What Can I Claim on Tax in Australia? Ultimate Guide
As the new financial year kicks off, it’s time to lodge your tax return. Wondering “What can I claim on tax?” You are not alone. In this blog post, we’ll help you understand tax deductions, and check if you need to lodge a tax return. We’ll also guide you through the key tax deductions you’re entitled to under ATO rules, helping you reduce your taxable income, maximize your refund, and save on work-related expenses. Let’s dive in!
What are Tax Deductions?
A tax deduction is a legitimate work-related or income-generating expense that you personally paid for, which can be listed on your tax return. These deductions are subtracted from your total income to determine your taxable income, which can reduce the amount of tax you owe and may increase your tax refund at tax time.
Do I Need to Lodge a Tax Return?
To find out if you need to lodge a tax return, you’ll need to consider your personal circumstances. Generally, here are two ways to help you work this out:
1. Use the Online Tool
You can access the “Do I need to lodge?” tool through ATO online services, available via your myGov account. Follow the steps to check:
Sign in to your myGov account.
Link the ATO to your account (if not already linked).
Select Tax > Lodgments, and Income tax.
Click the Not lodged tab.
Select Do I need to lodge? for the relevant income year.
2. Use the Web Version of the Tool
Alternatively, you can use the general web version of the tool, Do I need to lodge a tax return? Tool. Simply select the options online and check the results online. This version doesn’t require a myGov login.
Criteria for Claiming Tax Deductions
As a tradie employee, you can claim expenses that meet the following criteria:
You spent the money yourself, and the expense must not be reimbursed by your employer.
It directly relates to earning your income.
A receipt or documentation is necessary to prove the expense.
What Tax Deductions Can I Claim?
Now, let’s take a look at what tax deductions to claim:
1. Vehicle and Travel Expenses
According to ATO (Australian Taxation Office), you can claim tax deductions for vehicle and travel expenses directly related to your employment duties, including:
Travel Between Workplaces: Trips between two separate workplaces or to an alternative workplace (e.g., a client’s premises) while on duty.
Client Visits or Meetings: Travel to meet clients or attend work-related conferences away from your regular workplace.
Deliveries or Supplies: Trips to deliver items or collect work-related supplies.
The travel between your home and regular workplace is regarded as a private expense, which is generally not deductible. This applies even if you live far from work, work outside normal hours, or perform minor work-related tasks en route.
However, deductions may be allowed when:
You carry bulky tools essential to your job;
Your home is a base of employment;
You regularly travel between multiple work sites.
How to Calculate Car Expense Deductions?
If you use your own car for work-related trip, you can claim deductions using one of two calculation methods:
1. Cents Per Kilometre Method
Multiply the number of work-related kilometres (up to 5,000 per car per year) by the rate for the income year. For the 2024 25 and 2025 26 tax years, the rate is 88 cents per kilometre.
Simplifies record keeping, as no receipts are required, but you must show how you calculated work-related kilometres. You can keep the record in a diary or use the myDeductions tool in the ATO app.
The cents per kilometre rate includes all car expenses, such as fuel costs, maintenance, insurance, registration, repairs, and depreciation, so no additional expenses can be added on top of the rate.
2. Logbook Method
Keep a logbook for at least 12 continuous weeks to determine the percentage of work-related use. Multiply this percentage by your total car expenses (e.g., fuel, repairs, insurance) to calculate the deduction.
Requires a logbook with details of each journey (destination, purpose, odometer readings) and receipts for all expenses. The logbook is valid for up to five years unless your circumstances change significantly.
For electric vehicles, keep receipts for commercial charging or evidence of home charging costs. You can use the ATO’s 4.2 cents per kilometre rate for home charging estimates.
You can use different methods for multiple cars and switch methods in different tax years. If you use someone else’s car or a vehicle that isn’t a car (e.g., a truck), claim actual expenses as work-related travel expenses, not car expenses.
Other Transport Expenses
You can also claim deductions for work-related transport expenses, such as:
Taxis, Ride Shares, and Public Transport: Costs for train, bus, or taxi fares incurred during work-related trips (e.g., to a client meeting or airport for work travel).
Parking and Tolls: work-related parking fees and tolls, but not for parking at or near your regular workplace.
Short Term Car Hire: Costs for hiring a car for work purposes.
These expenses must be work-related, and you must keep records, such as receipts or diary notes, explaining how the transport relates to your job.
2. Home Office Expenses
In Australia, you can claim tax deductions for expenses incurred while working from home, provided they relate to your employment duties. To be eligible, you must work from home to fulfill your job responsibilities (not just minimal tasks like checking emails), incur additional running expenses, and keep records to substantiate these costs. Only the work-related portion of expenses is deductible if used for both private and work purposes.
Deductible Expenses
Electricity or gas for heating, cooling, and lighting
Home and mobile internet
Phone expenses
Stationery and office supplies
You can also claim the decline in value of depreciating assets like office furniture (e.g., desks, chairs) or equipment (e.g., computers, software), as well as their repairs and maintenance.
Non-Deductible Expenses
General household items, like coffee or tea
Children’s education costs
Employer-provided items (e.g., laptops)
Reimbursed expenses
How to Calculate Working from Home Expenses? There are two methods available to calculate your working from home expenses:
1. Fixed rate method
Multiply the number of hours you work from home by the hourly fixed rate. For the 2024–25 income year, the fixed rate is 70 cents per hour. This rate covers expenses like internet expenses, phone usage expenses, electricity and gas, stationery, and computer consumables.
2. Actual cost method
The actual cost method calculates the exact working from home expenses with detailed records. It requires evidence of expenses and work-related use, such as itemized bills or a continuous 4 week diary.
3. Clothes and work-related Items
You can write off on tax for specific work-related clothing and items, but strict rules apply. Deductions are allowed for occupation specific clothing, protective gear, and compulsory uniforms, provided they meet certain criteria.
Deductible Expenses
Occupation specific clothing must distinctly identify your profession, like a chef’s chequered pants or a judge’s robe.
Protective clothing, such as fire-resistant gear, steel-capped boots, or sun protective clothing with a UPF rating, is deductible if it mitigates real risks of illness or injury from your work environment.
Compulsory uniforms are deductible if they are distinctive to your employer, featuring a logo or specific design, and enforced through a workplace policy.
Non-compulsory uniforms are only deductible if registered in the Register of Approved Occupational Clothing.
Protective items, like safety goggles, sunscreen with an AUST L number, or PPE (e.g., hard hats, gloves), are deductible if they protect against workplace risks.
Non-Deductible Expenses
Conventional clothing (e.g., suits, jeans), even if required for work.
Clothing paid for, repaired, or reimbursed by your employer.
Watches or smartwatches, unless for a specific work use (e.g., a nurse’s fob watch)
4. Education, Training, and Seminars
In Australia, you can claim tax deductions for self-education, seminars, conferences, and training courses if they are sufficiently connected to your current employment and enhance your skills or income potential.
Deductible Expenses
Tuition, course, seminar, or conference fees (non-deductible if your employee pays them or reimburses)
General course expenses (textbooks, stationery, computer consumables, phone calls, internet usage, and academic journals)
Work-related depreciating assets (desks and chairs, computers, calculators, cabins and bookshelves, professional libraries, technical tools, and other equipments)
Car and transport costs
Accommodation and meal expenses
Interest on borrowings
Non-Deductible Expenses
Childcare, school, or university fees for your children
How Much Expense Can You Claim?
For assets costing $300 or less, you can claim the full cost in the year of purchase, while assets over $300 are depreciated over their effective life. Interest on loans used for deductible self-education expenses is also claimable, but loan repayments are not.
You cannot claim expenses if they lack a direct connection to your current job, are for new employment, or are reimbursed by your employer. For expenses before July 1, 2022, the first $250 is generally non-deductible.
5. Tools, Computers, and work-related Items
Considering what deductions can I claim? Well, you can claim a tax deduction for tools or equipment you use to earn your income. Be sure to keep accurate records of the expense and its work-related use.
Deductible Expenses
Hand Tools: Spanners, hammers, screwdrivers.
Power Tools: Grinders, sanders, hammer drills.
Specialized Items: Calculators, cameras, musical instruments, safety equipment (e.g., hard hats, steel cap boots), technical instruments, electric clippers, and scissors.
Technology: Phones, computers, laptops, software.
Accessories: Bags, cases, stationery, office supplies, office furniture (e.g., desks, chairs), etc.
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How to Calculate Your Deductions for Work-related Tools?
Tools and equipment are typically depreciating assets, meaning their value decreases over time. How you claim depends on the item’s cost:
$300 or Less: You can claim an immediate deduction if:
The item costs $300 or less.
It is used mainly to produce assessable (work-related, non-business) income.
It is not part of a set that together costs exceeding $300.
It is not one of several identical or nearly identical items that together cost more than $300.
More Than $300: You can claim an immediate deduction if:
It costs more than $300, or
It is part of a set that together exceeds $300, or
It is one of multiple identical or substantially identical items totaling over $300
Then you must claim a deduction for the decline in value over the item’s effective life, using one of the following methods:
The ATO’s Depreciation and Capital Allowances Tool.
Manual calculation with the prime cost or diminishing value method.
If the item is used for both work and private purposes, you can only claim the work-related portion.
For example, if a $1,000 laptop is used 70% for work, only 70% of the depreciation is deductible.
6. Memberships, Accreditations, Fees, and Commissions
You may be able to claim a tax deduction for a range of work-related fees and charges that directly relate to your current employment. These include union fees, professional memberships, accreditations, agency commissions, and certain election expenses.
You can deduct union dues or subscriptions to professional associations—such as those for lawyers, engineers, or accountants—if they support your current role. Fees for renewing professional licenses or registrations (e.g., for nurses or tradespeople) are also deductible, though the initial cost of obtaining them is not.
Agency-related expenses like joining fees generally aren’t claimable, but commissions for securing work are, as are certain costs tied to contract negotiations or employing an assistant (if commission-based). Some election expenses for public office are deductible within limits, but union election contributions are not.
To claim these deductions, the expenses must clearly relate to earning your income, and you should keep detailed records such as receipts or annual statements.
7. Meals, Entertainment, and Functions
Generally, the cost of food and drink is considered a private expense and is not deductible. However, there are two key exceptions when considering what to claim on tax:
Overtime Meals: You can claim a deduction for meals purchased and consumed while working overtime, provided you receive an overtime meal allowance under an industrial award, law, or agreement, and this allowance is declared in your tax return.
Travel Meals: Deductions are allowed for meals incurred when you travel and stay away from home overnight for work-related purposes.
Also, you cannot claim deductions for meals or snacks consumed during normal working hours, even if you receive a meal allowance, as these are private expenses. Similarly, meals bought when traveling between different jobs are not deductible. For example, if you work multiple jobs in a day and buy a meal in between, this expense is not claimable.
The cost of attending functions or participating in entertainment involving food, drink, or recreation is not deductible. This includes events like dinners, dances, or cocktail parties, even if the event is compulsory, attended only by work colleagues, or includes work-related discussions.
8. Personal Grooming, Health, and Fitness
You can claim deductions for compulsory medical assessments required by your current job, like fitness to drive tests for drivers. From 1 July 2021, work-related COVID 19 tests (PCR or RAT) are also deductible if you pay for them yourself and they determine your ability to work. However, you cannot claim for pre employment medical assessments or vaccinations, as these are considered private expenses.
Generally, costs for personal grooming (e.g., haircuts, makeup) and cosmetics are not deductible as they’re private expenses, even if your employer expects certain standards. Exceptions include rare cases like performers needing specific grooming for their role, and sun protection products if TGA approved and used for work, especially outdoors.
Gym fees and fitness equipment are usually not deductible, considered private expenses, even if your job requires fitness tests. Exceptions are rare, only for jobs with extremely high fitness demands (e.g., trapeze artists).
9. Gifts and Donations
In Australia, tax deductions for gifts and donations are available only for contributions to organizations with Deductible Gift Recipient (DGR) status, as verified through the ABN Look up website.
To qualify for a tax deduction, a gift or donation must meet four conditions:
It must be made to a DGR.
It must be voluntary, with no material benefit or advantage expected in return (e.g., items with monetary value).
It must be in the form of money or property, including financial assets like shares.
It must comply with any specific gift conditions set by the DGR, as some have additional legal requirements.
Donations made through third parties authorized by a DGR, such as supermarkets collecting at registers, are deductible if a receipt is provided and the above conditions are met. Deductions are claimed in the income year the gift is made, though some may be spread over up to five years.
Deductible Expenses
Gifts of Money: Claim the full amount if $2 or more.
Property or Shares: Subject to specific valuation rules.
Gifts Under Cultural and Heritage Programs: Special provisions apply for donations under the Cultural Gifts Program or Heritage gifts.
Bucket Donations: Up to $10 can be claimed without a receipt for small cash donations ($2 or more) to bucket collections, such as those for natural disaster victims. Amounts over $10 require a receipt.
Political Donations: Gifts or membership subscriptions to registered political parties or independent candidates are deductible up to $1,500 each per year.
Non-Deductible Expenses
Gifts providing personal benefits, such as raffle tickets, art union tickets, or items like chocolates, mugs, or toys with advertised prices. (You may be interested in the best gifts for photographers.)
Costs of attending fundraising dinners, unless the cost exceeds the minor benefit received and meets contribution conditions.
Club membership fees or payments to school building funds made in exchange for benefits, like priority placement.
Gifts to family or friends, regardless of purpose.
Donations made under salary sacrifice arrangements or testamentary donations.
Donations to social media or crowdfunding platforms unless they are registered DGRs.
10. Investments, Insurance, and Super
When lodging your tax return in Australia, there are several deductions available related to investments, income protection insurance, and personal superannuation contributions.
Investment related deductions include costs incurred in earning interest, dividends, or other investment income. You can claim account keeping fees on investment accounts, interest on loans used for income producing investments (such as shares), and certain expenses like specialist journals, internet costs, or depreciation of a computer used for managing investments. However, you cannot claim fees for advice on proposed investments or brokerage costs—these are instead used to calculate capital gains when you sell the asset.
Income protection insurance premiums are generally tax deductible if the policy covers loss of employment income. This applies to policies paid from your own funds and not via your superannuation. Payments received under such policies are assessable income. Note, however, that premiums for life, trauma, or critical illness insurance are not deductible.
You may also claim a deduction for personal super contributions made to a complying fund, provided you notify your fund with a valid notice of intent and receive an acknowledgment. These contributions can help reduce your taxable income while boosting retirement savings.
11. Cost of Managing Tax Affairs
If you’re unsure about what tax deductions you’re eligible to claim or worried about missing out on potential refunds, you can engage a registered tax agent to help you lodge your tax return. The good news is, you can claim a tax deduction for the costs involved in managing your own tax affairs.
Deductible Expenses
Costs of lodging your tax return through a registered agent
Purchasing tax reference materials
Attending tax-related courses
Getting tax advice from recognised advisers
Dealing with the ATO about your tax matters
Using tax preparation software
Travel expenses to meet tax advisers
Legal and litigation costs related to your tax affairs
Certain card payment fees made before specified dates.
Generally, these costs are deductible in the financial year they are paid. Keeping detailed documentation will help ensure your claims are accepted by the ATO.
How to Lodge a Tax Return?
If you earn income and have had tax withheld, you’ll likely need to lodge a tax return. There are several ways to do this:
1. Lodge Online with myTax
You can prepare and lodge your own tax return online using myTax. It’s the fastest, safest, and most secure method. Most returns lodged this way are processed within 2 weeks, and much of your information will be pre-filled to reduce errors.
2. Use a Registered Tax Agent
If you prefer professional help, you can lodge your tax return through a registered tax agent. Only registered agents are allowed to charge a fee for preparing and lodging your return.
3. Lodge a Paper Tax Return
You can also choose to lodge your return by mail using a paper tax return. While this method is available, it’s slower—processing can take up to 50 business days.
If you have simple tax affairs and need assistance, you may be eligible for the Tax Help program, a free service to help individuals prepare and lodge their tax returns.
What Can I Claim on Tax without Receipts?
You can claim certain tax deductions without receipts, but you must still maintain some form of evidence to substantiate your claims. Here’s a breakdown:
Work-related Expenses Without Receipts
Expenses Under $300: If your total work-related expenses are $300 or less, you don’t need to provide receipts. However, you must still explain what the expenses were for and how they relate to your job.
Laundry Costs: You can claim up to $150 for laundry expenses (excluding dry cleaning) without receipts. If questioned, you need to demonstrate how you calculated this amount.
Small Expenses: For individual work-related expenses under $10, you can claim without receipts, as long as the total doesn’t exceed $200. Keeping a written record is required.
Hard to Get Receipts
If obtaining a receipt is difficult (e.g., for certain small transactions), you can create a written record detailing:
What you purchased
The amount and date of the expense
The supplier or business name
The nature of the goods or services
Bank Statements as Evidence
If receipts are unavailable, you may use bank or income statements as evidence, provided they include:
The supplier’s name
The expense amount
Details of the goods or services
Payment date and documentation date
It should be noted that claims without receipts are subject to ATO scrutiny. Keep written records or alternative evidence to justify your claims. For larger or complex deductions, it’s best to retain receipts or seek advice from a tax agent.
By following these guidelines, you can make valid claims while staying compliant with tax laws.
Conclusion
So, what can I claim on tax? From car expenses and tools to education and travel, there are plenty of deductions to help you save money. The key is keeping thorough records and understanding what qualifies. Do not wait—get your receipts in order and make this tax season stress free. Happy claiming! Also, consider investing in a portable power station like EcoFlow DELTA Pro 3 to further optimize energy efficiency and unlock potential tax benefits.
FAQ
How much can I claim for gifts without receipts?
You can claim up to $10 for gifts or donations without a receipt. However, if the donation exceeds $10, you will need to provide a receipt, whether it was made in cash, via electronic payments, or any other method. Keep track of your donations to ensure you are claiming the correct amount!
How much laundry can I claim on tax without receipts?
If you are claiming laundry expenses on your tax, you do not need receipts if the total claim is under $150. While it is always best to keep proof for all deductions, the ATO allows you to claim up to this amount without written evidence for laundry costs. Just make sure the claim is reasonable and related to your work.
How many kilometers can you claim on tax without receipts?
You can claim up to 5,000 business kilometers on your tax without needing receipts or a logbook. This is for the financial year, and as long as the travel is work-related, you do not have to provide written evidence. However, it is a good idea to keep a record of your trips, just in case you need to back up your claim.
When is the best time to lodge a tax return?
The best time to lodge your tax return in Australia is from late July. This timing allows the Australian Taxation Office (ATO) to collect and pre fill your tax return with details such as wages, bank interest, private health insurance, dividends, and government payments. By lodging in late July, you can simply verify the pre filled information and add any missing details, such as deductions, ensuring accuracy and efficiency.
What can nurses claim on tax?
Nurses and midwives can claim work-related deductions such as uniforms (including scrubs, non-slip shoes, PPE) and laundry; professional registrations, AHPRA fees, union or industry memberships; self-education (courses, workshops, conferences, books); tools of trade (stethoscopes, fob watches, medical equipment, laptops) and depreciation; work-related phone, internet, stationery; travel between sites (excluding home-to-work commute) plus parking/tolls; home office expenses; and protective gear.
*Disclaimer: Before reading this guidance, please remember that tax matters can be highly individualized and complex. EcoFlow does not provide any assurances or guarantees concerning potential tax credits associated with our products. Any information in this guidance is solely for educational purposes and shall not be construed as legal advice. We recommend you rely on the expertise of tax professionals for accurate and personalized tax advice.