Every year, millions of Australians leave money on the table by failing to claim legitimate tax deductions. Whether you're an employee, a sole trader, or a small business owner, knowing what you can claim is the key to maximising your refund.
1. Home Office Expenses
With more Australians working from home than ever, home office expenses are a major deduction category. You can claim a portion of your electricity, internet, and even office furniture usage. The ATO offers a fixed rate method (67 cents per hour) or the actual cost method. Make sure you keep a diary of your work hours!
2. Vehicle and Travel Expenses
If you use your personal car for work-related tasks (excluding your commute), you can claim deductions. The cents per km method is easy for up to 5,000km, but a logbook method often yields a much higher deduction if you drive extensively. Tax Tracker makes keeping a digital logbook effortless.
3. Self-Education Expenses
Did you pay for a course related to your current job? You can claim course fees, textbooks, and even travel costs to the educational institution. The key is that it must maintain or improve skills for your current role, not get you a new one.
4. Union Fees and Professional Memberships
These are often small amounts but they add up. Since they are directly related to earning your income, they are fully deductible.
5. Donations
Donations of $2 or more to registered charities (DGRs) are tax-deductible. Keep those receipts!
6. Income Protection Insurance
If you pay for income protection insurance separate from your superannuation, these premiums are tax-deductible. Note that life insurance and trauma insurance are generally not.
7. Tax Agent Fees
The cost of managing your tax affairs, including paying a tax agent or using tax software like ours, is fully deductible in the year you pay it.
8. Tools and Equipment
If you buy tools, laptops, or briefcases for work, you can claim an immediate deduction for items costing $300 or less. For more expensive items, you'll need to depreciate them over a few years.
9. Laundry and Uniforms
You can claim for the cost of buying and cleaning occupation-specific clothing, protective clothing, or distinct uniforms. If your claim for laundry is under $150, you don't even need receipts (but you need a reasonable basis for the calculation).
10. Sun Protection
If your job requires you to work outdoors, you can claim sunglasses, sunscreen, and hats. It’s a deduction that protects your health and your wallet.
Disclaimer: This article provides general information only and does not constitute financial or tax advice. Always consult with a qualified tax professional regarding your specific situation.