Discover how to reduce your tax bill and boost your savings with smart strategies.


Paying Less Tax the Smart Way

Tax time does not need to be overwhelming. With a few simple strategies, you can take advantage of tax write-offs and deductions to reduce your taxable income and hold on to more of your hard-earned money.

Whether you are a salaried employee, business owner, or investor, understanding what you can and cannot claim is key to staying compliant and saving money. Here is what you need to know.

What Is a Tax Deduction?

A tax deduction reduces the portion of your income that is subject to tax. It is not a direct refund—rather, it lowers your taxable income. For example, if you earn $90,000 and claim $10,000 in deductions, you will only be taxed on $80,000.

The most common deductions are related to work expenses, donations, super contributions and investment-related costs.

The Golden Rules

To claim a deduction, you must ensure that:

  1. You paid for it yourself – not reimbursed.

  2. It directly relates to your income – it must be a necessary cost of earning your income.

  3. You have proof – receipts, invoices, or statements are a must.

Instant Asset Write-Offs (For Business Owners)

If you run a small business, you may be eligible to claim an instant deduction of up to $20,000 per asset (including second-hand items). This means you can immediately write off tools, computers, furniture and equipment—improving cash flow without waiting years to depreciate them.

Check the ATO website for current eligibility criteria.

What You Can Claim

Here are some common and often overlooked deductions:

  • Work-related equipment and uniforms – tools, bags, phones and uniforms used solely for work.

  • Work travel – parking, tolls, accommodation and meals when away from home for work.

  • Self-education – training courses, workshops, and union or professional memberships.

  • Donations – gifts to registered Deductible Gift Recipients (DGRs).

  • Home office expenses – internet, electricity, stationery (fixed rate or actual cost methods apply).

  • Investment advice and tax fees – costs incurred while managing investments or lodging returns.

  • Personal super contributions – may be deductible if you notify your fund correctly.

  • Sunscreen – for outdoor workers (must be TGA-approved).

What You Cannot Claim

It is equally important to know what is off limits:

  • Everyday living costs (groceries, rent, streaming subscriptions).

  • Gym memberships (unless your occupation requires peak physical fitness).

  • Commuting costs to and from your normal workplace.

  • WFH snacks and beverages.

  • Personal grooming (haircuts, make-up, etc.).

  • Social functions, entertainment and corporate events.

  • Standard smartwatches and accessories (unless occupation-specific).

Keep Accurate Records

You must keep clear, organised records to claim deductions. We recommend:

  • Using expense tracker apps

  • Creating a digital photo album for receipts

  • Recording all work-related purchases and mileage

The ATO requires you to keep receipts for at least five years.

Final Tip: Get Advice

Rules change frequently, and personal situations vary. Always check the latest from the ATO or speak to your accountant or tax agent before claiming. Not sure where to start? At Simplify Finance, we work with a trusted network of accountants and financial professionals who can help ensure you are structured the right way—whether for tax savings, wealth creation, or business growth.

Need help building a finance strategy that works with your tax planning?
Get in touch with the team at Simplify Finance today.