Wondering What You Can Claim on Tax in Australia? Here’s Your Complete Guide
Each year when tax time rolls around, thousands of Australians ask the same question: “What can I claim on tax?” Getting your tax return right could mean money back in your pocket, but many people miss out on valuable deductions simply because they don’t know what’s allowed. Whether you’re a salaried employee, small business owner, or contractor, understanding your entitlements can help you maximise your refund and stay compliant with the Australian Taxation Office (ATO).
Below, we’ve put together a clear, easy-to-follow guide to help you understand the deductions you may be eligible for when lodging your tax return in Australia.
Work-Related Expenses You Can Claim
Work-related claims are the most common deductions people make. To qualify, the expense must directly relate to your job and not have been reimbursed by your employer.
You may be able to claim the following:
| Type of Expense | Examples | Notes |
|---|---|---|
| Vehicle & Travel Costs | Car travel between worksites or client visits | Can’t claim daily commute between home and work |
| Clothing, Laundry & Uniforms | Uniforms with logos, protective gear | General clothing is not deductible |
| Self-Education Expenses | Course fees, textbooks, internet used for study | Must be directly related to your work |
| Home Office Costs | Electricity, internet, stationery | Claim a fixed rate or actual cost method |
| Tools & Equipment | Laptops, phones, protective tools | Must be necessary for your job, can claim full price or depreciation |
Be sure to keep detailed records like receipts and logbooks to support your claims.
Industry-Specific Deductions
Your occupation might open the door to unique tax deduction opportunities.
Here are some examples:
| Profession | Common Deductions |
|---|---|
| Tradies | Tools, protective gear, vehicle expenses |
| Teachers | Educational aids, union fees, stationery |
| Nurses | Uniforms, registration fees, work-related travel |
| Office Workers | Home office setup, stationery, courses |
| Real Estate Agents | Phone costs, advertising, transport between sites |
The ATO offers occupation-specific guides, such as the ATO’s occupation and industry-specific deduction guides to help you check what’s claimable in your line of work.
Other Common Deductions You Might Miss
Sometimes, Australians miss out on deductions simply because they don’t realise they qualify. Here are a few often-overlooked areas:
- Union and Membership Fees – If you’re a member of a union or a professional association, you can claim the fee.
- Income Protection Insurance – Premiums paid outside super funds are tax-deductible.
- Tax Agent Fees – The cost of using a registered tax agent from last year can be claimed this year.
- Donations – Gifts or donations of $2 or more to registered charities are deductible.
What You Can’t Claim
Understanding what not to claim is just as important. You can’t claim:
- Private expenses like rent, groceries, or childcare.
- Expenses reimbursed by your employer.
- Travel from home to work (unless carrying bulky tools or working at multiple sites).
Tips to Maximise Your Tax Return
- Keep Records Year-Round: Use apps or spreadsheets to track expenses.
- Separate Business and Personal Spending: Especially for sole traders and contractors.
- Stay Within the Rules: Guesswork can trigger audits—use ATO tools and trusted websites.
- Use a Registered Tax Agent: They may identify claims you didn’t know were eligible.
Final Thoughts: Claim Smart, Stay Compliant
Filing a tax return doesn’t have to be stressful or confusing. Knowing what you can claim on tax in Australia can ensure you maximise your refund while staying on the right side of the ATO. Always refer to trusted sources and reach out to a professional if you’re unsure.
With the right knowledge—and some solid record-keeping—you’ll be in a great position when tax time rolls around.
Sufiyan, a passionate IT professional and finance enthusiast dedicated to simplifying financial clarity for every Australian. With years of experience in both tech and personal finance, Sufiyan oversees all content to ensure accuracy, usability, and relevance.