Opinion
Netflix, handbags and sunnies: The surprising tax deductions you might be entitled to
Dominic Powell
Money EditorReal Money, a free weekly newsletter giving expert tips on how to save, invest and make the most of your money, is sent every Sunday. You’re reading an excerpt − sign up to get the whole newsletter in your inbox.
As June rolls into July, we’ve come to the part of the year equal parts adored and detested by people around the country. Although the days are starting to get slightly longer and accountants are smiling, the carefree summer months feel eons away, and there’s a dark cloud over your head, reminding you of something you don’t quite have the energy to do yet.
That’s right, I’m talking about tax time baby! It may come as a shock to you to read that I, a Money editor, love doing my tax return. As soon as my income data hits the ATO I’m in there and filling out my tax return, and then proceeding to annoy my friends about getting theirs done (but in, like, a cool and chill way).
There are some surprising items you might be able to claim back on tax.Credit: Michael Howard
And why shouldn’t we be excited about tax time? On average last year, Australians received $2331 back in their tax refund, with the tax office dishing out over $5 billion in returns, a hefty sum and a welcome one during the current cost of living crisis.
What’s the problem?
However, last year’s refunds were down significantly from 2022, as we saw the end of the low to middle income tax offset which had significantly boosted returns for those not raking in high incomes. Many workers would have suddenly found they, in fact, owed the ATO money, and may well owe again this year (keep in mind the stage 3 tax cuts only come into effect for the coming financial year, so you won’t see any benefits in this year’s return).
What you can do about it
One way to try to prevent a big tax bill is to ensure you’re claiming every (legitimate) deduction you can for your particular job. Here are some deductions you might not know you can make:
- Job-related education: Gavan Ord, senior business manager at accounting industry body CPA Australia, says one significant deduction that is commonly overlooked is education you receive related to your work. “If your job requires specific training, and you need to pay for it yourself, you can claim this as a tax deduction. This includes the cost of attending conferences or seminars relevant to your job, including travel and hotel costs,” he says. In a similar vein, Ord says the cost of media subscriptions – such as newspapers, magazines or even streaming services like Netflix – could be deducted if they provide necessary information for your work.
- Keeping clean: If your job requires you to interact with customers or surfaces regularly, Ord says you can claim the costs of things such as gloves and hand sanitiser. “This could be a retail job, or train station attendant, for example,” he says. As well, costs for any tools or equipment you use for work, including costs to repair or insure them, can be claimed, he says.
- Staying sun smart: The cost of sunscreen (a famously expensive liquid) and other protective sunwear could be a valid deduction if your job requires you to spend time outdoors. “It’s reasonable that if your job requires you to spend a lot of time outside in the sun you can claim protective items like sunscreen, sun hats and sunglasses,” Stuart Symons, spokesperson for People First Bank says. “Cosmetics which provide sun protection can also be claimed, but only if they are used primarily for protection.” If you’re not outside much, but you drive a lot, sunglasses can still be a valid deduction. And as my colleague John Collett pointed out this week, you can claim up to $300 for a handbag or satchel as long as it’s big enough to hold a laptop and you use it to lug your work computer around.
- Stopping scams: We’ve all heard that scams are on the rise, so if you’re spending up on antivirus software, virtual private networks (VPNs) or other preventative measures, this can be another valid deduction, Symons says.
- Tax advice: Finally, if you’re employing a tax agent to sort out your return for you, the cost of this can be claimed as a deduction according to Robyn Jacobson, senior associate at The Tax Institute. “This includes their fee for preparing your tax return and the travel costs you incur to attend a meeting with your registered tax agent,” she says.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.