The golden rule for Australian deductions: you must have spent the money yourself, it must relate directly to earning your income, and you need a record. Here are the ones worth knowing about.
| Deduction | Notes |
|---|---|
| Working from home expenses | Fixed rate method (67c/hour) covers electricity, phone, internet — or use actual cost method with detailed records |
| Work-related car expenses | Cents-per-km method (up to 5,000km/year) or logbook method for higher business use |
| Self-education expenses | Must be directly connected to your current role, not a course for a future career change |
| Uniforms and protective clothing | Compulsory or distinctive uniforms and safety gear — not general "work clothes" |
| Tools and equipment | Under $300: claim immediately. Over $300: depreciated over its effective life |
| Union and professional memberships | Fully deductible if related to your employment |
| Donations to registered charities | $2 or more, to a registered Deductible Gift Recipient (DGR) |
| Income protection insurance | Premiums for income protection (not life insurance) are deductible |
Commonly missed deductions
- Tax agent fees from last year — the cost of having your previous return prepared is itself deductible this year
- Interest on investment loans — for shares or investment property, interest is deductible against the related income
- Sun protection — for outdoor workers, sunscreen and sunglasses can be claimed
What you can't claim
- Normal travel from home to your regular workplace
- Expenses already reimbursed by your employer
- Private portions of mixed-use expenses (e.g., a phone used equally for work and personal use — only the work portion is deductible)
See how deductions change your final tax bill.
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GENERAL GUIDANCE
Deduction eligibility and calculation methods have specific ATO record-keeping requirements. Keep receipts and records for at least 5 years, and verify your specific situation with a registered tax agent or the ATO.