--- title: "Tax deductions to avoid in 2025: work-related claims" description: Discover Tax deductions to avoid in 2025 with expert tips of work-related expenses, working from home claims, and managing multiple income sources. image: https://insights.wlm.com.au/hubfs/Tax%20deductions%20to%20avoid%20in%202025%20work-related%20claims%20(2).png --- [![WLM_Logo_RGB_Orn50](https://insights.wlm.com.au/hs-fs/hubfs/WLM_Logo_RGB_Orn50.png?width=521&height=169&name=WLM_Logo_RGB_Orn50.png "WLM_Logo_RGB_Orn50")](http://wlm.com.au/) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) [Login](https://clientlogin-us2.karbonhq.com/4Frhz6cPZq6r) - [About](https://www.wlm.com.au/about/) - [Services](https://www.wlm.com.au/services/) - [Tax & Compliance](https://www.wlm.com.au/services/tax-and-compliance/) - [Strategy & Advice](https://www.wlm.com.au/services/strategy-and-advice/) - [Clients](https://www.wlm.com.au/clients/) - [Construction & Trades](https://www.wlm.com.au/clients/construction/) - [Family Business](https://www.wlm.com.au/clients/family-business/) - [Insurance & Financial Services](https://www.wlm.com.au/clients/insurance-and-financial-services/) - [Renewable Energy & Environment](https://www.wlm.com.au/clients/renewable-energy-and-environment/) - [Service-based & Other Business](https://www.wlm.com.au/clients/service-based-and-other-business/) - [Insights & Case Studies](https://insights.wlm.com.au/blog) - [Blog](https://insights.wlm.com.au/blog) - [Buying a property with a business partner](https://explore.wlm.com.au/buying_a_property_with_a_business_partner_download) - [How to minimise tax & risk with business structure](https://explore.wlm.com.au/business-structure-whitepaper-download) - [Contact](https://www.wlm.com.au/contact/) # News, views and more ![Charley Tarchichi](https://insights.wlm.com.au/blog/Charley%20Tarchichi) **Charley Tarchichi** 10 June 2025 — 2 min read ### Share [mailto:?subject=Tax%20deductions%20to%20avoid%20in%202025:%20work-related%20claims&body=https://insights.wlm.com.au/blog/tax-deductions-to-avoid-in-2025-work-related-claims](mailto:?subject=Tax%20deductions%20to%20avoid%20in%202025:%20work-related%20claims&body=https://insights.wlm.com.au/blog/tax-deductions-to-avoid-in-2025-work-related-claims) [mailto:?subject=Tax%20deductions%20to%20avoid%20in%202025:%20work-related%20claims&body=https://insights.wlm.com.au/blog/tax-deductions-to-avoid-in-2025-work-related-claims](mailto:?subject=Tax%20deductions%20to%20avoid%20in%202025:%20work-related%20claims&body=https://insights.wlm.com.au/blog/tax-deductions-to-avoid-in-2025-work-related-claims) ![Tax deductions to avoid in 2025: work-related claims](https://insights.wlm.com.au/hubfs/Tax%20deductions%20to%20avoid%20in%202025%20work-related%20claims%20(2).png) ## Tax deductions to avoid in 2025: work-related claims With the 2025 tax season fast approaching the Australian Taxation Office (ATO) is reminding taxpayers to be careful when claiming work related expenses.   This is in reaction to a spate of claims that didn’t quite pass the ‘pub test’. To give you a few examples of what didn’t get through… - A mechanic attempting to claim an air fryer, microwave, two vacuum cleaners, TV, gaming console and gaming accessories as work related expenses - A truck driver seeking to deduct swimwear purchased during transit due to hot weather - A fashion industry manager attempting to claim over $10 000 in luxury branded clothing and accessories for work related events These claims were deemed personal in nature and lacked a sufficient connection to income earning activities. The advice here would be - if in doubt leave it out or run it by us.   ## 2025 priorities The ATO is focusing on areas where frequent errors occur including: - Work related expenses: as above, claims must have a clear connection to income earning activities and be substantiated with records including receipts or invoices. Even if an expense seems to relate to income earning activities, it can’t normally be claimed if it is a private expense. There are a wide range of common expenses that normally don’t qualify for a deduction. - Working from home deductions: taxpayers must prove they incurred additional expenses due to working from home. The ATO offers two methods for calculating these deductions: the fixed rate method and the actual cost method (more detail below). - Multiple income sources: all sources of income, including side hustles or gig economy work must be declared. Each source may have different deductions available.   ## Working from home deductions - For those working from home there are two methods to calculate deductions: - Fixed rate method: claim 70 cents per hour for additional running expenses such as electricity, internet and phone usage even if you don’t have a dedicated home office. This method can only be used if you have recorded the actual number of hours you worked from home across the income year. A reasonable estimate isn’t enough. - Actual cost method: claim the actual expenses incurred, with records to substantiate the claims. This method potentially enables a larger deduction to be claimed, but the record keeping obligations are more onerous. It's important to note that double dipping is not allowed. For instance, if you claim deductions using the fixed rate method you can’t separately claim a deduction for your mobile phone costs.   ### WLM can help With the 2025 tax season underway, it’s important to ensure your claims are accurate, compliant, and backed by the right advice. At WLM Accounting, we help individuals and business owners navigate their tax obligations with confidence—whether you're working from home, juggling multiple income streams, or simply unsure what you can claim. 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