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1 Apr, 2025

7 Common Tax Time Mistakes Australians Make and How to Avoid Them

Every year, like clockwork, tax time rolls around — and so do the same mistakes. You promise yourself this year will be different, but then it’s mid-June, you’re scrambling through emails, and realising you’ve got no clue where that $1,200 receipt went.

You're not alone. The ATO reports that thousands of taxpayers each year either overclaim, under-declare, or rush their returns. Here's a straight-talking list of the seven most common mistakes Aussies make at tax time, how to avoid them, and how tools like Ezyiah can keep your finances sorted well before 30 June.

1. Rushing Your Tax Return

Lodging early feels productive — but if you’re not waiting for pre-fill data from the ATO (like interest, employer info, private health), you might be filing an incomplete return. That could mean missing deductions or worse — an amended return.

Avoid it:

  • Wait until your pre-fill data is complete (usually mid-July)
  • Double-check all figures before submitting
  • Let tools like Ezyiah review your inputs and flag potential gaps

2. Forgetting to Report ALL Income

If you’ve got a side hustle, freelance income, or even rental income — that all counts. Many people forget income earned from PayPal, gig platforms (like Airtasker, Uber), or overseas clients.

Avoid it:

  • Check your bank and payment platforms for extra income
  • Keep a running tally of all gigs
  • Ezyiah can help track multi-source income so nothing slips through the cracks

3. Missing Legitimate Deductions

You might be eligible to claim for things like tools, work-related education, home office costs, and even laundry — but many Aussies don’t bother because they’re not sure what’s allowed.

Avoid it:

  • Refer to the ATO’s occupation guides
  • Use Ezyiah to scan receipts and suggest likely deductions
  • If in doubt, keep the receipt — you can always decide at tax time

4. Claiming Expenses Without Records

Yes, you can claim a deduction — but only if you can prove it. No receipt = no refund.

Avoid it:

  • Store receipts digitally (Google Drive, photos, or apps)
  • Ezyiah can categorise and store your scanned expenses automatically
  • For small claims under $300, the ATO may not require receipts, but records are still smart

5. Confusing WFH vs Office Deductions

Post-pandemic, the ATO introduced the 67¢ and now 70¢ fixed rate method — but it’s not the same as claiming actual costs. Many people are claiming both or getting the rules wrong.

Avoid it:

  • Pick one method: fixed rate or actual cost
  • Track hours worked from home
  • Let Ezyiah calculate your eligible WFH deduction based on logged hours and method

6. Forgetting to Lodge or Pay on Time

The ATO is surprisingly forgiving — until you miss deadlines. Late lodgement or unpaid tax bills can result in interest and penalties.

Avoid it:

  • Set calendar reminders for your tax return and BAS if you’re a sole trader
  • Ezyiah can send nudges for key dates (BAS, income tax, super payments)
  • If you can’t pay, the ATO offers payment plans — but don’t ignore it

7. Not Keeping Records Year-Round

EOFY shouldn’t be a mad scramble — but for most of us, it is. Leaving it all to June means missed deductions and unnecessary stress.

Avoid it:

  • Log income and expenses monthly
  • Save receipts as you go
  • Use Ezyiah to automate record-keeping so your tax return writes itself

Quick Recap: 7 Mistakes and How to Dodge Them

  1. Rushing returns – Wait for pre-fill data and check everything twice
  2. Forgetting income – Declare gig work, rental, side hustle earnings
  3. Missing deductions – Know what you can claim (and keep receipts)
  4. No records – Scan and store receipts digitally
  5. Wrong WFH method – Choose fixed rate or actual cost (not both)
  6. Late lodgement – Set alerts or let Ezyiah nudge you
  7. Scrambling in June – Use Ezyiah to track and prep year-round

Final Thought

Tax time doesn’t have to be stressful. By avoiding these common traps and using tools like Ezyiah to do the heavy lifting, you can make EOFY 2025 your easiest one yet.

No pressure, no panic — just smart prep, clear records, and confidence in what you’re lodging.

Ready to stay ahead of the ATO and feel in control this year? Give Ezyiah a go and see how smooth tax season can be.

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