Let’s be honest: no one wants to pay tax. You work hard for the money and you’d like to keep as much of it as you can out of the ATO’s coffers.

This is where tax deductions come in. These are things you spend money on for your job or small business that you can claim as expenses. The amount you spend that can be claimed is deducted from your annual income and, because we have a sliding scale of income tax, the more you can claim the less tax you will have to pay. Winning.

Because everyone’s jobs and situations are so unique, your accountant is absolutely the best person to advise you on which expenditures you made each financial year can be claimed. 

Knowing what kind of claims you can make with respect to your particular job can also mean that you are smarter about what you spend your money on too. 

To claim any expense, remember you need a record of it (the Tax Office does love to paper push and is very strict about this). And in almost all cases, an expense cannot be claimed if it has been paid for or reimbursed to you by your employer.

Here’s a rundown of some of the things that are commonly claimed, some of the more unusual tax deductions you may never have thought of, and other expenses which simply don’t count.

Common tax deductions.

Tools and equipment you need to complete your daily tasks are an obvious tax deduction. Tradespeople need hammers and power tools, office workers need computers and mathematicians need calculators. But if any of the items you purchased are also used for personal use (like watching Netflix on your Mac in bed late at night) you have to tell the ATO what percentage of time that piece of equipment is used for work as that is all that can be claimed.

If you travel for work you can claim the cost of that travel whether by private car or car hire, taxi, plane or public transport. If you use your private car for work, you will most likely be asked to keep a logbook of kilometres travelled through the financial year. 

Thinking of upskilling for work? Training courses that are relevant to your current job are not only a great idea for professional development, they are also tax deductible. 

If you need to wear a particular uniform for your job or you need protective clothing or footwear such as safety-coloured vests or non-slip shoes, you can claim the cost of these. 

If you are self-employed and work from home there is a huge array of expenses that you can claim on your tax return including rent, power, your office furniture and stationery but check with your accountant first.

Things you never knew you could claim.

There are other deductions that may, surprisingly, apply to you.

For instance, if you are a tradie who carries very expensive tools around in your work van or ute each day, you can claim the cost of a guard dog. So often tools are stolen from vehicles and work sites and a dog can be seen as a security expense. You can claim the cost of its food, bedding and vet bills.

If you are an airline hostess you can claim products that replenish moisture in your skin and hair depleted by the atmosphere in a plane at altitude. 

Does your job take you outside at any point in your daily work life? Then you can claim sunglasses, hats and sunscreen as protective clothing. Teachers, tradespeople, gardeners and pilots can use this deduction effectively.

Anyone who works in the adult entertainment industry can claim certain items or “toys” that many people would consider to be, err…recreational. 

Stuff you can’t get past the ATO gatekeepers.

Sadly, some things just aren’t eligible to be tax deductions.

A major one is the cost of travel between your home and your workplace. This is considered private travel and you are wholly responsible for it.

If you need a work uniform that does not have your employer’s insignia or branding and can also be feasibly worn as everyday wear or to the pub after work – such as black pants and a white shirt for a waitress or barista in a cafe — you cannot claim it.

Parking fines accrued in the course of your working day also cannot be claimed — even if you feel it was unfair to receive one. 

Child care is another biggie. This is a major expense for working parents and while it would be nice to claim centre fees, they are deemed to be private expenses.

The world of tax deductions can be daunting, but understanding what you can claim against your income – and having the right accountant on board to advise you – is crucial to saving you money.