Overlooked ATO tax deductions could boost retirees’ refunds by $974: Are you missing out?
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Tax time is around the corner, and if you’re a retiree in Australia, you might think you’ve left your days of juicy tax deductions behind with your 9-to-5 job.
Think again. Every year, millions of Australians – especially older Aussies – leave hundreds of dollars on the table by forgetting or overlooking deductions they’re entitled to.
In fact, savvy taxpayers who plan ahead often see their refunds jump by an extra $974 on average compared to those who don’t. That’s not just coffee money – it could fund a weekend getaway, spoil the grandkids, or top up your savings.
In this editorial, we’ll shine a light on the commonly missed tax deductions that could put money back in your pocket, with a focus on those most relevant to retirees. Along the way, we’ll share expert tips on how to avoid short-changing yourself at tax time.
Some retirees assume “I’m not working, so nothing is deductible” – a costly misconception. Others might recall tax rules from decades past and not realise what’s changed. Complex rules and frequent changes (thanks to our friends at the ATO) don’t help either, causing plenty of perfectly valid expenses to slip through the cracks.
As tax advisor “Tax Tips and Tricks” Kiki noted, “people forget” the easy wins at tax time – and it’s money they could be enjoying in retirement instead of leaving with the taxman.
Another factor is Aussie modesty or misgivings about claiming certain things. For example, many generous folks donate to charity but feel claiming a deduction somehow diminishes their goodwill. Newsflash: the tax office wants you to claim it!
Australian Red Cross research found six out of seven Australians donate to charity each year, yet only about one-third claim it on their tax returns. That’s a lot of unclaimed refunds for good deeds.
“Please make sure you claim it on your tax because it will reduce your overall tax payment and increase your refund,” urges Red Cross director Nichola Krey. Some even deliberately don’t claim, thinking they shouldn’t profit from giving.
To them, Chartered Accountant Adrian Raftery has a cheeky suggestion: if you feel guilty claiming a donation deduction, just double your donation and claim half back – you end up giving the same out-of-pocket amount, and the extra refund can go to your charity next year!
Meanwhile, at the other end of the spectrum, a few exuberant taxpayers try to claim too much – and the ATO has seen some doozies. (One optimistic Aussie tried to claim an engagement ring as a “donation”, and a company director attempted to write off a treadmill, juicer, coffee machine and gaming console as work-from-home expenses – nice try, but no!).
These stories make headlines and the ATO cracks down on dodgy claims, which can spook honest retirees into under-claiming out of fear. But remember, claiming legitimate deductions is your right – as long as you follow the ATO’s “three golden rules”: you paid for it yourself, it directly relates to earning your income, and it isn’t personal in nature.
So let’s focus on those legit deductions you might be missing.
However, the ATO’s medical expenses tax offset was phased out in 2019, so unfortunately general medical and dental bills are no longer claimable (aside from very specific historical cases involving disability aids or aged care costs up to 2019). That means your new reading glasses, hearing aids, or physio sessions are not tax-deductible, even though they’re vital in retirement. It’s a point of confusion for many older Australians, so worth emphasizing: private health insurance premiums and normal medical costs do not count as tax deductions (though having private cover may give you a separate rebate or reduce your Medicare levy).
So, while you can’t send the ATO your dental bill, don’t lose heart – there are plenty of other deductions you can claim. The key is to look at expenses tied to earning any income you still have. Retirees come in all stripes: some of you have part-time jobs or consulting gigs, others have investments generating income, and many donate or pay for financial advice. All these activities can come with deductible expenses, which we’ll break down next.
Self-education expenses can be tax-deductible if the study relates to current income or work (including self-employment or a side-hustle). This can include course fees, textbooks, software, and even travel costs to attend a class or exam. For example, if you’re doing a part-time consulting gig and you enroll in a course to keep your professional accreditation or learn new software, those costs are fair game.
Many people miss out on this because they assume education is only for the young or fully employed. In reality, Aussies of all ages spend an average of $1,936 a year on self-education, and if you’re in a moderate tax bracket, that could mean roughly $600-$900 back in your refund. That’s a substantial return for investing in yourself.
The mistake retirees often make is thinking, “I’m not formally employed, so I can’t claim study costs.” But if that study has a nexus to any income (present or even a realistic future income stream), you’re entitled to claim it.
Key tip: Keep enrollment confirmations, receipts for course materials, and a note of how it ties to your income. If you’re planning to upskill, consider prepaying fees before June 30 – you’ll bring forward the deduction to this financial year and potentially boost your immediate refund.
The ATO offers a simple flat rate deduction for working from home: currently 67 cents per hour (rising to 70c for 2024–25) to cover your electricity, internet, and general wear-and-tear. It’s an easy option if you don’t want to fuss over bills. For instance, if you spent 10 hours a week doing freelance consulting from your home office, that’s about 520 hours a year – roughly a $348 deduction (520 × $0.67).
It’s not huge, but hey, that could be ~$100 off your tax bill if you’re in the 30% bracket – better in your pocket than the ATO’s.
However, 70c/hour isn’t the only way. If you have a dedicated home office or high running costs, you might get a bigger deduction by calculating actual expenses. This means you can prorate a portion of your household bills (power, internet, water), office equipment depreciation, and even a slice of rent or property rates interest if applicable, based on your work area.
For example, a retiree doing part-time accounting from a study could claim, say, 10% of their home utility bills if that study is 10% of the house. Over a year of electricity, internet, and phone bills, that could exceed the flat rate. The catch? Record-keeping.
The ATO is strict here – you must keep detailed records of hours worked (a diary or time log) and receipts for every expense you claim. “Only a record kept at the time the hours are worked from home is acceptable,” the ATO warns, so no guesstimating after the fact.
They tightened these rules recently, so be diligent: use a calendar or the ATO’s myDeductions app to track your work-from-home hours.
Why do people miss this? Many retirees doing occasional work from home don’t realise their couch (or kitchen table) qualifies as a home office. Others find the rules confusing, so they opt not to claim anything.
Our advice: claim what you’re entitled to, but not a cent more. If you’re unsure whether an expense counts (that new coffee machine for “client meetings” in your kitchen... probably not!), err on the side of caution or ask a tax professional.
Remember, ordinary home costs like your mortgage or groceries are not deductible – only the expenses tied to working and only the proportion for the work use. Get it right and you’ll keep more of your hard-earned side-hustle income without tripping any ATO wires.
Yet many people overlook these because each item seems small – but they add up. Let’s list some big ones:
Don’t fall into the trap of thinking “investment income is passive, so there are no deductions.” Passive doesn’t mean free of costs!
Percentage of Australian adults who donate to charity vs those who claim the donation on their tax. Many give (around 85%), but far fewer (about 33%) actually claim the deduction, according to Red Cross research.
Why do so many donations go unclaimed? Often it’s as simple as not keeping receipts or forgetting those gold-coin donations in the supermarket bucket. Some retirees also worry that claiming a deduction for a donation somehow taints the gift – but as World Vision CEO Daniel Wordsworth reminds donors, “every dollar donated before June 30 can reduce your taxable income, so you’re helping others while also being strategic with your money”.
In other words, claiming your charitable contributions doesn’t detract from the goodness – it actually puts you in a better position to keep giving.
Here are a few pointers to ensure your generosity boosts your refund too:
And if you’re budgeting a certain amount to give, remember Adrian Raftery’s advice – claiming lets you give more at no extra cost. For example, if you want a charity to end up with $100 and you’re in the 30% tax bracket, donate $143; after your $43 tax refund, it’s cost you $100 net, but the charity got more.
Examples might include the local chapter of an engineering society, a nursing council registration, or a software license like LinkedIn Premium used for professional networking.
Why are these missed? Many people associate union fees or memberships with their working life and simply stop claiming them after retirement, even if they continue paying. If you’re still doing any paid work related to that field, don’t overlook these costs. Even journal subscriptions or online resources related to your profession can be deducted – say you subscribe to a finance newspaper to inform your share trading, or a medical journal to consult in semi-retirement.
Just ensure it ties to a current income source. If it’s purely personal interest with no income intent, it’s not claimable. But in the overlap of passion and profit, there’s a tax deduction waiting.
A side note: If you have a union fee from earlier in the year (for those who fully retired partway through the year, for instance), you can still claim the portion up to when you stopped working in that field. And if you subscribe to services like cloud storage or design software for a small side business (maybe you’re monetising a hobby in retirement), those count too.
For example, the fee you paid in July 2024 for last year’s return can be claimed on your 2024–25 return. This is one deduction people often forget simply because it’s a year behind – you’re thinking of what you spent this year, but the tax prep fee was for last year. Make sure to dig out the invoice from your accountant or note the deduction if you use tax software (even the cost of the software or e-filing fee is deductible). It’s essentially a discount on using professional help – so take it!
Similarly, fees for financial advice related to producing income can be claimed. If you saw a financial planner to discuss your investment portfolio or an accountant for tax planning, those fees are deductible.
Be aware of the distinction: advice on how to invest for income = deductible; advice purely on budgeting or choosing a super fund = possibly not, if it’s not directly generating taxable income. Many retirees engage advisors to manage their retirement investments – ensure their invoices are kept for tax time.
What about insurance? We touched on health insurance (no deduction), but Income Protection Insurance is a special case. If you have an income protection policy outside your super (designed to pay you a benefit if you can’t work due to injury/illness), those premiums are 100% tax deductible. This often slips by because by retirement, some may cancel these policies or hold them inside super (premiums paid inside super can’t be claimed on your personal tax).
However, if you’re still working part-time or have a legacy policy you keep, don’t forget to claim those premiums. For higher-income earners, you get back 32% to 47% of every dollar spent on income protection via your tax return – a significant saving – yet many people forget to include it. It’s literally a deduction designed to help you afford protecting your income.
Just note, life insurance or trauma insurance premiums are not deductible (common mistake; only the income replacement type insurance qualifies).
Lastly, if you’ve made any personal superannuation contributions (beyond what any employer might have done) and you intend to claim them as a deduction – a strategy more retirees are using – be sure to do the paperwork.
Australians under 75 can generally make personal concessional contributions to super and then claim a tax deduction for the amount, effectively treating it like an employer contribution. This can be a great move for semi-retirees or those with investment income, as it shifts money into the low-tax super environment and reduces your taxable income.
For instance, a 64-year-old who sold an investment property profit and wants to reduce this year’s tax could contribute, say, $20,000 to their super fund (within caps) and claim the deduction, potentially saving up to $9,400 in tax (47% top rate) or less depending on their bracket.
Important: you must submit a “Notice of intent to claim” form to your super fund and receive acknowledgment before lodging your return. If you’ve never heard of this, talk to your accountant or check the ATO guidance – it’s often overlooked because years ago only self-employed could do it, but now it’s open to most people. Just ensure you stay within the annual concessional contribution cap (currently $27,500) and any age-related rules.
Each of these items might seem small on its own, but together they can dramatically improve your tax outcome. A retired couple, for instance, could easily have a few thousand dollars of deductions once they add up some home office time, a training course, donations, investment fees, and so on – which could translate to hundreds of dollars back from the ATO instead of foregone.
It’s also wise to stay informed. Tax rules do change – what was claimable five years ago might not be today, and new opportunities (like the super contributions deduction) open up as laws are updated. Subscribe to an ATO newsletter or follow reputable financial news. Even the humble library or community center often has seminars for seniors come tax time. A little up-to-date knowledge can turn up new deductions or prevent mistakes.
Finally, don’t be afraid to get expert help. This stuff can be complicated, and everyone’s situation is unique. A registered tax agent or financial adviser can identify obscure deductions you might miss and ensure you’re within the rules.
Considering those who get professional advice tend to boost their refunds significantly (one survey found their refunds averaged $3,550 – about $974 higher than the norm), it may well pay for itself. As the ATO itself emphasizes, if you’re unsure, it’s OK to ask – better to claim correctly than not at all.
Tax time might never be fun, but with a bit of savvy, it can be rewarding. You’ve worked hard for your money; now make sure you claim every dollar of deduction you’re entitled to. After all, the only thing better than learning from your mistakes is learning from others’ – so learn from those who forgot, and don’t leave your money in the ATO’s pocket.
So, as you gather your documents this year, ask yourself: What would you do with a little extra boost in your tax refund – and is it worth a bit of paperwork to find out?
The information provided in this article is for general informational purposes only and does not constitute professional financial advice. Readers are encouraged to consult with a qualified financial advisor or other professional to assess their individual circumstances before making any financial decisions.
Think again. Every year, millions of Australians – especially older Aussies – leave hundreds of dollars on the table by forgetting or overlooking deductions they’re entitled to.
In fact, savvy taxpayers who plan ahead often see their refunds jump by an extra $974 on average compared to those who don’t. That’s not just coffee money – it could fund a weekend getaway, spoil the grandkids, or top up your savings.
In this editorial, we’ll shine a light on the commonly missed tax deductions that could put money back in your pocket, with a focus on those most relevant to retirees. Along the way, we’ll share expert tips on how to avoid short-changing yourself at tax time.
The Case of the Missing Deductions: Why Do We Forget?
It turns out forgetting tax deductions is practically a national sport. The culprit? Simple forgetfulness and a dash of confusion. Many of us either don’t keep good records or just aren’t aware of what we can legally claim.Some retirees assume “I’m not working, so nothing is deductible” – a costly misconception. Others might recall tax rules from decades past and not realise what’s changed. Complex rules and frequent changes (thanks to our friends at the ATO) don’t help either, causing plenty of perfectly valid expenses to slip through the cracks.
As tax advisor “Tax Tips and Tricks” Kiki noted, “people forget” the easy wins at tax time – and it’s money they could be enjoying in retirement instead of leaving with the taxman.
Another factor is Aussie modesty or misgivings about claiming certain things. For example, many generous folks donate to charity but feel claiming a deduction somehow diminishes their goodwill. Newsflash: the tax office wants you to claim it!
Australian Red Cross research found six out of seven Australians donate to charity each year, yet only about one-third claim it on their tax returns. That’s a lot of unclaimed refunds for good deeds.
“Please make sure you claim it on your tax because it will reduce your overall tax payment and increase your refund,” urges Red Cross director Nichola Krey. Some even deliberately don’t claim, thinking they shouldn’t profit from giving.
To them, Chartered Accountant Adrian Raftery has a cheeky suggestion: if you feel guilty claiming a donation deduction, just double your donation and claim half back – you end up giving the same out-of-pocket amount, and the extra refund can go to your charity next year!
Meanwhile, at the other end of the spectrum, a few exuberant taxpayers try to claim too much – and the ATO has seen some doozies. (One optimistic Aussie tried to claim an engagement ring as a “donation”, and a company director attempted to write off a treadmill, juicer, coffee machine and gaming console as work-from-home expenses – nice try, but no!).
These stories make headlines and the ATO cracks down on dodgy claims, which can spook honest retirees into under-claiming out of fear. But remember, claiming legitimate deductions is your right – as long as you follow the ATO’s “three golden rules”: you paid for it yourself, it directly relates to earning your income, and it isn’t personal in nature.
So let’s focus on those legit deductions you might be missing.
Image source: Seniors Discount Club
1. Health Expenses: The Myths and Realities
First, let’s tackle a big question for seniors: “Can I claim my medical and health expenses on tax?” If you asked this some years ago, you might recall a tax offset for out-of-pocket medical costs.However, the ATO’s medical expenses tax offset was phased out in 2019, so unfortunately general medical and dental bills are no longer claimable (aside from very specific historical cases involving disability aids or aged care costs up to 2019). That means your new reading glasses, hearing aids, or physio sessions are not tax-deductible, even though they’re vital in retirement. It’s a point of confusion for many older Australians, so worth emphasizing: private health insurance premiums and normal medical costs do not count as tax deductions (though having private cover may give you a separate rebate or reduce your Medicare levy).
So, while you can’t send the ATO your dental bill, don’t lose heart – there are plenty of other deductions you can claim. The key is to look at expenses tied to earning any income you still have. Retirees come in all stripes: some of you have part-time jobs or consulting gigs, others have investments generating income, and many donate or pay for financial advice. All these activities can come with deductible expenses, which we’ll break down next.
2. Self-Education: Learning New Tricks (and Claiming Them)
Just because you’ve retired from your main career doesn’t mean you’ve stopped learning or even earning. Perhaps you took a short course or workshop to sharpen your skills – maybe an online bookkeeping class to help manage your investment property, or a seminar on starting a small online business in retirement.Self-education expenses can be tax-deductible if the study relates to current income or work (including self-employment or a side-hustle). This can include course fees, textbooks, software, and even travel costs to attend a class or exam. For example, if you’re doing a part-time consulting gig and you enroll in a course to keep your professional accreditation or learn new software, those costs are fair game.
Many people miss out on this because they assume education is only for the young or fully employed. In reality, Aussies of all ages spend an average of $1,936 a year on self-education, and if you’re in a moderate tax bracket, that could mean roughly $600-$900 back in your refund. That’s a substantial return for investing in yourself.
The mistake retirees often make is thinking, “I’m not formally employed, so I can’t claim study costs.” But if that study has a nexus to any income (present or even a realistic future income stream), you’re entitled to claim it.
Key tip: Keep enrollment confirmations, receipts for course materials, and a note of how it ties to your income. If you’re planning to upskill, consider prepaying fees before June 30 – you’ll bring forward the deduction to this financial year and potentially boost your immediate refund.
3. Working from Home: More Than Just Cents per Hour
Many retirees are surprised to find themselves working from home these days – be it consulting, tutoring, or managing an online hobby business. If you earn income from home, you can claim a deduction for the related expenses.The ATO offers a simple flat rate deduction for working from home: currently 67 cents per hour (rising to 70c for 2024–25) to cover your electricity, internet, and general wear-and-tear. It’s an easy option if you don’t want to fuss over bills. For instance, if you spent 10 hours a week doing freelance consulting from your home office, that’s about 520 hours a year – roughly a $348 deduction (520 × $0.67).
It’s not huge, but hey, that could be ~$100 off your tax bill if you’re in the 30% bracket – better in your pocket than the ATO’s.
However, 70c/hour isn’t the only way. If you have a dedicated home office or high running costs, you might get a bigger deduction by calculating actual expenses. This means you can prorate a portion of your household bills (power, internet, water), office equipment depreciation, and even a slice of rent or property rates interest if applicable, based on your work area.
For example, a retiree doing part-time accounting from a study could claim, say, 10% of their home utility bills if that study is 10% of the house. Over a year of electricity, internet, and phone bills, that could exceed the flat rate. The catch? Record-keeping.
The ATO is strict here – you must keep detailed records of hours worked (a diary or time log) and receipts for every expense you claim. “Only a record kept at the time the hours are worked from home is acceptable,” the ATO warns, so no guesstimating after the fact.
They tightened these rules recently, so be diligent: use a calendar or the ATO’s myDeductions app to track your work-from-home hours.
Why do people miss this? Many retirees doing occasional work from home don’t realise their couch (or kitchen table) qualifies as a home office. Others find the rules confusing, so they opt not to claim anything.
Our advice: claim what you’re entitled to, but not a cent more. If you’re unsure whether an expense counts (that new coffee machine for “client meetings” in your kitchen... probably not!), err on the side of caution or ask a tax professional.
Remember, ordinary home costs like your mortgage or groceries are not deductible – only the expenses tied to working and only the proportion for the work use. Get it right and you’ll keep more of your hard-earned side-hustle income without tripping any ATO wires.
Image source: Seniors Discount Club
4. Managing Investments: Deductions for Making Your Money Work
Retirees often have their money working as hard as they once did, whether it’s in shares, managed funds, rental properties, or term deposits. Here’s a well-kept secret: the costs of managing your investments are generally tax-deductible. If you derive interest, dividends, or rent, you can usually claim a host of related expenses.Yet many people overlook these because each item seems small – but they add up. Let’s list some big ones:
- Financial advice fees: Do you consult a financial adviser or stockbroker about your investments? Ongoing advisory fees related to producing assessable income (say, advice on your share portfolio or rental strategy) are deductible. Initial planning fees might not be (they’re considered capital in nature), but the continuing service fees or portfolio management fees definitely are. Don’t forget subscription fees for investment newsletters or stock analysis tools – if they help you earn investment income, they count.
- Interest on loans for investments: If you borrowed to invest – perhaps a margin loan for shares or a loan on a rental property – the interest is deductible against the income those investments produce. An often-missed trick: you can even prepay up to 12 months of interest on some investment loans and claim it all this year. This is a common strategy as June 30 approaches, especially if you want to bring forward deductions (check with your lender if they allow prepayment and ensure it makes financial sense). For retirees with a nest egg in shares, prepaying interest on a loan used to buy those shares could boost this year’s refund – essentially borrowing a deduction from next year.
- Rental property expenses: It’s not just the obvious ones like property management fees, council rates, and maintenance. A lot of retirees forget depreciation – if you have a rental, things like a new hot water system, carpets or appliances can be depreciated (claimed over time). Even the building itself (if built after 1987) has a depreciation allowance. Consider getting a quantity surveyor’s depreciation schedule if you’ve never had one; it identifies all those deductions. Refinancing costs on your investment property loan? Deductible too – usually spread over 5 years. It’s technical, but the short of it is: keep every receipt related to your rental. That new smoke alarm you installed for $80 might only give a $80 deduction, but combine it with insurance premiums, repairs, agent fees – suddenly you’re looking at a much lower tax bill on your rental income. Pro tip: The ATO finds rental claims are rife with errors, so make sure you distinguish between repairs (immediate deduction) and improvements (depreciated over time), and only claim the property expenses for periods it was rented or available for rent.
- Investment-related travel: Once upon a time, you could claim travel to visit your rental property. Rules tightened in 2017 (individuals generally can’t claim rental travel now). But if you travel to see your financial planner or attend an investment seminar, those costs might be deductible as part of managing your investments. It’s worth checking – just ensure the primary purpose of the trip was investment-related and you have records.
- Capital losses: Not exactly a deduction you claim against income (they only offset capital gains), but it’s often overlooked. If you sold some shares at a loss, make sure to declare those capital losses – they can offset your capital gains this year, or be carried forward to future years. Retirees sometimes sell down assets to rebalance portfolios; don’t ignore the paperwork on losses thinking “oh well, lost money, nothing to do.” Recording that loss can save you tax when you next realize a gain.
Don’t fall into the trap of thinking “investment income is passive, so there are no deductions.” Passive doesn’t mean free of costs!
5. Charitable Donations: Generosity Deserves a Refund
Australians are a generous bunch, especially our seniors – you’ve spent a lifetime giving back to the community. As mentioned earlier, the majority donate to charity, but only a minority claim the deduction. Let’s put this visually:Percentage of Australian adults who donate to charity vs those who claim the donation on their tax. Many give (around 85%), but far fewer (about 33%) actually claim the deduction, according to Red Cross research.
Why do so many donations go unclaimed? Often it’s as simple as not keeping receipts or forgetting those gold-coin donations in the supermarket bucket. Some retirees also worry that claiming a deduction for a donation somehow taints the gift – but as World Vision CEO Daniel Wordsworth reminds donors, “every dollar donated before June 30 can reduce your taxable income, so you’re helping others while also being strategic with your money”.
In other words, claiming your charitable contributions doesn’t detract from the goodness – it actually puts you in a better position to keep giving.
Here are a few pointers to ensure your generosity boosts your refund too:
- Only donations to Deductible Gift Recipients (DGRs) are claimable. Most well-known charities are DGRs. If you’re not sure, you can check the Australian Business Register or the charity’s website. Donations to individuals (e.g. GoFundMe for a person’s medical bills) usually cannot be claimed, even though they’re kind.
- No material benefit in return. If you bought raffle tickets or fundraising chocolates, that’s not a pure donation – you got something (a chance to win or a sweet treat). The rule is, you can’t claim the part that’s a personal benefit. So if you pay $50 for a charity dinner, and the dinner value is $50, sorry, no deduction.
- Get receipts and keep them for 5 years. Though note, for small cash donations (under $10) you’re not required to have a receipt – the ATO lets you claim those based on trust. Still, it’s good practice to document what you can. Many charities email receipts; create an email folder for them so they don’t get lost in the inbox.
- Whose name is the donation in? If you and your partner are both generous, consider making most donations in the name of the higher income earner. Why? The tax deduction is worth more to someone in a higher bracket (up to 47¢ in the dollar back). If one spouse is low-income or not required to lodge a return, a receipt in their name won’t benefit at tax time. This is a perfectly legal optimization – you’re not giving any less to the charity, just maximizing the refund.
And if you’re budgeting a certain amount to give, remember Adrian Raftery’s advice – claiming lets you give more at no extra cost. For example, if you want a charity to end up with $100 and you’re in the 30% tax bracket, donate $143; after your $43 tax refund, it’s cost you $100 net, but the charity got more.
6. Professional Memberships and Subscriptions: Claim Your Credentials
Retirees who remain active in their professional field – perhaps doing occasional consulting, or even just staying in the loop – often maintain memberships in professional associations or subscriptions to industry journals. These fees are typically tax-deductible if the membership or subscription is relevant to earning income.Examples might include the local chapter of an engineering society, a nursing council registration, or a software license like LinkedIn Premium used for professional networking.
Why are these missed? Many people associate union fees or memberships with their working life and simply stop claiming them after retirement, even if they continue paying. If you’re still doing any paid work related to that field, don’t overlook these costs. Even journal subscriptions or online resources related to your profession can be deducted – say you subscribe to a finance newspaper to inform your share trading, or a medical journal to consult in semi-retirement.
Just ensure it ties to a current income source. If it’s purely personal interest with no income intent, it’s not claimable. But in the overlap of passion and profit, there’s a tax deduction waiting.
A side note: If you have a union fee from earlier in the year (for those who fully retired partway through the year, for instance), you can still claim the portion up to when you stopped working in that field. And if you subscribe to services like cloud storage or design software for a small side business (maybe you’re monetising a hobby in retirement), those count too.
7. Tax, Insurance and Financial Advice: The Help That Helps You
Filing a tax return can be daunting, which is why many retirees hire a tax agent or accountant – and that cost itself is deductible. Tax agent fees for preparing your return are fully tax-deductible in the year you pay them.For example, the fee you paid in July 2024 for last year’s return can be claimed on your 2024–25 return. This is one deduction people often forget simply because it’s a year behind – you’re thinking of what you spent this year, but the tax prep fee was for last year. Make sure to dig out the invoice from your accountant or note the deduction if you use tax software (even the cost of the software or e-filing fee is deductible). It’s essentially a discount on using professional help – so take it!
Similarly, fees for financial advice related to producing income can be claimed. If you saw a financial planner to discuss your investment portfolio or an accountant for tax planning, those fees are deductible.
Be aware of the distinction: advice on how to invest for income = deductible; advice purely on budgeting or choosing a super fund = possibly not, if it’s not directly generating taxable income. Many retirees engage advisors to manage their retirement investments – ensure their invoices are kept for tax time.
What about insurance? We touched on health insurance (no deduction), but Income Protection Insurance is a special case. If you have an income protection policy outside your super (designed to pay you a benefit if you can’t work due to injury/illness), those premiums are 100% tax deductible. This often slips by because by retirement, some may cancel these policies or hold them inside super (premiums paid inside super can’t be claimed on your personal tax).
However, if you’re still working part-time or have a legacy policy you keep, don’t forget to claim those premiums. For higher-income earners, you get back 32% to 47% of every dollar spent on income protection via your tax return – a significant saving – yet many people forget to include it. It’s literally a deduction designed to help you afford protecting your income.
Just note, life insurance or trauma insurance premiums are not deductible (common mistake; only the income replacement type insurance qualifies).
Lastly, if you’ve made any personal superannuation contributions (beyond what any employer might have done) and you intend to claim them as a deduction – a strategy more retirees are using – be sure to do the paperwork.
Australians under 75 can generally make personal concessional contributions to super and then claim a tax deduction for the amount, effectively treating it like an employer contribution. This can be a great move for semi-retirees or those with investment income, as it shifts money into the low-tax super environment and reduces your taxable income.
For instance, a 64-year-old who sold an investment property profit and wants to reduce this year’s tax could contribute, say, $20,000 to their super fund (within caps) and claim the deduction, potentially saving up to $9,400 in tax (47% top rate) or less depending on their bracket.
Important: you must submit a “Notice of intent to claim” form to your super fund and receive acknowledgment before lodging your return. If you’ve never heard of this, talk to your accountant or check the ATO guidance – it’s often overlooked because years ago only self-employed could do it, but now it’s open to most people. Just ensure you stay within the annual concessional contribution cap (currently $27,500) and any age-related rules.
Quick Reference: Common Overlooked Deductions for Retirees
Sometimes it’s handy to see all these ideas at a glance. Here’s a quick summary of deductions retirees should double-check before hitting “Submit” on that tax return:| Deduction Category | What to Remember | Why It’s Missed |
| Work-from-home expenses | 67¢/hour (2023–24) or 70¢/hour (2024–25) shortcut, or actual costs (power, internet, etc.) if you keep receipts. Even a part-time gig from home counts. | Many don’t realise part-time or casual home work qualifies; record-keeping can deter claims. |
| Self-education | Courses, workshops, accreditation related to current or future income. Includes fees, books, travel. | Retirees assume it’s not for them; forget that skill-up costs for a side hustle are claimable. |
| Charitable donations | $2 and over to DGR charities. Keep receipts (up to $10 ok without). Claim spouse’s donations under higher earner if possible. | People are too humble or forgetful – don’t log small gifts, or feel they shouldn’t claim generosity. |
| Investment costs | Interest on investment loans, advisor fees, bank fees, investment magazines, rental property costs (maintenance, insurance, agent fees, depreciation). | Often seen as “automatic” or minor. Many don’t track the little expenses that support their investment income. |
| Professional memberships | Union dues, professional association fees, trade magazines, even LinkedIn Premium if used for earning income. | Stopping full-time work = people stop claiming these, even if they still pay and do related work. |
| Tax agent & filing fees | Cost of last year’s tax return prep or tax software. Also travel to see your accountant. Deduct in the year after you paid it. | Easy to forget last year’s fee when filing this year. Many DIY filers don’t know software costs count too. |
| Income protection premiums | Premiums for policies outside super that insure your income. (Not life or health insurance.) | Often overlooked because most insurance isn’t deductible. People don’t realise this one is the exception. |
| Personal super contributions | Money you put into super (voluntarily) and notify as deductible, up to the annual cap. Great for semi-retirees with extra income. | New-ish rule; many seniors aren’t aware they can top up super and get a deduction, due to outdated assumptions. |
Don’t Let the Taxman Keep Your Change: Plan and Keep Records
The key to nabbing these deductions is planning and documentation. As the saying goes, “if you fail to plan, you plan to fail (at tax time).” Keep a little folder (physical or digital) for tax-related receipts throughout the year. Jot down notes when you incur an expense that might be deductible – you’ll thank yourself in July when your memory is fuzzy. The ATO requires most records be kept for five years, so don’t toss those receipts too soon.It’s also wise to stay informed. Tax rules do change – what was claimable five years ago might not be today, and new opportunities (like the super contributions deduction) open up as laws are updated. Subscribe to an ATO newsletter or follow reputable financial news. Even the humble library or community center often has seminars for seniors come tax time. A little up-to-date knowledge can turn up new deductions or prevent mistakes.
Finally, don’t be afraid to get expert help. This stuff can be complicated, and everyone’s situation is unique. A registered tax agent or financial adviser can identify obscure deductions you might miss and ensure you’re within the rules.
Considering those who get professional advice tend to boost their refunds significantly (one survey found their refunds averaged $3,550 – about $974 higher than the norm), it may well pay for itself. As the ATO itself emphasizes, if you’re unsure, it’s OK to ask – better to claim correctly than not at all.
Image source: Seniors Discount Club
Tax time might never be fun, but with a bit of savvy, it can be rewarding. You’ve worked hard for your money; now make sure you claim every dollar of deduction you’re entitled to. After all, the only thing better than learning from your mistakes is learning from others’ – so learn from those who forgot, and don’t leave your money in the ATO’s pocket.
So, as you gather your documents this year, ask yourself: What would you do with a little extra boost in your tax refund – and is it worth a bit of paperwork to find out?
The information provided in this article is for general informational purposes only and does not constitute professional financial advice. Readers are encouraged to consult with a qualified financial advisor or other professional to assess their individual circumstances before making any financial decisions.
