6 Things Australian Parents Should Know Before Filing Their Tax Return
Tax season is upon us once again. As the 1st of July approaches, Australians start gathering receipts and searching emails for invoices. They also cross their fingers, hoping to receive a tax refund. This process can be overwhelming for parents who are juggling work, parenting responsibilities, and a never-ending list of family duties.
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Here’s the good thing: With a little preparation and the correct information, filing your tax return does not have to be a hassle. Doing it right can lead to a little boost in your household’s finances.
Recent statistics show that 84% of Australians anticipate receiving a refund. The average refund was over $3,500 in the past year. This is not pocket money–it can cover school supplies, vehicle rego, or even a family vacation. If you want to get the most out of your refund, you need to know how the tax system operates and what you can do to maximize your return.
Six things that every Australian parent needs to know before filing their tax return for this year.
1. Know What You’re Entitled to Claim
Under-claiming is one of the most common mistakes people make when it comes to tax season. Failing to claim legitimate deductions can cost you hundreds, if not thousands, of dollars.
What can you claim?
If you can prove that the expenses are directly related to your earned income, then you’re eligible to claim them as a deduction. Here are some deductions that parents who balance work and home life often overlook:
Car expenses for work
Have you driven your car for meetings, site tours, or to and from work? You may be eligible to claim some of your car expenses. This can be done using the cents-per-kilometre method up to 5,000km or the Logbook, which provides a more detailed breakdown. However, it requires 12 weeks’ worth of records.
Travel expenses
You may be eligible to claim expenses for overnight travel, whether it’s interstate or regional. Keep receipts, and note when and why your travel occurred.
Uniforms, tools, and equipment
Even teachers, health care workers, and tradies can claim for uniforms, tools, and equipment related to their work. A laptop that is used for 50% of its time at work can be depreciated.
Home Office Expenses
Home office deductions are more important than ever as more Australians choose flexible or remote working. You may be eligible to claim a portion of your tax return if you work at home either part-time or full-time.
- Electricity and Gas (heating, cooling, Lighting)
- Depreciation on office furniture and equipment
- Depreciation on computer equipment and devices
- Internet and mobile phone usage
- Cleaning costs
- Stationery and computer consumables, such as ink or paper
You may be able to claim certain costs if you have a record of the expenses or can calculate them accurately.
Pro Tip: ATO offers a variety of methods to calculate home office expenses. These include the shortcut method ($80 per hour), the fixed rate method, and the cost-based method. You can choose the most appropriate method for your circumstances with the help of a qualified tax accountant.
2. Don’t Overclaim, Stick to the Facts
It’s not worth it to try and increase your refund by rounding up expenses or claiming deductions that you do not have receipts for.
Here’s a rule of thumb to follow:
- You can only claim the amount you have spent.
- Only claim the income that you earn.
- Do not claim anything unless you can back it up.
ATO compares your claims to industry benchmarks and is increasingly sophisticated in its data matching. You may be audited if your deductions appear to be unusually large. This can lead to financial penalties and can be extremely stressful.
Be thorough, but always be honest.
3. Do Your Children Need to File a Tax Return?
Many parents never ask this question, but it is more important than ever if you have a teenager with a part-time income or an investment.
What you need to know about:
Even if your child is still in school, he or she may have to file a tax return if theyearnsn income.
Work part-time or on a casual basis.
Many teenagers take on casual jobs in fast food restaurants, grocery stores, or as babysitters. If their employer has withheld even a small amount (e.g., a few dollars) from your child’s earnings, they will have to file a tax return to receive the back.
Dividends and interest
Your child may be earning passive income if they have a savings or investment account (perhaps given to them by their grandparent). Here’s where it gets tricky: Who owns this income?
- It’s your child’s income if the money is invested in a name-brand account and interest/dividends are paid to that account.
- You are required to declare the income on your return if the child or adult who provided the funds retains control of the funds.
Capital gains are no different. You must report any capital gains or losses if you sell shares purchased in your child’s name, but paid for by you.
It’s best to consult a tax expert if you are unsure of how to proceed in this case. This will ensure that you don’t accidentally mislead the ATO.
4. Do Parents Get Tax Benefits?
In Australia, there is currently no direct tax deduction for simply being a parent or raising children. The dependent spouse rebate and the baby bonus are long gone.
There may also be indirect benefits for parents.
- Centrelink Family Tax benefit (FTB)
- Child Care Subsidy
- Paid parental leave (PPL)
These aren’t deductions, but you must understand the impact they have on your taxable income. Some benefits are income-tested. This means that your tax return could impact your eligibility for the benefit or your repayment requirements.
5. Do Not Be Afraid to Ask for Help
Doing your tax return alone can be like trying to assemble IKEA furniture without the instructions–doable, but unnecessarily painful.
Many Australians, especially busy parents, choose to work with a tax agent. Agents are more than just people who fill out forms. They ask you questions that you might not have considered, they identify deductions eligible for your situation, and make sure nothing is missed. A professional can also give you the peace of mind to know that your return will be accurate and ready for audit.
Tax Agent’s Fees are Tax-deductible!
The cost of hiring an accountant is usually more than worth it, especially if the professional finds deductions that you were unaware existed.
6. Know your Deadlines
Tax time is all about timing. Missing important dates can lead to penalties or missed opportunities.
Dates to keep in mind:
- Self-lodgers via myGov: You must lodge your tax return by October 31, 2025.
- Registering with a tax agent: If you register by 31 October 2025, then you may be eligible to receive an extension.
Even if you aren’t quite ready to file, you should still sign up early with your tax agent to benefit from the extended deadlines.
Remember that returns are due from July 1, 2025. The sooner you file, the quicker your refund will arrive.
Conclusion
Every dollar counts for parents. And tax time is the only opportunity each year when you can get a significant cash refund by filing your paperwork correctly.
Preparation is the key to a relaxed tax season. It can be as simple as understanding your deductions or knowing how to calculate income for children, to deciding whether to do it yourself or hire an agent. Prepare your tax return by gathering receipts and checking your income statements.
You’re not only registering numbers, but you could be putting money in your pocket.
Take a deep breath, prepare a cup (or stronger) of tea, and pay attention to tax season. You’ll thank yourself in the future, and your budget will also.
