It’s nearly June 30, and you know what that means – end-of-financial-year sales are everywhere, promising “tax deductible!” deals on laptops, tools, and gadgets. It’s tempting, especially if you’re hoping to snag a bigger tax refund.

But the Australian Taxation Office (ATO) has a clear message before you whip out the wallet for a last-minute buy: Beware. Not every dollar you spend on June 29 will come flying back to you on July 1.

In fact, unless you play by the rules, you might end up disappointed (or on the ATO’s radar).

Australians – including many of us “older and wiser” Aussies – often see tax time as an opportunity to get a little back. With more than 10 million Australians expecting a refund this year (averaging about $1,519 each), it’s no surprise we all look for ways to maximize that windfall. Retailers know this too.

As Tax Invest Accounting director Belinda Raso points out, “at this time of year, we’ve got so many different companies like Officeworks spruiking everything’s tax deductible. And it is, but you’re not going to get all of that money back. Employees must be aware that if it’s over $300, it must be claimed over its useful life”.

In other words, the ATO’s $300 rule could rain on your instant deduction parade if you’re not careful.

The $300 Rule – Explained in Plain English​

So, what is this mysterious $300 rule? Essentially, the ATO allows an immediate deduction (i.e. claim the full cost in your tax return) for certain work-related items that cost $300 or less. If you buy something for work and it’s $300 or under, you can generally deduct the whole amount in the year of purchase, provided it’s genuinely work-related and not a private purchase.

The ATO’s official guidance says it plainly: “Where the cost is $300 or less, you can claim a deduction for the full purchase price in the year you buy it” (though if it’s partly private use, you only claim the work-related portion).

Great, so $300 is the magic number for an instant write-off. But here’s the catch – **spend more than $300 on a work item, and you can’t claim it all at once. Those pricier items “are not immediately deductible in full”, the ATO warns; rather, they “must be depreciated over their useful life.” Depreciation simply means you claim a portion of the cost each year, spread over a few years, instead of a full refund now.

In other words, buying a $1,000 item for work doesn’t give you a $1,000 deduction this year – you might only claim, say, $200 each year for five years (depending on the item’s lifespan).

Why does this matter right now? Picture this scenario: You’re eyeing a fancy new laptop before June 30, thinking it’ll slash your taxable income. If that laptop costs, say, $3,000, Belinda Raso explains you’d only get a minuscule deduction this financial year – about $66 – if you bought it in mid-June.

That’s because you only owned/used it for a couple of weeks of the year, so only a tiny fraction of its cost is deductible now. Wait just a few days and buy it on July 1, and you’d be able to claim a much larger chunk in the next year’s return – roughly $750 in the first year, in this example.

In short, rushing to buy expensive work items before July 1 might actually delay your tax benefit rather than boost it. As Raso bluntly puts it, “There’s no rush before June 30, unless it’s under $300.”

For “big-ticket” work purchases, the timing can be key. If an item costs more than $300, you’re going to be following depreciation rules no matter what – so buying it on June 30 versus July 1 can make a difference in how much you claim in the first year.

Of course, over time you may claim the full amount through depreciation, but it requires patience and record-keeping (and who wants to track a deduction over several years if you can avoid it?).

The ATO even provides online calculators to help figure out depreciation, listing common assets’ “effective life” (e.g. laptops and mobile phones typically about 2 years, office furniture maybe 5-10 years, etc.). But the message is: don’t expect an instant payback on pricey purchases.

The “No Receipts, No Worries” Myth – Busted​

Now, some of you might be thinking, “Hang on, I heard you can claim up to $300 of work expenses without receipts – so can’t I just say I bought stuff?” Ah, this is a common myth that the ATO is eager to squash. It’s true that if your total work-related expenses claim is under $300, you don’t have to send in receipts with your tax return. This rule exists to ease paperwork, not to invite creative writing.

ATO Assistant Commissioner Rob Thomson clarifies: “There is a common myth that you can claim $300 for work-related expenses automatically, without proof – but this isn’t true. If your total claim for work-related expenses is less than $300, you may not need receipts, but you must be able to show you spent the money and how you calculated your claim”. In other words, “no proof, no deduction” if the Tax Office asks questions.

Think of it this way: The ATO might not ask for receipts up front, but they can ask you to justify any claim. Thomson has warned that a mere bank or credit card statement isn’t sufficient evidence by itself. You need to be able to explain what you spent money on and how it’s work-related.

So, for example, don’t assume you can just magically deduct $300 because “ATO lets everyone do it.” They only let you do it if you actually spent it on legitimate work expenses. If you get audited or even a gentle “please explain” request, you’ll want to have some record or memory of those purchases.

(Pro tip: Many older Aussies swear by a trusty shoebox of receipts – but nowadays even a simple folder, or a photo of receipts using the ATO’s app, will do.)



The $300 no-receipt threshold was never meant to be a free-for-all. It’s there so that if you bought a few low-cost work items (say some stationery, a cheap office chair, or uniform laundry costs) totaling under $300, you wouldn’t be burdened with paperwork. But you still need to be honest.

The ATO has stated in plain terms: “If your total claim is under $300, you may not need receipts, but you must be able to show you spent the money”. In other words, integrity first, paperwork second.

For us seasoned taxpayers, this might sound obvious – but you’d be surprised how many people (often younger, cough cough, influenced by some dodgy TikTok “tax hacks”) think the government is handing out $300 as a standard deduction for nothing. Not so! Every dollar you claim needs to meet what Thomson calls the “three golden rules”: “you must have spent the money yourself, it must directly relate to earning your income, and it can’t be private in nature”. It’s as simple as that.

No, your dog’s vet bills aren’t tax deductible (unless your dog is literally a guard dog for your business). No, you can’t claim a new suit just because you wear it to the office (standard work attire is generally considered personal, not a uniform). And definitely no, you can’t claim things you never actually paid for.

Spending $1 to Get 30c Back – Is It Worth It?​

Another important reality check: A tax deduction is not a dollar-for-dollar refund. This might seem basic, but when the EOFY marketing machine revs up, people sometimes forget. Let’s put it in perspective: If you’re in, say, the 32.5% tax bracket (roughly what someone earning around $60k pays on their next dollar of income), a $100 deduction saves you $32.50 in tax.

In a higher bracket, say 45%, a $100 deduction saves $45. In a lower bracket (or if you’re on a part Age Pension and pay little tax), the saving is even less.

Tax expert Ann Kayis-Kumar gives a great example: if you spend $1,000 on an item thinking you’ll get a nice refund boost, and your marginal tax rate is 32.5%, that purchase only knocks $325 off your tax bill – you’re still $675 out of pocket. Or as she bluntly writes, “a tax deduction isn’t actually worth the value amount of your spend.”

In plainer terms, don’t spend money just to save on tax, because you’ll only get a fraction back. We older folk might compare it to those department store sales: “Buy 2, get 1 half price” is no deal if you only needed one item in the first place. You’re still spending more overall. The same goes for tax time shopping sprees – it’s only “on sale” in the sense that the government subsidises perhaps a third of your cost. You’re covering the rest.

This is why financial advisors and even ASIC’s MoneySmart guides often stress: Don’t let the “tax tail” wag the dog. Make purchases because you need them, not purely to chase a deduction.

Sure, if your trusty computer is on its last legs and you’ve been holding out for the EOFY deals, by all means take advantage of the sale and claim the deduction. That’s smart. But if you’re about to blow $5,000 on a fancy espresso machine for your home office purely “for the tax refund,” maybe sleep on that idea.

You might find you’d prefer the $5,000 still in your bank account (earning interest, perhaps) rather than a smaller tax refund and an overpriced gadget you didn’t truly need.

Hilarious (and Horrendous) Tax Claims People Have Tried​

Let’s be honest: tax deductions aren’t exactly the funniest topic on earth. But the lengths some folks go to are pretty hilarious – at least until the ATO knocks them back.

Rob Thomson from the ATO shared some eye-opening examples of “creative” (read: crazy) claims people have made. “We do see some funny claims — we had someone this year who tried to claim their engagement ring as a donation on the tax return,” Thomson told the ABC. (Perhaps they figured love is a charitable cause?)

Another enterprising soul, a company director working from home, attempted to claim a treadmill, a juicer, a coffee machine, and a gaming console among other things as work-related expenses. Points for creativity, but sorry – your morning smoothie and Zelda sessions aren’t valid deductions.

The ATO also revealed some of the “wild” attempts they caught last year: One mechanic tried to claim an entire haul of home appliances – an air fryer, a microwave, two vacuum cleaners, a TV, a gaming console and accessories – all as work items. (Nice try – unless your job is literally testing kitchen gadgets, that won’t fly!)

A truck driver tried to claim the cost of swimwear, arguing it was for those hot days when he’d stop for a swim during long hauls. Unsurprisingly, the taxman said “nope” to that as well, since swimming trunks are a personal expense no matter how much you needed to cool off.

And a fashion industry manager attempted to claim over $10,000 in luxury clothing and accessories, presumably to look the part at work events – also denied, since regular designer clothes are not a uniform or protective gear (they might be fabulous, but not deductible!).

These examples might make you chuckle, but they highlight an important point: the ATO has seen it all. As Thomson reminds us, if a deduction doesn’t pass the common-sense “pub test” – if you can’t imagine justifying it to a mate over a beer without getting a raised eyebrow – then it probably doesn’t meet the ATO’s criteria either. The tax office’s job is to collect the correct amount of tax owed, and they won’t tolerate people overreaching on deductions.

The Taxman Is Watching (But Fairly)​

Gone are the days when you could drop a few questionable claims into your paper return and hope for the best. In 2025, the ATO is armed with sophisticated data-matching and analytics systems to catch overstated deductions or omitted income. They receive data from employers, banks, insurance companies, state motor registries, even eBay and Airbnb.

If something looks odd – say, a retired teacher claiming a $5,000 “uniform expense” or a journalist trying to write off a power drill – it’s likely to get flagged. “When someone’s lodging, if something doesn’t look right — like, you know, a journalist trying to claim a power drill or something — we’ll ask them to look at their claims,” Mr. Thomson said in another interview.

In practice, the tax office might ping you or your accountant with a gentle query, giving you a chance to double-check and correct mistakes. But if you can’t substantiate a claim, they can and will nix it.

Now, for most honest taxpayers, none of this is cause for stress – it’s a reminder to keep good records and stay within the rules. The ATO actually wants you to claim what you’re entitled to – nothing more, nothing less. They even encourage using their occupation-specific guides to make sure you’re not missing out on legitimate deductions.

But they equally want to shut down the urban myths that lead people astray (no, there’s no “standard $300 freebie”, no you can’t claim a TV as a “home office essential” unless you really do use it for work and meet all the criteria).

For those of us in the 60+ club, this isn’t our first rodeo. We’ve seen tax rules change and we’ve possibly shared a laugh (or a groan) at the schemes people dream up. The good news is, common-sense and honest record-keeping still go a long way. Keep those receipts (or at least notes) for anything you plan to deduct – yes, even if it’s a $50 item, it doesn’t hurt to keep proof.

As Thomson wisely said, “Whether you lodge through a tax agent or yourself, don’t just copy and paste last year’s deductions… check the guidance on what you can claim”. The little effort upfront can save a lot of headache later. After all, if you are entitled to a deduction, you want to make sure you get it – and if you’re not entitled to one, well, no clever trickery is worth an audit or penalty.

The Bottom Line: Spend Smart, Deduct Smart​

The overarching theme here is balance. There’s nothing wrong with legally maximizing your tax refund. In fact, it’s wise to be aware of what you can claim – whether it’s the $300 briefcase you bought for work, or the mileage driving to a client, or a donation to a registered charity. The tax laws exist to give relief for those genuine expenses.

But the key word is genuine. Before making a purchase just because it’s “tax deductible,” ask yourself: Do I really need this? If the ATO came knocking, could I confidently say this is related to earning my income? If you hesitate, that might be a red flag.

Remember, a tax deduction will never give you back more money than you spend. At best, it softens the blow. Spend a dollar, and depending on your tax bracket, you might get 30-45 cents back. No one’s getting rich buying things “for the deduction.”

As Belinda Raso noted, you’re “not going to get all of that money back” on tax-deductible purchases – some of it is always your cost. Think of the refund as a small silver lining, not the main reason to buy something.

And if you do need that new item for work and it happens to cost over $300, don’t despair – just be strategic. If it’s June and you can wait a few weeks, consider the timing to maximize your claim in next year’s return. If you can’t wait, that’s fine too; just be prepared to spread the deduction across future years (and maybe set a reminder so you or your tax agent continue to claim the depreciation in subsequent returns!).

There’s a saying: don’t trip over dollars to pick up pennies. In tax terms, don’t overspend or contort yourself just to grab a slightly bigger refund.




Lastly, let’s tip our hat to the ATO’s efforts in educating taxpayers. They really do put out a lot of guidance to help folks avoid pitfalls and bust myths. It’s not about scaring people, it’s about steering us in the right direction. And as we’ve seen, they’re not above sharing a laugh – whether it’s the infamous air fryer deduction attempt or the engagement-ring-turned-“donation” story, there’s a bit of humour amid the warnings.

So take the advice, enjoy the chuckles at those who tried it on, and make sure we don’t end up as the next funny anecdote in an ATO press release!

In the end, the smartest approach is to spend your money wisely, keep good records, claim what you’re entitled to, and let the rest go. A tax refund is wonderful, but spending $1 just to get a few cents back isn’t a great bargain.

What do you think – would you splurge on something just for a tax deduction, or do you prefer to hang onto your hard-earned cash and only claim genuinely necessary expenses?