You’ve just done your tax return and the refund is… okay. Nothing special. Meanwhile, your mate Dave — who earns roughly what you do — is talking about a return nearly a grand bigger. He’s not doing anything dodgy; he’s just claiming what the ATO already says he can. According to the ATO’s own figures from the 2023–24 financial year, more than 8.6 million Australians claimed work-related expenses alone, yet the tax office also estimates that billions of dollars in legitimate deductions go unclaimed every year simply because people don’t know they exist or aren’t sure how to claim them. If you’ve ever wondered whether you’re one of them, you’re about to find out.
In this guide, I’ll walk you through 20 ATO-approved tax deductions that Australians miss with startling regularity. You’ll learn exactly what you can claim, the records you’ll need to keep, and how much these deductions could be worth at your marginal tax rate. I’ve grouped them into real-life categories — work, home office, vehicle, investment property, health, education, and a few odds and ends that almost nobody thinks of. By the time you’re done, you’ll have a checklist you can take straight to your tax return and use to see a fatter refund. No shady tactics, no audit bait — just the stuff the ATO already says you’re allowed to claim.
Work-Related Deductions You’re Probably Overlooking
The ATO allows deductions for any expense directly related to earning your income, provided you weren’t reimbursed by your employer and you can show evidence. Plenty of people claim the obvious ones — a laptop, some stationery — but some of the most valuable deductions are the ones nobody talks about. Here are the ones you’ve likely missed.
Vehicle and Travel Expenses (That Aren’t Commuting)
If you use your own car for work purposes beyond just driving to and from your usual workplace, you’re probably sitting on a decent deduction. Trips between different work sites, visiting clients, or travelling to a temporary office can all count. The ATO’s cents-per-kilometre method lets you claim up to 5,000 business kilometres per year at 85 cents per kilometre for the 2025–26 financial year — potentially worth up to $4,250. You’ll need a logbook or a reasonable estimate, but if you’re doing 50 km a week in side trips, that’s $2,200 a year you might be missing.
Tolls and parking fees for work-related trips are also claimable, as are public transport fares for work journeys that aren’t ordinary commuting. If you travel overnight for work and have to pay for meals and accommodation, those costs are deductible too, provided your employer doesn’t reimburse you. For anyone who drives a car for a living — delivery drivers, tradies, home care workers — the actual costs method (fuel, insurance, servicing, depreciation) can yield an even bigger claim.
Union Fees and Professional Subscriptions
If you pay union fees, they’re 100% deductible in the year you pay them. So is the annual membership for any professional association directly related to your job — think CPA Australia, the Australian Medical Association, or Engineers Australia. Even trade magazine subscriptions can count if they maintain your professional knowledge. These are small, recurring amounts that many people forget to enter, yet they add up. A $500 union fee in the 30% tax bracket puts $150 back in your pocket.
Sun Protection, Uniforms, and Protective Clothing
Here’s one that trips up even seasoned tax return lodgers. You can claim the cost of occupation-specific clothing — think a chef’s checked pants, a nurse’s scrubs, or a police uniform — as well as non-compulsory uniforms that meet the ATO’s design and colour standards. That includes laundry costs, which the ATO lets you claim at $1 per wash if you do one load per week of work-only clothes (totalling $52 a year — small, but it counts). Sunscreen, hats, and sunglasses are deductible for people who work outdoors. A $30 tube of SPF 50+ used weekly at a building site quickly becomes a $150 deduction over the course of a year. All legitimate, all ATO-approved.
Tools, Equipment, and Work-Related Technology
Tradies, mechanics, and hairdressers know they can claim tools, but don’t overlook the smaller stuff. Tool insurance, sharpening costs, and even the bag you carry them in can be deductible. For white-collar workers, tech gear is the big one: a laptop, monitor, keyboard, or noise-cancelling headphones, provided you use them for work purposes. If you use a device for both work and personal use, you can only claim the work-use percentage — so keep a diary or usage log. In the 30% tax bracket, a $1,200 laptop used 70% for work yields a $252 reduction in tax.
Home Office and Working-From-Home Expenses
Since the shift to hybrid work, home office deductions have become a staple — but a surprising number of people still claim nothing at all, or under-claim. The ATO offers two methods: the revised fixed-rate method (67 cents per hour worked from home) and the actual cost method. The 67-cent rate covers energy, internet, phone, and stationery. For someone working from home 30 hours a week for 48 weeks a year, that’s $4,838 in deductions. If you’re in the 30% bracket, that’s over $1,450 back.
Depreciation on Home Office Furniture
Items costing over $300 — a standing desk, an ergonomic chair, a filing cabinet — can’t be written off in one go. Instead, you depreciate them over their effective life. A $900 desk depreciated at 20% per year gives you a $180 deduction annually for several years. Most people never think to claim it, especially if they paid for the desk a few years ago. The depreciation clock starts when you first use the item for work, so retroactive claims might be possible.
Phone and Internet Costs
Even if you’re not using the fixed-rate method, you can claim the work portion of your mobile phone plan and home internet. A simple way to estimate is to look at your bills and apply a reasonable percentage based on usage. If you’re a sales rep who spends four hours a day on calls, 50% of a $60 monthly phone plan — $360 a year — is deductible. Combine that with home internet, and it’s not unusual to see a $500-plus deduction.
Investment, Property, and Income-Earning Deductions
If you earn income from investments or rent out a property, the deductible expenses can be substantial — but the complexity often scares people into claiming less than they’re entitled to. Many of these deductions are ongoing, so missing them year after year compounds the loss.
Rental Property Expenses
Landlords can claim a long list: council rates, water charges (if not paid by the tenant), insurance, body corporate fees, property management fees, repairs and maintenance, and even travel to inspect the property. Interest on an investment loan is fully deductible. If your rental property is negatively geared, these deductions can make a serious difference to your overall tax position. The ATO’s 2024 random audit program found that nine out of ten rental property owners made errors in their deductions — some claiming too much, but just as many claiming too little by overlooking routine items like pest control or gardening.
Dividend and Interest Deductions
If you hold shares, the brokerage fees on buying and selling are not immediately deductible; they’re added to the cost base for capital gains tax. However, ongoing management fees, subscription costs for investment research platforms, and interest on a margin loan can all be claimed. Even the cost of travelling to a shareholder meeting can be deductible, though that’s a niche one.
Income Protection Insurance
Premiums for income protection insurance held outside super are deductible — and they’re often overlooked. If you pay $800 a year for a policy that covers you if you can’t work, that’s a full deduction. The key is that it must be income protection, not total and permanent disability (TPD) or life cover, which generally aren’t deductible unless held inside super and paid from pre-tax contributions.
Health, Education, and Donation Deductions
Some of the most personally valuable deductions land in this category, yet they’re frequently forgotten because they sit outside the “work” bucket. Charitable giving, self-education, and medical costs all have their place.
Charitable Donations
Any donation over $2 to a deductible gift recipient (DGR) charity is deductible. That includes not just cash but also property, shares, and even cryptocurrency. The ATO reported that in 2023–24, Australians donated over $4.5 billion to charities, but many smaller givers still don’t claim it. If you gave $20 a month to a DGR, that’s $240 a year — worth $72 in a 30% bracket. Get a receipt, and it’s yours.
Self-Education Expenses
A course, degree, or short course that maintains or improves your skills in your current job — or is likely to increase your income — can be claimed. Textbooks, tuition fees, stationery, and even travel to and from the place of education count. A $2,500 professional certification could save you $750 in tax. The key test: there must be a direct connection to your current employment. A course to switch careers entirely doesn’t count, but upskilling within your field does.
Medical Expenses (Limited)
Most medical expenses haven’t been deductible since the net medical expenses tax offset was phased out, but there’s one important exception: you can claim the cost of medical examinations required by your employer or industry, such as pre-employment checks, ongoing fitness-for-duty assessments, and certain work-related vaccinations. These are often small but legitimate.
The Full Checklist of 20 Overlooked ATO-Approved Deductions
To make this as useful as possible, here’s a single reference table covering the 20 deductions we’ve just discussed, plus a few extras that slide under the radar. Use it as a tick-list when lodging your tax return.
| # | Deduction | Who Can Claim It | Average Potential Saving* |
|---|---|---|---|
| 1 | Vehicle work-related travel | Anyone using own car for work trips beyond commuting | $300–$2,500+ |
| 2 | Tolls and parking for work | Same as above | $50–$500 |
| 3 | Union fees and professional subs | Employees paying union or industry body fees | $50–$300 |
| 4 | Occupation-specific clothing | Chefs, nurses, police, tradies, etc. | $50–$400 |
| 5 | Sunscreen, hats, sunglasses (outdoors) | Outdoor workers | $30–$150 |
| 6 | Tools and equipment | Tradies, mechanics, hairdressers, etc. | $100–$2,000+ |
| 7 | Laptop, monitor, tech (work %) | White-collar workers using own devices for work | $150–$600 |
| 8 | Home office expenses (fixed rate) | Employees working from home at least part-time | $500–$1,500+ |
| 9 | Home office furniture depreciation | Anyone using dedicated home office furniture | $50–$300 annually |
| 10 | Phone and internet (work portion) | Anyone using personal phone/internet for work | $100–$500 |
| 11 | Rental property deductions | Landlords of residential or commercial property | $500–$20,000+ |
| 12 | Investment management fees | Share investors, managed fund holders | $50–$500 |
| 13 | Income protection insurance premium | Individuals paying IP insurance outside super | $150–$600 |
| 14 | Charitable donations over $2 | Anyone donating to a DGR | $1–$1,000+ |
| 15 | Self-education expenses | Workers improving skills in current job | $200–$2,500+ |
| 16 | Tax agent fees | Anyone using a registered tax agent | $100–$400 |
| 17 | Work-related books and journals | Professionals maintaining industry knowledge | $30–$200 |
| 18 | Overtime meal expenses | Employees working overtime with meal allowance | $50–$200 |
| 19 | Bank fees on investment loans | Investors with margin loans or rental property loans | $50–$300 |
| 20 | Website or portfolio costs | Freelancers, creatives, models maintaining a site | $50–$300 |
Potential saving depends on your marginal tax rate and the actual expense amount. Figures are indicative for the 2025–26 financial year.
If you’re not sure what your marginal rate is, our Australia tax brackets 2026 guide lays out the current brackets and the Medicare levy so you can calculate exactly what each deduction is worth. For a quick estimate of your total refund potential, plug your income and estimated deductions into NeonPlay’s free Tax Calculator — it’ll show you the bottom line in under a minute.
6 Practical Tips for Australians to Maximise Tax Deductions
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Start a dedicated “tax receipts” folder in your email and camera roll now. Every receipt you snap and every donation confirmation you forward gets saved in one place. Come tax time, you won’t have to dig through months of bank statements.
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Use the ATO’s myDeductions app throughout the year. It lets you photograph receipts, log car trips, and record work-from-home hours. The data can be uploaded directly into your return, saving hours of manual entry.
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Review your previous year’s return for missed deductions before lodging your next one. If you spot something you missed, you can request an amendment — the ATO generally allows it for up to two years after the original assessment.
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If an expense is used for both work and personal use, keep a usage diary for at least four weeks. That proportional estimate is what the ATO expects. Without it, you risk the whole deduction being denied in an audit.
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Don’t dismiss small deductions — they add up. A $15 subscription, a $5 parking ticket, a $20 book. In a 30% bracket, that’s $12 back. Over 20 small claims, you’ve added hundreds to your refund.
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Consider salary sacrificing into super to boost your tax benefit even further. While not a deduction in the typical sense, it reduces your taxable income and can drop you into a lower bracket. Our salary sacrifice super Australia guide explains the full setup.
Common Mistakes Australians Make With Tax Deductions
Mistake 1: Guessing instead of keeping records.
The ATO requires written evidence — a receipt, invoice, or bank statement — for most deductions. If you can’t produce it, the deduction can be reversed, and you might pay a penalty. The myDeductions app removes the guesswork.
Mistake 2: Claiming the full cost of a device used for both work and play.
You can only claim the work-related percentage. If you watch Netflix on your iPad as much as you use it for work, you can’t deduct 100%. Be honest, and keep a log.
Mistake 3: Assuming tax agent fees will automatically be claimed by your accountant.
They usually are, but it’s your name on the return. Check that the fee from the previous year appears in your deductions, because it’s easily missed if you switch preparers.
Mistake 4: Forgetting to adjust home office claims if you’ve returned to the office.
The fixed-rate method requires you to record only the hours you actually work from home. If you claim the full year’s deduction after moving back to the office, you’re over-claiming. Update your records as your pattern changes.
Conclusion
These 20 ATO-approved deductions are yours for the taking — not loopholes, not creative accounting, just the legitimate expenses the tax office already recognises. The difference between someone who claims everything they’re entitled to and someone who doesn’t can easily run into several thousand dollars a year in lost refunds. The most important things to remember: keep records from day one, claim the right proportions, and don’t let small receipts slide.
Your next step is straightforward: grab your last payslip and run your numbers through NeonPlay’s free Tax Calculator. It’ll give you a crystal-clear picture of your take-home pay, tax, and what those extra deductions could mean for your refund. Then open the myDeductions app and start capturing today’s coffee-shop work receipt — because every dollar you don’t hand to the ATO is a dollar that stays in your pocket. Play smart with your money.
FAQ
What tax deductions can I claim without receipts in Australia?
In some cases, you can claim small amounts (up to $300 in total) for work-related expenses without written evidence, but you must still be able to show how you calculated the claim. The ATO also allows standardised laundry and home office fixed-rate deductions without individual receipts.
How do I claim work-from-home tax deductions in Australia?
You can use the revised fixed-rate method (67 cents per hour for each hour you work from home) or the actual cost method, which requires detailed records of all expenses like electricity, internet, and depreciation. The fixed-rate method covers most incidental costs and is simpler.
Can I claim my mobile phone bill as a tax deduction?
Yes, to the extent you use your phone for work purposes. You need to work out the work-related percentage and apply it to the total bill. A usage diary kept for a representative four-week period is the best way to justify the claim if the ATO asks.
Is income protection insurance tax deductible in Australia?
Premiums for income protection insurance held in your own name (outside super) are fully deductible. Insurance inside super is generally paid from pre-tax contributions, so it already provides a tax benefit. Life insurance and TPD insurance are not deductible when held personally.
What happens if I claim a deduction I’m not entitled to?
The ATO can reverse the deduction, demand repayment of the tax shortfall, and apply penalties and interest. In serious cases of fraud, criminal charges are possible. However, honest mistakes are usually resolved by paying back the difference without severe penalties.