Tax time tips and scams to watch out for

It’s not exactly the highlight of the year but getting ahead of your taxes means fewer headaches. Whether it’s considering your deductions, filing your return or avoiding scams, we’ve got some tips to help make it smooth sailing.

How to prepare for tax time

Your tax return is a wrap-up of all the income you’ve earned and the expenses you can claim during your financial year. When it’s time to lodge your return, you’ll need to show how much income you’ve earnt and your tax deductions claimed. If you’re on a salary (full-time, part-time or casual), your employer has likely helped you prepay the tax payable on your salary and the details should be automatically pre-filled in your return—too easy. But if you own investment properties or you’re self-employed, it’s a different story. You’ll need to keep track of your income and set aside money to pay your tax when it’s due.   

Tax laws can be complicated so it might be worth calling in a professional. A tax agent can take the stress out of the process—and maybe even help you get a bigger refund. “One advantage is tax accountants stay updated on tax laws,” says Stuart Waugh, director and tax expert at Altus Financial. “They can answer your questions and assess expense eligibility to maximise your return.” In other words, they know how to help you get the most out of your tax return.  

The deadline to lodge your return could be as early as 31 October and you can do it yourself through the ATO’s online myTax tool. If you’re going through a tax agent, make sure you contact them and are part of their lodgement program before your due date. And whatever you do, lodge on time—late lodgements can come with penalties and that’s one headache you really don’t want.

“Tax accountants stay updated on tax laws and can answer your questions.” - Stuart Waugh, director and tax expert at Altus Financial

What you’ll need

• Your Tax File Number (TFN), which can be found online via myGov or on your payment summary.
• The bank account details where you would like any tax refunds to be deposited.
• Details of any additional income such as bank account interest, rental income, investments or employee share schemes.
• Receipts and records for any expenses you may be able to claim, including car, home office and education.
• Receipts of any tax-deductible donations you’ve made to charities.

Dodging tax-time scams

Scammers love tax season almost as much as we hate it and they’re getting sneakier every year. But knowing what to watch out for can help keep your money (and your identity) safe. The most common scams involve emails, calls or texts pretending to be from the ATO or myGov, asking for personal details or demanding payment. Some might dangle the promise of a massive refund, while others try to scare you with fake legal threats. 

One of the most common scams? The “fake tax debt” trick. A scammer will claim you owe money and might even rattle off a convincing-sounding ID number or case reference. They’ll push you to pay up immediately—sometimes even threatening arrest if you don’t. A big red flag? If they ask for payment via cryptocurrency, gift cards or prepaid debit cards. 

“Scammers are getting cleverer and using new tricks to get access to your money,” says Waugh. “Texts or emails with links to click or QR codes to scan are becoming more common. Scammers create fake log-in pages that look real but are designed to steal your myGov sign-in details.” Another sneaky move is fake ATO accounts popping up on social media, tricking people into sharing details under the guise of helping with tax returns.

How to stay safe from tax-related scams

• The ATO will never send log-in links or QR codes via email or SMS.
• Poor grammar or dodgy spelling in messages is a tip-off.
• If you get an unexpected call, text or email about your tax, verify it by calling the ATO on 1800 008 540.
• If you’ve accidentally clicked a link or shared your details, contact CommBank and the ATO immediately.

Tax myths

Social media is awash with tax misinformation from expenses and deductions to refunds. Here, Waugh debunks some of the most common misconceptions:

MYTH: I’m entitled to claim a $300 deduction of work-related expenses without receipts.
FACT: “For claims up to $300, receipts aren’t required but you must prove the expenses related to your income and explain how you calculated the claim.”

MYTH: You only need credit card receipts as proof of work-related expenses.
FACT: “The ATO requires detailed records—such as invoices, receipts or bank statements—showing the supplier, amount, date and nature of the expense.”

MYTH: Any travel to my investment property is tax deductible.
FACT: “Unless you’re in the business of rental properties, you can’t claim deductions for travel to your investments.

MYTH: My family holiday is tax deductible if I attend a work conference.
FACT: “Personal trip expenses can’t be claimed. Travel costs between personal and work-related parts of your holiday must be properly split.”

MYTH: A $10,000 business expense saves you $10,000 on taxes.
FACT: “Your tax savings depend on your tax rate. For example, with a 30 per cent tax rate, a $10,000 deductible expense saves you $3000 (30 per cent of $10,000), not the full $10,000.”

MYTH: If I use a tax agent, they’re responsible for my claims.
FACT: “It’s your responsibility to ensure your return and any deductions are correct. If there are any inaccuracies or mistakes, the ATO will hold you responsible.”

Ways to make your refund work for you

It’s easy to absorb any extra cash—like a tax refund—into everyday expenses without a second thought. But with a little planning, that money could do more than just cover short-term costs—it could help you build wealth for the future.

Save it

“You could use your return to build financial resilience,” says Darlene Neu, financial wellbeing consultant at The Money Collective. “If you don’t have an emergency fund, starting one could be your first goal.”

Pay off debt

“If you have high-interest debt,” says CommBank personal finance expert Jess Irvine, “consider a lump-sum repayment to reduce the interest you incur over time.”

Boost your super

 “Another option would be topping up your super,” says Irvine. A voluntary contribution now could mean thousands more when you retire.

Enjoy it

“Managing money is about finding balance between future goals and enjoying life today,” says Neu. So, yes, plan that trip!

Planning for the next financial year 

• Create a safety net: Aim to save three to six months’ worth of expenses to cover unforeseen job loss or unexpected costs.
• Set financial goals: Set clear short-, medium- and long-term goals, such as building an emergency fund, paying off a debt or saving for a car.
• Revise your budget: Create a budget using tools or spreadsheets. Track your income, expenses and savings, then adjust accordingly throughout the year.
• Tackle debt strategically: Prioritise high-interest debts, consider consolidation for lower rates and set up automatic payments to stay on track.
• Review your expenses: Audit your subscriptions and expenses. Cancel unused streaming services, forgotten gym memberships and overpriced phone plans.
• Make comparisons: Compare your energy, internet and insurance providers to make sure you’re getting the best deal. Check your superannuation to ensure it still matches your needs.
• Plan for tax time early: Keep track of work-related expenses and explore tax-deductible investments or salary sacrifice options. If you’re self-employed, allocate regular funds for tax payments.

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