How to Get a Bigger Tax Refund in Australia: 15 Deductions Most Workers Miss (2026)
Most Australians leave money on the table at tax time. Discover 15 commonly missed tax deductions including WFH expenses, uniforms, self-education, union fees, and more. Learn the rules, record-keeping requirements, and how to maximise your 2025-26 refund.
Why most Australians are leaving money on the table
The ATO reports that millions of Australians either under-claim legitimate deductions or miss them entirely, resulting in smaller refunds than they are entitled to. The average individual tax refund in Australia is approximately $2,500 to $3,000, but many workers could receive significantly more with proper deduction claims. The key principle is simple: if you spent money to earn your income, it is likely deductible. Work-related expenses are the largest category of deductions for most employees, yet many workers only claim the obvious ones (like uniforms) and miss less visible deductions (like phone usage, home office costs, or professional subscriptions). A common misconception is that there is a $300 threshold below which you do not need receipts. This is no longer accurate — the ATO requires records for all deduction claims regardless of amount. The $300 no-receipt threshold for clothing and laundry was specifically abolished, and the ATO's data matching capabilities mean unsubstantiated claims are increasingly flagged for review. The good news is that keeping records has never been easier with the ATO's myDeductions app and digital receipt storage. Every dollar of deductions reduces your taxable income, saving you tax at your marginal rate: 16 cents, 30 cents, 37 cents, or 45 cents per dollar depending on your income level.
Work from home deductions: 67 cents per hour or actual cost
Working from home is now standard for millions of Australians, and the tax deduction for WFH expenses is one of the most valuable claims available. You have two methods to choose from. The fixed rate method allows you to claim 67 cents per hour worked from home. This rate covers electricity, gas, phone, internet, stationery, and computer consumables. You still need to keep a record of your WFH hours — a timesheet, diary, roster, or similar document that shows the hours you worked from home during the year. You can also separately claim the decline in value of depreciating assets used for work (like a desk, chair, or monitor) and the work-related portion of any other expenses not covered by the 67-cent rate. The actual cost method requires you to calculate the actual work-related proportion of every home office expense: electricity, gas, internet, phone, depreciation of furniture and equipment, repairs, and cleaning of a dedicated home office. This method requires detailed records of actual costs and a reasonable basis for calculating the work-related percentage. For most workers, the fixed rate method is simpler and often produces a similar or better result. Working from home three days per week for 48 weeks at 7.5 hours per day equals 1,080 hours, giving a deduction of $723.60 under the fixed rate method.
Uniforms, protective clothing, and laundry
If your job requires you to wear a uniform, occupation-specific clothing, or protective items, these costs are deductible. This includes compulsory uniforms with your employer's logo, occupation-specific clothing (such as chef's whites, steel-capped boots, or high-visibility vests), and protective items like safety glasses, sun protection clothing, and hard hats. Conventional clothing is not deductible even if your employer requires you to wear it — a requirement to wear business attire or all-black clothing does not make those items deductible because they are considered ordinary clothing. Laundry costs for deductible clothing are also claimable. You can claim $1 per load if the load only contains work clothing, or 50 cents per load if mixed with personal items. Dry cleaning costs for eligible work clothing are deductible at the actual cost. The purchase of new uniform items, alterations, and repairs are all deductible. If a single item costs more than $300, you must depreciate it over its effective life rather than claiming the full cost in one year. Keep receipts for all purchases and a record of laundry loads. If you receive a uniform allowance from your employer, it is assessable income and must be declared — but you can then claim the actual costs of the uniform as a deduction, which may be more or less than the allowance received.
Self-education, courses, and professional development
Self-education expenses are deductible if the education has a sufficient connection to your current employment — it must relate to your current job, not a future career change. Deductible self-education expenses include course fees, textbooks and materials, student union fees, travel to attend courses (but not from home to a regular place of education if it becomes your regular commute), internet costs for online study, and equipment like laptops or software used for study. The course must either maintain or improve skills required in your current employment, or be likely to lead to an increase in income from your current employment. A marketing manager studying an advanced digital marketing course is deductible. The same person studying to become a lawyer is not deductible because it relates to a new profession. Professional development through conferences, workshops, and seminars related to your current role is fully deductible, including registration fees, travel, and accommodation. Professional memberships and subscriptions to industry journals, publications, and online resources are deductible. If your employer reimburses any of these costs, you cannot claim a deduction for the reimbursed portion. Student loan repayments (HECS-HELP) are not deductible — they are a repayment of a debt, not an education expense.
Car expenses, travel, and transport
Work-related car expenses are deductible if you use your car for work purposes beyond ordinary commuting between home and your regular workplace. Deductible travel includes trips between two separate workplaces (for example, from your office to a client site), travel to attend work-related conferences or training, travel to meet clients or suppliers, and travel when carrying bulky tools that cannot be stored at work. You can use the cents-per-kilometre method (85 cents per km for 2025-26, capped at 5,000 business kilometres per year, no receipts needed but you must be able to show how you calculated the kilometres) or the logbook method (which requires maintaining a 12-week logbook to determine your work-use percentage, then claiming that percentage of all car expenses including fuel, insurance, registration, depreciation, and servicing). The logbook method usually produces a higher deduction for workers with significant business use but requires more record-keeping. Travel between home and work is generally not deductible, with limited exceptions: if you carry bulky tools, if your home is a base of operations, or if you have no fixed workplace. Public transport fares for work travel (not commuting) are also deductible. If you use ride-share services like Uber for work purposes, keep the receipts and claim the work-related trips.
Phone, internet, tools, and equipment
If you use your personal phone or internet for work purposes, the work-related portion is deductible. You need to determine a reasonable work-use percentage — the ATO accepts a four-week representative diary period to establish the percentage, which you can then apply to the full year's costs. For example, if your phone bill is $100 per month and you determine that 40% of usage is work-related, you can claim $40 per month or $480 per year. Note that if you use the 67-cent WFH fixed rate method, phone and internet costs for hours worked at home are already covered by that rate — you can only separately claim the work-related portion for time spent away from home. Tools and equipment costing $300 or less can be claimed in full in the year of purchase. Items over $300 must be depreciated over their effective life. Common claimable items include laptops, tablets, monitors, keyboards, mice, headsets, desks, chairs, software subscriptions, and printers. If an item is used for both work and personal purposes, only the work-related portion is deductible. A laptop used 60% for work and 40% personal allows you to claim 60% of the cost or depreciation. Keep receipts and records of how you determined the work-use percentage.
Other deductions: donations, insurance, union fees, and more
Several other deductions are commonly overlooked. Donations of $2 or more to registered deductible gift recipients (DGRs) are tax-deductible — this includes most established charities. At a 30% marginal rate, a $500 donation costs you only $350 after the tax benefit. Income protection insurance premiums are deductible (but not life insurance, TPD, or trauma insurance premiums paid outside super). Union and professional association fees are deductible. Tax agent fees for preparing your previous year's return are deductible in the year you pay them — so the fee you paid your accountant in August 2025 for your 2024-25 return is deductible on your 2025-26 return. Interest on investment loans (shares, managed funds) and investment property expenses are deductible against your investment income, with net losses reducing your other taxable income (negative gearing). Overtime meal expenses are deductible if you received an overtime meal allowance under an award or agreement. The cost of travel between your home and a medical appointment is not deductible, but the net medical expenses tax offset was abolished in 2019. Always check that the expense has a nexus to earning your assessable income. When in doubt, the ATO's website has detailed guidance for each occupation on which deductions are commonly claimed and accepted.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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