Tax planning for employees and professionals
Most people treat tax as a “July problem”. The catch is: by the time you lodge, it’s too late to fix missed records, missed deductions, or opportunities like super contributions. Simple planning through the year usually means fewer surprises and a better (and cleaner) outcome.
Why it’s worth doing
Fewer nasty surprises
Planning helps prevent unexpected tax bills (common when you change jobs, have multiple employers, or start investment income).
Reduce audit risk
If claims are reasonable and well supported (receipts, logs, records), the ATO has far less to question.
Claim what you’re entitled to
Most missed deductions are not exotic. They’re basic work expenses where records weren’t kept.
Common pitfalls (and what to do instead)
Pitfalls we see often
- Claiming “standard deductions” without receipts or a clear connection to work.
- Working from home claims with no hours record.
- Car claims with no logbook (or claiming commuting trips).
- Self-education claimed when it’s not linked to current employment duties.
- Multiple income sources with incorrect PAYG withheld (leading to a bill).
- Leaving super planning to late June, then missing timing or paperwork.
What to do instead
- Keep receipts (photo is fine) and write a short note for anything that isn’t obvious.
- Track work-from-home hours as you go (simple diary, roster, timesheet, app).
- If using a vehicle for work travel, keep a compliant logbook and odometer records.
- Keep evidence for professional development (course outline + how it relates to your role).
- Review withholding after job changes/side income to reduce bill risk.
- Plan super contributions early and confirm year-to-date contributions before acting.
Working from home (fixed rate method): the one thing you must do
Practical strategies and habits (most people can use at least a few)
1) Super contributions (salary sacrifice or personal deductible)
- Before-tax super contributions can be tax effective, but you need to stay within the concessional contributions cap.
- The cap is currently $30,000 per year for most people (check the ATO for the current cap and your circumstances).
- Carry-forward concessional contributions may be available if you’ve had unused cap amounts in prior years and your total super balance is under the ATO threshold.
Always confirm contributions already made (employer SG + salary sacrifice) before topping up.
2) Work-related expenses (claim what’s legitimate, support it properly)
- Professional memberships, registrations and journals (where linked to your role).
- Home office running expenses (hours record + relevant costs where required).
- Phone/internet and devices (work-use percentage matters).
- Protective clothing/uniforms and laundry (where eligible).
- Tools/equipment depreciation where used for work.
Rule of thumb: if you can’t explain “how it helped you earn your income”, don’t claim it.
3) Vehicle and travel (often done wrong)
- Trips between workplaces can be claimable; commuting (home to usual workplace) generally isn’t.
- If using a logbook method, you need a proper logbook and odometer records.
- Keep diary notes for work travel days (who/where/why) and keep receipts.
4) Manage bill risk (multiple income streams)
- Job changes, multiple employers, side income, or large investment income can create under-withholding.
- A quick mid-year review can prevent a surprise bill.
- If you have HELP/HECS, be extra mindful — repayments are income-driven and can shift quickly.
5) Donations and giving (simple, but needs evidence)
- Donations to deductible gift recipients (DGRs) can be deductible if you keep receipts.
- Donations need to be truly voluntary and not a “benefit in return”.
6) If you have investments (shares, crypto, property)
- Keep buy/sell records and annual statements (especially for managed funds and ETFs).
- Track investment-related interest and fees separately.
- Consider timing of disposals and capital gains (ask before you sell if tax is a concern).
Capital gains planning is often about timing and documentation, not “tricks”.
Best-practice checklists
Monthly checklist (10 minutes)
Pre-30 June checklist
Record retention (simple rule)
Case studies (good and bad)
A professional keeps a single “Tax – 2026” folder and saves receipts as they occur. They track work-from-home hours weekly. In May, they review year-to-date super contributions and (if there’s cap room) make an additional concessional contribution early enough to clear before 30 June.
The tax return is clean and defensible. No reconstruction, no guessing, no stress.
Outcome: correct claims, low audit risk, and no surprise bill.
A professional claims “typical expenses” but has no receipts for key items and no home office hours record. They change jobs mid-year and start a side income stream, but don’t review withholding. In late June they try to “do something with super” without checking contributions already made.
The result is a messy return, lots of questions, and a surprise tax bill risk — plus the super plan may be ineffective or create cap issues.
Outcome: higher accounting time/cost, more risk, and an avoidable bill.
Official Australian resources
- ATO — Work-related deductions
- ATO — Working from home expenses
- ATO — Records you need to keep
- ATO — Super contribution caps and limits
- ATO — Shares and similar investments (records and tax)
General information only. This page is not tax, legal or financial advice and does not consider your personal circumstances.