intention of making a profit on a regular basis. Without an ABN, businesses paying you may be required to withhold tax from your payment at the top marginal rate. An ABN itself is free to apply for through the Australian Business Register, and having one doesn't automatically mean you need to register for GST, that depends on your turnover. See registering for GST for the related threshold.
What is GST and do I need to register?
GST, the Goods and Services Tax, is a 10% tax added to most goods and services sold in Australia. If you're registered, you charge GST on your sales and can generally claim back the GST you pay on business purchases, but you also need to lodge regular Business Activity Statements.
Registration is compulsory once your GST turnover, your gross business income before expenses, reaches or is expected to reach $75,000 in a 12-month period ($150,000 for non-profit organisations), and you have 21 days to register once you cross that line. Below that threshold, registration is optional, some businesses register anyway to claim GST credits on purchases. Rideshare and taxi drivers must register regardless of turnover. This threshold is confirmed current directly on the ATO's registering for GST page.
Can I amend my tax return after lodging it?
Yes. If you notice an error, missed income or a deduction you forgot to include, you can request an amendment, generally through myGov or via your tax agent. Individuals and most small businesses have a standard amendment period, commonly two years from the date the assessment issued, though this can vary depending on your circumstances. It's better to amend promptly once you notice an issue than to wait, since interest and penalties can apply to a resulting shortfall the longer it's outstanding. Talk to your tax agent as soon as you spot something that needs correcting.
What happens if I lodge my tax return late?
The ATO can apply a failure to lodge on time penalty, currently $364 per 28-day period the return is overdue (or part thereof), up to a maximum of five penalty units, $1,820, per return, effective from 1 July 2026. In practice, the ATO often shows leniency for a first-time or minor delay, particularly where you have a reasonable explanation or a clean lodgement history, but this isn't guaranteed. Registering with a tax agent before the 31 October deadline generally secures a later lodgement date automatically, which is the simplest way to avoid the issue altogether. If you're already behind on one or more years, see our overdue returns service, catching up is usually more straightforward than people expect.
What is PAYG withholding?
Pay As You Go withholding is the tax your employer deducts from your wages each pay cycle and sends to the ATO on your behalf, based on the income tax rates that apply to you. It's an instalment against your total tax liability for the year, not a separate tax. When you lodge your return, your actual tax liability is calculated on your total income for the year, and the amount already withheld is credited against it, resulting in a refund if too much was withheld or a bill if too little was.
A tax bill despite having tax withheld all year usually comes down to one of a few common causes: having more than one job, where each employer withholds tax as if it were your only income, understating your total earnings once combined; investment income such as bank interest or dividends, which generally has no tax withheld from it at all; a HECS or HELP debt where the withholding didn't fully account for the compulsory repayment; or simply a change in circumstances partway through the year that your employer's withholding didn't catch up with. None of these mean something went wrong, they're just areas worth reviewing with your tax agent if a bill surprises you.
What is a depreciation schedule?
A depreciation schedule is a report setting out how the value of a property's capital works (the building itself) and its plant and equipment (items like carpet, blinds and appliances) declines over time, so those amounts can be claimed as a deduction each year a rental property is held. It's typically prepared once by a quantity surveyor and then used for the life of the property. Without one, many investors underclaim, since construction costs from years ago aren't otherwise documented in a form the ATO accepts.
Do I need a quantity surveyor for my rental property?
Not always, but it's worth considering for a newer or recently renovated property. A quantity surveyor prepares the depreciation schedule described above, working out the original construction cost where it isn't otherwise known. For an older property with little scope for capital works deductions, the cost of a report may not be worth it. The one-off fee, typically a few hundred dollars, is itself tax deductible, and a good schedule often pays for itself many times over across the years you hold the property. Ask your tax agent whether it makes sense for your specific property before ordering one.
Can I claim travel expenses on tax?
Travel directly connected to earning your income can generally be claimed. A few common situations, each treated differently:
Home to your regular workplace: private, not deductible, even for a long commute or if you do a small amount of work on the way. Between two workplaces on the same day, for example your regular office to a client site: generally deductible. Travel to a conference, training course or client meeting away from your regular workplace: generally deductible. Overnight travel for work, interstate for a project or a multi-day conference: the travel itself is generally deductible, and additional rules apply to accommodation and meals while you're away.
If you use your own car for any of these work trips, that's a separate claim to the travel itself, either a cents-per-kilometre calculation or a 12-week logbook, not part of your travel expenses. Good records matter more as a trip gets more complex: a simple diary noting the date, destination and purpose is generally enough for local travel, while overnight and interstate travel benefits from keeping the itinerary, invoices and a note of the business purpose together.
Can I claim meals on tax?
Meals eaten during a normal working day are treated as a private expense and generally cannot be claimed, even if you receive a meal allowance from your employer. There are limited exceptions: overtime meals where you receive a meal allowance under an award or industrial agreement, and meals incurred while travelling and staying away from home overnight for work. This is one of the areas the ATO reviews closely, so if you think you might have a genuine exception, it's worth discussing the specifics with a tax agent rather than assuming a general meal claim applies. See the ATO's meals and snacks guidance.
Can I claim self-education expenses?
Self-education expenses, course fees, textbooks, and related travel, are deductible where there is a sufficient connection between the study and your current employment, generally meaning the course maintains or improves a skill needed in your current role, or is likely to lead to an increase in income from that same employment. Study undertaken to help you move into a new field or a different occupation does not qualify, even if it's otherwise a worthwhile qualification. The distinction matters, so if you're unsure whether your course counts, it's worth checking before you assume the cost is deductible. See the ATO's self-education expenses guidance.
Do I need to declare bank interest on my tax return?
Yes, all interest you earn, from every account including joint accounts and term deposits, is assessable income and must be declared. Most banks report this directly to the ATO, so it's usually pre-filled in your return by late July, but it's still your responsibility to check the figure is complete and correct, particularly if you hold accounts with several institutions or interest earned overseas.
Do I need to declare overseas income?
If you're an Australian tax resident, yes, generally your worldwide income needs to be declared, not just income earned in Australia. This includes foreign employment income, overseas rental income, foreign pensions and foreign investment income. Australia has tax treaties with many countries and a foreign income tax offset may apply where you've already paid tax on the same income overseas, so you're not necessarily taxed twice on the same dollar. Foreign income can be one of the more complex areas of a return, worth discussing directly with a tax agent rather than assuming either that it's exempt or that it's simply added on top.
Recent tax law changes reflected on this page:
- July 2026 · updated for the $1,000 standard deduction for work-related expenses, commencing the 2026-27 income year
- July 2026 · confirmed the GST registration threshold remains $75,000
- July 2026 · noted the cents-per-kilometre car expense rate increased to 91 cents from 1 July 2026 (up from 88 cents), confirmed on the ATO's own rate determination
- July 2026 · updated for the negative gearing and capital gains tax changes passed by Federal Parliament in June 2026, commencing 1 July 2027
Last reviewed: 19 July 2026. We review this page regularly to reflect significant changes in Australian tax law.
Reviewed by: Tax Insights, Registered Tax Agent, TPB Registration No. 09071006. Verify our registration at tpb.gov.au.
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