The Most Overlooked Tax Deductions in Australia

Happy New Financial Year! As we wrap up this financial year, it’s the perfect time to reflect — not just on your income and expenses, but on the tax deductions you may have missed. At Investax, we continue to see many clients overlooking valuable deductions that could make a real difference to their refund.

While most Australians remember the usual claims — things like work-related travel, phone bills, and union fees — there’s a whole range of lesser-known deductions that are still flying under the radar. Whether you’re a salary earner, property investor, freelancer, or small business owner, this article will walk you through the most overlooked tax deductions in Australia — and help you make sure you don’t leave money on the table this year.

1. Donations to Registered Charities

The majority of Australians are very generous — whether it’s supporting bushfire relief, flood recovery, medical research, or local community initiatives, giving back is part of our culture. But what many people don’t realise is that these acts of generosity can also bring tax benefits, provided they meet certain criteria.

As long as your donation was $2 or more and made to a Deductible Gift Recipient (DGR), you can claim it. This includes one-off donations, recurring contributions, and even workplace giving programs. Don’t underestimate the cumulative value — those $20 and $50 donations throughout the year can add up quickly.

💡 Tip: Keep digital receipts or download your donation history from the charity’s website. If you’ve supported causes during natural disasters or community crises, those count too — as long as they went to a registered DGR.

2. Home Office Furniture and Equipment

Since the rise of hybrid and remote work, many of us have become familiar with the cents-per-hour method when claiming home office running expenses. It’s a simple way to account for electricity, internet, and other overheads. But what a lot of taxpayers don’t realise is that you can also claim the cost of home office furniture and equipment — and this is often missed.

If you’ve purchased a desk, ergonomic chair, monitor, filing cabinet, or even a ring light or webcam for work-related purposes, these items may be eligible for a full deduction or depreciation depending on their cost and use.

💡 Tip: Items under the immediate asset write-off threshold (if applicable) can be fully claimed in the year of purchase, while higher-cost items can be depreciated over time.

⚠️ Important: You can only claim the work-related portion. If the furniture is used for both personal and work purposes, you’ll need to apportion the expense accordingly.

3. Interest on Borrowed Funds to Pay Income Tax

Here’s a deduction that catches even seasoned taxpayers off guard. If you’ve taken out a loan — whether a personal loan, line of credit, or used a credit card — to pay your income tax, GST, or even business activity statement (BAS) obligations, the interest on that borrowed amount may be tax-deductible.

This generally applies to individuals or businesses who derive assessable income (e.g. business owners, investors), and use borrowed funds specifically to meet a tax liability.

Example: If you borrowed $10,000 from your bank to pay a tax bill relating to your investment income, the interest on that loan can be claimed as a deduction.

⚠️ Note: The principal repayment isn’t deductible — only the interest. And you must be able to demonstrate a clear link between the loan and the tax obligation.

4. Income Protection Insurance

If you hold an income protection policy outside your super fund, the premiums are generally tax-deductible. This is one deduction that’s commonly forgotten — especially by employees who took out a policy years ago and pay the premiums via direct debit or credit card.

🧾 Reminder: Policies paid through your superannuation fund usually aren’t deductible on your personal tax return.

5. Tax Agent Fees

Yes, the cost of managing your tax affairs is itself deductible. If you paid for professional advice, tax return lodgement, or even software like MYOB or Xero (for self-preparers), you may be entitled to a deduction the following financial year.

6. Union and Membership Fees

If you’re a member of a union or a professional association related to your work, those membership fees can usually be claimed as deductions. This includes industry-specific bodies that keep you updated with training, resources, or support.

7. Bank Fees on Investment Accounts

Do you have a savings or offset account linked to an investment property? What about a brokerage account for shares or ETFs? The fees associated with earning investment income — including account-keeping or portfolio admin fees — are often deductible, but rarely claimed.

8. Personal Super Contributions

If you made additional personal contributions to your super fund and submitted a Notice of Intent to Claim, you may be able to claim a deduction. This is particularly valuable for those looking to reduce taxable income while boosting retirement savings.

Final Thoughts

Tax time doesn’t have to be a scramble of receipts and stress. By understanding and claiming these often-overlooked deductions, you can keep more money in your pocket and make smarter financial decisions year-round. If you’re unsure whether a particular expense is deductible, speak to a registered tax agent or accountant — a little advice can lead to big savings.

We offer a 15-minute free consultation to discuss your tax, property investment and business needs. Book your complimentary consultation now.

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