$870 You're Legally Owed and Probably Never Claimed

The ATO doesn't send a reminder when you forget to claim something. It just keeps the money.

A 2025 analysis found the average Australian who overlooks just a handful of legitimate deductions is leaving $870 on the table — sometimes over $1,300. New research from Xero confirmed 51% of Australians are genuinely confused about what they can and can't claim.

This post fixes that. We cover the 7 most overlooked legitimate deductions — and, for contrast, the genuinely wild claims the ATO rejected in 2025, so you know exactly where the line is.

The 7 Most Overlooked Legitimate Deductions

1. Your Tax Agent's Bill (Yes, It's Deductible)

The fee you paid an accountant to prepare last year's return is fully deductible this year. If you paid $200 in 2024–25 for your 2023–24 return, you claim that $200 in this year's return.

Example: Priya paid her tax agent $250. At her 34.5% marginal rate, that deduction saves her $86. Not life-changing — but it's free money she was ignoring.

How to apply: Check your inbox or bank statement for the receipt from your accountant. Add it to your deductions. Done.

2. Income Protection Insurance (Outside Super)

If you pay for income protection insurance personally — directly, not through your super fund — the premiums are fully tax deductible.

Example: Tom, a 38-year-old nurse, pays $1,800/year for income protection insurance outside super. At his 34.5% marginal rate: a $621 annual tax saving he was never claiming.

How to apply: Check whether your income protection is billed directly to you (deductible) or paid by your super fund (not deductible). If it's direct, grab your annual premium statement.

3. Professional Memberships and Subscriptions

Memberships to professional bodies (CPA Australia, AMA, Teachers Federation, Law Society), union fees, and work-related subscriptions are all deductible.

Example: Dr. Wei pays $1,240/year in AHPRA registration and AMA membership. Both fully deductible. At his 47% marginal rate: $583 saving — for fees he was already paying anyway.

4. Charitable Donations to Registered DGRs

Donations of $2 or more to a Deductible Gift Recipient (DGR) charity are fully deductible — no cap, no threshold.

Example: Mel donated $40 to Lifeline, $60 to Red Cross, $100 to her surf lifesaving club. Total: $200. At 34.5%: $69 back. Most people forget to collect the receipts at all.

5. Work-Related Courses and Self-Education

Courses that directly relate to your current job are deductible. Not a future career change — your current role.

Example: Mark is a software developer who paid $890 for an AWS certification course. Directly relevant to his current job → fully deductible. At 34.5%: $307 saving.

6. Laundry and Uniform Costs

If you wear a compulsory uniform (with your employer's logo), non-conventional clothing (scrubs, hi-vis, PPE), or occupation-specific clothing — those costs are deductible, and so is laundry.

Example: Jess is a warehouse worker. She spends $320/year on steel-cap boots, $180 on hi-vis vests, and washes her uniform weekly. ATO allows $1/item per wash up to $150 without receipts. Total deductions: $650. At 34.5%: $224 saving.

7. Investment-Related Expenses

If you have shares, ETFs, or rental property, the costs of managing them are deductible in the year incurred.

Example: Emma holds an ETF portfolio and pays $420/year in management fees, $199 for a brokerage subscription, and $89 for a research newsletter. Total: $708. At 34.5%: $244 saving.

Meanwhile: What the ATO Rejected in 2025

The ATO released its annual "wild claims" list — a reminder of exactly where the line is. Assistant Commissioner Rob Thomson: "If you wouldn't be able to explain it to a mate at the pub without raising eyebrows, it probably won't pass muster with us either."

What Aussies On Reddit Are Saying

Your EOFY Deduction Checklist

Before you lodge — run through this list. Every tick is potential money back.

• Tax agent fee from last year's return
• Income protection insurance premiums (paid outside super)
• Professional memberships and union fees
• Work-related subscriptions (LinkedIn, journals, trade publications)
• Charitable donations to DGR charities
• Self-education and course fees related to current role
• Uniform, work clothing, and laundry costs
• Investment management fees and advisory costs
• Home office deduction (WFH hours × 70c)
• Work phone and internet proportion

Complete Overlooked Deduction Reference: 24 Items Ranked by Dollar Value

Here are 24 frequently-overlooked deductions that apply to most Australian taxpayers regardless of profession — ranked by typical dollar value at a representative $85,000 income (Stage 3 marginal rate 30% + 2% Medicare = 32%, in force since 1 July 2024). These are claims the ATO confirms most people leave unclaimed every year, according to its 2025 commentary on tax return patterns.

Dollar values are typical 2025-26 figures based on the ATO's own commentary on commonly-missed claims and published rates. Tax savings assume 30% Stage 3 marginal rate + 2% Medicare. Verified against ATO claiming deductions page and ATO 2025 deduction priorities media release (2026-05-24).