Maximise EOFY Tax Deductions: A Practical Guide for Small Businesses and Individuals
EOFY is one of Australia's biggest EOFY sales periods in Australia and a key time to review expenses before 30 June.Whether you're claiming work-related deductions or planning business equipment purchases, understanding EOFY tax deductions can help you make informed decisions. As the end of financial year Australia approaches，this guide explains what you may be able to claim on tax, how individual and business deductions differ, and where planned work equipment upgrades may fit into your EOFY review.
How EOFY Tax Deductions Can Reduce Your Taxable Income
The Australian financial year (end of financial year Australia) ends on 30 June. Before lodging a tax return, it's worth reviewing expenses that may be deductible under current Australian Taxation Office (ATO) rules, including guidance on allowable deductions and record keeping requirements published by the ATO.
In general, a tax deduction reduces your taxable income when the expense has a clear connection to earning income or running a business.
According to ATO guidance, taxpayers generally need records that show:
What was purchased
When the expense occurred
How the expense relates to income-producing activities
The work or business-use percentage where private use is involved
For individuals, deductible expenses may include work-related costs, working-from-home expenses, self-education, and eligible donations.
For businesses, deductible expenses may include operating costs, business equipment, stock, vehicle expenses, and professional services.
What Expenses Are Eligible for EOFY Tax Deductions?
Not all expenses qualify for tax deductions, and eligibility often depends on how the expense relates to your income-producing or business activities. Below are some common categories of expenses that may qualify for tax deductions.
For Individuals
1. Work Related Tools and Equipment
This may include laptops, monitors, tools, software, stationery, professional books, used for your work-from-home or employment in Australia. If you also use the item personally, claim only the work portion and keep a simple note showing how you worked it out. Lower-cost items may qualify for an immediate deduction, while higher-value items usually need to be claimed over time.
2. Working From Home Expenses
Working from home expenses may include extra running costs such as electricity, internet, phone use, stationery, and computer consumables. For the 2025 to 2026 income year, many people use either the fixed rate method or the actual cost method. If you use the actual cost method, your electricity bill, work hours, appliance use and the cost of electricity per kWh can help support a clearer calculation of the work-related portion.
Keep the records clear by checking:
How many hours you work from home
Which costs the fixed rate already covers
Whether larger items, such as office furniture or computer equipment, need separate treatment
Whether any expense includes personal use
If you use the fixed rate method, avoid claiming the same running cost twice.
3. Car and Travel Expenses
Work travel may apply when your job requires client visits, travel between work sites, supplier visits, or overnight work trips. Regular travel between home and your usual workplace usually falls outside these claims. Keep logbooks, receipts, travel notes, and details of the work purpose. If a trip includes both work and personal time, claim only the work portion.
4. Self-Education and Professional Development
Courses, seminars, conferences, and training may qualify when they help you maintain or improve skills used in your current work. The claim is stronger when the course clearly connects to your current role or current income earning activity. Keep enrolment records, invoices, course details, and notes showing how the training relates to your work.
5. Protective Clothing and Safety Items
Protective footwear, gloves, safety glasses, sunscreen for outdoor work, and occupation specific clothing may qualify when they relate to your work conditions. Keep receipts and brief notes showing why the item helps you work safely.
6. Donations, Insurance, and Super Contributions
Donations may qualify when you give to an organisation with deductible gift recipient status and keep a valid receipt. Income protection premiums and personal super contributions may also form part of your EOFY review when they meet the right conditions. For personal super contributions, make sure you complete the notice of intent process and keep confirmation from your fund.
For Small Businesses
1. Operating Costs
These may include rent, utilities, accounting fees, tax agent fees, bank fees, software subscriptions, website costs, marketing, postage, office supplies, phone bills, and internet costs. EOFY is a good time to match these costs with invoices, bank records, and accounting entries.
2. Tools, Equipment, and Business Assets
Business assets may include computers, machinery, tools, cameras, payment devices, office furniture, storage equipment, and other items you use to provide goods or services. Some assets may qualify for an immediate deduction under small business rules, while others may need depreciation. Keep purchase invoices, asset records, and details showing when you started using the asset for business.
For the 2025 to 2026 income year, eligible small businesses with an aggregated annual turnover of less than $10 million may be able to use the $20,000 instant asset write-off for qualifying assets. Each asset must cost less than the threshold and be first used or installed ready for use for a taxable business purpose by 30 June 2026.
Rule | 2025 to 2026 Position |
Eligible taxpayers | Small businesses that meet ATO eligibility rules, including the aggregated turnover requirement |
Asset timing | First used or installed ready for use for a taxable business purpose by 30 June 2026 |
Threshold | $20,000 per eligible asset |
Claim basis | Business use portion only |
Important note | Assets at or above the threshold may need different depreciation treatment |
As 30 June approaches, many Australian businesses use EOFY to review equipment purchases that support daily operations while taking advantage of seasonal deals. Alongside computers, networking equipment, and payment systems, reliable backup power is becoming an increasingly important consideration, particularly for home offices, mobile operators, and small businesses that rely on connected devices to stay productive.
For businesses looking to strengthen power resilience before the new financial year, EcoFlow's EOFY Mega Deals event offers savings on a range of portable power solutions. The EcoFlow DELTA 3 Ultra Plus Portable Power Station is well suited to home offices, consulting spaces, and mobile work setups, helping keep essential equipment such as computers, routers, and payment devices running during unexpected outages with built-in UPS functionality and flexible backup power.
If you need greater capacity to support longer runtimes, the EcoFlow DELTA Pro Portable Power Station gives your business more room to scale. Its expandable energy storage makes it a stronger fit for longer outages, multi-device work setups, and situations where equipment uptime directly affects bookings, sales, client work, or daily operations. It also keeps a more movable design than a fixed backup system, with built-in wheels and an extendable handle that make it easier to reposition between a home office, small workspace, event setup, or mobile work area.
3. Home-Based Business Expenses
Sole traders and small businesses that operate from home may review electricity, internet, phone, cleaning, and other running costs. The calculation should reflect how the home supports business activity, including business hours, work area, and usage patterns. If electricity forms part of your business costs, it can also help to understand whether electricity has GST, so your records match your bills and business use.
4. Vehicle and Business Travel Costs
Business vehicle expenses may apply when a vehicle supports client visits, deliveries, supplier trips, mobile services, or travel between business locations. Keep logbooks, odometer readings, receipts, and notes showing the business purpose. If you also use the vehicle privately, separate the business portion clearly.
5. Insurance, Licences, and Professional Fees
Business insurance, industry memberships, professional licences, registrations, accreditations, and adviser fees can support business operations or compliance. These costs fit best when they clearly relate to how the business earns income.
6. Stock, Supplies, and Consumables
Product-based and service-based businesses may review packaging, raw materials, cleaning supplies, spare parts, and consumables. Trading stock needs a little more care because EOFY treatment may depend on what the business bought, sold, used, or still held at the end of the income year.
Useful records include:
purchase invoices
stock records
sales records
opening and closing stock details
notes on damaged, obsolete, or written off stock
Expenses That Need Extra Care
Some EOFY expenses need closer review before you include them in your return. This includes mixed-use assets, meals, entertainment, EOFY functions, gifts, travel with personal time, and large purchases made close to 30 June.
A clear claim usually starts with three checks:
The expense supports income-earning or business activity
You have a receipt, invoice, or other reliable record
You can explain the work or business portion
For more complex claims, especially where private use, GST, depreciation, or entertainment rules overlap, check the treatment with a registered tax agent.
How to Claim EOFY Tax Deductions Correctly
Claiming EOFY tax deductions correctly starts with a clear link between the expense and the income you earn or the business you run. Each claim should also have records that show what you spent, when you spent it, and how much of the cost relates to work or business use.
1. Gather Your Records
Collect receipts, invoices, bank statements, logbooks, travel notes, and work from home records before you lodge your return. For individuals, records usually need to support the work-related portion of each claim. For small businesses, invoices, bank records, accounting entries, and asset records help show how each expense supports business activity.
2. Check Eligibility Before You Claim
Review each expense against ATO rules and match it to the right category. Individuals may need to check work-related expenses, working from home costs, travel, training, donations, insurance, or super contributions. Small businesses may need to check operating costs, business assets, home-based business expenses, vehicle use, stock, and professional fees.
3. Use The Right Claim Method
Some expenses can be claimed in the same income year, while larger assets may need to be claimed over time. Small businesses should also check whether an eligible asset fits the instant asset write-off rules for the 2025 to 2026 income year. When an item has both private and business use, claim the income-producing portion only.
4. Lodge Through The Right Channel
You can lodge your tax return through myTax using ATO online services, through a registered tax agent, or by using a paper tax return if needed. If you lodge your own return, the usual deadline is 31 October. A registered tax agent may have a different lodgement schedule, depending on your situation.
5. Review Before Lodgement
Check that amounts match your records, categories make sense, and private use has been separated where needed. A final review helps keep your EOFY tax deductions easier to support if the ATO asks for more information.
Tips to Manage EOFY Tax Deductions More Efficiently
Keep Records Throughout The Year
EOFY becomes easier when records are organised before tax time. Keep receipts, invoices, bank statements, logbooks, work from home hours, course records, and asset documents in one place. In most cases, Australian tax records should be kept for 5 years, so a simple filing system can save time later.
Separate Private And Mixed Use Expenses
Many expenses include both income-producing use and private use. This can apply to phones, internet, vehicles, home office costs, travel, tools, and business equipment. A clear usage record helps you claim the right portion and explain how you worked it out.
Common private or personal costs include everyday clothing, regular travel between home and work, personal meals, childcare, fines or penalties, and private household expenses. These items are better reviewed carefully before they enter your return.
Plan Necessary Purchases Before EOFY
EOFY can be a useful time to review equipment, software, tools, business supplies, and other costs you already need for work or business. For small businesses, asset timing matters because some deductions depend on when the item enters business use. Focus on purchases with a clear work or business purpose, and keep the invoice, payment record, and usage details.
Get Professional Help For Complex Claims
A registered tax agent can help when a claim involves mixed-use assets, business equipment, entertainment, travel, home-based business costs, or larger EOFY purchases. This is especially useful for sole traders and small businesses, where income, GST, asset rules, and business records may overlap.
Conclusion
Understanding EOFY tax deductions helps individuals and small businesses organise records, review eligible expenses, and reduce taxable income before 30 June. Clear receipts, separated private and business use, and the right lodgement method can make tax time easier to manage. EOFY can also be a useful moment to review the equipment your work depends on, including office devices, tools, and backup power solutions such as a power station. This is especially relevant for businesses that rely on uninterrupted connectivity and power stability to keep operations running smoothly. Any claim should still reflect genuine work or business use and be supported by clear records.
FAQs
What is the instant $1000 tax deduction?
The $1,000 instant tax deduction is a proposed standard deduction for eligible workers from the 2026 to 2027 income year. It does not apply to the 2025 to 2026 tax return, so individuals preparing EOFY tax deductions for 30 June 2026 should still follow the current ATO deduction and record-keeping rules. For the 2025 to 2026 year, keep records that show what you spent, how the expense relates to your income, and how you calculated the work-related portion.
What happens if I make a mistake on my tax return?
If you find a mistake after lodging your tax return, you can usually request an amendment through ATO online services, by paper, or with help from a registered tax agent. This can help correct missing income, incorrect deduction amounts, or information entered in the wrong section. It is best to amend the return once you have the right records, as the change may affect your assessment, refund, tax payable, interest, or penalties depending on the situation.
When is the deadline for EOFY tax lodgement?
The Australian financial year ends on 30 June each year. If you lodge your own tax return through myTax, the usual due date is 31 October. If you use a registered tax agent, you may have a later lodgement date under the tax agent lodgement program, depending on your circumstances. It is still worth preparing early, especially if you need to gather receipts, check work-related expenses, review business records, or separate private and business use before lodging.
*Disclaimer: Before reading this guidance, please remember that tax matters can be highly individualized and complex. EcoFlow does not provide any assurances or guarantees concerning potential tax credits associated with our products. Any information in this guidance is solely for educational purposes and shall not be construed as legal advice. We recommend you rely on the expertise of tax professionals for accurate and personalized tax advice.