Expert reveals the tax traps Aussies need to avoid this year - and how to get the biggest refunds when filling out your return

Published: 14:42, 14 July 2026 | Updated: 14:47, 14 July 2026 An expert has warned millions of Australians filling out their tax returns over the next few weeks to be wary of traps, common mistakes and overlooked claims that could cost them thousands.  Belinda Raso from Tax Investing Accounting said she frequently saw taxpayers incorrectly claim deductions, fail to declare their full income, and lodge too early.  The senior accountant told Daily Mail that the ATO had pulled up many people working from home for claiming costs which were already covered under the standard fixed-rate deduction.  'They will claim the hourly rate, and that's 70 cents per hour, but then they'll go and claim their internet bills, their mobile bills and their stationery as well,' Ms Raso said.  'They just can't be doing that because it's double dipping.' She said workers were also flagged by the tax office for claiming the maximum 5,000km vehicle deduction, but their travel was not work-related.  'A lot of people tend to think that because you don't need a logbook, it's a given that you can claim 5,000km,' Ms Raso said. 'The ATO has sent over 500,000 letters to people that have claimed that in previous years, so you need to be aware of when you can actually claim motor vehicle use. A tax expert has warned Aussies about the biggest tax traps facing millions this year, including common mistakes and overlooked claims that could cost them thousands With the deadline not until October 31, Ms Raso said waiting until the end of July was the best time to lodge  'Over 95 per cent of that, it's not travelling to and from work.' Another area where people ran into trouble was when it came to claiming assets worth more than $300, with Ms Raso saying they claimed the full cost upfront instead of depreciating it over time. 'If you purchase an item, whether it be a computer, tools, or even a handbag that's over $300, you must claim it over its useful life and not just claim that full amount in that one year,' she said. 'It seems to stump a lot of people.'  Ms Raso said one of the biggest pitfalls for taxpayers was submitting to the tax office the wrong family status for Medicare levy surcharge purposes.  'The one mistake they make is not realising what's considered a family and what's considered single with no dependents,' she said.  'A lot of people tend to think that single with no dependents means that you're a single parent, but you are still classed as a family regardless of whether you're in a relationship or not.'   As a result, Ms Raso said it could mean people are receiving less money back than what they were entitled to. Belinda Raso from Tax Investing Accounting revealed she frequently saw taxpayers incorrectly claim deductions, fail to declare their full income, and lodge too early 'The ATO will always pull you up if you've made a mistake in their favour, so if you should have paid the Medicare levy surcharge but didn't, they will change your tax return,' she said.   'But, if you made yourself pay for the surcharge when you didn't need it, they won't fix it.' When it came to income, Ms Raso said that many people forgot to report bank interest, warning that 'even something as little as $2 could pull you up for a review with the ATO'.  Similarly, Ms Raso said cryptocurrency was becoming increasingly overlooked because the information was not always readily visible, but the ATO would be aware if you own any digital currency. 'It won't show up that you've been flagged for crypto as you're going through your MyGov account through your MyTax, but if you have had anything to do with cryptocurrency throughout the year and you've had a crypto event, your platform providers actually report that directly to the ATO.' While many of the tax traps involved mistakes, Ms Raso said there were many deductions left unclaimed as well, leaving taxpayers with less money than they were entitled to. At the top of her list were people claiming their 70 cents per hour working from home rate, assuming it covered every expense available to them. 'It includes mobile, internet, electricity, the heating and cooling, and also stationery and printing costs, but not the mobile phone device,' she said.  Devices like computers and phones can be claimed on top of the standard WFH deduction 'You could actually claim your mobile phone repayments, insurance, or even the purchase of the mobile phone itself on top of that 70 cents. 'You've also got all of your computer equipment including monitors, keyboard, mouse and the hardware which all costs money. 'If you keep all that in mind and just keep a receipt for everything, you're going to be in front for sure.'  Ms Raso said the list also extended beyond physical equipment, with AI subscriptions commonly overlooked despite many Aussies using them for work.  'How many of us are paying for Chat GPT or any other AI?' she said.  'That's all claimable if it's used as part of your job, but they're those little things that people just don't even think about declaring.' Ms Raso also spoke about the risks of lodging too early, warning taxpayers there was 'no benefit' in submitting returns before information had been finalised. She said she had seen people completing it on July 1, before their income statements were even ready, which can cause unnecessary confusion and delays.  'People are lodging from the very first day because they are panicking and they unfortunately need their money straight away due to the cost of living crisis,' she said.  'They're thinking, ''Well, everything's already on there'', and not realising that allowing you to lodge from July 1 doesn't mean it actually ready. 'People need to be patient and just wait until all the information is in and for it to say it is tax ready.'  With the deadline not until October 31, Ms Raso said waiting until the end of July was the best time to lodge.     'While employers have until July 14 to finalise income statements before they are required to be marked tax ready, some actually have until July 31 if they apply for an extension,' she said. 'Most banks are also going to have all of their interest pre-filled by around the 20th, along with dividends and shares. 'If people have done any work covered by taxable payments annual reporting (TPAR), including in the building, construction, cleaning and IT industries, that information isn't going to be pre-filled until August 28.'