7 things you’ve never thought to claim on your taxes

Tax time is fast approaching and with the rising cost of living, a tax refund could provide some well-needed financial breathing room.

Most Aussies are aware they can claim big-ticket work items like work-from-home costs, vehicles, or laptops, reducing their taxable income (and, therefore, how much tax they need to pay) by the value of their work-related purchases. But the Australian Taxation Office (ATO) allows a range of lesser-known expenses to be deducted too.

If you paid for these out of your own pocket to help you do your job this financial year, haven’t been reimbursed, and you’ve got the receipt, it’s time to check if you are eligible to claim them back.

Here are seven tax deductions that you might not be aware you can make.

1. Your handbag, backpack, briefcase, or luggage

If you purchase a backpack, briefcase, satchel, or even a handbag to carry essential items for your job, you may be able to claim a tax deduction for its cost. You may even be able to claim the cost of a suitcase if you travel frequently for work.

What you need: There must be a clear connection between the bag and your employment, meaning it must be practical for your work purposes (you likely can’t convince the ATO your micro bag doubles as a briefcase). You also need to be mainly used for work which, according to the ATO, is more than 50% of the time you use it.

Warning: Hoping to buy a designer bag and claim it back? If you’re spending more than $300 on your new arm candy, you probably can’t deduct the cost all at once. Instead, you’ll need to depreciate it over time, spreading the deduction across the expected working life of the bag.

And, if you use the bag in your downtime, you’ll need to keep a record of how often you use it for work and at home, and you can only claim the specific portion of the cost correlating to work use for the whole time you’re depreciating the expense.

2. Sun protection gear

Are you required to spend long periods of time outside for work? You might be able to claim products that protect you from the sun. Items like sunscreen, hats, sunglasses, and clothing can be claimed if they’re needed and used for work purposes.

What you need: You’ll need evidence as to why you’re using these products as well as evidence of purchases, like receipts. If you’re a gardener, tradie, construction worker, or even a teacher who performs playground duties, you might be eligible for this deduction. Remember, if you use a work-related item at home too, you need to note down how often you’re using it for each purpose and only deduct the portion of the cost related to work use.

3. Subscriptions and memberships

You can’t claim your Netflix bill on your tax, but if you subscribe to services or publications that directly support your working life, their costs might be deducted from your taxes. You can even claim any union membership fees! For instance, as a writer, the ATO says I could claim the cost of my subscriptions to publications and magazines, while an investor could claim subscriptions to financial institutions or research services. A small group of people who need to stay particularly fit in order to do their job, like professional athletes, may also be able to claim the cost of a gym membership.

What you need: To be able to claim memberships or subscriptions, you need to be able to prove these benefit your work and provide receipts.

4. Events and outings

Generally speaking, you won’t be able to claim the cost of a date or night out on the town at tax time, but if you attend a function as part of your job, you might be able to claim related purchases back.

What you need: You’ll need to keep your receipts and have a valid reason why the outing was work-related. For example, a journalist who attends an event they will be reporting on may be able to deduct the value of their ticket at tax time. Bear in mind, the ATO will likely baulk if you claim a bar tab or dinner bill racked up at a work event.

5. Your income protection insurance

The premiums you pay to protect yourself against loss of income can be claimed as a deduction—a win-win situation for many Aussies!

What you need: There are a couple of restrictions to be aware of if you’re claiming a deduction for life insurance premiums. If your income protection insurance is provided through your superannuation account, you can’t deduct related fees. You also can’t claim  premiums paid for life insurance, trauma insurance and critical care insurance.

6. A dog

As crazy as this might sound, in some circumstances, you may be able to claim a dog (and costs related to keeping it happy and healthy) on your taxes.

But there’s a catch. Even if your furry friend does a lot of work around the house (someone has to protect the couch from vacuum cleaners, alert you to postmen, and act as a professional therapist after a long day, after all), you probably can’t you claim your favorite ‘emotional support snuggler’ or ‘chief morale officer’.

If you’re looking to claim a deduction for your dog, they need to play a role in your work. In approved circumstances, a dog may be considered a capital asset of a business.

What you need: You’ll need to have an approved reason for claiming your dog. For example, if it’s a guard dog for your business or a working dog on your farm, you might be able to claim the cost of the dog, including vet bills and food expenses. Though, some expenses might be treated differently to others at tax time.

The ATO will also consider the type of dog you have. You probably can’t claim a poodle as a guard dog or a chihuahua as a farm dog.

7. Charitable donations

If you’ve made a donation to a charity, you may be able to claim a deduction. Giving can give back!

What you need: Your donation needs to be over $2 and must be towards a registered charity (also called a deductible gift recipient). To see which charities are eligible, check the ATO’s ABN look up list.

The catch? Your donation cannot be mutually beneficial, meaning you can’t receive anything as a result of the donation. For example, if a donation puts you in the draw  to win something, it’s not deductible. You will also need proof of your donation in order to claim.

How can I claim tax deductions?

If you have certain work-related expenses to claim this financial year, you can include them as deductions when you submit your tax declaration. This isn’t something to take lightly. If you’re unsure about what you’re able to claim or how to claim a deduction, it’s best to consult a tax agent to avoid complications.

The good news – you can claim any expenses you pay towards a tax agent on next year’s tax return!

If you’re confident submitting your tax return by yourself, you can use the ATO’s online services via myGov and lodge any deductions when prompted.