Most Australians know the usual tax deductions (uniforms, travel for work, or tools.) But the ATO also allows many less obvious deductions that could put hundreds, even thousands, back in your pocket. The data from the 2022-2023 financial year 10 0.3 million Aussies claimed a total of $28.3 billion in work-related expenses. The answer is knowing:
- What counts
- Keeping the right records
- Claiming them correctly.
At Aupod, our registered tax agents specialise in finding these hidden claims while keeping you 100% compliant.
Here’s a well-researched guide to seven surprising tax deductions you might be missing.
1. Prepaid Expenses | Claim Next Year’s Costs Now
Prepaying some expenses lets you bring forward deductions into this financial year. This can be useful if you expect a higher income and want to reduce your taxable earnings now.
What you can prepay:
- Subscriptions
- Insurance premiums
- Training courses
- Business travel costs
- Rent or lease payments
- Phone and internet bills
- Repairs or maintenance
Rules to remember:
- The prepayment must be for goods or services delivered within 12 months.
- You can’t claim for periods longer than a year in advance.
Example:
If your annual business software subscription renews in July, you can pay it in June and claim it this year.
Why does it matter?
It’s a legal, ATO-approved way to manage cash flow and tax liabilities.
2. Working Away from Home | Temporary Accommodation
If your employer sends you to another city temporarily, you can claim the cost of staying there, even if it’s an apartment you rent or buy.
Eligibility:
- The relocation must be temporary, not permanent.
- You must keep your main home in your original city.
- The stay must be for work purposes.
What you can claim:
- Rent the apartment
- Interest on a temporary mortgage
- Utility costs if you’re paying them
Example:
A Perth engineer works on a six-month project in Brisbane. Instead of hotels, she rents a small apartment. The rent is deductible.
Why does it matter?
Many employees and contractors overlook this, assuming only hotels count.
3. Mobile Phone and Internet Bills | Partial Claims
If you use your phone or home internet for work, you can claim the business portion of the cost.
How to claim:
- Keep a 4-week usage diary noting work-related calls, texts, and data.
- Calculate the work-use percentage.
- Apply it to your monthly bill.
Example:
If your phone plan is $100/month and 30% of calls are for work, you can claim $30/month, or $360/year.
Internet claims:
- Only claim the proportion used for work.
- Keep clear records to support your percentage.
Why does it matter?
ATO data shows phone and internet are among the most underclaimed deductions because people fear “getting it wrong.
4. Guard Dogs and Working Dogs
Some animals can be legitimate tax deductions, but only if they directly help earn income.
Deductible situations:
- A guard dog protecting business premises
- Sheepdogs on farms
- Dogs used in livestock transport businesses
Claimable costs:
- Purchase price (instant asset write-off for small businesses if under $20,000)
- Food and care
- Vet bills
Important:
The breed must be suitable for the work. The ATO is unlikely to accept a poodle as a guard dog.
Why does it matter?
This is a rare deduction, but for certain industries, it’s a valid and valuable claim.
5. Self-Education Expenses | Boost Your Skills and Claim the Cost
If a course directly improves your current work skills or knowledge, you can claim related expenses.
What you can claim:
- Tuition fees
- Textbooks and trade journals
- Stationery and photocopying
- Travel to and from the course
- Accommodation and meals if you must stay overnight
- Utilities for a dedicated study space at home
Rules:
- The course must be relevant to your current role, not a new career path.
- If all expenses fall under “Category A,” you must reduce your claim by $250.
Example:
A business owner takes an advanced bookkeeping course to improve BAS reporting. All course-related costs are deductible.
Why does it matter?
Self-education deductions encourage professional growth while reducing your tax bill.
6. Sun Protection | Outdoor Work Essentials
If your job keeps you outdoors for long periods, you can claim sun protection gear.
Claimable items:
- Sunglasses
- Hats
- Sunscreen
Depreciation rule:
If the item costs over $300, claim it over time instead of all at once.
Example:
A surveyor buys $350 polarised sunglasses for site work. They must be depreciated, not claimed upfront.
Why does it matter?
Sun protection isn’t just good for your health, it’s an ATO-recognised work expense.
7. Cost of Managing Your Tax
The ATO lets you claim the cost of managing your tax return.
You can claim:
- Last year’s tax agent fees
- Travel to and from your tax agent’s office
- Professional tax advice during the year
Example:
If you paid $250 for your last tax return preparation, you can claim that in this year’s return.
Why does it matter?
This deduction often gets missed because people forget they can claim tax-related costs themselves.
How to Claim These Deductions Without Trouble
The ATO allows these claims, but only if you have evidence.
That means receipts, invoices, or a usage diary for percentage-based claims.
Best practices:
- Keep digital and paper copies of receipts.
- Note the purpose of the expense at the time of purchase.
- Store everything for at least five years.
| What is the ATO $300 rule? You can claim up to $300 in work-related expenses without receipts, but you still need to show how you calculated the amount. |
Why Aupod Clients Rarely Miss Out
Our tax accountants go beyond the basics. We check every possible claim, including the ones most people overlook. We also ensure your claims are ATO-compliant, so you maximise your refund without risking penalties.
With Aupod, you get:
- A registered tax agent’s expertise
- Digital lodgement for faster refunds
- Advice tailored to your work and industry
- Peace of mind that nothing has been missed
Final Word!
The right deductions can transform your tax return. From prepaid expenses to working dogs, these lesser-known claims can make a real difference. Don’t leave money unclaimed because you didn’t know the rules.
Book your free tax return consultation with Aupod today, and let’s find every deduction you deserve.
