Tax time can feel overwhelming, but understanding what you can claim as a deduction can make a big difference in how much tax you pay—or how much you get back. Here’s a simple guide to the key types of personal tax deductions that can help regular Australians keep more money in their pocket.
1. Work-Related Expenses
If you spend money to earn your income, you may be able to claim it back. Some common deductions include:
✅ Vehicle & Travel Costs – If you use your car for work (not including home-to-work travel), you may be able to claim fuel, servicing, and depreciation.
✅ Uniforms & Protective Clothing – If your job requires specific uniforms, safety boots, or protective gear, these costs could be deductible.
✅ Home Office Expenses – Many Australians work from home, and the ATO allows deductions for electricity, internet, and office equipment (subject to certain conditions).
2. Investment-Related Deductions
If you have investments, you may be able to claim:
✅ Interest on Investment Loans – If you borrowed money to invest (such as buying shares or an investment property), the interest on that loan is generally tax-deductible.
✅ Financial Advice Fees – Ongoing advice fees related to managing investments may be claimable.
✅ Income Protection Insurance – If you pay for an income protection policy outside of super, you can claim the premiums as a deduction.
3. Self-Education Expenses
If you’re studying to improve skills in your current job, you might be able to deduct course fees, textbooks, and even travel costs to attend classes. However, the course must be directly related to your employment.
4. Charitable Donations
Donations of $2 or more to registered charities can be claimed as a deduction—just remember to keep your receipts!
5. Super Contributions
If you make personal contributions to superannuation, you may be able to claim a deduction (subject to contribution caps). This is a great way to boost retirement savings while reducing taxable income.
Keep It Simple: The Golden Rules
✔ You must have spent the money yourself and not been reimbursed.
✔ The expense must directly relate to earning your income.
✔ You need records (receipts, invoices, or statements) to prove your claims.
Final Thought
Deductions can add up to significant tax savings, but it’s important to claim correctly. If you’re unsure, a quick chat with an accountant or tax adviser can help maximise your return without raising red flags with the ATO.
💡 Need help with your tax strategy? Book a consultation with our team to ensure you’re claiming everything you’re entitled to—without making costly mistakes. Contact us today: financialsuccess@simonwu.com.au