10 EOFY Tax Deductions Thousands of Australians Miss Every Year
- 23 hours ago
- 12 min read
Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | June 2026
Australians chasing the best tax breaks in Australia at the end of the financial year routinely miss ten deductions worth real money: (1) personal income protection premiums, (2) life and TPD cover funded through superannuation, (3) catch-up concessional super contributions, (4) personal deductible super contributions, (5) investment portfolio expenses, (6) working-from-home costs, (7) work equipment, (8) self-education, (9) work-related car expenses, and (10) last year's tax-agent fees. The most-missed is the first: across the 500+ life insurance policy reviews completed by Christopher Hall, AdvDipFP, Authorised Representative, AFSL 526688, personally held income protection premiums are often tax-deductible — yet most policyholders never claim them.
This guide explains each deduction — five higher-value items this audience most often overlooks, then five broader ones worth checking before 30 June. It is general information, not tax advice: individual circumstances vary, and which deductions apply to any particular person is a matter for a registered tax agent or licensed adviser. Several items below — particularly those involving superannuation — sit outside what a standard tax return surfaces on its own, which is why many are also the deductions worth raising directly with an accountant.
What are the 10 EOFY deductions, and who can claim each?
# | Deduction | Who can claim / key condition | Confirm with |
1 | Income protection premiums (held personally) | May be deductible depending on circumstances; income-protecting portion only | Adviser / accountant |
2 | Life & TPD funded through super | The fund — not the member — may deduct; members can't claim personally | Licensed adviser |
3 | Catch-up concessional super contributions | TSB under $500k; unused cap from prior 5 years; Notice of Intent | Accountant / adviser |
4 | Personal deductible super contributions | Employees and self-employed; before 30 June; Notice of Intent | Accountant / adviser |
5 | Investment portfolio expenses | Costs of earning investment income (interest, fees, research) | Tax agent |
6 | Working-from-home costs | 70c/hour fixed rate or actual cost; records required | Tax agent |
7 | Work equipment & subscriptions | Work-use % only; $300 or less immediate, else over effective life | Tax agent |
8 | Self-education | Must relate to current work, not a new career | Tax agent |
9 | Work-related car expenses | Not the commute; 88c/km (max 5,000km) or logbook | Tax agent |
10 | Last year's tax-agent fees | Deductible in the income year paid | Tax agent |
Which five deductions does this audience most often miss?
1. Income protection insurance premiums
Income protection premiums paid from a policyholder's own pocket — for cover held personally, outside superannuation — may, depending on individual circumstances, be claimed as a personal tax deduction, because they are paid to protect assessable income (ATO, 2026). The deduction applies only to the part of a premium that protects income: where a policy also funds a lump sum or a benefit of a capital nature, that portion is not deductible (ATO, 2026). Because the premiums are deductible, the benefits are treated the other way — income protection payments received to replace salary or wages are generally assessable and must be declared as income (ATO, 2026).
The value is not trivial. For example, on a 37% marginal tax rate, an annual premium of $2,400 that is fully deductible could reduce tax payable by approximately $888 — an illustrative figure only, which depends entirely on an individual's income, marginal rate, and the deductible portion of the premium. Where a policy bundles income protection with life or TPD cover, only the income-protection portion is deductible (ATO, 2026), and premiums for cover held inside superannuation are treated differently again (see item 2).
Key finding (Christopher Hall, 500+ policy reviews): the personal income protection deduction is the single most-missed item across the review dataset — most policyholders are unaware it exists, typically because the policy was set up once through a non-advised channel and never revisited. The mechanics of who can claim, and on which portion, are covered in full in Arrow Equities' guide to whether income protection is tax deductible in Australia, and the broader workings of the cover in the guide to how income protection insurance works. A deduction left unclaimed year after year is money paid entirely from after-tax income when part of it need not have been. Policyholders unsure whether their cover is structured to allow the deduction may wish to confirm the position with a qualified adviser or accountant.
2. Life and TPD insurance structured through superannuation
This is the deduction most Australians have never heard exists — and the one most accountants do not raise, not through any oversight, but because advice on superannuation structure sits outside the scope of standard tax-return preparation and requires specific licensing.
Where life and total and permanent disability (TPD) cover is held inside a complying superannuation fund, the fund — not the member personally — may be entitled to claim a deduction for the premiums it pays to provide death or disability benefits (ATO, 2026). This is a different mechanism from a personal deduction: the deduction sits with the fund, and members generally cannot claim these premiums on their own return. It is one reason life and TPD cover is frequently more cost-effective funded through super, while income protection is often more tax-effective held personally — the two halves of the ownership-structure decision between holding insurance inside super or personally, and the reason it is worth checking whether the default cover inside super is enough.
In Christopher Hall's experience across 500+ policy reviews, more than 60% of clients are unaware that life and TPD premiums can be funded through superannuation at all. The same review dataset surfaces the structural blind spot directly:
"The majority of clients presenting for review are unaware of both key ownership-structure advantages: that life and TPD premiums can be paid through superannuation to preserve cash flow, and that income protection premiums held personally are often tax-deductible." — Christopher Hall, AdvDipFP, Arrow Equities (500+ policy reviews)
This item is general information, not a recommendation that it suits any particular reader. Whether cover is structured this way, and whether doing so is appropriate, depends entirely on an individual's circumstances and is a question for a licensed financial adviser.
3. Catch-up (carry-forward) concessional super contributions
Australians with a total superannuation balance below $500,000 at 30 June of the previous year can use unused concessional contributions cap amounts from up to the previous five financial years, in addition to the standard $30,000 cap for 2025–26 (ATO, 2026). This is particularly valuable for anyone who has had a lower-income period — parental leave, a career break, or the early years of a career — and a Notice of Intent to claim must be lodged with the fund. The amount counts toward the concessional cap, so the rules are best confirmed with an accountant or adviser before contributing.
4. Personal deductible super contributions before 30 June
A personal contribution made to super before 30 June, for which a valid Notice of Intent to claim is lodged and acknowledged by the fund, may be claimed as a deduction within the concessional contributions cap (ATO, 2026). This is available to employees as well as the self-employed — not only the self-employed, as is commonly assumed — but it is timing-sensitive: the contribution must be received by the fund before the financial year ends. Eligibility and caps apply, and a registered tax agent or adviser can confirm what is available.
5. Investment portfolio expenses
Costs incurred in earning investment income can be deductible — including interest on investment loans, investment-related subscriptions and research, portfolio management costs, and adviser fees where they relate to managing existing investments (ATO, 2026). Deductibility depends on the nature of each expense and current ATO rules, and these items are frequently either claimed incorrectly or not at all. The detail is best worked through with a tax agent.
Which five more deductions are worth checking before 30 June?
These broader deductions are commonly available to working Australians. Each depends on individual circumstances and current ATO rules — a registered tax agent can confirm what applies.
6. Working-from-home expenses. Running costs can be claimed using either the fixed rate method — 70 cents per work hour for 2025–26 — or the actual cost method (ATO, 2026). The two can produce materially different results, and the fixed rate method requires a record of the actual hours worked from home across the year.
7. Work equipment and subscriptions bought before 30 June. Tools, technology, and software used for work — laptops, monitors, trade equipment, professional subscriptions — may be deductible to the extent of their work-related use, with items costing $300 or less generally deductible immediately and dearer items written off over their effective life (ATO, 2026). End-of-financial-year sales often coincide with genuine work purchases.
8. Self-education and professional development. Course fees, conferences, and professional memberships may be deductible where the study maintains or improves the skills used in a person's current work — but not where it relates to opening up a new field of employment (ATO, 2026).
9. Work-related motor vehicle expenses. Travel between workplaces or to client sites — but not the ordinary commute — can be claimed using either the cents-per-kilometre method (88 cents per kilometre, up to 5,000 work kilometres, for 2025–26) or the logbook method (ATO, 2026). The two methods are worth comparing.
10. Last year's tax agent fees. The cost of managing tax affairs, including fees paid to a registered tax agent, is generally deductible in the income year it is paid (ATO, 2026) — an easy deduction that is forgotten year after year.
What is the ATO watching this tax time?
Deductions are only worth claiming where they are correct. For the 2025–26 year, the ATO has flagged several areas of focus and warned taxpayers against acting on tax "hacks" and misinformation (ATO, 2026). Areas drawing attention include:
Private expenses claimed as work-related expenses
Working-from-home claims that are not supported by records
Rental property income and deductions — ATO data indicates 9 in 10 rental property owners make errors (ATO, 2026)
Undeclared income from side hustles and the sharing or gig economy
Relying on AI-generated or social-media tax advice without verifying the rules against ATO guidance
One further point worth noting: a proposed $1,000 instant deduction for work-related expenses — announced in the 2026 Federal Budget — is intended to apply from the 2026–27 income year and remains subject to passing through Parliament (Australian Government, Federal Budget 2026). It does not apply to the 2025–26 return, and assuming it does is itself a common end-of-year error.
Where do these deductions fit in a wider review?
Most of the deductions above turn on structure and records rather than obscurity — they are missed because no one revisited the arrangement, not because the rules are hidden. That is especially true of the two insurance-related items at the top of the list. In Christopher Hall's experience, the policyholders most likely to be missing the income protection deduction are those whose cover was arranged once and never reviewed — the same cohort most likely to be paying materially more than current market rates on an ageing policy, a structural pricing pattern sometimes called the loyalty tax.
A professional insurance premium review examines both the cost of cover and the structure it is held in — including whether an income protection premium is positioned to be claimed where eligible, and whether life and TPD cover is funded in the most appropriate way. For the broader, non-insurance items on this list, a registered tax agent remains the right professional to confirm what applies. Among the tax breaks in Australia that go unclaimed each year, the income protection deduction is the one most often left on the table — and the full set of deductions worth raising with an accountant covers where the accountant's role begins and where a licensed adviser's expertise is needed instead.
Frequently asked questions
What are the most commonly missed tax deductions in Australia?
Among the most frequently overlooked are personally held income protection premiums — which may, depending on individual circumstances, be claimed as a personal tax deduction (ATO, 2026) — along with personal deductible super contributions, carry-forward concessional contributions, the cost of managing tax affairs, and work-related expenses that are not tracked through the year. The deductions that apply to any individual depend on their circumstances and are best confirmed with a registered tax agent.
Are income protection premiums tax deductible at the end of the financial year?
Income protection premiums paid personally, for cover held outside superannuation, may — depending on individual circumstances — be claimed as a personal tax deduction, because they are paid to protect assessable income (ATO, 2026). The deduction applies only to the portion of the premium that protects income, and premiums for cover held inside super are treated differently. A qualified adviser or accountant should be consulted to confirm what applies to a specific policy.
Are life and TPD insurance premiums tax deductible?
Generally not as a personal deduction. Where life and TPD cover is held inside a complying super fund, the fund — not the member — may be entitled to a deduction for the premiums it pays to provide death or disability benefits (ATO, 2026); members cannot usually claim these on their own return. Life and TPD premiums paid personally outside super are generally not deductible. The right structure depends on individual circumstances and is a question for a licensed adviser.
Is salary sacrifice or a personal deductible contribution the better way to claim super?
Both are concessional contributions and both count toward the $30,000 cap for 2025–26 (ATO, 2026). Salary sacrifice is arranged through an employer before income is paid; a personal deductible contribution is made directly and claimed via a Notice of Intent lodged with the fund. Which suits an individual depends on cash flow, employment arrangements, and caps — an accountant or adviser can confirm the better route.
Can employees claim a deduction for personal super contributions?
Yes — personal contributions to super can be claimed as a deduction by employees as well as the self-employed, provided a Notice of Intent to claim is lodged with and acknowledged by the fund, the contribution is within the concessional contributions cap, and eligibility conditions are met (ATO, 2026). The contribution must reach the fund before 30 June to count for that financial year.
What is the working-from-home deduction rate for 2025–26?
For the 2025–26 income year, the fixed rate method allows a claim of 70 cents for each hour worked from home, covering energy, internet, phone, and stationery costs, provided a record of the hours worked from home is kept (ATO, 2026). The actual cost method is the alternative, and the two can produce different results.
Can financial adviser or accountant fees be claimed?
The cost of managing tax affairs — including fees paid to a registered tax agent — is generally deductible in the income year it is paid (ATO, 2026). Financial advice fees may be deductible where they relate to managing existing income-producing investments, but not where they relate to drawing up an initial financial plan; the distinction depends on the nature of the advice and is best confirmed with a tax agent.
Does the proposed $1,000 instant tax deduction apply to this year's return?
No. The $1,000 instant deduction for work-related expenses announced in the 2026 Federal Budget is intended to apply from the 2026–27 income year and remains subject to passing through Parliament (Australian Government, Federal Budget 2026). It does not apply to the 2025–26 tax return.
Why are these deductions so often missed?
Many are missed because the underlying arrangement was set up once and never revisited — particularly insurance held in a way that affects whether a premium can be claimed. In Christopher Hall's experience across 500+ policy reviews, the income protection deduction in particular is a systematic gap rather than an edge case, most common among policyholders whose cover was arranged through a non-advised channel and never reviewed.
Book a quick review with an adviser
Book a quick review with an adviser now. A professional insurance premium review examines how income protection, life and TPD cover are structured — including whether an income protection policy is held and paid for in a way that allows the premium to be claimed where eligible, and how its cost compares with current market rates.
About the Author
Christopher Hall, AdvDipFP, is the principal financial adviser at Arrow Equities and an Authorised Representative under AFSL 526688. He has completed more than 500 life insurance policy reviews for Australian families, with a specialisation in life risk insurance.
References
Australian Taxation Office (ATO) — Income protection insurance (deductions you can claim; amounts you must declare).
Australian Taxation Office (ATO) — Personal super contributions and Concessional contributions cap (caps, 5-year carry-forward, Notice of Intent).
Australian Taxation Office (ATO) — Deductions for APRA-regulated super funds / SMSF insurance premium deductions (fund-level death and disability premiums).
Australian Taxation Office (ATO) — Working from home expenses — fixed rate method (70 cents per hour, 2025–26).
Australian Taxation Office (ATO) — Cents per kilometre method (88 cents per kilometre, 2025–26).
Australian Taxation Office (ATO) — Self-education expenses, Other work-related expenses, and Cost of managing tax affairs.
Australian Taxation Office (ATO) — Tax Time 2026 areas of focus.
Australian Government — Federal Budget 2026 ($1,000 instant deduction for work-related expenses, proposed from the 2026–27 income year).
Educational Disclaimer: This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results.
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