Top 10 Tax Deductions Australians Forget to Claim

Introduction: Don’t Leave Money on the Table

Every year, thousands of Australians miss out on legitimate tax deductions simply because they didn’t know they could claim them. These overlooked deductions can significantly reduce your taxable income and increase your tax refund. Whether you’re an employee, sole trader, or small business owner, understanding what you’re entitled to claim is essential.

Here are ten commonly forgotten tax deductions that could make a real difference to your bottom line.

1. Home Office Expenses

If you work from home, even occasionally, you may be eligible to claim a portion of your household running costs. This includes electricity, internet, depreciation on office furniture, and cleaning.

To claim correctly, you must apportion expenses based on work-related use and keep accurate records. The ATO offers both fixed-rate and actual-cost methods.

Learn more about claiming home office expenses.

2. Union Fees and Professional Memberships

If you pay union fees or belong to a professional association related to your job, those costs are generally tax deductible. This includes industry bodies, trade unions, and accreditation organisations.

These deductions are often missed because they’re paid automatically or annually and not tracked.

See the full guide on fees and memberships.

3. Work-Related Clothing and Laundry

You can claim the cost of buying and laundering occupation-specific clothing, protective gear, and uniforms with logos. Generic clothing is not deductible, even if worn for work.

Laundry expenses can be estimated using the ATO’s simplified method, but you must be able to show that the clothing meets eligibility criteria.

4. Mobile Phone and Internet Usage

If you use your personal phone or internet for work, a portion of those costs may be deductible. You’ll need to keep a usage diary for at least four weeks to establish your work-related percentage.

This is especially relevant for remote workers, sales staff, and sole traders.

Read the full breakdown on claiming telephone and internet expenses.

5. Self-Education Expenses

Courses that directly relate to your current employment or improve your skills in your existing role may be deductible. This includes tuition fees, textbooks, stationery, and travel to and from the course.

You cannot claim if the course is designed to help you get a new job or qualification in a different field.

6. Tools and Equipment

If you purchase tools or equipment for work, you may be able to claim an immediate deduction for items under $300. More expensive items must be depreciated over time.

This applies to tradies, technicians, and anyone who uses specialised gear to earn income.

7. Car Expenses

If you use your car for work-related travel (excluding commuting), you may be eligible to claim using either the cents-per-kilometre method or the logbook method.

Examples include driving between job sites, attending meetings, or transporting equipment.

8. Donations to Registered Charities

Donations over $2 to organisations registered as Deductible Gift Recipients (DGRs) are tax deductible. You must keep receipts and ensure the charity is eligible.

Fundraising purchases like raffle tickets or merchandise are not deductible.

9. Income Protection Insurance

Premiums paid for income protection insurance are deductible if the policy covers loss of income. Policies that include life or trauma cover are not eligible for deduction.

This is often overlooked because premiums are paid annually and bundled with other cover.

10. Tax Agent Fees

The cost of preparing and lodging your tax return is deductible in the following financial year. This includes fees paid to registered tax agents and accountants.

If you’re self-employed or run a small business, this deduction can be claimed as part of your business expenses.

Explore the full business tax return guide.

How Gotax Helps You Claim Every Dollar

Gotax simplifies the entire process. Our platform prompts you through every eligible deduction with plain-English guidance. Built-in calculators, deduction checklists, and refund estimators ensure nothing is missed.

• Explore more tips on the Gotax Blog
• Visit the Gotax Home Page
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Maximise Your Tax Refund with Confidence

These deductions are often forgotten—but they’re 100% legitimate. Claiming them correctly can reduce your taxable income and increase your refund. With Gotax, you get clarity, compliance, and control.

Don’t leave money on the table. Start your return today and make sure every dollar counts.