Work From Home Deductions
If you work from home even part of the time, you can claim: electricity and gas for heating/cooling your workspace, internet costs (proportional to work use), phone costs, office furniture and equipment (items over $300 are depreciated), computer consumables, and stationery. The fixed rate method allows 67 cents per hour worked from home, covering electricity, internet, phone, and stationery in one claim. Keep a log of hours worked from home for at least 4 consecutive weeks as a representative sample.
Car and Travel Expenses
If you use your car for work (not commuting to your regular workplace), you can claim using the cents per km method (85 cents/km up to 5,000km) or the logbook method (actual expenses based on work-use percentage). Eligible trips include traveling between two workplaces, visiting clients, attending conferences, and carrying bulky equipment that cannot be stored at work. Parking and tolls for work-related travel are also deductible.
Self-Education
Course fees, textbooks, and associated costs are deductible if the education directly relates to your current employment or is likely to lead to increased income in your current role. This includes university courses, professional development, industry conferences, and online courses. However, education for a new career or a degree in an unrelated field is NOT deductible. Many Chinese professionals studying further qualifications in Australia miss this deduction.
Investment Property
Investment property owners can claim a wide range of deductions: mortgage interest (the biggest one), council rates, water rates, insurance, property management fees, repairs and maintenance, advertising for tenants, body corporate fees, and depreciation on the building and fixtures. A depreciation schedule from a quantity surveyor ($600-800) can unlock $5,000-15,000+ in deductions per year for newer properties. This is one of the most commonly missed deductions for property investors.
Commonly Missed Deductions
- Union and professional association fees — CPA, Engineers Australia, etc.
- Income protection insurance premiums — fully deductible
- Sun protection — sunscreen and hats if you work outdoors
- Laundry — washing work uniforms or occupation-specific clothing ($150 without receipts)
- Donations — to registered charities (tax-deductible gift recipients)
- Tax agent fees — the cost of last year's tax return preparation
- Working from home furniture — desks, chairs, monitors (depreciated if over $300)
Record Keeping
The ATO requires records to be kept for 5 years. Use apps like myDeductions (ATO's free app), Expensify, or simply take photos of receipts. Bank and credit card statements can be used as evidence for electronic purchases. For work from home, keep a timesheet or diary. For car expenses, maintain a logbook for at least 12 consecutive weeks. Good records are your best defence in an audit.