Tax Deduction

Hi, this is TK Accounting Firm.
The tax return season in Australia starts every July.
Below is an overview of the most common deductible expense categories during your tax return, and the supporting documentation that taxpayers are expected to prepare.

What Are Tax Deductions?
Australian tax law allows you to deduct expenses directly related to earning your income or running your business. However, not all expenses qualify—personal costs or buying assets like property or expensive equipment usually aren’t deductible. Some exceptions exist depending on your situation, so always check carefully or consult a tax professional.

Travel Expenses

• Not deductible: Daily commute between home and your regular workplace
• Deductible:
  -. Traveling between two jobs
  -. Visiting multiple work locations
  -. Carrying heavy equipment or instruments making public transport impractical
  -. If your home is officially recognized as a Home Office
  -. Work-related travel outside regular hours
  
  
  
• Proof needed:
  -. For public transport, keep receipts or a work diary
  -. For car expenses, keep a Log Book and follow car expense rules
  
  
  

Clothing Expenses

• Not deductible: Regular clothes, even if work-related (e.g. suits or sports shoes)
• Deductible:
  -. Registered and compulsory uniforms
  -. Costumes for actors, work-specific protective clothing (e.g., nurse uniforms)
  
  
  

Laundry Expenses
You can claim laundry costs for deductible clothing.

• If laundry expenses are $150 or less and total work expenses are under $300:
  → No receipts required
• If laundry expenses exceed $150 or total work expenses are $300 or more:
  → Keep receipts or records (e.g., a diary tracking expenses)

Sun Protection Expenses
If you work outdoors, you can claim costs for:

• Sunglasses
• Sunscreen
• Hats

For detailed advice, please refer to the Australian Taxation Office (ATO) website or consult your accountant.