Maximising Tax Refunds: A Guide for Individuals and Businesses

Most strategies for getting a larger tax refund come down to one principle: claim everything you are legitimately entitled to, and claim it correctly. A refund is not extra money from the government; it is the return of tax you have already paid throughout the year that exceeds your actual liability. The way to maximise it is to ensure your actual liability is calculated correctly, with every legitimate deduction and offset applied.

This guide covers the highest-impact actions, the deductions people most commonly miss, and timing strategies that affect which financial year a deduction lands in.

Quick Wins: Where Most People Leave Money on the Table

Commonly Missed Deductions

These are the items that come up repeatedly in client reviews legitimate deductions that are easy to forget or simply not realise you can claim:

Timing Matters: What Happens Before vs After 30 June

Some of the most effective refund-maximising actions are about timing, not just what you claim:

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  Super contributions: must be PAID to (and received by) your fund before 30 June to count in the current year. A contribution made on 28 June can take several business days to clear. Leave a buffer, don't wait until the last day
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  Prepaying expenses: sole traders and small businesses can prepay up to 12 months of deductible expenses (insurance, subscriptions, rent) before 30 June and claim the full amount now rather than spreading it over the year it relates to
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  Bringing forward purchases: if you are about to buy a work-related asset under $300 (or a business asset eligible for the instant asset write-off), purchasing before 30 June brings the deduction into this year's return instead of next year's
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  Holding off on income where legally possible: for genuinely discretionary income (e.g., invoicing timing for a sole trader, where the work is genuinely not yet complete), there can be legitimate reasons to consider timing, but this requires real commercial substance, not artificial deferral

Mistakes That Shrink Your Refund

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  Claiming the tax-free threshold at two jobs: creates a tax debt at year-end rather than maximising your refund. See our tax-free threshold guide for the correct approach
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  No records for claimed deductions: a deduction without evidence is a deduction the ATO can disallow on review, potentially after you've already received and spent the refund
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  Overclaiming WFH or vehicle expenses: estimating rather than tracking actual hours or kilometres creates ATO review risk that can delay or claw back a refund
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  Missing the Medicare Levy Surcharge: higher earners without adequate private hospital cover can face an unexpected surcharge that reduces the refund (or increases the bill). Check your cover meets the threshold requirements before 30 June
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  Not declaring all income: the ATO data-matches bank interest, dividends, gig economy platforms, and crypto exchanges. Undeclared income discovered later leads to amendments, not a bigger refund

For Business Owners and Sole Traders

The same principle applies: everything legitimately available is claimable, with a wider range of deductions for business income. See our small business tax deductions guide for the complete business deduction list, including the instant asset write-off, prepaid expenses, and bad debt write-offs that are specific to business income.

How The Kalculators Can Help

A registered tax agent reviewing your full financial picture typically identifies deductions that self-preparation misses, not through aggressive claiming, but through familiarity with what is legitimately available for your specific occupation and situation. Our individual tax return service reviews income, deductions, offsets, and timing to ensure your return reflects everything you are entitled to claim, is correctly substantiated, and is durable rather than at risk of later review.

Call (08) 7480 2593, Monday to Friday, 9:00 AM to 6:00 PM. Offices at 182 Salisbury Highway, Salisbury; 315 Prospect Road, Blair Athol; and 280 Main South Road, Morphett Vale. Online services for Murray Bridge, Woodville, Melrose Park, Port Augusta, Prospect, and Brighton via info@thekalculators.com.au.