Deduction

D1. Work-related car expenses

This is only for work-related expense and you cannot claim for the normal trip between hone and work, unless

• you use your car to carry bulky tools or equipment (such as an extension ladder or cello) which are essential to perform your employment duties and cannot be left at work

• your home is a base for employment (you were required to start work at home and travelled to a workplace to continue work for the same employer), or

• you have shifting places of employment (you regularly work at more than one place each day).

Methods of deduction

If you drive 5,000 kilometres or less, you can choose one of the following methods:

• cents per kilometre method

• logbook method.

If you drive over 5,000 kilometres, you must use the logbook method.

Your logbook must be kept for 5 years:

• cover at least 12 continuous weeks and be broadly representative of your travel

• include the destination and purpose of every journey, the odometer reading at the start and end of each journey, and the total kilometres travelled during the period

• include odometer readings for the start and end of the logbook period.

You can claim running costs and decline in value of your car by providing following information

• receipts for your fuel and oil expenses, or a record of your reasonable estimate of these expenses based on the odometer readings for the start and end of the period for which you are claiming

• receipts for other expenses for your car – for example, registration, insurance, lease payments, services, tyres, repairs, electricity expenses and interest charges on hire-purchase agreement

• a record of the purchase price of the car and how you work out your claim for the decline in value of your car, including the effective life and method you use.

D2. Work-related travel expenses

Travel expenses you incur in performing your work as an employee including:

• public transport, air travel and taxi fares

• bridge and road tolls, parking fees and short‑term car hire

• meal, accommodation and incidental expenses you incur while away overnight for work

• expenses for motorcycles and vehicles with a carrying capacity of one tonne or more, or 9 or more passengers, such as utility trucks and panel vans

• actual expenses, such as petrol, repair and maintenance costs, that you incur to travel in a car that is owned or leased by someone else.

If your employer provided a car for you or your relatives’ exclusive use and you were entitled to use it for non‑work purposes, you cannot claim a deduction for running costs, such as petrol, repairs and other maintenance. This includes a car provided under a salary sacrifice agreement. However, you can claim expenses such as parking, bridge and road tolls for work‑related use.

You Must have written evidence and receipt for the whole of your claim.

To claim meal, accommodation and incidental expenses, you must have incurred the expenses when you travelled and stayed away from your home overnight in the course of performing your work duties. You must also have paid the expenses yourself and not have been reimbursed.

Travel evidence required:

If you did not receive a travel allowance or if you received a travel allowance and your claim exceeds the reasonable allowance amount (TD2023/3), you don't need to provide travel diary but you do need to provide written evidence given travel day less than 6 nights. In other scenario, you will need to provide both written evidence and travel diary.

If you received a travel allowance and your claim does not exceed the reasonable allowance amount, you only need travel diary given travel day more than 6 nights. In other scenario, you don't need written evidence or travel diaries.

D3. Work-related clothing, laundry and dry cleaning expenses

Work-related clothing expenses are the costs you incurred for clothing including:

• Protective clothing and footwear, such as fire-resistant clothing, safety vests, nurse's shoes, gloves, aprons or heavy duty shirts and trousers as well as equipment, such as hard hats and safety glasses (Code: P)

• Non-compulsory uniform that your employer has registered on the Register of Approved Occupational Clothing (Code: N)

• Compulsory Uniform as specified in your employer's policy (Code: C)

• Occupation-specific clothing (Code: S)

Costs you incurred to launder and dry clean work clothing and renting and repairing above clothing are all deductible.

But you cannot claim the cost of purchasing normal uniforms, like black trousers, suites or white shirts even if your employer requires you to wear them.

Clothing and footwear over $300 will need written evidence and laundry over $150 will need written evidence.

D4. Work-related self-education expenses

Work-related self-education expenses are costs you incurred to:

• undertake a course at an educational institution (whether they lead to a formal qualification or not)

• undertake a course by professional or industry organisation

• attend a work-related conference or seminar

• complete self-paced learning and study tours (whether within Australia or overseas)

To claim a deduction, you must be able to show close connection between the course and your work activities at the time you incur the expenses.

You can claim a deduction if at the time you incurred the expenses either:

• the course maintained or improved a skill or specific knowledge required for your work activities

• you could show that the course was leading to, or was likely to lead to, increased income from your work activities

You can't claim a deduction for self-education expenses for a course that either:

• relates only in a general way to your current employment or profession

• will enable you to get new employment

You can't claim any deductions against government assistance payments, including Austudy, ABSTUDY and youth allowance.

Example: textbooks, stationery, student union fees, student services and amenities fees, the decline in value of your computer and cars used for self-education, certain course fees, public transport fares, car expenses related to your self-education.

D5. Other work-related expenses

Other work-related expenses you incurred as an employee including:

• Union fees and subscriptions to trade, business or professional associations

• Overtime meal expenses if you received an overtime meal allowance from your employer that was paid under an industrial law, award or agreement, and you have

  - purchased and consumed the meal during your overtime

  - included the amount of the overtime meal allowance as income at question 2

  - written evidence, such as receipts, if your claim is more than $35.65 per meal

• Reference books, technical journals and trade magazines

• Additional running expenses as a result of working from home

• Work-related phone expenses

• Work-related tools and equipment, such as a computer or office furniture and libraries, you may be able to claim

- an immediate deduction for cost of depreciating assets costing $300 or less

- a deduction for the decline in value of an item that cost more than $300 over its effective life

If your total claim for all work-related expenses exceeds $300, you must have written evidence.

D6. Low-value pool deduction

You can claim a deduction for the decline in value of low-cost and low-value assets that you

• used in the course of producing assessable income

• allocated to what is called a low-value pool

Low-cost assets are depreciating assets that cost less than $1,000

Low-value assets are depreciating assets that are not low-cost assets but on 1 July 2023, had an opening adjustable value of less than $1,000 under the diminishing value method.

Assets you can allocate to a low-value pool include assets you use:

• in your work as an employee or

to gain rental income

You will need the closing pool balance for 2023-2024 to calculate your low-value pool deduction for 2024-2025.

D7: Interest deductions

Did you incur expenses in earning the interest you declared at question 10?

Expenses include:

• bank or other financial institution account-keeping fees for accounts held for investment purposes

• Fees for investment advice relating to changes in the mix of your investments

• Interest you paid on money you borrowed to purchase income-producing investments

You will need your bank or financial institution statements or passbooks.

If you had a joint account or if you shared an interest-earning investment, show only your share of the joint expenses.

D8: Dividend deductions

Did you incur expenses in earning the dividend income you declared at question 11?

Expenses include:

• fees for investment advice relating to changes in the mix of your investments

• interest paid on money borrowed to purchase shares or similar investments

• cost relating to managing your investments, such as travel and buying specialist investment journals or subscriptions

You must also complete this question if your dividends included an amount for capital gain from a listed investment company (LIC). If you were an Australian resident for tax purposes when a LIC paid you a dividend and you can claim a deduction of 50% of the LIC capital gain amount.

If you had joint share investments or similar shared investments, show only your share of joint expenses.

D9: Gifts or donations

Did you make a gift or donation of $2 or more to an organisation that has a deductible gift recipient (DGR) status?

Your receipt should show whether your donation is tax-deductible.

Generally, you cannot claim a deduction for a gift or donation if you received something in return.

D10: Cost of managing tax affairs

Did you incur expenses in managing your tax affairs?

The cost of managing your tax affairs includes:

• interest charges we imposed on you (Code: N)

• litigation costs (including court and administrative appeals tribunal fees and solicitor in managing your tax affairs (Code: L)

• preparing and lodging your tax return and activity statements (Code: M)

• fees paid to a recognised tax advisor (Code: M)

• buying tax reference material (Code: M)

• dealing with us about your tax affairs (Code: M)

You cannot claim

• the cost of tax advice given by a person who is not a recognised tax advisor

• a deduction for tax shortfall and other penalties for failing to meet your obligations

Losses

L1: Tax losses of earlier income years

Don't show at this question:

• capital losses

• expenses and losses you incurred in earning foreign income

• deferred non-commercial business losses from a prior income year

Tax Offsets

T1: Seniors and pensioners (includes self-funded retirees)

You can claim the seniors and pensioners tax offset if you met all the conditions relating to:

• eligibility for Australian Government pensions or allowances, and

• income

  1. You did not have a spouse, and your rebate income was less than $50,119.

  2. You had a spouse, and the combined rebate income of you and your spouse was less than $83,580.

  3. At any time during 2023 –24

  - you and your spouse had to live apart due to illness or because one of you was in a nursing home, and 

  - the combined rebate income of you and your spouse was less than $95,198.

  
  

If you had a spouse during 2023-2024 you must also complete spouse details - married or de facto. You also need to work out whether your spouse is eligible and you may not get the tax offset if your combined rebate income doesn't satisfy the test. If you are eligible, select the code letters as per below.

Pension age:

Centrelink - 67 years old

Veterans' affairs - veteran or war widow and 60 years old or older and meets the veteran pension age test

Seniors and pensioners tax offset code letters:

A. You were single, separated or widowed

B. You and your spouse:

• were both eligible for the seniors and pensioners tax offset

• had to live apart due to illness or one of you was in a nursing home

C. Your spouse was not eligible for the seniors and pensioners tax offset, and you and your spouse had to live apart due to illness or one of you was in a nursing home

D. You and your spouse

• lived together and

• were both eligible for the seniors and pensioners tax offset

E. You and your spouse

• lived together and

• your spouse was not eligible for the seniors and pensioners tax offset

If more than one code applies to you, use the first code unless one of the 2 circumstances applied to you.

• Both A and B applied, and your spouse's taxable income was less than $18,334 use code B

• Both A and D applied, and your spouse's taxable income was less than $12,494 use code D

  
  

Vetaran code letters:

V. You were a veteran, war widow or war widower

W. Your spouse was a veteran, war widow or war widower

X. Both codes V and W applied to you

T2: Australian superannuation income stream

You may be entitled to a tax offset if you received income from an Australian superannuation income stream at question 7 in your tax return.

You received:

• a capped defined benefit income stream, and

  - you turned 60 years old during 2023-2024, or

  - you were 60 years old or older on 1 July 2023 and started that income stream for the first time during 2023-2024, or

  - you were under 60 years old on 30 June 2024 and that income stream is death benefit income stream where the deceased was 60 years old or older.

• a superannuation income stream lump sum payment in arrears

• a superannuation income stream (including a death benefit income stream) with an untaxed element which is not a capped defined benefit income stream and you are aged 60 years old or older

If you were under 60 years old at any time in 2023-2024, add up the tax offsets shown on your payment summaries as below

If you were over 60 years old, did you include an amount at Assessable amount from capped defined benefit income stream at question 7 - label M? If yes, you are not entitled to a tax offset on your untaxed element; if no, please complete the worksheet 1 below

Medicare levy related questions

M1: Medicare levy reduction or exemption

Australian residents for tax purposes are subject to a Medicare levy of 2% of their taxable income unless they qualify for a reduction or exemption. A Medicare levy reduction is based on your taxable income and Medicare levy exemption is based on specific categories. Fill in the information below and we will work out reduction and exemption.

You may qualify for an exemption from paying the Medicare levy if you were in 3 exemption categories at any time in 2023-2024.

• Medical circumstances

  - you were a blind pensioner

  - you were entitled to full free medical treatment for all conditions under defence force arrangements or Veterans' Affairs Repatriation Health Card

• Foreign resident

• not entitled to Medicare benefits

  - temporary resident for Medicare purposes

  - diplomatic mission or consular post in Australia who don't ordinarily live in Australia and not an Australian citizen

  and you did not have any dependants for that period, or all your dependants were in an exemption category for that period?

Category 1: Medical circumstances

1. if you have no dependants

2. if each of your dependants (including spouse): was in the exemption categories, or had to pay the Medicare levy

3. if you had dependant children who were not in an exemption category but who were also dependants of your spouse, and your spouse pay the Medicare levy or you have completed a family agreement that your spouse will pay the half levy for your joint dependants

4. if you were single or separated and you: had a dependent child who was not in a Medicare levy exemption category, and were entitled to FTB Part A or the rental assistance components of FTB Part A for that child, and were in a shared-care arrangement, the exemption is full for the days you had care of your dependant child

5. if your spouse met one of the 3 categories and you had a dependant child who was not in an exemption category, and was dependant on both of you. One of you can claim ful exemption and the other can claim half exemption by completing a family agreement.

Category 2: Foreign resident

You can claim a full exemption for the period you were foreign resident

Category 3: Not entitled to Medicare benefits

1. You had at least one dependant (including spouse) was not in an exemption category, and did not have to pay the Medicare levy

2. if you were single or separated and you: had a dependent child who was not in a Medicare levy exemption category, and were entitled to FTB Part A or the rental assistance components of FTB Part A for that child, and were in a shared-care arrangement, the exemption is half for the days you did not have care of your dependant child

3. if your spouse met one of the 3 categories and you had a dependant child who was not in an exemption category, and was dependant on both of you. One of you can claim ful exemption and the other can claim half exemption by completing a family agreement.

M2: Medicare levy surcharge (MLS)

THIS QUESTION IS COMPULSORY

For this question, your dependants are your

• spouse, even if they worked during 2023-2024 or had their own income

• children under 21 years old

• children 21 to 24 years old who are studying full time at school, college or university

Private Health Insurance Policy Details

Adjustments

If you don't receive any income or you income after deduction is zero or a negative amount, you can write $0 (Type Code: A)

If you do receive the following income, you will need to calculate the taxable amount at this question (Type Code: M)

• employment income

• taxable pensions or payments from Centrelink or the Department of Veterans’ Affairs

• compensation, superannuation or pension fund benefits

• income from a deceased person’s estate

• income from property transferred to you as a result of another’s death of family breakdown, or to satisfy a claim for damages for an injury you suffered

• income from your own business

• income from a partnership in which you were an active partner

• net capital gains from the disposal of any of the property or investments referred to above

• income from investment of amounts referred to above

Add up all your deductions that relate to the income above and subtract the total of those deductions from the total income

A2: Part-year tax-free threshold

A3: Government super contributions

You may be eligible for a super co-contribution or a low income super tax offset.

Super Co-contribution

• You made an eligible personal super contribution to a complying super fund or retirement savings account. Eligible personal super contributions don’t include amounts which you are claiming as a deduction and don’t include an eligible Downsizer contribution.

• You did not exceed your non‑concessional contributions cap.

• Your total superannuation balance at 30 June 2023 was less than $1,700,000.

• You were under 71 years old on 30 June 2024.

• Your total income for 2023 –24, was less than $58,445.

• 10% or more of your total income was from employment or business income (including from a partnership) or a combination of both. 

• You did not hold a temporary visa at any time during 2023 –24 (unless you are a New Zealand citizen or it was a prescribed visa).

Total income for the purposes of super co‑contribution is the:

• sum of your assessable income, reportable fringe benefits total, and total reportable employer super contributions (RESC)

• less, any assessable First home super saver (FHSS) released amount and any allowable business deductions.

Your total RESC is reduced (but not below zero) by any excess concessional contributions included in your assessable income.

Assessable income is your income before taking deductions into account.

Low income super tax offset

• Your adjusted taxable income (ATI) was less than or equal to $37,000.

• Concessional contributions were made to your complying super fund.

• 10% or more of your total income was from employment or business income (including from a partnership) or a combination of both.

• You did not hold a temporary visa at any time during 2023 –24 (unless you are a New Zealand citizen or it was a prescribed visa).

Total income for the purposes of the low income super tax offset is the:

• sum of your assessable income, reportable fringe benefits total, and total RESC

• less, any assessable FHSS released amount.

Your total RESC is reduced (but not below zero) by any excess concessional contributions included in your assessable income.

Assessable income is your income before taking deductions into account.

Your income other than employment or business income

Employment or business income you received in 2023-2024 that relates to an earlier income year

This income may include:

• parental leave pay or dad and partner pay you received in 2023 –24 after your employment ceased

• employment or business income you received in 2023 –24 that relates to an earlier income year, such as back payments of salary, wages or unused leave paid as a lump sum

A4: Working holiday maker net income

Income Test

You must complete this section.

If you had a spouse during 2024-2025, you must also complete Spouse details - married or de facto below. (if the amount is zero, write 0)

Spouse details - married or de facto