WHAT TAX DEDUCTIONS CAN I CLAIM?

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June 17, 2025 | pwsbuilder |

In Australia, understanding what tax deductions you’re entitled to can help reduce your taxable income and maximise your refund. The Australian Taxation Office (ATO) allows individuals to claim a wide range of deductions, depending on their occupation, circumstances, and income sources. Below is a breakdown of common deductions available to Australian taxpayers.

1. WORK-RELATED EXPENSES

If you incur costs while earning your income, you may be eligible to claim a deduction. These must be directly related to your job and not reimbursed by your employer. Common work-related expenses include:

  • Vehicle and travel expenses: If you use your car for work purposes (excluding commuting to and from work), you can claim either a cents-per-kilometre rate or keep a logbook to claim actual expenses.
  • Work clothing and uniforms: You can claim costs for buying, washing, and repairing uniforms that are specific to your job, including protective clothing and occupation-specific attire.
  • Home office expenses: If you work from home, you can claim a portion of expenses such as electricity, internet, and depreciation of office furniture or equipment. The ATO provides a fixed-rate method or an actual cost method.
  • Tools and equipment: Items used for work, such as tools, laptops, or mobile phones, can be claimed. If they cost more than $300, the deduction is spread over several years (depreciation).

2. SELF-EDUCATION EXPENSES

You can claim expenses related to courses or training that are directly related to your current job and improve your skills or income-earning potential. This includes tuition fees, textbooks, stationery, and even travel between work and study locations.

3. INVESTMENT AND INCOME-PRODUCING EXPENSES

If you earn income through investments, you can claim deductions for costs associated with earning that income:

  • Interest on investment loans: If you borrowed money to invest in shares or property, the interest paid may be deductible.
  • Rental property expenses: Landlords can claim expenses such as mortgage interest, property management fees, repairs, and depreciation of assets.
  • Financial advice: Fees paid for investment advice may be partially deductible.

4. DONATIONS

Donations of $2 or more to registered charities can be claimed as deductions, provided you have a receipt and the organisation is a Deductible Gift Recipient (DGR).

5. OTHER DEDUCTIONS

  • Union and professional association fees
  • Tax agent fees: The cost of preparing your tax return in the previous year is deductible.
  • Income protection insurance premiums: Only if not taken out through your superannuation fund.

CLAIMING DEDUCTIONS: KEY RULES

To claim a deduction:

  • You must have spent the money yourself.
  • The expense must be directly related to earning your income.
  • You must have a record to prove it (e.g., receipts, invoices, or logbooks).

It’s important to be honest and accurate with your claims, as the ATO uses sophisticated data-matching and audit processes to check deductions.

FINAL THOUGHTS

Knowing what tax deductions you’re entitled to can significantly impact your end-of-year tax outcome. Keeping good records throughout the year and understanding what applies to your situation are key to maximising your return. When in doubt, consult a registered tax agent for personalised advice.

Let me know if you’d like to explore occupation-specific deductions or get help preparing for tax time.

Disclaimer: This document should not be interpreted as tax advice. All information is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.