7 SURPRISING THINGS YOU MAY BE ABLE TO CLAIM AS A TAX DEDUCTION 2024/25 from Mr Taxman, Dr Adrian Raftery
30 June is rapidly approaching and it is time to do some urgent tax planning. Dr Adrian Raftery, principal of Mr Taxman and author of 101 Ways to Save Money on Your Tax - Legally! 2025-2026 edition(Wiley, May 2025, AU$32.95), provides some unusual deductions that you didn’t know you could claim for you and your business and maximise your tax refund (or reduce your tax bill) this year.
1. Home-office renovations
More and more people these days are doing work at home but not many are aware just how much they can claim as a deduction for costs you incur in running your home office. Whilst most are aware that they can use the ATO’s fixed rate method of 70 cents per hour it will probably be significantly less than the either the actual costs method that is also available. This method includes the actual deductions for the work-related portion of home telephone, internet, stationery, printers, computer equipment and consumables together with a claim for electricity, gas but also the depreciation of home-based furniture including any improvements done for your home office. If your business is registered for GST, you can claim the 10% GST credit first up and get an immediate deduction for the balance in your tax return for each asset under $20,000 via the Instant Asset Write-off rules.
2. Sun and COVID-19 protection
An oft forget claim over the past decade has been sun protection for those working outside since the health directive told us to “Slip, Slop, Slap” such as sunscreen, sunglasses, hats and even certain make-up with a significant sun protection component. COVID-19 protection is now the “new normal” for society and although we have seen the worst of the pandemic (thank God!) you can still claim the cost of face masks, sanitiser, soap, anti-bacterial sprays, shoe covers, overalls and gloves if you purchased these for your protection against COVID in your workplace. However you cannot claim these costs if purchased for your home or other personal purposes such as shopping and entertainment. The Government extended the deductibility of COVID-19 protection to include the cost of rapid antigen tests (RATs) if it is a condition of work and your employer does not reimburse you for them. Start keeping all those receipts as every bit counts.
3. Garden gnomes
The lovable garden gnome hardly seems like your typical tax deduction and probably more known for going rogue and bobbing up in unique places across the globe. However if you have an investment property, you can claim immediately write-off any items for your property that are under $300 including garden gnomes, wheelie bins and solar lights.
4. Lighting and photo equipment
Working from home since COVID-19 lockdowns started has seen an astronomical rise in the now-common Zoom & Microsoft Teams calls in recent years. Initially considered a novelty having your room as a backdrop, it is now viewed as being unprofessional especially if it is unkempt. The smart business professional is investing in lighting and other photo equipment to improve their appearance and sound better during these online meetings. With the pivot to online meetings and marketing, people and businesses are increasingly able to claim tax deductions for this type of equipment, including LED lights, microphones, headphones and small backdrops that can be set up behind a person’s chair.
5. Dogs
With more people working from home and with pet ownership on the rise since the COVID-19 pandemic, more people try claim dog expenses for home security. Unfortunately, the ATO will only allow security guards to claim for guard dogs as long as they’re not family pets. And let’s be honest, cavoodle puppies are more likely to lick the bandits to death than provide adequate security to your home computer.
6. Financial Advice
Whilst the cost of financial advice has risen dramatically following the Hayne Royal Commission, the ATO recently released a Tax Determination to help alleviate some of that pain for individuals by allowing a deduction for ongoing management fees for income producing assets as well as fees for advice that relate to income protection insurance or managing your tax affairs. Initial advice for proposed investments or for life, TPD or trauma insurance are not claimable. Neither is any financial advice fees paid from a super fund member’s balance. Individuals are strongly recommended to request a receipt from their financial adviser at year end showing the tax-deductible portion of their advice fees.
7. Handbags and s****hoes
A number of years ago the ATO announced that you could legitimately claim a handbag, providing you can demonstrate it is used for work purposes. That means using your handbag or briefcase to carry iPads, phones, calculators, stationery and other work-related items. However, a word of warning that you cannot claim the portion that it is used for personal purposes whilst any handbag over $300 will need to be depreciated over a number of years. Likewise, shoes could potentially be claimable dependent on your occupation. For example, nurses can claim for non-slip shoes and support stockings while steel-capped boots and rubber boots are are an obvious deduction for those in the trade industry. Even flight attendants are allowed to claim for a second pair of shoes that are the same as their uniform but more comfortable. The ATO considers these items to meet the definition of protective clothing along with safety-coloured vests, gloves, overalls, and heavy-duty shirts & trousers, overalls, smocks and aprons you wear to avoid damage or soiling to your ordinary clothes during your income-earning activities.
You now have got some great tax tips, it’s time to take action. Times are tough during this cost of living crisis so every dollar saved counts.
This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.
These tips were provided by Mr Taxman, Adrian Raftery, author of 101 Ways to Save Money on Your Tax - Legally! 2025-2026 edition(Wiley, May 2025, AU$32.95). @mistertaxman www.mrtaxman.com.au
101 Ways to Save Money on Your Tax – Legally! 2025-2026 edition
By Adrian Raftery
Published by Wiley May 2025
ISBN 9781284328635
AU$32.95
For further information or to request an interview, please contact: Adrian Raftery on 1800 TAXMAN (1800 829 626) or 0418 210 599 adrian@mrtaxman.com.au