Non-work tax deductions you can claim in Australia

Tax time can be a confusing time for many of us as we scramble to find receipts and work out what we can and can't claim.

While work-related expenses often get the most attention, there are several non-work deductions that may help reduce your tax bill if you're eligible. 

So what can you claim?

Non-work tax deductions you can claim

The Australian Taxation Office (ATO) allows taxpayers to claim a range of deductions that aren't directly related to their employment, provided specific eligibility requirements are met. 

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Understanding what you can and can't claim could make a meaningful difference to your tax return. 

Just remember that tax rules can change over time, so it's always worth checking the latest ATO guidance or speaking with a registered tax professional before lodging your return (btw, the costs incurred for which you may be able to claim in the following year).

After all, the last thing you'd probably want is to miss out on a valid deduction or make a mistake that could trigger unwanted attention from the taxman. 

See also: How to get more tax back in Australia

Superannuation contributions

If you're making additional contributions to your superannuation to help boost your retirement savings, know that you could also claim them as long as they are personal contributions. 

The ATO defines a personal super contribution as a contribution you make to your super fund from your own after-tax money such as a transfer from your bank account. 

To claim a deduction, an ATO spokesperson told Savings.com.au:

"You must meet the specific eligibility criteria and your super fund must acknowledge (approve) the valid Notice of Intent to Claim form (NAT 71121) you lodged with them before you claim a Personal Superannuation Contribution Deduction in your tax return."

Note, however, not all super contributions are deductible. 

According to the ATO, some people mistakenly try to claim superannuation payments paid by their employer from their before-tax income.

Non-deductible contributions generally include: 

• Compulsory super guarantee contributions made by your employer
• Salary sacrifice contributions
• Other employer super contributions that have already received concessional tax treatment

These contributions are already counted as concessional contributions and cannot be claimed again as a personal deduction, per the ATO. 

How much can you contribute to super and claim as deduction?

For the 2025-26 financial year, the concessional contributions cap is $30,000. This increases in the next financial year (more details below).

Mark Chapman

Director of Tax Communications at H&R Block

If you want to make personal contributions, make sure you don’t breach your concessional contributions cap.

The super guarantee payments made by your employer, as well as any salary sacrificed contributions, are included in your concessional contributions. So effectively, the amount you can pay into super through a tax-deductible contribution is the difference between those other contributions and the cap.

Super contribution caps

From 1 July 2026, the concessional contributions cap increases to $32,500 per year. 

The non-concessional contributions cap for after-tax contributions also increases to $130,000, up from $120,000. 

See also: Money changes from 1 July

Depending on your circumstances, you may also be able to use unused concessional cap amounts from previous years through the carry-forward contribution rules. 

If you're aged 67 to 74 and wish to claim a tax deduction for a personal super contribution, you generally need to meet the work test or qualify for the work test exemption.

Work test

You have to work 40 hours or more during a consecutive 30-day period in the financial year. 

Work test exemption

You must meet these three conditions:

• You met the work test in the financial year before the year you made the contribution
• Your total super balance is less than $300,000 at the end of the previous financial year
• You didn't use the work test exemption in the previous financial year

Donations

For a donation to be deductible, the ATO says it must be made to an organisation with a Deductible Gift Recipient (DGR) status. 

"A DGR is a not-for-profit organisation (including some charities) that is entitled to receive gifts that are tax-deductible," the ATO spokesperson said.

Not all charities and fundraising campaigns have DGR endorsement, so it's worth checking the organisation's DGR status through ABN Lookup before lodging your tax return.

To be deductible, a donation must generally:

• Be made to a DGR
• Be a genuine gift made voluntarily
• Not provide you with a material benefit in return
• Meet any applicable ATO requirements for the type of gift or donation made

It's vital you always get a receipt for donations as the ATO may seek proof you actually made the donation. 

The ATO also allows taxpayers to claim up to $10 in total for eligible bucket donations made to DGRs during the income year without a receipt. Claims above that will need a receipt. 

Donations of property

Different rules apply when donating property, such as artwork, shares, jewellery or other assets. 

The amount you can claim depends on factors including the type of property, its value, when it was acquired, and whether a valuation is required. 

The ATO provides separate guidance for gifts of property, so make sure you satisfy the relevant requirements before claiming a deduction. 

See also: Property vs shares investment comparison

Gifts and fundraising contributions

You can generally claim a tax deduction on gifts and fundraising contributions, as long as they meet ATO criteria: 

• They must be made to a DGR
• They must be genuine gifts made voluntarily where you receive nothing in return
• They must consist of money or property, which may include financial assets like shares

This means you typically can't claim deductions for:

• Raffle tickets
• Auction purchases
• Chocolates, pens or other merchandise
• The cost of attending fundraising dinners or events where you receive something in return

However, Mr Chapman said it may be possible to claim a portion of your contribution to a fundraising event deduction if the contribution is for an eligible fundraising event, organised for a DGR and conducted in Australia, including fetes, balls, gala shows, dinners, performances and similar events.

Interest, dividends and share investment expenses

If you earn investment income, you may be able to claim deductions for expenses incurred in managing those investments, such as a cash management account.

According to the ATO, deductible expenses can include the following:

• Account-keeping fees on investment accounts
• Interest charged on money borrowed to purchase income-producing investments
• Ongoing management fees or advice costs relating to managing investments
• Borrowing expenses
• Investment-related subscriptions
• A portion of internet expenses used for investment purposes
• The decline in value of equipment used to manage investments such as a computer

For joint accounts, you can only claim your share of fees or charges on the account. So if you and your significant other have an equal stake in the account, you can only claim for half of the fees incurred.

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

The cost of organising your return

In case you didn't know, the cost of managing your tax affairs can also be deductible. 

The ATO allows deductions for a range of tax-related expenses such as: 

• Tax agent fees
• Tax advice from registered professionals
• Tax return preparation software
• Tax reference materials
• Travel expenses incurred in obtaining tax advice (i.e. driving to your tax agent's office)
• Some costs associated with dealing with the ATO regarding your tax affairs

Remember to keep records of any fees paid to your tax agent so you can claim them in the following year's return. 

Lesser-known deductions

There are also several lesser-known deductions that may apply in specific circumstances. 

• Income protection insurance premiums

You may be able to claim premiums paid for income protection insurance that covers the loss of your employment income. 

However, you generally can't claim premiums paid through your super fund where the premiums are deducted from your super contributions.

• Union fees

Union fees and certain professional association fees may be deductible where they relate to your employment. Most unions provide members with an annual statement confirming the amount paid.

• Political membership fees

Certain political party membership fees and political contributions may be deductible, subject to ATO eligibility rules and limits. Refer to the latest ATO guidance before claiming these deductions.

How to avoid mistakes when claiming tax deductions

Here are some of the common mistakes taxpayers make when claiming deductions:

• Failing to keep receipts and records
• Claiming personal expenses as deductions
• Incorrectly claiming gifts or donations
• Exceeding superannuation contribution caps
• Forgetting to declare income

Here's where ATO's advice to maintain accurate records truly resonates. And if you're unsure which deductions you can and can't claim, Mr Chapman encourages seeking out a registered tax agent for assistance.