When tax time rolls around, most people stick to the basics — work-related expenses, donations and super contributions. But there are plenty of unusual (and legal!) tax deductions you might be missing.
If you’re wondering about tax things to claim that aren’t so obvious, this list covers everything from SPF moisturisers to dogs, handbags and even artwork. Just make sure to confirm eligibility with the ATO or your accountant, as deduction rules can change.
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If your job requires you to work outdoors for extended periods, such as construction, landscaping or lifeguarding, sunscreen is considered a legitimate work expense. Women can also claim SPF-containing makeup, as long as it’s primarily for sun protection. However, simply attending a few outdoor meetings doesn’t qualify.
If you’re regularly exposed to dry environments, such as airline cabins, you might be able to claim hydrating moisturisers, especially if you’re a flight attendant or pilot. Standard cosmetic moisturisers or makeup won’t qualify unless they serve a clear work-related purpose.
If you use a bag specifically to carry work-related items like a laptop, tablet or documents, it may be deductible. Laptop bags and backpacks often qualify but luxury designer handbags are likely to be flagged unless you can prove they’re used exclusively for work purposes. Always check with your tax advisor before making a claim.
If you work outdoors full-time, you can claim protective gear such as sun-safe clothing, wet weather gear, gloves, hats and waterproof jackets. Work boots may also be claimable if they’re considered compulsory. This applies to tradespeople, farmers, road workers and similar outdoor professions.
If you regularly work from home, you may be able to claim running costs associated with your home office. The ATO currently allows three methods:
Good recordkeeping is essential to maximise your claim, especially under the actual expenses method, which includes utilities, internet and depreciation on office equipment.
As long as it’s work-related and you’re doing further study with a qualified education provider, you may claim study expenses. You can’t claim expenses relating to a HECS or HELP study debt, and unfortunately, there are also rules on study related to your specific job. So, in other words, you can’t do an interior design course because you want to remodel your home and try and claim it as a deduction if your main job is as an accountant.
Before you start running off to buy the latest treadmill for the office, check with your tax advisor on what can be potentially claimed for your line of business. But if you have an office set up, you could be eligible to claim things like an Xbox console, ping pong table or pool table if you have a leisure area to keep your workers happy and engaged in better productivity.
Certain working or guard dogs used for business purposes may qualify as a deductible asset. This includes security dogs for warehouses or sheepdogs used on farms. The cost of acquiring and maintaining the dog, including food, vet bills and training, may also be deductible under small business rules like the instant asset write-off.
Businesses with a turnover of up to $500 million can access an instant asset write-off until 30 June 2023 for paintings and artwork. If you’ve been wanting to buy a particular artwork for a waiting room clinic or boardroom, for instance, this may be a tax deduction.
If you qualify for any of the above deductibles, your next tax bill could look quite different. Always confirm which items you can deduct on the ATO website, as rules can change.
Subscriptions to professional magazines, digital news sites, journals or trade-related podcasts can be deductible if they relate directly to your work or profession. For example, a lawyer may claim a legal publication subscription, or a finance professional may claim access to paid market analysis.
You can claim donations of $2 or more made to registered charities, as long as you have a receipt and the charity is listed as a Deductible Gift Recipient (DGR). Donations to crowdfunding pages or unregistered organisations don’t qualify, so always double-check before claiming.
Generally, you can’t claim social events, even if your employer requires attendance. However, if attending a function directly relates to your job duties (e.g. a journalist covering an event for reporting purposes), the cost may be deductible. These claims are rare and require strong evidence.
Understanding what’s claimable, especially when it’s outside the norm, can be tricky. At Carbon, we help individuals and businesses navigate the ATO’s deduction rules with confidence. Whether you’re managing complex expenses, running a business, or looking for ways to reduce your tax bill, our team can help.
We also offer support across bookkeeping, payroll, tax planning, business insurance and advisory services.
Call us on 1300 454 174 or contact us to get expert tax advice today.
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