Every year, people hand money back to the ATO simply because they forget what they can claim. The principle behind work-related deductions is straightforward: if you spent your own money on something that genuinely helped you earn your income, and you have a record of it, there's a good chance it's deductible. The trick is remembering the less obvious ones. Here are the deductions Australians most commonly overlook — all of them legitimate, none of them about claiming things you are not entitled to.
Working-from-home running costs
If you do any of your work from home, you can usually claim a share of the running costs — electricity, internet, phone and the like. The ATO offers more than one method for working this out, and the records required differ between them, so the key is to keep a genuine record of the hours you work from home across the year and then choose the method that gives the better, supportable result. Many people either forget this entirely or significantly under-claim because they didn't keep a log.
Self-education, subscriptions and memberships
Courses, seminars, conferences and industry publications that relate to your current job are generally deductible, as are professional association memberships and union fees. So are the tools, equipment and software you use for work — from a tradesperson's gear to a laptop or a professional subscription. Individually these feel small; across a full year they add up to a meaningful claim.
The cost of managing your tax affairs
This is one of the most commonly missed deductions, even though it sits right there on last year's invoice. The fee you pay a registered tax agent to prepare your return is deductible the following year, and so is reasonable travel to see them. If you've used an agent before but never claimed their fee, you've likely been leaving a deduction on the table.
Income protection premiums
Premiums for income protection insurance held outside super are generally deductible, because the benefit the policy pays out would itself be taxable. (Premiums for life, trauma or TPD cover, and cover held inside super, are treated differently.) If you hold an income protection policy and pay for it personally, check whether you've actually been claiming it.
Donations, interest and the small stuff
A few more that quietly slip through:
- Donations of $2 or more to registered deductible gift recipients — keep the receipts
- Interest on money borrowed to buy income-producing investments such as shares
- Bank or platform fees on investment accounts
- Sun protection, protective clothing or laundry of compulsory uniforms, where your work requires them
The golden rule: keep the receipt
Every deduction in this list depends on one thing — being able to substantiate it. The general rule is that you must have spent the money yourself, not been reimbursed, the expense must directly relate to earning your income, and you need a record to prove it. If you're ever unsure whether something qualifies, the right move is simple: keep the receipt and ask. It is far better to check than to either miss a legitimate claim or claim something you can't support.
Not sure what you can claim this year? A quick review with us often surfaces deductions people genuinely qualify for but were missing. Book a chat at nebulaaccounting.au or call 0433 822 227.
This article is general information only and does not take account of your personal circumstances — it is not personal tax, financial or legal advice. Tax laws change and apply differently to different people. Nebula Accounting Pty Ltd is a registered tax agent (No. 26259377); please speak with us or check with the ATO before acting.