Tax Deductions in Australia

For individuals working in Australia, life is no different at least from a taxation point of view. You are liable to pay taxes on the money that you earn as salary, wages, returns from renting out places, interests and dividends earned, profits that you have made by selling shares or properties and so on. But as is the case with any country that levies taxes, you can opt for deductions to reduce your tax liability. Should you decide to choose any of the deductions, the same is subtracted from your income to arrive at a net taxable income. Here are some of the deductions that you can avail.

Travel Deductions

Keeping a track of all of your work related travel expenses will come in handy during the tax filing season. If you are someone who uses his/her car for business related travels, you can claim the amount for your taxes. The only caveat being, you must be the owner of the car and have a track of all the expenses. You need to be careful with this deduction as the following are not allowed.

  • Claiming expenses for daily commute to the office.
  • Claiming expenses if you are working late and public transport is not available.
  • Claiming expenses if you must attend parent teachers meeting or leave office due to some other security concerns.

Clothing Deductions

There are quite a few work place environments that expect you to dress up in a certain way. For an instance, some might expect you to come in suits while others will expect you to sport the company’s emblem or logo on your shirt. You can check with your employer if there are certain clauses under which you can claim for the same.

The deduction allows you to claim money that you spend explicitly to get ready for your profession. You can also claim clothing that protects you from potential injuries or accidents. The same is not restricted only to clothing, as footwear is also included. You can also claim the deduction if your company demands to place its logo on your shirts.

Deductions related to Working From Home

Few professions let you work from the comfort of your homes. If your line of work allows you to work from home either partially or completely, you can avail benefits under home office deductions. In an ideal world you are required to have a separate room to claim the same. However, if it’s a multipurpose room, you can only claim for the number of hours you spent for work.

This clause lets you get devices, computers, phones or other equipment that you might need to perform your duties. You can also claim the running electricity bills for the same. You can claim up to a maximum of $300 for computers and other devices. The clause also lets you claim phone bills, if you use it only for business purposes.


It is not unknown for organizations to gift their employees based on merits or otherwise. You can claim these gifts or donations as long as the same has a Deductible Gift Receipts status. The following are the only criteria for claiming under gifts and donations.

  • It must be a genuine gift and not just for namesake.
  • Any form of money, financial assets or property is acceptable.
  • DGR status must be associated.
  • Ensure to verify the DGR conditions as they might vary.

If all of the above conditions are met you can claim the amount as long as it exceeds $2. The rules and regulations change when it comes to property, so you need to read the finer lines for a better understanding.