Avoid These Deduction Mistakes Before You Lodge Your Tax Return
Claiming deductions is one of the easiest ways to reduce your tax bill, but mistakes are common — and some can carry penalties or delays. The ATO has been increasing scrutiny, so knowing what errors to avoid can save you time, money, and stress.
1. Claiming Without Documentation
One of the most common tax deduction mistakes is claiming without proper records. Receipts, invoices, logbooks — all of these matter. For example, claiming home office expenses without evidence or relying on generic statements will almost always fail with the ATO.
2. Misclassifying Personal vs Business Expenses
If something is used partly for work and partly personal, it must be apportioned correctly. You cannot claim the full cost of an item that’s also used privately. For instance, a mobile phone bill needs to be split between business and personal use.
3. Overclaiming or Double Dipping
Sometimes expenses are claimed more than once or spread across multiple deduction categories. A classic mistake is claiming both a general work expense and also a specific allowance for the same item — or claiming an expense that’s already been reimbursed.
4. Missing Eligible Deductions
On the other hand, many people actually underclaim. Depending on your profession, eligible deductions could include uniforms, tools, professional memberships, or subscriptions. Reviewing what’s available to your industry can make a significant difference to your refund.
Why Getting Deductions Right Matters
Even small errors can trigger ATO reviews, penalties, or missed refunds. To stay on track:
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Keep good records throughout the year
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Double-check what you’re claiming
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Seek advice from a professional if you’re unsure
A few minutes of care now can save you from big problems later — and ensure you get every dollar you’re entitled to.
✅ Need help knowing when to involve a tax lawyer? See our latest article on ATO enforcement for guidance.
✅ For more detail on deductions, review the ATO’s deductions guide.