Tax deductions directly reduce your taxable income
In other words, they can increase your refund or reduce your tax bill.
This section explains allowable deductions for individuals, including work-related expenses, investment property costs, self-education, and donations. We will also highlight specific deductions for certain professions and industries as well as important conditions and record-keeping requirements.
Golden Rules for Claiming Deductions
Before diving into the categories, keep in mind the ATO’s three golden rules for any work-related deduction:
(1) You must have spent the money yourself (and not been reimbursed),
(2) the expense must be directly related to earning your income, and
(3) you must have a record to prove it (receipt, invoice, bank statement, etc.)
Used partly for work and partly for private purposes? You can only claim the work-related portion. Personal or capital expenses generally aren’t deductible against your income unless specific provisions allow it. We’ll elaborate on these as we go.
🗣️ Translation: No, you can’t claim the entire cost of your personal phone or your daily coffee as a deduction just because you sometimes take a work call or think better with caffeine! The expense must have a genuine work purpose and be apportioned fairly.) Also, keep those receipts – the ATO can deny deductions if you don’t have evidence. Even if not required to submit receipts with your return, you need to be able to produce them on audit.
💡 Better Practice
Use tools like the ATO’s myDeductions app or simply keep a folder (digital or physical) for all tax-related receipts through the year.
Work-Related Expenses (WRE)
Work-related expenses are costs you incur in earning your salary or wages. Below is a breakdown by common categories:
🌐 Note - Not every worker will have each of these, but use this as a guide to identify what you might be able to claim.
Vehicle and Travel Expenses
If you use your own car for work (as an employee, not as part of running your own business), you can claim a deduction for car expenses. This does not include normal commuting from home to your regular workplace – that’s considered private (even if you live far away or work odd hours) . But you can claim when using the car in the course of work, for example, driving from your office to visit a client, between job sites, to off-site meetings, or hauling bulky equipment between home and work (if there’s no secure storage at work).
There are two methods for claiming car costs for employees:
Cents-per-Kilometre Method
You claim a fixed rate for each work-related kilometer driven. For FY2024-25, the rate is 88 cents per km (it was 85c last year) . You can claim a maximum of 5,000km per car using this method.
You must be able to show how you estimated the work kms (e.g. using diary entries or work records of trips). The 88c rate is meant to cover all car costs (fuel, servicing, depreciation, insurance, etc.), so you can’t claim separate car expenses on top if you use this method .
Example: If you often travel between sites and calculated 3,000 km of work use for the year (maybe through a diary of visits), your deduction would be 3,000 × $0.88 = $2,640. Make sure your calculation is reasonable – e.g., “50 km each week to attend off-site meetings for 48 weeks”.
The ATO may ask you to substantiate the work nature of the kms even if receipts aren’t needed.
Logbook Method
You can claim the work-related percentage of all your car expenses. This requires a bit more record-keeping: you need a logbook kept for at least 12 continuous weeks, which is representative of your car’s usage. In that logbook, you record all trips (date, odometer readings, km, and whether work or personal, plus purpose of work trips). From this, you determine your work-use percentage (e.g., 60% work, 40% personal). The logbook, once done properly, can be used for up to 5 years (you should start a new one if your usage pattern changes significantly). You also need to keep receipts for all expenses: fuel (or you can use odometer records to calculate fuel costs), servicing, insurance, registration, new tires, repairs – and if you have a car loan or lease, include interest and lease payments (excluding any capital portion). Depreciation (or lease costs) of the car is also claimable proportionately. We will calculate depreciation based on the cost and age of your car if needed. Example: You drove 10,000 km in the log period, with 6,000 of those km for work – that’s 60% work use. During the year, you spent $2,000 on fuel, $800 on insurance, $1,000 on servicing/repairs, $600 on rego, and, say, $3,000 on interest and depreciation (we’ll compute that) – total $7,400 in costs. At 60% work use, your deduction would be $7,400 × 0.6 = $4,440. Important: If you use logbook, you must have written evidence (receipts) for fuel (or fuel logs), services, etc., and a valid logbook. Also, you cannot then also claim the cents/km on top – choose one method per vehicle. We’ll help compare which method gives a better result if you have the data for both.
Travelling between workplaces?
If you have to travel for work (not by your own car, or in addition to car), such as flying to a conference, catching a taxi to visit a client, or taking public transport for work errands, those costs are deductible too. Keep receipts for airfares, train or bus tickets, taxi/Uber fares, and accommodation if you needed to stay overnight for work.
If your employer paid or reimbursed any of these, you can’t claim them. If you receive a travel allowance, let us know – we must declare it as income, but you can claim travel expenses against it. The ATO has reasonable allowance amounts for travel. These let you claim a certain amount without receipts (i.e., meals) if you received an allowance and stayed away overnight). We’ll use actual costs or reasonable rates as appropriate.
Parking & Tolls?
If you incur parking fees or road tolls while on work travel (not just parking at your normal work daily – that’s usually private unless your job involves moving to various sites), those are deductible. Keep receipts or log them.
A note on motorcycles or large vehicles
If you use a motorcycle or a vehicle heavier than 1 tonne (i.e., certain utes or vans) for work, the cents-per-km and logbook methods technically don’t apply. Instead, you claim actual expenses (fuel, maintenance, etc.) and need to keep all receipts, and ideally a log or diary of work use. We can work out an appropriate claim if this applies to you – but for most individuals, it’s about cars under 1 tonne which the above methods cover.
Home-to-work travel with bulky tools
Normally, commute isn’t claimable. However, if you must transport bulky tools or equipment between home and work (because there’s no secure storage at work), that travel can be claimed . Example: A tradesperson drives their ute loaded with heavy gear to the worksite because leaving it there is not possible – those trips could be deductible. We’d use one of the above methods to calculate the car cost for those trips. Make sure the conditions are met: the equipment is essential and bulky (cannot be easily carried on public transport and no storage at work).
Example - Car Expense Scenario
Jenny is a sales rep who uses her personal car to visit clients across the city. She keeps a logbook and finds 40% of her 20,000 km annual driving is for work (the rest is personal). She incurs $10,000 in total car costs for the year (fuel, service, rego, insurance, depreciation).
Using the logbook method, she claims 40% = $4,000 as a deduction. She cannot claim fuel or service costs separately – it’s all in that $4,000.
Alternatively, if Jenny didn’t keep receipts, she could use the cents-per-km method and claim 5,000 km × $0.88 = $4,400 (if she indeed drove at least 5,000 work km).
In her case, cents-per-km gives a slightly higher deduction and is simpler, but she must be confident in how she arrived at 5,000 km (which she is, given her client logs). We’ll choose the best method when preparing her return.
Work-Related Travel (Other than cars)
This covers travel for work that isn’t about driving your own car.
For example: flying to another city for a training or to work on a project, catching a taxi to a client site, or using public transport for work duties. These expenses are deductible if your employer didn’t reimburse you. Also included are meals and accommodation if you had to stay away from home overnight for work.
If you travel overnight, the ATO expects you to maintain a travel diary for trips 6 nights or more. Keep all hotel invoices and meal receipts (unless you’re using an allowance with reasonable rates). If you got a travel allowance, we’ll still claim actual expenses (or use the reasonable amount method if it benefits you, within ATO limits – we will discuss this as it can get technical).
Example: Work Trip
Raj, a software consultant, flew from Brisbane to Melbourne for a 3-day work conference in August 2024. He spent $400 on flights, $600 on hotel, and $150 on meals and taxis. His employer didn’t reimburse these (he paid on his personal card).
He can claim the $1,150 as deductions (meals are deductible because he was travelling overnight for work; had he just been out for the day in town, normal meals wouldn’t be). He kept all receipts and a note of the conference dates.
⚠️ Non-Deductible Travel
If your trip is mainly personal with a bit of work, generally you can only claim the expenses directly related to the work portion (e.g., you tack a holiday onto a work trip – only the days of the conference are claimable). And commuting from home to office, as stressed, is not claimable (unless the exceptions apply).
Work-Related Clothing and Laundry
The tax law is very specific about what clothing can be claimed. You can’t claim normal everyday clothes worn to work, even if your employer requires a certain color or style (i.e., black pants and white shirt for a retail worker – still conventional clothing).
What you can claim:
Uniforms
If it’s a compulsory uniform unique to your employer (with a logo, or specific distinct attire) or a non-compulsory uniform that’s registered with AusIndustry (less common), you can claim the cost of purchase and upkeep. For example, a shirt with the company logo, or a required outfit (like a specific tartan unique to an airline). Generic black trousers or plain white shirts don’t count, but things with a logo or that are part of a required set do.
Protective Clothing
This includes items that protect you from risks of your job – like steel-toe boots, hi-vis vests, fire-resistant clothing, gloves, safety glasses, hard hats, sunscreen (if working outdoors), or even occupation-specific items (a nurse’s scrubs, chef’s checkered pants, etc., often fall here if not daily wear). If you’re a tradie, things like heavy-duty work boots, high-visibility shirts, and hard hats are deductible . If you’re a lab technician, a lab coat is protective. If you’re a nurse, a required uniform and non-slip shoes could count.
Costumes for Performers
If you’re in an occupation like acting or entertainment and you buy costumes or stage-specific clothing, those can be deductible (they’re not daily wear).
Laundry & Dry-Cleaning
If you can claim the clothing (uniform or protective gear), you can also claim a reasonable amount for laundry. You can use a simple rate: $1 per load if the load is only work-related clothing, $0.50 per load if mixed laundry. Or you can calculate actual costs (detergent, water, etc.). Dry-cleaning costs for suits/uniforms that are claimable can be deducted (keep those receipts). If your total claim for uniform/protective clothing (including laundry) is over $150, the ATO expects detailed records. If under $150 for laundry, you can claim on a reasonable basis without receipts (but still good to have some log of how you estimated number of loads).
Example: Hi-Vis & Safety Shorts
A construction worker buys $200 worth of hi-vis shirts and safety shorts with company logo and spends $300 on steel-cap boots – these are deductible. They wash them separately twice a week (say ~100 loads/year × $1 = $100 laundry claim). On the other hand, an office worker required to wear business attire (suit) cannot claim those suits – they’re conventional clothing, even if only worn for work.
Home Office / Working from Home Expenses
Many individuals now work from home either part-time or full-time. We have a dedicated section on this below (“Claiming Home Office Expenses”) with the detailed methods (new 67¢/70¢ per hour rate and actual cost method). In summary, if you perform work duties from a home office (whether as an employee or running your own business), you can claim running expenses for that.
For FY2025, the ATO’s fixed rate is 67c/hour up to 30 June 2024, and 70c/hour from 1 July 2024 onwards . This covers things like electricity, phone, and internet used for work. You must keep a record of hours worked (a timesheet or diary).
Additionally, you can claim office equipment costs (desks, chairs, computers, etc.) separately via depreciation or immediate deduction if under $300 . We will delve into the rules shortly in the "Home Office" section – because the ATO changed them recently (no more 80c COVID shortcut, new fixed rate with stricter record-keeping). If you frequently work from home, pay special attention to that section for maximising that deduction.
Self-Education and Training Expenses
If you undertook courses, education, or training related to your current job or career, you may be able to claim associated costs. The course must have a sufficient connection to your current income-earning activities – typically it maintains or improves the skills or knowledge needed in your present job, or it is required for your current work (for example, to remain certified or to get a promotion in your field) . It cannot be something that qualifies you for a new trade or career (in that case, it’s considered you’re acquiring new capital – your education – which isn’t deductible) . Also, if you’re not yet employed in the field of the study, it’s generally not deductible (i.e., a student with a side job not related to studies usually can’t claim their study).
Allowed
Course or degree related to your current role. For example, a teacher pursuing a Master of Education (still in education field), an accountant doing a tax law course, a nurse doing a course on advanced nursing practice (likely leading to higher income in nursing) , or any training your employer encourages for your current position. Even a course that might qualify you for a higher position in the same field can be okay (e.g., a senior nurse course to become a nurse unit manager, if she’s already a nurse). If after completing the course you do get a pay rise or it’s objectively improving your skills for the job, that’s a good sign it’s deductible.
Not Allowed
A course to switch careers or start a new profession. For example, a nurse studying to become a doctor – no deduction, because that’s a different occupation . A teacher’s aide studying teaching (to become a teacher) – not deductible . Or say you work as a sales assistantand study fashion photography on the side in hopes of a career change – not claimable . Also, courses for general self-improvement or unrelated to your day job (e.g. personal finance seminar, unless you work in finance) are out. If you were unemployed and studied something to get a job, that cost isn’t deductible against future income (though once you have the job, new courses could be if related).
Expenses you can claim
Tuition fees (for courses NOT funded by HECS-HELP – note: you cannot claim deductions for HECS/HELP or CSP student contributions for uni degrees, as those are not tax-deductible – only self-funded education can be claimed), registration or student union fees if required, textbooks and course materials, stationery, photocopying, internet (prorated) used for study, travel from home/work to the place of education, parking fees at uni, and even depreciation on assets used for study (like a laptop). If you travel and stay overnight for an eligible seminar or workshop, those travel costs can be included.
Travel for Study
If you go from work to uni then home, or home–uni–home, the travel is deductible (because it’s in the course of self-education related to work). Keep a log of kilometers or public transport costs. If you drive, you can use the cents-per-km method here too or keep a logbook specifically for your study-related travel (though usually, people just use 72c/km for such education travel for simplicity – we can calculate this).
No More $250 Reduction
In the past, there was a rule that the first $250 of self-education expenses was non-deductible (with some convoluted offsetting allowed for unrelated costs). This $250 rule was abolished from 1 July 2022 , so now you can claim the full amount of eligible self-education expenses without that exclusion.
Example: Deductible Self-Education
Angela is an architect. She enrolls in a 1-year Project Management diploma to enhance her skills for managing architectural projects at her firm. The course is directly applicable to her current work (her employer even mentions that this could lead to a promotion to project lead). Angela pays $5,000 in course fees (out-of-pocket, not reimbursed), $800 for textbooks, and travels 3 km from work to the training campus twice a week. She can claim $5,000 + $800 = $5,800, plus travel (approx 3km × 2 × 40 weeks = 240km → $0.88 × 240 = $211). She keeps receipts and a log of travel. This is allowable because the course improves skills in her existing profession and is likely to increase her income.
Example: Non-Deductible Study
Brian works as an accountant, but is pivoting to a career in software development. He quits his job and in 2025 completes a full-time coding bootcamp. The $15,000 tuition isn’t deductible against his accounting income (or future developer income) because it’s enabling a new employment, not related to earning his current income . Similarly, if he was still working as an accountant while studying coding at night, it’s still not related to his accounting job, so no deduction. On the other hand, if Brian took an advanced accounting tax law course, that would be deductible as it’s directly tied to his job.
Special Cases
If you receive taxable bonded scholarships or educational awards that require studying, those might be deductible scenarios. But that’s uncommon – we’d discuss if relevant.
Tip
Keep all receipts for course fees, material, and a diary of study-related travel. If any part of the study was reimbursed or paid by your employer (or anyone), you can’t claim that portion. For example, if your boss paid half your tuition, you claim only the half you paid.
Other Common Work-Related Deductions
There are many potential deductions depending on your occupation and work arrangements.
Here are some of the most frequent ones:
Union Fees and Professional Memberships
Annual union fees, or membership fees to professional associations related to your job (for example, membership of a professional engineers’ society, CPA Australia for accountants, Australian Nursing & Midwifery Federation for nurses, etc.) are deductible . These are often shown on your income statement if your employer deducts them from pay, or you’ll have a receipt from the union. Note: Initiation fees or contributions to things like a strike fund are not deductible – only the regular membership fee. Fees for social clubs are not included.
Subscriptions and Journals
If you subscribe to trade or professional publications, journals, or online information services directly related to your work, that’s deductible. For example, a lawyer subscribing to a legal case database, a doctor subscribing to a medical journal, a finance worker paying for a premium financial news service. Similarly, buying reference books or industry magazines can be claimed if they relate to your current job.
Telephone & Internet
If you use your personal phone or home internet for work purposes (and you’re not reimbursed by your employer for it), you can claim a reasonable portion as a deduction. You need to determine the work-related percentage. The ATO often expects a 4-week diary of usage to work this out if the claim is sizable. For a mobile phone, for example, you might count work vs private calls (or data use) in a sample period. If, say, 30% of your usage is work, you can claim 30% of your phone bill. Ensure to exclude any family portion (if your bill covers multiple people, only count your phone’s work use). For internet, perhaps you work from home occasionally or do after-hours emails – you could claim, say, 20% of your home internet if that reasonably represents work use. Document how you arrive at that percentage (e.g., hours used for work vs total, or data logs). If your claim is minor (like $100 or so), the ATO is not overly strict, but larger claims need evidence.
🌐 Note
If you’re using the home office fixed rate (70c) method, phone and internet are already included in that rate . In that case, you shouldn’t also claim them separately (to avoid double-dipping) . We’ll ensure no duplication depending on which method you use for WFH.
Tools & Equipment
As mentioned, many tools or equipment for work can be claimed. This is particularly relevant for tradespeople, technicians, or any job requiring gear.
Key Rule: items costing $300 or less can generally be claimed in full (immediate deduction) in the year of purchase, as long as you use them mainly for producing non-business income (for business tools, the $20k instant write-off rule applies – see 'Business section').
Items over $300 must be depreciated over their effective life (we can use ATO’s schedules for that or possibly a short-cut like a depreciation pool if applicable). For example: a mechanic buying a $250 drill – deduct immediately; buying a $1,000 tool set – depreciate over maybe 10 years (or add to a small tool pool for faster depreciation).
Common deductible items: tools, toolboxes, protective equipment (if not claimed under clothing), briefcase or work bag (if used to carry work papers/laptop), stethoscopes for doctors, scissors for hairdressers, laptop or tablet (if primarily for work – if also personal, claim only the work portion). If you use a laptop 50% for work and 50% private, and it cost $2,000, you’d depreciate it and claim half the depreciation each year. Don’t forget to include repair costs for tools/equipment – if you had something fixed or serviced (sharpening tools, computer repair), that’s deductible too.
Stationery and Office Supplies
Pens, notebooks, printer ink, paper, staplers – any consumables you buy for work (and aren’t reimbursed) are deductible. This is often small, but it adds up. Also, work-related software, apps, or cloud services subscriptions can be claimed (i.e., paying for a software license used in your job).
Conference & Seminar Fees
If you attend conferences, workshops, or seminars related to your profession (and you pay for it), that fee is deductible, plus travel as discussed. This could overlap with self-education or just be considered work training – either way it’s deductible if it’s about your current work.
Working with Children/Vulnerable Checks or Other Licenses
If your job requires a certification like a Blue Card (working with children check) or other licenses, renewal fees are deductible because they’re required to continue earning income . The initial application fee for a new license (or initial registration like a nurse’s first registration, a tradesperson’s first license) is usually not deductible , because it’s seen as allowing you to get a new job. But renewals to maintain your current employment are deductible. For instance, renewing your annual professional practicing certificate or license – yes deductible . First time you ever get it – not deductible.
Union Strike Pay Levy/Fines
Just to note, if you paid things like a strike fund contribution or any fines (for example, a fine for a late work-related license renewal), those are not deductible.
First Aid Courses
If you are designated first aid officer at work and you pay for the course, that can be deductible.
Personal Protective Equipment (PPE)
Beyond clothing, items like sunscreen, sunglasses, and hats can be claimed if you need them to protect from the sun at work (say you work outside all day) – they’re considered protection. Likewise, earplugs or safety equipment not provided by employer that you buy yourself for work.
Remote Area Travel or Trip Expenses
If your job required you to live away from home or travel to remote areas temporarily (not permanent relocation), some costs could be deductible (but often these are reimbursed or come with an allowance). We’ll handle these case by case.
Work-From-Home (WFH) Expenses
Not to repeat, but aside from the hourly rate method, if you choose to use the actual cost method for WFH, you’d claim portions of electricity, heating/cooling, cleaning, etc., based on a reasonable formula. We’ll discuss WFH in its own section next, as it’s a common and slightly complex area.
Investment-Related Deductions
If you have investment income, there are often expenses associated:
Interest on Investment Loans
If you have a loan to invest in shares or income-producing assets (excluding rental property loans, which we covered in the property section), the interest is deductible. For example, interest on a margin loan used to buy shares, or on funds borrowed to invest in an income-generating fund. Ensure you have an annual interest statement from the lender.
Investment Management Fees
Fees paid to a financial planner or portfolio management service (not including upfront entry fees or commissions which are usually not deductible, but ongoing service fees often are). Note that investment management fees inside super are not deductible to you (they’re handled within super).
Accounting or Advice Fees for Investments
If you paid an accountant or advisor for producing an investment income schedule or advice related to existing investments (not just initial purchase advice), it can be deductible. Also, if you incurred costs to obtain an investment loan (like loan establishment fees), those are deductible over 5 years or the life of loan, whichever is shorter.
Interest on Funds for Personal Investments
For instance, if you pre-pay interest on a fixed-income security subscription, that’s deductible in the year it pertains to.
Deductible Super Contributions
If you made personal (after-tax) contributions to superannuation and intend to claim a deduction, ensure you have lodged a Notice of Intent to claim with your super fund and received their acknowledgment. Those contributions (up to the $30,000 concessional cap for 2024-25 , including any salary sacrifice amounts) are deductible. We need that notice acknowledgment to claim it. This is a strategy often used by people to top up super and reduce tax (self-employed or even employees can do this now).
Income Protection Insurance
If you have a standalone income protection policy (outside of super) that covers loss of income (salary continuance), the premiums are deductible. If it’s through super or it’s some combined policy, it may not be directly deductible to you. Bring details and we’ll clarify.
Interest on Loans to Purchase Crypto or Other Investments
If you actually borrowed to buy crypto or other assets that produce no income (crypto generally doesn’t produce regular interest or dividends unless staked), interest may not be deductible unless the asset actually produces assessable income. If you are staking crypto and earning income, arguably related interest could be partly deductible. This is a complex area – we can discuss if applicable.
Cost of Managing Tax Affairs
The fee you pay us (your tax agent) for this tax return next year will be deductible on your 2026 return. Also any tax-related books or software you purchase are deductible. For this year, you can claim what you paid for last year’s tax return preparation, or any other accounting fees you paid related to tax advice. The ATO allows a deduction for “Managing tax affairs” which includes things like travel to see your tax agent, paying for tax audit insurance, etc. We’ll include last year’s fee in your deductions if you were a client; if you’re new, bring the amount you paid your previous accountant or tax agent for last year’s return.
Charitable Donations (Gifts)
Donations of $2 or more to registered charities (Deductible Gift Recipients) are tax-deductible. This is not “work-related” but it’s a common deduction. Bring your donation receipts (many charities email these around July). Note: If you received anything material in return (raffle ticket, fundraising dinner, etc.), it’s generally not deductible or only partially (i.e., you buy a $50 charity dinner ticket valued at $30 dinner, you can only claim $20). Pure donations (no material benefit back) are fully deductible. Also note political party donations have their own limit (up to $1,500 per party, $1,500 per independent candidate). We’ll make sure to handle any specific rules if you have those.
Interest & Dividend Deductions
If you pay any fees to manage your shares (like a monthly fee for an online trading platform, or fees for a safe custody of stock certificates, etc.), those are deductible. If you paid for investment magazines or share market subscriptions, those can be claimed too (assuming the investments are producing income or expect to).
Rental Property Expenses
For those with rental income, we cover the deductions in the next section thoroughly (mortgage interest, rates, repairs, depreciation, etc.). In short, nearly all costs associated with your investment property are deductible or depreciable, except those of a capital nature. We’ll dive into specifics in Investment Properties section.
Crypto investment expenses
If you incurred expenses specifically to manage your crypto (like paying for a crypto portfolio tracker app, or blockchain transaction fees that are not purchase costs – though most would be part of cost base for CGT, so not immediately deductible), we’ll see how they fit. For example, if you had staking fees or wallet fees, if they relate to earning income (staking rewards) they could be deductible. If purely investment (capital), they usually adjust cost base instead. We’ll handle accordingly with CGT calc.
Tax Offsets (Rebates)
Offsets directly reduce your tax payable. While not “deductions”, it’s worth mentioning a couple that individuals might have:
Low Income Tax Offset (LITO)
As noted earlier, if your taxable income is under $66,667, you’ll get some LITO automatically. The maximum is $700 for incomes $0–$37,500 (approx) and then it tapers. This is calculated by the ATO – you don’t need to do anything except lodge your return. It will show up on your notice of assessment.
Low and Middle Income Tax Offset (LMITO)
This extra offset of up to $1,500 was available in 2019-20, 2020-21, 2021-22 but has ceased and is not available for 2024-25 . Some taxpayers were unpleasantly surprised last year (and in 2023) when their refund was lower – that’s because LMITO ended. Just a heads up: don’t expect that extra boost this year either.
Senior and Pensioner Tax Offset (SAPTO)
If you are eligible (generally you or your spouse are of Age Pension age and meet certain income criteria), you could get an offset to reduce tax. The income thresholds for SAPTO also moved slightly with the tax cuts. For instance, a single senior with taxable income up to ~$34,000 gets max offset, and it cuts out completely around $52k . We’ll automatically calculate this if your birth date and income qualify – just ensure we have your correct date of birth and marital status.
Private Health Insurance Rebate / Medicare Surcharge
Not an “offset” you claim per se (and the rebate can be taken as reduced premiums through your insurer), but if you pay for private hospital cover, the government provides a rebate based on your income tier (which can reduce tax or increase refund). Conversely, if you earn over $90k single / $180k family and don’t have appropriate hospital cover, a Medicare Levy Surcharge of 1%–1.5% may apply. We will need your Private Health Insurance Statement to complete that section and apply any rebate or surcharge correctly.
Zone/Overseas Forces Offset
If you lived in a remote area or served overseas in forces, these still exist but are less common; we’ll check eligibility if applicable (requires specific conditions and often evidence of location/days).
Other Offsets
There are offsets for certain dependants (rare now, mostly phased out except perhaps a parent carer in some cases) and for net medical expenses (phased out except for disability aids or aged care expenses). Likely not applicable to most, but we’ll ask if any apply.
Remember, detailed documentation and substantiation is key for deductions. Given that the ATO is actively using data analytics and issuing warnings about incorrect claims (for example, reminding taxpayers not to claim personal expenses as work deductions ), we want to get it right. We’ll help you be compliant and maximize what you’re entitled to. If in doubt about any expense, bring it up – we’ll either find a category to claim it or explain why it can’t be claimed. Every dollar counts!