9 Tax Deductions Most Australians Forget to Claim

The Australian Taxation Office processes over 14 million individual tax returns each year. Most Australians claim the obvious deductions: work-related car expenses, uniforms, tools. But legitimate deductions worth hundreds or thousands of dollars go unclaimed every year because people don't know they exist or forget to track them.

This guide covers nine commonly missed deductions that many employed Australians can claim. Each requires substantiation, so keep records or receipts.

1. Working from home expenses

If you work from home, even part of the week, you can claim home office expenses. The ATO's fixed rate method allows 67 cents per hour worked from home, covering electricity, internet, phone, and stationery. You need to keep a record of hours worked from home, either through a diary, timesheets, or roster records.

A worker doing two days per week from home (approximately 16 hours) across 48 working weeks claims around $515 annually. Those working from home more frequently claim proportionally more. The fixed rate method replaced the previous 52 cents per hour shortcut method in July 2023.

2. Income protection insurance

Premiums for income protection insurance held outside superannuation are fully tax deductible. This differs from life insurance and total and permanent disability insurance, which are not deductible. Many Australians pay income protection premiums separately from super without claiming the deduction.

Annual premiums typically range from $800 to $2,500 depending on coverage and occupation. At a 32.5% marginal tax rate, that's $260 to $812 back at tax time.

3. Union and professional association fees

Annual fees for unions and professional associations related to your employment are deductible. This includes the NTEU, United Workers Union, Australian Medical Association, CPA Australia, Engineers Australia, and similar bodies. The deduction applies to the portion of fees that relates to employment, not social or unrelated activities.

Many professional associations cost $300-800 annually. Union fees vary by industry. Check your payslips and bank statements for payments you may have forgotten.

4. Self-education expenses

Education expenses are deductible when they maintain or improve skills required for your current job, or are likely to lead to increased income in your current employment. The education must relate to your existing work, not training for a new career. Deductible costs include course fees, textbooks, stationery, and travel to educational institutions.

A software developer taking cloud certification courses can claim the costs. A teacher completing a master's in education can claim fees. A nurse studying to become a doctor cannot claim, as it's training for a different profession.

5. Investment loan interest

Interest paid on loans to purchase income-producing investments is deductible against investment income. This includes margin loans for shares, loans for investment property deposits, and interest on credit used to buy dividend-paying stocks. The investment must produce assessable income, and you must have records of the loan and its purpose.

Negative gearing remains common for property investors, where interest deductions exceed rental income. Share investors can similarly deduct margin loan interest against dividends and capital gains.

6. Charitable donations

Donations over $2 to registered charities (Deductible Gift Recipients) are tax deductible. Many Australians donate through workplace giving, bushfire appeals, or regular charity support without claiming deductions. Check bank statements and email receipts for donations you've made throughout the year.

The charity must be registered with the ATO as a DGR. Political donations are not deductible. Donations to overseas charities are only deductible if the organisation has Australian DGR status.

7. Tax agent fees

Fees paid to a registered tax agent for preparing and lodging your previous year's tax return are deductible in the year you pay them. If you paid $300 for your 2025 return lodged in October 2025, you claim that $300 in your 2026 return. Many people forget this because they pay the fee in a different financial year than when the return relates to.

8. Travel between workplaces

Travel between two separate workplaces on the same day is deductible, even though travel from home to your primary workplace is not. A teacher who works at two schools can claim travel between them. An employee who visits clients after starting at the office can claim the client visits but not the commute to the office.

Keep a logbook or diary recording dates, destinations, kilometres travelled, and business purpose. The ATO allows 91 cents per kilometre for car travel up to 5,000km, or actual expenses with a logbook.

9. Superannuation contributions

Personal super contributions are deductible up to the concessional contributions cap ($30,000 in 2026). Many employees only receive employer contributions (11.5% of salary) without making additional deductible contributions. Personal contributions reduce taxable income while building retirement savings.

You must provide a notice of intent to claim form to your super fund before lodging your tax return. The fund must acknowledge the notice. This is a common step people miss, invalidating the deduction.

Substantiation requirements

The ATO requires records for most deductions. Bank statements, receipts, and invoices should be kept for five years. Digital records in accounting software or a dedicated folder work as well as paper. For working from home, a four-week diary can be extrapolated across the year if your work pattern is consistent.