Tax time guide: What you need to know

When running a small business or even as an employee, it’s in our best interests to be across the latest updates when it comes to lodging your tax return. Ahead of June 30, Australian Taxation Office (ATO) Assistant Commissioner Rob Thomson answers some burning questions that might help you this tax time.

Rob, for starters, how do I know if I need to lodge a tax return?

Basically, if you’re running a business, you’ll need to lodge a return. For individuals, a number of factors apply and you may be required to lodge even if your total income is below the current tax-free threshold of $18,200. Have a look at the Do I Need To Lodge tool on the ATO website to help navigate this question or ask a tax professional for advice.

Which business deductions can I claim?

You can deduct most expenses for running your business, including motor vehicle expenses, travel expenses, workers’ wages and super contributions, as well as more incidental items like drop sheets, oil, computer consumables and insurances. But the expenses you claim must be directly related to your business, and if you use a vehicle or something like a laptop for both business and personal use, you can only claim the work usage proportion. You’ll need to keep records to prove your claim.

Am I considered a sole trader or someone who earns personal services income? And is personal services income reported differently at tax time?

Good question. Personal services income (PSI) is income produced mainly (more than 50 per cent) from your skills or efforts as an individual. The PSI rules can affect things like the deductions you can claim, so it’s important to know if they apply to you. You can receive PSI in almost any industry, trade or profession, and the PSI rules can actually apply to sole traders, partnerships, companies or trusts. If you’ve worked out that your income is PSI and you’re operating as a sole trader, you report any PSI you’ve received in your individual tax return. You can do this online through myTax or via a registered tax agent. Find out more about PSI and how to correctly record and report it on the website.

If I do an online course, can I claim the fee?

Yes, if the self-education expenses directly relate to your employment as a tradesperson or apprentice and, at the time you incur the expense, it either maintains or improves the skills and knowledge you need for your current duties or results in (or is likely to result in) an increase in your income from your current employment. You can also claim a deduction for the cost of seminars, conferences and training courses that relate to your work as a tradie or apprentice.

I’ve added a bull bar and a spotlight to my work truck for camping trips – can I claim them in my return at tax time?

It depends. You can only claim a deduction for items to the extent that they are used for business or income earning activities. If the bull bar and spotlight are being used for personal reasons only, such as camping for leisure, then you can’t claim a deduction for them.

My partner moved in. Do I have to tell the ATO?

If you live with your partner on a genuine domestic basis, in a relationship as a couple, they will be your spouse for tax purposes, so it’s important to include your spouse details in your tax return to ensure you are taxed correctly. Your partner should also update their personal contact details with the ATO.

My dog acts as site security. Can I claim anything related to him or his care?

Only if your work duties require you to use a guard dog; it’s a requirement of your employment that you provide your own guard dog; and you have trained the dog to be a guard dog from a young age. The claim must only be for the dog’s use at work, not while treated like your pet or your family’s pet.

How do I correct a mistake on my tax return?

However you have lodged your return – whether online, through a registered tax agent or on paper – you can request an amendment using ATO online services, accessed through myGov. Just wait until the ATO has finished processing your original tax return before you put in for an amendment.

I’m still studying but working part-time. Should I be paid super?

If you’re over 18 and an employee (no matter how much you’re paid), you’re entitled to the super guarantee – which is currently 11.5 per cent of your earnings, rising to 12 per cent from July 1, 2025. If you’re under 18, you’re entitled to super if you work more than 30 hours a week.

I’m a qualified chippy with ABN, engaged as an independent contractor and paid by the hour. Should the company I work for pay my super?

If you’ve been engaged under a verbal or written contract mainly for your personal labour and skills, and you’re doing the work yourself (not farming it out to someone else), you could well be eligible for super payments. This isn’t the case if you’re contracted as a company (even as a sole trader), and you’ve been hired to complete a specific task. It can be confusing, so check the ATO website for more information, or consult a tax professional.

Want more tax time info?

Check out our article detailing exactly what tradies can claim.

The information in this article is general in nature. It doesn’t take into account your specific financial position, needs or circumstances. You should look at your own financial position, objectives and requirements and seek professional advice before making any financial decisions.