The Three Rules Every Deduction Must Follow otherwise You have the chances to get the penelaty from ATO

Always keep in mind: Before you look at any list, learn these three rules, because they decide almost everything.

Rule 1: You paid for it, and nobody paid you back.

For example: If your boss paid for it or gave you the money back, it’s not your deduction. It’s theirs.

Rule 2: It’s connected to your income.

The money must have helped you earn your pay.

For example: A gym membership might make you feel better at work. That’s not enough reason. There must be a direct link to your income.

Rule 3: It’s not a private cost, and you can prove it.

Everyday things like groceries, your normal clothes, and your regular drive to work are private costs.

They don’t count, even if work benefits from them a little. And you need some kind of proof, like a receipt, a bill, or a clear record.

In my simple words: If you can’t explain the work connection in one simple sentence, it’s probably not safe to claim.

Car Expenses: The Deduction People Get Wrong Most Often and may be you too.

Your everyday drive to your normal job doesn’t count as a deduction, even if you carry tools or if there’s no bus either.

This is one of the ATO’s strictest rules, and it catches more people than almost anything else.

Now you’re thinking, Amit, then What  Acutally does count?

1. Driving between two different job sites,

2. Driving to see a client,

3. Driving from your regular workplace to a training day somewhere else.

Method 1 — Cents per kilometre.

You count your work kilometres and multiply by the rate.

For the 2025–26 year (the one most people are lodging right now), the rate is 88 cents per kilometre.

From 1 July 2026, the rate for the 2026–27 year rises to 91 cents.

Either way, you can only count up to 5,000 km per car, per year.

You don’t need fuel receipts for this method, but you do need to be able to explain how you worked out your kilometres.

A diary of your regular work trips is enough to explain.

Method 2 — Logbook.

In this method, you have to keep a logbook for 12 weeks in a row.

Write down every trip: the date, why you went, and the start and end reading on your odometer.

That 12-week logbook then tells you what percentage of your car use is for work, and you apply that percentage to all your real car costs such as fuel, rego, insurance, and more.

A logbook stays valid for five years if your driving pattern doesn’t change much.

If you drive a lot for work, this method often gives you a bigger claim than the per-kilometre method, because there’s no 5,000 km cap.

So, travellers, you just need to pack your bags and travel the whole world… ha, I’m just kidding.

Working From Home ( Yes I'm talking about your benefits): We have two ways to claim Deduction.

Method 1 — Fixed rate.

For the 2025–26 year, the rate is 70 cents for every hour you work from home.

This one rate already covers your electricity, gas, phone, internet, and everyday office supplies like printer paper.

You can’t also claim those things separately if you use this method; that would be claiming the same cost twice.

And if you claim, you will receive the 5-page-long letter from the ATO that might disturb your sleep.

You must have a real record of your hours.

Since March 2023, the ATO no longer accepts a guess or a rough four-week sample.

You need something like a timesheet, roster, or diary covering the actual hours you worked from home across the whole year.

If you didn’t start keeping a record on day one, start today; you can still claim for the period you do have proof of work.

You can still separately claim the cost of big items like a laptop, monitor, or office chair, spread out over their useful life, because the fixed rate doesn’t cover those.

Method 2 — Actual cost.

Work out the real, work-related share of every single running cost yourself, such as electricity, internet, phone, and more.

This takes more paperwork, but if your home office costs are high, it can add up to a bigger claim.

So, the highly paid consultants who live in Australia and work from home, like internet marketers, Gurus, Coaches, healers, ecommerce experts, consultants, and young content creators.

You need to connect with us will help you in this.

Clothing and Laundry ( Yes you can claim but you couldnt able to claim for your pajamas.)

Plain clothes are never deductible, even if you only wear them to work.

A black shirt or a suit is still just clothing.

Now you’ve got the idea you should wear the uniform.

What you can claim:

• Occupation-specific clothing — clothes that look like your job, and nobody would wear on the weekend. Think of a chef’s checked pants.
• Protective clothing — steel-capped boots, hi-vis vests, safety glasses, and similar safety gear.
• A compulsory uniform — one your employer makes you wear, and that follows the official rules for a registered uniform.

For laundry, you can claim $1 per load if it’s only work clothes, or 50 cents per load if it’s mixed with other washing.

You don’t need a receipt for laundry claims under $150. You just need a reasonable way of showing how you worked it out.

Tools, Equipment, and Technology (I love it because i'm also tech nerd)

If an item costs $300 or less, and you use it for work, you can claim the full cost straight away, in the same year you bought it.

If it costs more than $300, you spread the cost over the item’s useful life.

This is called depreciation. If you use something for both work and home, you can only claim the work-related share.

Self-Education (Enroll the course which can help you grow more in your career)

A course only counts if it’s connected to the job you have right now.

Not a Scammy Crypto trading course.

A nurse doing an extra nursing course: that’s deductible.

The same nurse studying to become a dentist: that’s a new career, so it’s not deductible, even though it’s still education.

So you have to be very clear.

One older rule to know: there used to be a $250 amount that got taken off your self-education claim automatically.

That rule was removed from 1 July 2022. So today, an eligible self-education expense is deductible from the very first dollar.

Professional Memberships and Union Fees

Yearly fees for a union, or a professional body linked to your job, are fully deductible.

Your work-related magazine or journal subscriptions are also deductible.

But a general news subscription doesn’t count, even if you sometimes read something work-related in it.

Income Protection Insurance

Do you personally pay for income protection insurance?

This is the kind of insurance that replaces part of your pay if you get sick or hurt and can’t work; those payments are deductible in your Personal (Individual) Tax Return.

This is one of the most missed deductions in Australia.

But be careful: life insurance, trauma insurance, and total-and-permanent-disability (TPD) insurance are not deductible.

And if your income protection is paid for from inside your superannuation.

Then you can’t claim it on your personal return either, because the premium never came out of your own after-tax pocket.

Investment and Rental Property (Invested to get consistent income)

If you own shares or a rental property?

Then the good news is that you are eligible to claim some of your costs.

To get a better understanding, here is an example: a rental property that includes loan interest, council rates, water charges, land tax, property management fees, insurance, and repairs.

The most important rule here: a repair fixes something back to how it was; that’s an immediate deduction.

An improvement makes something better than it was before; that has to be spread out over time instead.

Mixing these two up is the single biggest mistake we see in rental property tax returns.

Charitable Donations (You Should make the donation)

A gift of $2 or more to a registered charity (called a Deductible Gift Recipient, or DGR).

The DGR is deductible in your tax return.

You can check whether a charity is registered using the ABN Lookup tool. 

So you can ensure your donation is legitimate.

If you got something back for your donation, like a raffle ticket or a dinner.

It generally doesn’t count as a pure gift, so it may not be deductible.

Tax Agent Fees ( Yeah you read it right.. it's also deductible in tax return)

The fee you pay someone like AMA Accountants to prepare and lodge your tax return is itself deductible in the year you actually pay it.

That includes preparation fees, advice fees, and even the cost of travelling to see your accountant.

So why do you want to go with someone else?

Here’s a detail people often miss:

If you paid last year’s tax agent fee this year, you claim it this year, not last year.

That prior-year fee is one of the most commonly forgotten deductions in Australia.

Now, here’s the chance: click the button below and book an appointment with us to sort out your tax return.

The New $1,000 Standard Deduction (Latest News)

The government has been working on a new rule:

A flat $1,000 deduction for work expenses, with absolutely no receipts required.

Starting from the 2026–27 income year (1 July 2026 onward). It does not apply to the 2025–26 return most people are lodging right now.

Here’s how it’s designed to work:

If your genuine work expenses are less than $1,000, you’d simply get the full $1,000 anyway.

But if your real expenses are more than $1,000, you claim your actual, higher amount instead, the normal way.

It’s meant to be applied automatically for eligible workers, so most people won’t need to do anything extra to get it.

A few things it won’t replace:

Union fees and professional memberships are claimed separately, on top of the $1,000.

This is a new and still-developing rule at the time of writing, so please confirm its exact legal status on the ATO page linked below before relying on it.

A Simple Worked Example For Your Overview

Meet Sam. Sam earns $85,000 a year working in an office.

• Working from home: Sam kept a proper hours record and claims $500 under the fixed rate method.
• Phone: Sam works out the work-related share of the phone bill: $150.
• A work membership: $200.
• A work laptop bag: $150, claimed in full because it’s under $300.

Add these up: $500 + $150 + $200 + $150 = $1,000 in deductions.

Here’s the part people get wrong:

A $1,000 deduction does not mean Sam gets $1,000 back as a refund. A deduction lowers your taxable income, not your tax bill directly.

Sam’s taxable income drops from $85,000 to $84,000. The actual dollar saving depends on Sam’s tax bracket .

Usually somewhere between 16 and 45 cents back for every dollar deducted, not a full dollar-for-dollar refund.

Authored By Amit Chugh

Partner, CPA & Registered Tax Agent

Your Trusted Accountant for Adelaide, Melbourne, Sydney, Brisbane & Across Australia

Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.

With over 25+ of professional experience, Amit has helped thousands of clients streamline their finances, optimise tax returns, and ensure full compliance with Australian Taxation Office (ATO) requirements. His client base spans Melbourne, Brisbane, Sydney, Tasmania, Perth, Adelaide, Darwin, Canberra, and regional hubs including Prospect, Modbury, Mawson Lakes, Woodville, Mount Gambier, Victor Harbor, Whyalla, Port Lincoln, Murray Bridge, Port Augusta, Gawler, and Port Pirie.

The post What Can I Claim on Tax in Australia? The Simple, Trustworthy Guide (2026-2027) appeared first on AMA Accountants.

The Two Types of Contributions

Almost every question about super contributions comes back to one thing: is the money going in before tax or after tax ?

This single detail decides which cap applies and how the money is taxed.

Concessional (before-tax) contributions: are contributions made with money that hasn’t been taxed at your personal income tax rate yet.

Instead, they’re taxed at 15% inside your super fund, and it’s usually much lower than most people’s marginal tax rate.

This category includes:

1. Compulsory employer contributions (Superannuation Guarantee, or SG)
2. Salary sacrifice contributions
3. Personal contributions you choose to claim as a tax deduction

Non-concessional (after-tax) contributions:  are made with money you’ve already paid income tax on. They aren’t taxed again going into your fund.

This includes personal contributions you don’t claim a deduction for, and most spouse contributions.

Here’s the simple test: if the money reduces your taxable income (through your employer, a salary sacrifice arrangement, or a claimed deduction),

it’s concessional. If it doesn’t, it’s non-concessional.

Employer Contributions and the Super Guarantee (SG)

Your employer is legally required to pay super on your behalf. For 2026–27, the Super Guarantee rate is 12% of your ordinary time earnings.

This has climbed steadily since super became compulsory in the 1990s, and 12% is the rate now locked in.

There’s a ceiling, though. Once your qualifying earnings for the year reach the maximum contribution base of $270,830, your employer isn’t required to pay SG on anything you earn above that amount for the rest of the financial year (though some awards or agreements may still require it).

A significant recent change: from 2026, “payday super” requires employers to pay your SG within seven business days of each payday, instead of the old system of quarterly payments.

The ATO now has real-time visibility of late payments, which makes it easier to spot and chase up employers who fall behind.

Making a Personal Contribution

Anyone can add their own money to their super fund directly. The steps are simple, but a few details trip people up:

1. Confirm your fund’s details — fund name, your member number, and the correct payment method.
2. Check your fund can accept the contribution. Age and work-test rules can apply in some circumstances.
3. Check how much of your cap you’ve already used this year, including employer SG and salary sacrifice.
4. Decide if you want the contribution to be before-tax (deductible) or after-tax.
5. Make the payment early—  don’t leave it until the last days of June, because the funds need time to actually process and receive the money.
6. Keep your receipt as proof of payment and date.
7. If claiming a deduction, then lodge a Notice of Intent with your fund and wait for their written acknowledgement before you claim it.
8. Claim the deduction in your tax return for the correct financial year.

Common Mistakes to Avoid

1. Assuming all contributions are tax-deductible. Only concessional contributions get the tax benefit, and personal contributions need a Notice of Intent.
2. Forgetting employer SG counts toward your cap. Salary sacrifice and personal deductible amounts stack on top of it, not separately.
3. Leaving contributions until the last days of June. If your fund doesn’t receive the payment in time, it counts in the next financial year instead.
4. Skipping the Notice of Intent. Without it, there’s no deduction, even if the money has already left your bank account.
5. Going over your cap without checking first. Excess contributions are generally taxed at your marginal rate and can trigger extra charges.
6. Assuming carry-forward or bring-forward amounts are automatic. Both depend on your total super balance and past contribution history, and need to be checked, not assumed.

Quick Checklist Before You Contribute

1. [ ] Check your total super balance
2. [ ] Check how much concessional cap you’ve already used this year (SG + salary sacrifice + deductible personal contributions)
3. [ ] Check how much non-concessional cap you’ve already used
4. [ ] Decide: before-tax or after-tax contribution?
5. [ ] Confirm your fund’s correct payment details
6. [ ] Make the payment with enough time for the fund to receive it before 30 June
7. [ ] Keep your payment receipt
8. [ ] Lodge a Notice of Intent if you want to claim a deduction
9. [ ] Wait for your fund’s written acknowledgement before claiming
10. [ ] Claim the deduction in the correct tax return

Authored By Amit Chugh

Partner, CPA & Registered Tax Agent

Your Trusted Accountant for Adelaide, Melbourne, Sydney, Brisbane & Across Australia

Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.

With over 25+ of professional experience, Amit has helped thousands of clients streamline their finances, optimise tax returns, and ensure full compliance with Australian Taxation Office (ATO) requirements. His client base spans Melbourne, Brisbane, Sydney, Tasmania, Perth, Adelaide, Darwin, Canberra, and regional hubs including Prospect, Modbury, Mawson Lakes, Woodville, Mount Gambier, Victor Harbor, Whyalla, Port Lincoln, Murray Bridge, Port Augusta, Gawler, and Port Pirie.

The post How to Contribute to Super: A Simple Guide for 2026–27 appeared first on AMA Accountants.

We are proud to announce that AMA Accountants has been selected as a Finalist for the Best Small Business Award 2026, presented by the City of Charles Sturt.

This recognition is a significant milestone for our team and reflects our ongoing commitment to delivering trusted accounting, taxation, and business advisory services to individuals, families, and businesses across Australia.

A Recognition Built on Trust

Being named a finalist is more than just an award nomination. It represents the trust our clients place in us every day and acknowledges the hard work, dedication, and expertise our team brings to every client relationship.

At AMA Accountants, we believe accounting is about more than numbers. It is about helping people make confident financial decisions, grow their businesses, and achieve their goals. This recognition highlights the positive impact we strive to make within our community and the businesses we support.

Supporting Businesses Every Step of the Way

Over the years, AMA Accountants has helped clients navigate:

• Business setup and structuring
• Tax planning and compliance
• Bookkeeping and payroll services
• Financial reporting
• Business advisory and growth strategies
• Self-managed superannuation funds (SMSFs)
• Individual and corporate tax returns

Our focus has always been on providing practical advice, personalised service, and long-term support that helps our clients succeed.

Thank You to Our Clients and Community

This achievement would not have been possible without the continued support of our valued clients, business partners, and community members.

Every business we have worked with and every client who has trusted us with their financial journey has played a role in this recognition. We are incredibly grateful for your confidence and support.

Looking Ahead

While we are honoured to be recognised as a finalist, our commitment remains the same—to provide exceptional accounting and advisory services that help our clients grow with confidence.

As we continue to expand and serve our community, we remain dedicated to maintaining the high standards that have earned us this recognition.

Thank You

From everyone at AMA Accountants, thank you for being part of our journey. We look forward to continuing to support individuals and businesses in achieving financial success and celebrating many more milestones together.

AMA Accountants – Proud Finalist for the Best Small Business Award 2026.

The post AMA Accountants Named Finalist for Best Small Business Award 2026 appeared first on AMA Accountants.

Authored By Amit Chugh

Partner, CPA & Registered Tax Agent

Your Trusted Accountant for Adelaide, Melbourne, Sydney, Brisbane & Across Australia

Amit Chugh is a Partner at The AMA Accountant and a highly respected CPA & Registered Tax Agent with a proven track record of delivering exceptional accounting and taxation services to individuals, businesses, and corporations across Australia.

With over 25+ of professional experience, Amit has helped thousands of clients streamline their finances, optimise tax returns, and ensure full compliance with Australian Taxation Office (ATO) requirements. His client base spans Melbourne, Brisbane, Sydney, Tasmania, Perth, Adelaide, Darwin, Canberra, and regional hubs including Prospect, Modbury, Mawson Lakes, Woodville, Mount Gambier, Victor Harbor, Whyalla, Port Lincoln, Murray Bridge, Port Augusta, Gawler, and Port Pirie.

The post 8 Best Strategies to Pay Off Your Home Loan Faster in Australia appeared first on AMA Accountants.