Whether you’re an employee working eight hours a day, or a small businessman trying to find their feet in the unforgiving business world, taxes are hard for everyone. There are a lot of complicated rules, policies that we need to adhere to. Even the slightest mistake can result in serious consequences. However, the Australian Government is continuously initiating policies to make taxation easier for everyone. Considering the current pandemic, a lot of people are struggling to make ends meet, and that’s where tax deductions in Australia can play a crucial role. 

You’re currently eligible for a plethora of tax deductions in Australia that can reduce your taxes by a significant amount. However, the lack of knowledge about tax deductions as well as the complicated nature of tax deductions can make them hard to avail of. To make life easier for you, we’re discussing the steps to applying for tax deductions to make life easier for you. Let’s begin!

What are Tax Deductions in Australia?

Tax deductions are specific discounts that you can claim. The deductions will be calculated and deducted from your final income tax. Deductions can be based on many factors, these include the type of work, location, the risk involved in the field of work, etc.

Generally, the Australian Government provides tax deductions in industries it has subsidized. Also, things like clothing, travel, education, etc. are eligible tor tax deduction under specific criteria. You’d receive tax cuts if you’re eligible for any of these deductions.

Furthermore, the current pandemic has made businesses take drastic measures to keep their business afloat. These include home office costs and losses incurred due to the pandemic. While these deductions are only temporary, they might be the boost your business needs.

However, you need to make sure all the documents are for your deductions to be calculated.

How to Apply for Tax Deductions in Australia:

Applying for tax deductions in Australia can seem like a complicated process. However, it’s actually relatively simple with some technical bits involved. You need to follow a few simple steps for a seamless process. The steps are:

Step 1: Research:

Taxation is a complicated process. Whether it’s filing taxes or applying for deductions, there are a lot of technical aspects. So, if you’re planning to apply for tax eductions in Australia, the first step should be to research. Find out the deductions available for your field of work and whether you’re eligible for any of them. 

Also, deductions are available in multiple other factors along with subsidies. Whether you have a specific attire for your workplace or got yourself enrolled in a particular course to improve at your field of work. Furthermore, your expenses during the pandemic are also taken into account. 

So, research to find what tax deductions you’re eligible for before going to the next step. Knowing your information beforehand can be very useful.

Step 2: Consult a Tax Accountant:

Now that you know what deductions you are eligible for, consult a tax accountant. Your tax accountant can help you get the best outcome. Tax accountants have years of experience in taxation laws and policies. So, they’ll be able to provide you with the best possible solution.

Furthermore, once you discuss with your tax accountant, you can receive a better idea about things. You might get a better idea about how much money you can get as a deduction. Also, your tax accountant can help you receive more deductions than you had planned initially. 

So, make sure you’ve discussed your plans with your accountant thoroughly. A good accountant can be a life-saver. 

Step 3: Calculate Your Deductions:

Now that you know which deductions to apply for, you need to find out how much money you’d get in deductions. In order to do so, you need to gather proof of your expenses and add them up. 

Use receipts, brochures, diary records etc. of the amounts you’re applying for a deduction. Items like furniture, travel, uniform costs, etc. generally require you to show documents to prove your expenditure. So, make sure you have proof of these items.

However, different items like home office costs, laundry, education, etc. don’t necessarily require you to show receipts. However, you might need to show some form of proof as a guarantee of your expenses.

To make tax deductions in Australia more comfortable for you, the Australian Government has introduced the MyDeductions app. It’s a tool that helps you calculate your taxes and deductions, upload your receipts and email them to the relevant authorities. It’s an excellent option for people who are busy and find it hard to physically visit taxation offices. 

Furthermore, the MyDeductions app is a great option if you’re looking for a contactless alternative to the physical queues. This is great, especially considering the threat of the pandemic at hand.

Step 4: Submit Your Documents:

Now that you have an idea about everything, it’s time for the last step. You have to submit your deduction documents along with the other tax documents. The taxation committee will evaluate your paperwork and approve your deductions.

Make sure the documents you’ve provided are authentic and accurate. Expired documents, falsified information or inadequate information, will not only reduce your chances of getting the deduction, but it can cause you legal trouble as well.

Furthermore, make sure the standard taxation documents are also accurate. Your payment information, legal information, payroll etc. should be in order.


Paying taxes is essential for every citizen. It helps the country run smoothly and keep everything in order. To makes taxes easier for the people, tax deductions are a great option. They reduce the burden of excessive taxes to make the experience smoother.

However, the lack of knowledge about tax deductions in Australia makes many people shy away from regularly paying taxes. And thus, we’ve decided to make lives easier for you! We’ve discussed the simple steps to applying for tax deductions in this article. We hope you find this useful!