Are you missing out on $974? The ATO deductions Australians forget!

Tax time is upon us again, and while most of us look forward to a little boost in our bank accounts, the truth is that millions of Australians are missing out on hundreds—sometimes thousands—of dollars in extra refunds every year. 

The culprit? Forgotten or overlooked tax deductions. 

The average Aussie tax refund sits at a tidy $2,576, but with a bit of savvy and some strategic record-keeping, you could be pocketing an extra $974 or more. That’s not just a nice dinner out—that’s a weekend away, a chunk off your next holiday, or a head start on your next big financial goal. 

So, what are these elusive deductions, and how can you make sure you’re not leaving money on the table? Let’s dive into the most commonly missed ATO deductions and how you can claim your fair share.

1. Self-education and upskilling: Invest in yourself, get rewarded

Have you taken a short course, attended a workshop, or enrolled in formal study to boost your skills this year? 

Good news: the costs could be tax-deductible if they relate to your current job or help you earn more income. 

This includes course fees, textbooks, software, and even travel expenses if you had to commute for your studies.

Aussies spend an average of $1,936 a year on self-education, and depending on your tax bracket, that could mean an extra $910 back in your pocket. 

Pro tip: If you’re planning to upskill soon, consider prepaying before June 30 to bring forward your deduction—and your refund.

2. Working from home: More than just 70 cents an hour

With remote work now the norm for many, the ATO offers a simple 70 cents per hour deduction for home office expenses. 

But if you have a dedicated workspace, you might be better off claiming the actual costs. This can include a portion of your electricity, internet, office furniture, equipment, and even rent in some cases.

The catch? You’ll need to keep detailed records—think timesheets, bills, and receipts. The ATO is keeping a close eye on these claims, so make sure you’re claiming what you’re entitled to (and nothing more).

3. Income protection insurance: Don’t overlook this one

If you pay for income protection insurance outside your super fund, those premiums are 100 per cent tax-deductible. 

For higher-income earners, that means you could get back between 32 per cent and 47 per cent of every dollar spent. It’s an easy win that many people forget to claim.

4. Investment expenses: The small stuff adds up

Do you dabble in shares, ETFs, or property? Investment-related expenses are often overlooked but can add up to a significant deduction. 

Think interest on investment loans, property management fees, financial adviser costs, brokerage fees, and even subscriptions to financial publications.

If you refinanced your investment property this year, don’t forget that loan setup and exit fees may also be deductible (spread over five years). 

Keep a running list of these expenses—they might seem minor individually, but together they can make a real difference.

5. Professional memberships and subscriptions: Claim what you need for work

Are you a member of a professional association, or do you subscribe to industry journals, software, or even LinkedIn Premium for work? 

These costs are often fully deductible. If you’re juggling multiple memberships or certifications, the total can quickly reach into the thousands.

6. Structuring your investments: The next level of tax savings

While maximising deductions is great, the real magic happens when you structure your income and investments smartly. 

Many Australians pay more tax than necessary simply because all their investments are in their own name. 

By using structures like investment bonds, trusts, or companies, you can manage and reduce your tax bill, keeping more of your returns to grow your wealth faster.

Don’t just scramble for receipts—plan ahead

Tax time shouldn’t be a mad dash to find old receipts. With a bit of planning and the right advice, you can make your money work as hard for you as you did to earn it. 

Those who seek professional advice often see their refunds jump to an average of $3,550—a full $974 more than the national average.

A few final tips:

• Keep detailed records throughout the year—don’t rely on memory!
• If in doubt, ask a registered tax agent or financial adviser.
• Don’t claim for things you’re not entitled to—the ATO is watching.
• Consider your long-term tax strategy, not just this year’s refund.

Have you ever discovered a forgotten deduction that gave your refund a boost? Or do you have a tax-time tip to share with the community? Let us know in the comments below—your experience could help someone else pocket a little extra this year!

And remember, while this article offers general guidance, always consider your personal circumstances and seek professional advice if you’re unsure.

Happy tax time, and here’s to a bigger, better refund!

Also read: Could your tax refund be at risk? ATO issues urgent alert as hackers steal $14,000