Maximizing Your Tax Refund: Top Deductions You Might Be Missing
From working-from-home expenses to tax agent fees, here is what individual taxpayers most commonly overlook
Every tax return relies on the same three golden rules set out by the Australian Taxation Office: you must have spent the money yourself and not been reimbursed, the expense must directly relate to earning your income, and you must hold a record to prove it, usually a receipt [1]. Within those rules, a number of legitimate deductions are consistently overlooked by individual taxpayers preparing their own returns.
Working From Home Expenses
For the 2025–26 income year, the Australian Taxation Office’s fixed rate method allows individuals to claim 70 cents per hour worked from home, covering energy expenses, internet, mobile and home telephone use, stationery, and computer consumables [3]. This rate applies to actual hours worked from home while carrying out employment duties, based on records such as a diary, timesheet, or rostered hours, and can still be claimed alongside a separate deduction for the decline in value of a computer, monitor, or office chair used for work [5].
Self-Education Expenses
Course fees, textbooks, stationery, and a portion of internet costs may be deductible where the course of study relates directly to your current employment, whether by maintaining or improving a skill required in your current role or by leading to an increase in income from that role [4]. This deduction is commonly missed by employees undertaking further study while working, particularly where the course is only loosely connected to a future rather than current role, which is an important distinction the Australian Taxation Office applies closely [4].
Income Protection Insurance Premiums
Premiums paid for income protection insurance held outside of superannuation are generally deductible in the year they are paid, provided the policy replaces lost income rather than covering a lump sum benefit such as trauma or permanent disability cover [2]. Many individuals hold this type of cover through their bank or a financial adviser and simply do not think to bring the premium statement to their tax return preparation.
The Cost of Managing Your Tax Affairs
Fees paid to a registered tax agent for preparing and lodging the prior year’s tax return are themselves deductible in the year they are paid, along with related costs such as travel to see your tax agent and the cost of tax reference materials [2]. This is reported under the specific deduction category for the cost of managing tax affairs and is frequently missed by individuals who assume tax agent fees are simply absorbed into the following year’s fee without being claimed.
Union and Professional Association Fees
Membership fees paid to a trade union or a professional or business association directly related to your employment are deductible in full, including any goods and services tax component of the fee [1]. Where the fee is deducted directly from salary through payroll, it can be easy to overlook when gathering deduction records at tax time, since no separate invoice or receipt is issued.
Investment-Related Deductions
Interest paid on money borrowed to purchase income-producing shares or managed funds, and fees paid to a financial adviser for ongoing investment advice, may be deductible against the interest and dividend income those investments generate [2]. These deductions require the investment to be genuinely income-producing and are reported separately from work-related expense categories, which is one reason they are sometimes missed by individuals focused primarily on their employment deductions.
Getting It Right, Not Just Getting It Filed
The value of a properly prepared tax return lies not only in identifying every legitimate deduction available, but in holding the records to support each one if the Australian Taxation Office ever asks [1]. Insta Accounting reviews each client’s full circumstances, not only their payment summary, to ensure deductions across work-related expenses, insurance, investments, and tax agent fees are captured accurately and defensibly.
Contact Insta Accounting for an obligation-free quote, or to discuss how these points apply to your own circumstances.
References
- Australian Taxation Office, “Claiming deductions 2026”, ato.gov.au.
- Australian Taxation Office, “Deduction questions D1–D10 – Individual tax return 2026”, ato.gov.au.
- Australian Taxation Office, “Working from home expenses”, ato.gov.au.
- Australian Taxation Office, “Self-education expenses”, ato.gov.au.
- PwC Australia, “Australia – Individual – Deductions”, taxsummaries.pwc.com.
Disclaimer
This article has been prepared by Insta Accounting for general information and educational purposes only. It does not constitute personal financial, taxation, or legal advice and does not take into account your individual objectives, financial situation, or needs. We recommend you contact our office to obtain advice tailored to your specific circumstances before making any decision.
