Common Tax Deductions made by Individuals
Updated: Sep 8, 2020
1. Depreciation on Assets, costing $300 or less
Salary and wage earners and rental property owners will generally be entitled to an immediate deduction for
certain income-producing assets costing $300. Provided they are purchased before 1 July 2020.
Some purchases you may consider include:
- books and trade journals;
- briefcases/luggage or suitcases;
- calculators or electronic organisers;
- electronic tablets;
- stationery; and
- tools of trade
2. Clothing expenses
Individuals can purchase or pay for work-related clothing expenses prior to the end of the income year such as:
- compulsory (or non-compulsory and registered) uniforms
Uniforms generally must have a Logo, and normal suits and ties do not constitute a uniform
- occupation specific clothing ie: a Lab coat
- protective clothing; and
- other associated expenses such as dry-cleaning, laundry and repair expenses
3. Self Education expenses
Individuals could consider prepaying self education items before the end of the income year:
- course fees (but not HELP or Hecs repayments), student union fees, and tutorial fees; and
- interest on borrowings used to pay for any deductible self education expenses.
- They could bring forward purchases of stationary and text books (i.e., those which are not required to be depreciated).
4. Other work-related expenses
Employees can also prepay any of the following expenses prior to 1 July 2020:
- union fees;
- subscriptions to trade, professional or business associations;
- magazine and professional journal subscriptions;
- seminars and conferences; and
- income protection insurance (excluding death and total/permanent disability).
Note: When prepaying any of the expenses above before 1 July 2020, ensure that any services being paid for are to be provided within a 12 month period that ends before 1 July 2021. Otherwise, the deductions must generally be claimed proportionately over the period of the prepayment.