how to better claim common tax deductions
How to better prepare your tax information for accurate deductions
Many people think “claiming deductions” means finding new things to claim. In practice, the biggest improvement usually comes from providing your tax agent with clear, complete and accurate information — so deductions can be claimed legally and correctly, supported by records.
This guide is not about shortcuts. It is about helping you avoid the common trap of “same as last year” estimates, missing documents, and rushed guesswork at tax time.
Quick video
Step 1: Bring the basics (so we can access and confirm your ATO data)
- your full name, date of birth and current address
- your TFN (if we have not acted for you before)
- your bank account details for refunds
- spouse details (name, date of birth and approximate income) if relevant
These details help ensure the return is prepared under the correct identity and family circumstances and reduce delays.
Step 2: Confirm your income (don’t rely on “it should be prefilled”)
Many income items prefill, but prefill is not perfect. The best approach is to bring or confirm:
- your income statement / payment summary information
- interest and dividends (especially if you have multiple accounts)
- private health insurance statement (where relevant)
- any side income or contracting income
- any Centrelink, government payments or allowances (where relevant)
If something is missing or incorrect, it is far easier to fix it early than amend later.
Step 3: Prepare your deductions the right way (summary first, receipts behind it)
A common problem is turning up with a pile of receipts but no totals, no categories, and no clear method. The best approach is:
- summarise your deductions into sensible groups (even a simple list is fine)
- keep receipts and proof behind the summary
- be ready to explain how the expense relates to earning your income
The goal is not to claim everything — it is to claim what is allowable and supportable.
Working from home (WFH): don’t guess
WFH claims often go wrong because people estimate hours or use last year’s numbers without checking.
To make WFH deductions easy to assess, provide:
- a simple record of your WFH hours for the year (or a reasonable method used consistently)
- evidence of work-related usage where relevant (internet/phone)
- details of major home office purchases (desk, chair, computer, monitor)
If you purchased equipment, the tax treatment may depend on cost and the expected useful life — so dates and amounts matter.
Motor vehicle and travel: one of the most audited areas
Car and travel deductions are frequently reviewed because people rely on estimates. If you want this handled properly, provide one of the following:
- a work travel diary (date, purpose, kilometres) kept consistently, or
- a logbook and vehicle running costs where a logbook method is appropriate for your circumstances
If your vehicle use is significant, the logbook approach can be critical. Trying to reconstruct travel at year-end usually leads to weak claims.
Tools, equipment and work purchases: list the big items clearly
For tradespeople and many employees, tools and equipment are common deductions. The key is separating:
- everyday consumables and small tools, and
- larger purchases (tools, devices, computers) that may need different treatment
To avoid confusion, provide a simple list of major items with:
- purchase date
- amount
- what it was used for
Phone and internet: percentage matters
If you claim phone or internet, the ATO expects a reasonable basis for the work-related portion.
Provide:
- your total phone/internet spend (or billing summary), and
- a reasonable method for your work-related percentage (kept consistently)
Avoid “same as last year” percentages if your work pattern changed.
Investments: shares, crypto and capital gains (bring the transaction details)
If you sold shares or crypto, the tax return needs acquisition and disposal details — not just the profit figure.
Bring:
- dates sold, units sold, and proceeds received
- dates bought, units bought, and cost base details
- fees (buy/sell costs) where relevant
If this is you, you may also find this helpful:
Investing in crypto? Don’t forget the tax implications
Charitable donations: keep receipts and check DGR status
Charitable donations can be deductible where they are made to eligible organisations and properly receipted.
See:
Tax benefits of charitable donations
A simple rule: if you’re unsure, don’t assume
If you are unsure whether something is deductible, the best approach is to provide the details and let your tax agent assess it properly. Deductions are not automatic — they depend on the purpose, connection to income, and the records available.
Need help preparing properly?
If you want your return prepared accurately and want to reduce the “back and forth”, we can help you get organised and lodge correctly.
Individual tax return services
If you are choosing a new tax agent and want to know what standards to expect, see: