As the 2025-26 financial year draws to a close on 30 June 2026, it's the perfect time to start thinking about your tax return. Many Australian employees leave money on the table by not claiming all the deductions they are entitled to. At MC & S Accountants + Advisors, we want to help you maximise your tax refund. Here are 10 common tax deductions that employees often miss.
1. Work-Related Car Expenses
If you use your personal car for work-related travel (excluding travel between home and your regular workplace), you can claim a deduction. There are two main methods:
- Cents per kilometre method: For the 2025-26 financial year, the rate is 88 cents per kilometre. You can claim up to 5,000 work-related kilometres per car.
- Logbook method: This requires a 12-week logbook to determine your business use percentage.
2. Work-Related Travel Expenses
If your job requires you to travel away from your home overnight, you can claim deductions for accommodation, meals, and incidental expenses.
3. Home Office Expenses
For the 2025-26 financial year, the ATO's revised fixed rate method allows you to claim 67 cents per hour for all running expenses. You must keep a record of the actual hours you work from home.
4. Self-Education Expenses
If your self-education directly relates to your current job and helps you maintain or improve the skills needed for your employment, you can claim a deduction. This includes course fees, textbooks, stationery, and travel to and from the place of education.
5. Union Fees and Professional Association Fees
Fees paid to unions or professional associations relevant to your occupation are generally 100% tax-deductible.
6. Tools, Equipment, and Other Assets
If the item costs $300 or less, you can claim an immediate deduction. If it costs more than $300, you generally claim depreciation over its effective life.
7. Protective Clothing and Uniforms
You can claim for compulsory uniforms, registered non-compulsory uniforms, and protective clothing like safety glasses, steel-capped boots, and high-visibility vests.
8. Phone and Internet Expenses
If you use your personal phone or internet for work purposes, you can claim a portion of the costs based on your work-related usage.
9. Income Protection Insurance Premiums
The premiums paid for income protection insurance are generally tax-deductible. However, premiums for life insurance, critical illness, or trauma insurance are generally not deductible.
10. Donations to Registered Charities
If you've made a gift of money or property to an eligible deductible gift recipient (DGR), you can claim a deduction for the amount of the gift, provided it was $2 or more.
Keeping Good Records is Key
For all deductions, the golden rule is: keep good records. The ATO requires you to have evidence to support your claims.
How MC & S Can Help
At MC & S Accountants + Advisors, we specialise in helping Australian employees and small business owners in Keysborough, Melbourne, and beyond, optimise their tax positions. Contact us today to discuss your individual tax situation.