You may not be aware that you could be able to claim a tax deduction on your handbag in your tax return. Handbags, shoes, sunscreen and even dogs are some of the more surprising deductions you may be able to make.
The main thing with any deduction is you need to be able to prove it is for work purposes. What you can claim and how much you can claim largely depends on the industry you work in. Luckily, the ATO has over 30 guides for specific industries.
Read on below for some of the more interesting deductions you may be able to claim.
1. Your handbag
As mentioned, provided it is used for work to carry your laptop, phone, stationery and other work supplies, you can claim it!
2. Shoes and clothing
In addition to claiming a tax deduction on your handbag, you may be surprised to know you may be able to claim shoes too. Non slip work shoes for nurses, specific shoes for flight attendants and work boots for various occupations are just a few examples of the types of shoes you can claim depending on your work. Clothing must include a logo or be distinctive to your role to be claimable. You cannot claim a business suit.
3. Electricity
Many people now carry out part or all of their work from home. Regardless of whether you have a full home office or work from the dining table, you can still claim for electricity, gas and other home office expenses while you work. For the 2025–26 income year, the ATO’s fixed rate method is 70 cents per hour for working from home expenses. This covers costs such as electricity, gas, internet, phone usage, computer consumables and stationery. You’ll still need to keep accurate records of your hours worked from home. Some expenses, such as the decline in value of office furniture and technology, may be claimed separately if you meet the ATO’s record-keeping requirements.
4. A dog!
Before you get too excited, you can only claim a dog if it directly relates to work such as security or farm work. Expenses such as food and vet bills can be claimed by business owners. As for home based businesses, the family dog can be viewed as a grey area if your dog is used to secure the premises. Your gorgeous pug isn’t going to be claimable.
5. Donations
Whether you donate to a charity or make political donations, amounts of $2 or more may be tax deductible. Charitable donations generally need to be made to a deductible gift recipient. Political contributions and gifts are subject to limits, including a $1,500 cap for contributions and gifts to political parties and a separate $1,500 cap for contributions and gifts to independent candidates and members.
6. Mobile phone
Do you use your personal phone for work calls? If so, you might be able to claim it. It’s important you keep accurate records as you can only claim the work portion of the bill, not your whole bill. For example, if around 50% of the use of your phone is for work, you can claim 50% of the bill.
7. AI tools
AI tools may be tax deductible if they are directly related to earning your income and you pay for the subscription yourself. As with any work-related expense, you need to apportion your claim if there is both work and private use, and keep records to support the deduction.
8. Courses and seminars
If you are attending courses, getting an education or even attending investment seminars, they can be tax deductible. Courses and self-education needs to be directly related to your job and investment seminars need to be for an investment you already have such as a rental property.
9. Car expenses
When using your car for work, wear and tear, maintenance and petrol can all be claimed. There are rules around what you can claim so it’s important to keep accurate records. A simpler option is the cents per kilometre method, where you keep a record of your business kilometres and claim 88 cents per kilometre at tax time for the 2025–26 income year.
10. Home office expenses
Setting up your home office can be costly, but you can claim a deduction or depreciation on everything you buy for it from computers to printer ink. Remember electricity, broadband, phone and other expenses can also be included. Write down everything and claim what you can.
11. Union and membership fees
The total costs of fees associated with your employment such as union or membership fees for a professional body relating to your work are tax deductible.
12. Tax agent fees
When an agent prepares your tax return you can claim it the following year.
13. Laundry
If your entire laundry load consists only of work clothing (such as uniforms), you can claim $1 per load. If it’s a mixed load of work and personal items, you can claim 50 cents per load as laundry expenses. You can also claim dry cleaning for general work clothing, but if the total amount is over $300 you will need proof.
14. Caravans
You can’t claim the family caravan every time you take a trip, but if you travel for work and decide to use a caravan instead of paying for hotels and motels, you can claim it. You need to prove it is for business and not personal use.
15. Investment property expenses
Did you know most landlords can claim 2.5% depreciation on the cost of bricks and mortar? While investment properties have several deductions you can make, many landlords forget about depreciation. This is why it is so important to get the right tax advice with your investments. Get a depreciation report, which is tax deductible, and you may realise significant savings.
16. Superannuation
Salary sacrificing, boosting your super or splitting super with your partner are just a few of the tax-effective tips we share in this article on strategies to maximise super tax savings. The concessional contributions cap is $30,000 for the 2025–26 financial year, which gives many people room to salary sacrifice or make deductible contributions to boost their super and reduce tax.
17. Sunscreen and makeup
Gardeners, builders, construction workers and others who are required to work outdoors may be able to claim sunscreen and other sun protection products. There may be limited cases where cosmetics are deductible, such as for performers, media professionals or outdoor workers using products with sun protection. Keep receipts and be sure to check the rules for your occupation before claiming.
18. Subscriptions
Industry-specific magazines and other subscriptions you pay for which relate to your work can be claimed on your tax.
How Financial Spectrum can help
We highly recommend engaging a qualified accountant to help you maximise your tax return. A good accountant will take the time to understand your personal situation and give you strategic tax advice to minimise your tax obligations both now and in the future. You’ll also have the peace of mind of knowing your return has been accurately prepared in compliance with tax laws in the event you are subject to an audit by the ATO.
Financial Spectrum’s financial advisers and accountants understand the complexities of tax planning and its role in shaping your financial future. Our team of experienced accountants specialise in crafting personalised strategies to optimise your tax position and achieve your financial goals faster.
Need support ahead of tax time? Book a complimentary consultation with one of our team today.
Frequently asked questions
Can I claim a handbag on my tax return in Australia?
Yes, you may be able to claim a handbag as a tax deduction if it’s used for work purposes, such as carrying a laptop, work phone, or documents. It must be directly related to earning your income, and you’ll need to keep a receipt and evidence of work-related use.
Is makeup tax deductible in Australia?
Makeup is usually considered a private expense, but it may be deductible in limited cases where it is directly connected to earning your income, such as some performing arts, television or outdoor roles using products where the primary purpose is sun protection rather than cosmetic use.
Can I claim home office expenses if I work from home?
Yes, for the 2025–26 income year, the ATO allows a fixed rate of 70 cents per hour worked from home to cover certain running expenses, but you must keep accurate records of hours worked.
Are AI tools like ChatGPT tax deductible?
Yes, subscriptions to AI tools may be deductible if you use them to earn income. To qualify, you must personally pay for the subscription and show that it supports your work or business activities.
Rebecca is passionate about promoting the positive impact of quality financial advice on personal wellbeing. Read her full bio here.
