The ATO doesn't send a reminder when you forget to claim something. It just keeps the money.
In June 2025, Yahoo Finance added up three commonly missed claims: a tax agent's fee, income protection premiums and a personal super contribution. Together they were worth about $870 more in a refund at a 32% tax rate. In a May 2025 Xero survey of more than 1,000 Australians, 51% said they were confused about deduction rules.
Below are seven legitimate deductions people often miss, and some claims the ATO has rejected, so you can see where the line is. Savings are worked out at 32%: the 30% tax rate that applies from $45,001 to $135,000, plus the 2% Medicare levy.
The 7 Most Overlooked Legitimate Deductions
1. Your Tax Agent's Bill (Yes, It's Deductible)
The fee you paid an accountant to prepare last year's return is deductible in the year you pay it. If you paid $200 in 2025–26 for your 2024–25 return, you claim that $200 on your 2025–26 return.
Example: Priya paid her tax agent $250. At 32%, that deduction saves her $80. Not life-changing, but it's money she was leaving unclaimed.
How to apply: Check your inbox or bank statement for the receipt from your accountant. Add it to your deductions. Done.
2. Income Protection Insurance (Outside Super)
If you pay for income protection insurance personally — directly, not through your super fund — the premiums are fully tax deductible.
Example: Tom, a 38-year-old nurse, pays $1,800/year for income protection insurance outside super. At 32%: a $576 annual tax saving he was never claiming.
How to apply: Check whether your income protection is billed directly to you (deductible) or paid by your super fund (not deductible). If it's direct, grab your annual premium statement.
3. Professional Memberships and Subscriptions
Memberships to professional bodies (CPA Australia, AMA, Teachers Federation, Law Society), union fees, and work-related subscriptions are all deductible.
Example: Dr. Wei pays $1,240/year in AHPRA registration and AMA membership. Both fully deductible. At his 47% rate (45% tax plus the 2% Medicare levy): $583 saving — for fees he was already paying anyway.
4. Charitable Donations to Registered DGRs
Donations of $2 or more to a Deductible Gift Recipient (DGR) charity are fully deductible — no cap, no threshold.
Example: Mel donated $40 to Lifeline, $60 to Red Cross, $100 to her surf lifesaving club. Total: $200. At 32%: $64 back. Keep the receipts: you need them to claim.
5. Work-Related Courses and Self-Education
Courses that directly relate to your current job are deductible. Not a future career change — your current role.
Example: Mark is a software developer who paid $890 for an AWS certification course. Directly relevant to his current job → fully deductible. At 32%: $285 saving.
6. Laundry and Uniform Costs
If you wear a compulsory uniform (with your employer's logo), non-conventional clothing (scrubs, hi-vis, PPE), or occupation-specific clothing — those costs are deductible, and so is laundry.
Example: Jess is a warehouse worker. She spends $320/year on steel-cap boots and $180 on hi-vis vests. Her work clothes go in their own load about three times a week: roughly 150 loads a year at the ATO's $1 a load, or $150, which needs no written evidence. Total deductions: $650. At 32%: $208 saving.
7. Investment-Related Expenses
If you have shares, ETFs, or rental property, the costs of managing them are deductible in the year incurred.
Example: Emma holds an ETF portfolio and pays $420/year in management fees, $199 for a brokerage subscription, and $89 for a research newsletter. Total: $708. At 32%: $227 saving.
Velofy's Tax Advisor uses ATO 2025–26 rules. Enter your profession, income, and deductions — get a ranked list of strategies instantly.
Claim My Hidden $870+ Deductions → Free · No account needed · ATO 2025–26 rules
Claims the ATO Has Rejected
In May 2025 the ATO published examples of claims it had denied. ATO Assistant Commissioner Rob Thomson: "If your deductions don't pass the 'pub test', it's highly unlikely your claim would meet the ATO's strict criteria."
🚫 Air fryer, microwave, two vacuum cleaners, a TV and a gaming console — A mechanic claimed these, plus gaming accessories, as work-related. All denied as personal.
🚫 Swimwear for a truck driver — Claimed because it was hot where they stopped in transit and they wanted a swim. Rob Thomson: "While a lunchtime dip might clear your head for work, swimwear for a truck driver is clearly not deductible."
🚫 Well over $10,000 in luxury clothing — A fashion industry manager claimed luxury-branded clothing and accessories to be well presented at work and at events. Conventional clothing — denied.
Your Deduction Checklist
Before you lodge — run through this list. Every tick is potential money back.
- Tax agent fee from last year's return
- Income protection insurance premiums (paid outside super)
- Professional memberships and union fees
- Work-related subscriptions (LinkedIn, journals, trade publications)
- Charitable donations to DGR charities
- Self-education and course fees related to current role
- Uniform, work clothing, and laundry costs
- Investment management fees and advisory costs
- Home office deduction (WFH hours × 70c for 2025–26)
- Work phone and internet proportion
Enter your deductions and profession — see the exact refund impact for your income level before you lodge.
Get My Full Deduction List Free → Free · No account needed · ATO 2025–26 compliantComplete Overlooked Deduction Reference: 23 Items Ranked by Dollar Value
Here are 23 frequently-overlooked deductions that apply to many Australian taxpayers regardless of profession — ranked by typical dollar value at a representative $85,000 income (30% tax rate + 2% Medicare levy = 32% for 2025–26 and 2026–27).
| Deduction item | Typical $ | ATO label | $ saved @ 32% | Notes |
|---|---|---|---|---|
| Cost of managing tax + investment affairs | ||||
| Tax agent fee from last year's return | $350 | D10 | $112 | Claimable in the year paid — the most-missed easy claim |
| Travel to tax agent appointment | $60 | D10 | $19 | Cents-per-km or actual |
| Investment management + advisory fees | $420 | D8 | $134 | e.g., adviser fees, platform admin (not commissions) |
| Depreciation report (rental property) | $650 | Rental schedule | $208 | Quantity surveyor cost — claimable in the year paid |
| Interest on investment loans (margin, geared funds) | $1,800 | D7 | $576 | Subject to deductibility tests (must be income-producing) |
| Insurance + super | ||||
| Income protection insurance (paid outside super) | $680 | D15 | $218 | NOT deductible if held inside super — only personally-funded policies |
| Personal super contribution at D12 (needs a notice of intent to your fund) | $3,000 | D12 | $960 | Your fund pays 15% tax on it, so the net saving is about $510; carry-forward needs a balance under $500K |
| Donations + charitable giving | ||||
| DGR (deductible gift recipient) donations | $320 | D9 | $102 | Only DGR-registered charities; donations >$2 with receipt; check ABN lookup |
| Workplace giving (regular payroll deductions) | $240 | D9 | $77 | If not already pre-tax; check your income statement |
| Subscriptions + memberships | ||||
| Professional memberships (CPA, IT, MFAA, etc) | $420 | D5 | $134 | Work-related; full deduction |
| LinkedIn Premium (if used for work / industry) | $420 | D5 | $134 | Recruiter / business dev / networking justification needed |
| Trade journals + industry publications | $180 | D5 | $58 | Specifically work-relevant (not general media) |
| Union fees (where work-related) | $540 | D5 | $173 | Varies by industry + state |
| Self-education + professional development | ||||
| Courses / CPD related to current role | $680 | D4 | $218 | Must maintain or improve current-role skills — not entry-qualification |
| Reference books + textbooks | $180 | D4 | $58 | Per book or set |
| Conference + seminar attendance (incl. travel) | $680 | D4 | $218 | If skills relate to current role |
| Work tools + protective items | ||||
| Tools and equipment <$300 (instant) | $280 | D5 | $90 | Each item under $300 = full year-one deduction |
| Sun protection (outdoor work hours) | $70 | D3 | $22 | Hat, SPF, sunglasses — outdoor work required |
| Working with Children Check (self-funded) | $87 | D5 | $28 | If your role requires it and employer didn't pay |
| Police check (where work-required) | $55 | D5 | $18 | For roles requiring background check renewal |
| Vehicle + travel | ||||
| Vehicle for site-to-site work travel | $1,400 | D1 | $448 | Cents-per-km up to 5,000 km × 88¢ = $4,400 max (2025–26; 91¢ for 2026–27) |
| Public transport between worksites (same day) | $240 | D2 | $77 | Not home-to-work |
| Overnight work-travel meals + accommodation | $420 | D2 | $134 | Only when you travel overnight for work; keep receipts |
Dollar values are typical 2025-26 figures based on published rates and prices. Tax savings assume a 30% tax rate + 2% Medicare levy. Rules checked against the ATO claiming deductions page.
Velofy's Tax Calculator covers all 23 commonly-missed deductions above plus profession-specific ones — at your specific income, at 2025–26 tax rates.
Calculate My Total Deductions → Free · ATO 2025–26 · No signupA receipt log structured around ATO deduction categories: work-related, home office, vehicle, self-education, and donations — so nothing gets missed at tax time.
Shop on Amazon AU →Plain-English guide to every deduction category, substantiation rules, the $300 threshold, and how to handle common ATO audit scenarios. Check the edition year before you buy.
Shop on Amazon AU →Frequently Asked Questions
Can I claim income protection insurance on my Australian tax return?
Yes, if you pay the premiums yourself rather than through your super fund. If the policy also includes life, TPD or trauma cover, you can claim only the income protection part. You can't claim insurance held inside your super, because the fund already gets the tax benefit.
Is my tax agent fee tax deductible in Australia?
Yes. You claim it in the year you pay it, so the fee for last year's return goes on this year's return. Fees for other tax advice from a registered tax agent can be claimed too.
Can I claim clothing expenses on my Australian tax return?
Only some kinds. You can claim protective clothing (hi-vis, steel-capped boots, scrubs), clothing that's specific to your job, and a compulsory uniform with your employer's logo. Ordinary business clothes, such as suits and dress shoes, don't count, even if your employer makes you wear them.
What is the ATO's "pub test" for tax deductions?
It isn't a legal test. It's a rule of thumb the ATO has used itself, including in May 2025: could you explain the claim to a friend at the pub without them raising an eyebrow? If it sounds personal or unusual, it probably won't be accepted. The ATO's own three rules are: you spent the money yourself and weren't paid back, it's directly related to earning your income, and you have a record to prove it.
How much can I claim for charitable donations in Australia?
All of it, with no cap, for gifts of $2 or more to a charity registered as a deductible gift recipient (DGR). You need a receipt, and you can't claim if you got something back, such as raffle tickets or a dinner. Check the charity's DGR status on ABN Lookup (abr.business.gov.au) before you claim.