How To Claim Tax Deductions in Australia

It’s heartbreaking to think how much of your salary goes to tax, right?

I believe every income earner feels the same. Of course, you would want to keep more of the money that you’ve earned and pay lesser tax as much as possible. But paying taxes is the law. More so, it is our obligation.

However, there are several opportunities when you can be reimbursed for some specific expenses.



You are entitled to claim tax deductions when completing your tax return, most of which are work-related. To be able to claim a work-related tax deduction, first, it must be directly related to your job. You must also have spent the money yourself and you weren’t reimbursed by your employer. And most importantly, you should have a written record to prove it, like receipts.

For expenses that are both personal and work-related, you can only claim deductions for the work-related part.

According to the Australian Taxation Office (ATO), these are the work-related expenses you can file for tax deduction.

  • Vehicle and travel expenses – including travel between work and home
  • Clothing, laundry and dry-cleaning expenses
  • Gifts and donations
  • Home office expenses
  • Interest, dividend and other investment income deductions
  • Self-education expenses like attending work-related conferences or workshops
  • Tools and equipment needed to perform your job
  • Union fees
  • Meals while working overtime
  • Protective products needed for work
  • Premiums for income protection insurance

There are also “work-related” expenses that are not allowed as deductions like;

  • Cost of getting a driver’s license
  • Vaccinations for diseases that you might get while working
  • Child care expenses
  • Grooming expenses
  • Relocation expenses
  • Cost of getting police clearance or background check

However, to be able to claim these tax deductions, you need to provide a record of the transaction which includes

  • payment summaries from payers
  • statements from your bank and other financial institution showing the interest you’ve earned
  • dividend statements from companies
  • summaries from managed investment funds
  • receipts or invoices for equipment or asset purchases and sales
  • receipts or invoices for expense claims and repairs
  • Contracts
  • tenant and rental records

It is important to keep these documents as proof of your expenses. Whether it’s $5 or $500, keep your receipts because they matter when it comes to filing your tax returns.

For more tax tips, consult with your professional accountants in Penrith.