How to Maximise Your Tax Deductions

Essential Tips for Individuals

Maximising your tax deductions can significantly reduce your taxable income, helping you save money. Whether you work from home or use your car for business purposes, understanding what you can claim is crucial. Here are some essential tips to help you get the most out of your tax deductions.

1. Claim Your Home Office Expenses

If you work from home, you can claim a portion of your home office expenses. This includes:

  • Electricity and gas: The cost of heating, cooling, and lighting your workspace.
  • Internet and phone: Expenses for work-related use.
  • Office supplies: Items like stationery, printer ink, and paper.
  • Depreciation of office furniture: If you’ve bought desks, chairs, or other office furniture.

Use the ATO’s fixed rate method to simplify the calculation: you can claim 52 cents for each hour you work from home for running expenses.

2. Car Expenses for Work

If you use your car for work-related travel (excluding commuting from home to work), you can claim car expenses. There are two methods to calculate your car expenses:

  • Cents per kilometre: Claim a set rate (currently 78 cents) per kilometre travelled for work purposes, up to a maximum of 5,000 kilometres per year.
  • Logbook method: Keep a logbook for 12 weeks to calculate the work-related percentage of your car expenses, including fuel, maintenance, registration, and depreciation.

3. Keep All Receipts and Records

Maintaining detailed records is essential to substantiate your claims. Keep all receipts, invoices, and statements for expenses you wish to claim. Use digital tools to scan and organise your documents to ensure you don’t lose anything.

4. Claim Work-Related Clothing and Laundry

If you wear a uniform, protective clothing, or occupation-specific clothing, you can claim the cost of these items and their laundering. Note that conventional clothing, even if purchased specifically for work, is not deductible.

5. Invest in Professional Development

You can claim expenses related to courses, seminars, or workshops directly connected to your current job. This includes course fees, travel expenses, and even stationery.

6. Deduct Home Loan Interest

If part of your home loan is used for investment purposes, such as buying an investment property, you can claim the interest on that portion of the loan.

7. Use Tax Agent Fees

Fees paid to a registered tax agent for preparing your tax return are deductible in the year you incur them. This also includes costs related to advice on your tax affairs.


By understanding and claiming all eligible deductions, you can significantly reduce your tax liability. If you need help maximising your tax deductions, contact Tax Accounting Adelaide for expert advice and support.


Learn More

You can also see this info on ATO’s website.


Learn the best strategies to claim your tax deductions effectively and save more this tax season.

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