Everyone wants to legally reduce their tax bill—and the key to doing that is knowing exactly what you can and can’t claim. It’s not about gaming the system or using questionable accounting tactics. It’s about understanding your entitlements and making sure you claim them correctly.
To help take the uncertainty out of tax season, we’ve created a handy checklist to guide you through common expenses. Please note: This checklist is for general guidance only. Tax outcomes vary depending on your individual circumstances and do not constitute financial advice.
✅ Common Work-Related Tax Deductions
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Airport Lounge Membership – Deductible if used for work travel.
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Annual Practising Certificate – Deductible for professionals required to pay a fee to work in their field.
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Briefcases & Calculators – Fully deductible if used for work and cost $300 or less; otherwise, depreciate.
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Computer Equipment & Software – Deductible based on business use. Depreciation applies if over $300.
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Conferences & Courses – Deductible if related to your job or business.
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Dry Cleaning – Allowed if clothing is deductible.
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Home Office Expenses – Claim using the ATO’s revised fixed rate method or actual expenses method.
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Income Protection Insurance – Deductible if payouts are taxable.
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Internet & Phone Use – Partially deductible based on work usage.
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Laundry & Clothing Maintenance – Deductible if related to work-uniforms or protective clothing.
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Legal Fees – Limited deductions, e.g., for employment contract renewals.
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Parking & Tolls – Deductible when incurred during work-related travel.
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Professional Subscriptions – Deductible if directly related to income-producing activities.
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Protective Clothing & Equipment – Includes safety gear, goggles, sunscreen, etc., used for protection.
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Stationery & Office Supplies – Diaries, pens, logbooks, etc., are deductible.
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Tax Agent Fees – Costs to prepare or manage your tax affairs are deductible.
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Tools & Equipment – Deductible if used for work; depreciate if over $300.
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Travel for Work – Includes fares, fuel, meals, and accommodation when travelling for business or between work locations.
❌ Common Non-Deductible Items
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Admission Fees – Not deductible; considered a capital cost.
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Childcare Costs – Private expenses, not deductible.
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Club Memberships – Generally not allowed.
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Conventional Clothing – Not deductible unless job-specific or protective.
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Entertainment – Not tax-deductible.
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Fines & Penalties – Not deductible under any circumstance.
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Driver’s Licence Fees – Not deductible.
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Grooming & Personal Care – Except in rare cases like flight attendants or performers (limits apply).
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HECS/HELP Repayments – Repayments are not deductible.
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Social Events – Not deductible, even if work-related.
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Trauma Insurance – Not deductible as payouts are capital in nature.
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Relocation Costs – Personal expenses and not tax-deductible.
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Vaccinations – Not deductible.
⚠️ Items That Depend on Circumstances
Some expenses fall into a grey area and may be deductible depending on your situation:
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Smart Watches – Deductible only if essential to your role (e.g., health monitoring features for trainers); diary of usage is required.
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Newspapers & Journals – Only deductible if directly related to your profession.
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Meals – Allowed if travelling overnight for work; daily meals are not deductible.
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Prepaid Expenses – Allowed if the service is received within 12 months.
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Travel with Relatives – May be deductible if the relative is also working on the trip.
🧾 Self-Education & Professional Development
Expenses related to study or skill development are deductible when there’s a clear link to your current job or income-producing activities. This includes:
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Tuition fees
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Textbooks
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Travel and accommodation costs
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Equipment (subject to depreciation rules)
📊 Super Contributions & Deductions
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Personal Super Contributions – Deductible if you’ve submitted a notice of intent to claim.
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Interest on Loans for Super – Deductible if the loan is used to fund deductible contributions.
📝 Final Word
Always keep receipts and maintain accurate records. Even if an item seems obviously deductible, how and why it’s used makes a difference.
Need help sorting out your deductions?
Talk to a Tax Visory Tax Advisor to make sure you’re claiming everything you’re entitled to—no more, no less.
