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What you can claim at tax time in Australia
- 20 May 2025
- by Tim Olynyk | Partner | Tax Advisory
- 5-minute read
Tax time is an opportunity to make the most of the deductions and rebates available to you. Knowing what you can legally claim might significantly reduce your taxable income—and potentially lead to a healthy refund from the Australian Taxation Office (ATO). Whether you’re a salaried employee, freelancer or part-time worker, this guide breaks down everything you might be able to claim at tax time.
Understanding tax deductions
A tax deduction reduces your taxable income, which in turn lowers the amount of tax you need to pay.
To claim a deduction:
- You must have spent the money yourself and weren’t reimbursed by your employer.
- The expense must directly relate to earning your income
- You must have a record to prove it (e.g. receipt, invoice or bank statement)
Common tax deductions for individuals in Australia
1. Work-related expenses
Vehicle and travel expenses
- If you use your own car for work purposes (not commuting), you can claim:
- Cents per kilometre method (up to 5,000 km)
- Logbook method (for actual costs)
- Travel for work (e.g., overnight trips) including meals and accommodation can also be claimed
Note: You can’t claim the cost of commuting to and from home and work.
Work-related clothing and uniforms
- Occupation-specific clothing (e.g., chef’s uniform)
- Protective clothing (e.g., steel-capped boots, high-vis gear)
- Laundry and dry-cleaning expenses for deductible uniforms
Self-education expenses
If the course directly relates to your current job, you can claim:
- Course fees
- Textbooks
- Stationery
- Travel costs between work and your educational institution
Tools and equipment
- Items like laptops, tools or phones used for work purposes
- For items over $300, you can claim depreciation over several years
Home office expenses
If you work from home (that you own or rent), you may claim:
- A fixed rate per hour (currently 70 cents per hour for the 2025 financial year)
- Actual running expenses (e.g., electricity, internet, decline in value of furniture and equipment).
If claiming the fixed rate method, you cannot claim additional tax deductions for the following items:
- Electricity and gas
- Internet and mobile use
- Computer consumables
- Decline in value of furniture
2. Occupation-specific deductions
The ATO provides occupation and industry specific deduction guides to help you identify allowable deductions for your specific situation.
3. Investment property deductions
If you own a rental property, you can claim:
- Interest on loans
- Council rates and water charges
- Property management fees
- Repairs and maintenance (not improvements)
- Depreciation on assets
- Land tax
4. Other deductible expenses
- Personal superannuation contributions made during the financial year (up to the super limit)
- Income protection insurance
- Union fees and professional memberships
- Subscriptions to trade or professional journals
- Donations to registered charities
- Tax agent fees from the previous year
Tips to maximise your tax return
- Keep detailed records: Use apps or spreadsheets to track receipts and expenses year-round
- Use the ATO app or myGov portal to access pre-filled info and track claims
- Consider a registered Tax Agent like our Accounting and Tax professionals at BG Private if your situation is complex
- Review your PAYG withholding (this is where your employer withholds a portion of your income and sends it directly to the ATO on your behalf to ensure you meet your income tax obligations gradually through the year) to avoid owing money at the end of the financial year.
What you can’t claim
- Personal expenses (e.g., grooming, general business attire (that isn’t occupation-specific), commuting, lunch)
- Expenses reimbursed by your employer
- Entertainment or social club memberships
- Fines or penalties
Important dates to remember
- 30 June: Previous financial year ends
- 1 July: New financial year begins
- 31 October: Tax return due (if you lodge it yourself)
- May of following year: Deadline if you use a registered tax agent and are on their client list
The bottom line
Tax time doesn’t have to be stressful. By staying organised and understanding what deductions you’re entitled to, you can ensure you get the best possible return. Keep all receipts, stay informed about ATO updates, and if in doubt, seek advice from a registered tax professional.
Contact us
If you have any further questions relating to what you can claim, contact your usual BG Private advisor, or contact us on +61 3 9810 0700 or
Disclaimer: This article is general in nature and should not be considered financial advice. Please consult with a qualified tax agent or the ATO for advice tailored to your specific situation.
