19 Oct 2026
Do You Need a Tax Agent in 2026–27? When Paying Someone Makes Sense
Wondering do you need a tax agent this year? See when lodging yourself is fine, when paying someone makes sense, and how good records help either way.
Lodgya blog · 19 October 2026
Uncommon Tax Deductions in Australia 2026-27: Legal Claims Most People Miss
Uncommon tax deductions Australians often miss, from sunscreen and handbags to rental bank fees and the new $1,000 standard deduction for 2026-27.
8 min read
🧮 Try our work from home calculator ↓General information only, not tax advice. This article doesn't take your personal circumstances into account, and tax rules change each income year. Check the ATO website or speak to a registered tax agent before acting on it. Lodgya is a record-keeping tool and is not a registered tax agent. See our disclaimer.
Most Australian tax returns look the same. A few work-related expenses, maybe a donation, and a phone bill rounded to a suspiciously neat number. The deductions people forget are often sitting in plain sight: the sunscreen in the ute, the handbag that carries work files, the bookkeeping fee on a rental, the income protection premium paid from your own pocket.
None of these claims are secret loopholes. They are ordinary expenses that meet the ATO's rules, and plenty of taxpayers miss them because nobody explained that they count. This guide covers the uncommon tax deductions worth checking before you lodge for 2026-27, plus the records that keep a good claim out of trouble. It is general information, not tax advice, and a registered tax agent can confirm what fits your situation.
Why uncommon deductions get missed
Deductions tend to get copied from year to year. If your first return was prepared with a standard list, that list can follow you for a decade. ATO guidance splits deductions into broad groups such as work-related costs, home office costs, gifts and donations, investment costs and insurance. Within those groups are items that feel too small or too personal to claim, which is exactly why they get left out.
There is also a confidence problem. People assume a claim needs to be large or complicated. A lawful deduction can be small, boring and backed by a receipt. The test is whether the expense relates to earning your income and whether you can show it.
Work-related claims people forget
The ATO lists employment expenses including business-connected travel, car expenses, subscriptions to professional or trade organisations, certain home office expenses and protective clothing, as long as they are not reimbursed and are properly substantiated. An expense is not deductible just because it feels work-related.
Sunscreen, sun hats and protective gear
Sunscreen and sun hats have shown up on lists of surprising deductions, and protective clothing is recognised as an employment expense. If your job keeps you outdoors or exposes you to the sun, the cost of sun protection may be claimable where it meets the ATO's rules. Keep the receipt rather than guessing the amount at tax time.
Bags, briefcases and handbags
Briefcases and handbags appear on lists of overlooked deductions for a simple reason: many people use one bag for work and everything else. A bag can be claimable where it is used for work purposes and meets the ATO's rules. If you use it for work and personal use, only the work-related portion is relevant. A note about what you carry and how often can help you work out a fair split.
Mobile phone and subscriptions
Mobile phone bills and subscriptions and memberships are regularly flagged as missed deductions. A phone used for work calls, emails or rosters can support a claim for the work-related portion of the bill. Professional memberships and subscriptions can count where they relate to your work. Download the statements and mark the work use rather than reconstructing it months later.
Self-education costs
Self-education costs appear on both common and surprising deduction lists, which tells you how unevenly they are claimed. Before you include a course, check the ATO's rules on how the study connects to your work. Not every course qualifies. The ones that do can include tuition, books and other costs, but the connection to your current income is the part that needs checking.
Home office and the new standard deduction
Home office costs are a recognised deduction category, and the way they are claimed has been changing. From 1 July 2026, a standard tax deduction of up to AUD 1,000 is available without substantiation for individuals with assessable labour income. That gives eligible taxpayers a simpler starting point than tracking every electricity bill and internet charge.
The same guidance says deductions can still be claimed in addition to the standard deduction for substantiated items such as income protection insurance and personal sickness and accident insurance premiums. In other words, the standard deduction does not automatically replace every other claim. Check how the rules apply to your income type before you decide which method gives you the better result.
Home office costs beyond the basics
If you claim actual home office costs rather than the standard deduction, the details matter. The ATO refers to certain home office expenses as employment expenses, and the deduction depends on genuine work use. Keep a record of the hours, the expenses and the method you used. A dedicated folder or app beats a shoebox of receipts when questions come up.
Rental property costs landlords overlook
Landlords tend to remember interest, repairs and property management fees. The smaller running costs often disappear into the background, even though the ATO allows deductions for rental property income and expenses. Lists of commonly forgotten rental deductions include bank fees, gardening and lawn mowing, pest control, security patrol fees, and secretarial and bookkeeping fees.
None of these are automatic. Each one needs to relate to the rental property and be properly recorded. A lawn mowing invoice for the rental is useful; a vague note that you paid someone cash is not. Keep the invoices with the property records and note which property they belong to, especially if you own more than one.
Investment and insurance deductions
The ATO's deductions guidance covers investments, insurance, personal super contributions, foreign pensions and financial advice. These are not fringe claims, but they are easy to overlook because they arrive as separate statements rather than a single receipt. Income protection insurance is a common example. If you pay the premium yourself, check whether it is deductible and keep the statement.
Investment-related costs are another area where people underclaim. The paperwork can include management fees, account costs and advice charges. Not every line item will be deductible, and some costs need to be apportioned. Save the annual statements and ask your tax agent which parts apply before you lodge.
Business and sole trader claims
Sole traders have more room to claim, and more chances to miss something. Overlooked business deductions include prepaid expenses, tools and software such as laptops, business apps, design tools and accounting platforms, vehicle use for business, and home office costs. These are ordinary business costs, but they often get missed when the records are scattered.
Vehicle use is a good example. Business-connected travel and automobile expenses are recognised employment expenses for employees, and business vehicle use can be claimed by sole traders. The claim needs a record of the business trips, not a rough percentage pulled from memory. A simple logbook or trip record makes the claim much easier to defend.
Gifts and donations: the $2 threshold change
Donations are one of the better-known deductions, but the rules have moved. The ATO has flagged the removal of the $2 minimum threshold for gifts made to deductible gift recipients. That means eligible gifts can be claimed regardless of the amount donated. Special rules remain for political donations and other categories, so a small donation is not automatically claimable just because it is small.
The key is the recipient. The organisation needs to be a deductible gift recipient, and you need a record of the gift. A receipt or bank statement showing the payment is more useful than a memory of dropping coins in a bucket.
Claims the ATO is watching
The ATO's what's new for individuals page also lists denying deductions for ATO interest. That is a reminder not to treat every charge connected to tax as deductible. Interest charged by the ATO is not a normal working expense, and the ATO has signalled a harder line. If you are unsure about a charge, leave it out until you have checked.
Rental property income and expenses are also on the what's new list, which suggests the ATO expects those claims to be accurate and supported. The pattern is consistent: the deduction may be lawful, but the evidence has to match the claim.
Records that make uncommon claims stick
An uncommon deduction is still a deduction, and the same record-keeping rules apply. Keep receipts, statements and invoices. Note the work or income connection. If a cost is mixed between personal and work use, write down how you worked out the claim. A tax tracker or spreadsheet is enough, as long as it is accurate and easy to produce if the ATO asks.
Lodgya is built for this side of tax: income and expense records, receipt storage and accountant-ready reports. It is not a registered tax agent and does not give tax advice, so use it to keep the paperwork tidy and confirm the rules with the ATO or your agent.
Frequently Asked Questions
Can I claim sunscreen on my tax?
Sunscreen and sun hats appear on lists of surprising deductions, and protective clothing is recognised as an employment expense. A claim may be possible where the sunscreen relates to your work and meets the ATO's rules. Keep the receipt and check the work connection before you include it, especially if you also use the product outside work.
Is my handbag or briefcase tax deductible?
Briefcases and handbags are among the commonly overlooked deductions. A bag can be claimable where it is used for work and meets the ATO's rules. If you use the same bag for personal and work purposes, work out a reasonable work-related portion and keep a note of how you calculated it.
What is the $1,000 standard tax deduction?
From 1 July 2026, a standard tax deduction of up to AUD 1,000 is available without substantiation for individuals with assessable labour income. The ATO guidance also says some substantiated deductions, such as income protection and personal sickness and accident insurance premiums, can be claimed in addition. Check whether your income and circumstances fit the rules.
Can I claim small donations under $2?
The ATO has removed the $2 minimum threshold for gifts made to deductible gift recipients, so eligible donations can be claimed regardless of amount. The organisation still needs to be a deductible gift recipient, and special rules remain for categories such as political donations. Keep a receipt or bank record for small gifts.
Are bank fees on a rental property deductible?
Bank fees are on lists of commonly forgotten rental property deductions, along with gardening, lawn mowing, pest control, security patrol fees, and secretarial and bookkeeping fees. The cost still needs to relate to the rental property and be properly recorded. Keep the invoice or statement and note which property it applies to.
