ato logo
Search Suggestion:

myTax 2025 Other deductions

How to claim deductible expenses you haven't been able to claim elsewhere when lodging your tax return using myTax.

Published 1 June 2025

Things to know

Complete this section if you have incurred other expenses that you haven't been able to claim as deductions elsewhere on your tax return.

At this section you may claim:

You can't claim deductions for expenses you incurred in actively seeking paid work if you receive Youth Allowance or JobSeeker as a job seeker.

Don't show the following expenses at this section as other sections deal with these matters:

  • expenses relating to your work as an employee (including your claim for working from home expenses), go to Other work-related expenses
  • expenses relating to income from carrying on a business as a sole trader (including personal services income or as a share trader)
  • expenses relating to investment planning and advice involving shares, unit trusts and interest-bearing deposits
  • losses from the disposal of shares or real property that are capital in nature.

Other sections deal with these matters.

Completing this section

We pre-fill your tax return with other deductions you uploaded from myDeductions. Check them and add any other deductions that haven't pre-filled.

To personalise your tax return to show your other deductions or election expenses, at Personalise return select:

  • You had deductions you want to claim
  • Other deductions

To show your other deductions, at Prepare return select 'Add/Edit' at the Deductions banner.

At the Other deductions banner:

  1. For each of your other deductions (excluding election expenses) select Add, and
    • select the Type of deduction
    • enter Your description. To assist in record keeping, add a short description of your expense.
      Include 'Scholarship expenses' in your description if your deduction is for Self-education expenses related to satisfying the study requirements of a taxable scholarship.
    • enter the Amount.
      The Depreciation and capital allowances tool can help you to work out any decline in value. It can also work out any deductible balancing adjustment when you stop holding a depreciating asset. Access this tool in the Deductions section.
      Fields from this tool can't be adjusted in myTax. To make any adjustments, or to add new assets to the tool, select 'Use the depreciation and capital allowances tool' link.
  2. Select Save.
  3. Select Save and continue when you have completed the Deductions section.

To show your election expenses, at Prepare return select 'Add/Edit' at the Deductions banner.

At the Election expenses banner:

  1. Add up all your deductible election expenses and enter the amount into the Election expenses field.
  2. Select Save.
  3. Select Save and continue when you have completed the Deductions section.

You need to keep records for 5 years (in most cases) from the date you lodge your tax return.

Our myDeductions tool is free to use and is available through the ATO app. The tool makes it easier and more convenient to keep records of your expenses and income in one place, including photos of your receipts and invoices.

More information

Find out about

Election expenses

Election expenses include a candidate's costs of contesting an election at a local, territory, state or federal level of government. A deduction for local government election expenses can't exceed $1,000 for each election you contested, even if you incurred the expenditure in more than one income year. Entertainment expenses qualify as deductible election expenses only in very restricted circumstances.

For more information on deductions for election expenses, see Taxation Ruling TR 1999/10 Income tax and fringe benefits tax: Members of Parliament – allowances, reimbursements, donations and gifts, benefits, deductions and recoupments.

You must show as income at Other income a reimbursement in 2024–25 of any election expenses that you have claimed as a deduction in 2024–25 or a previous year.

Related page

Election expenses
Deductions for the costs of contesting parliamentary and local government elections, and union elections.

Income protection, sickness and accident insurance premiums

You can claim the cost of any premiums you paid for insurance against the loss of your income. You must include any payment you receive under the policy for loss of your income at Salary, wages, allowances, tips, bonuses or Other income in your tax return.

You can't claim a deduction for a premium or any part of a premium which you pay under a policy to compensate you for such things as physical injury. Life insurance, trauma insurance and critical care insurance are some types of policies for which premiums aren't deductible.

You can't claim a deduction for a premium where you took the policy out through your super fund and they deducted the premiums from your super contributions.

Expenses related to sharing economy or other marketplaces income

The sharing economy is economic activity through a digital platform (such as a website or an app) where people share assets or services for a fee. Amounts you receive are assessable income, even if you aren't carrying on a business.

Include at this section expenses you incurred that relate to income you received from renting or hiring (sharing) out your assets through a digital platform.

If you own or lease an asset jointly, then you claim your deduction in proportion to your share of ownership.

Car expenses have special deduction rules, which don't apply to other vehicles such as trucks, motorbikes, bicycles or self-drive recreational vehicles (RVs). For more information, see Peer-to-peer car sharing deductions.

Caravan or RV expenses have special rules for calculating apportionment for income-producing and private use. For more information, see Peer-to-peer caravan and RV sharing – apportioning the expenses for private use.

At this section, also include expenses you incurred that relate to income you received from providing services or completing tasks through a digital platform, except income you earned as an employee of a digital platform.

Don't show expenses at this section that related to:

  • income you earned through sharing economy or marketplace activities where you're carrying on a business. Show this amount at Business income or losses.
  • rental income, such as renting all or part of your home. Show this in Rent.
  • employee salary or wages. Show this amount at the relevant deduction item in the Deductions section.

You must apportion your expenses for private use. You can only claim deductions for your expenses to the extent that they relate to your income-producing activities. You may be able to claim fees or commissions a digital platform charged you as a 100% deduction.

Related page

Sharing economy and tax
How to determine if your activities are part of the sharing economy and the impact on your super and tax.

Foreign exchange losses

At this section:

  • include any deduction for foreign exchange losses (forex losses).
  • Don't show

Show any assessable foreign exchange gains (forex gains) at Other income.

Losses attributable to a fluctuation in a currency exchange rate or to an agreed exchange rate differing from an actual exchange rate are brought to account when they're realised. Losses include when you:

  • dispose of either foreign currency, or a right to such currency
  • cease to have a right to receive or pay foreign currency
  • cease to have an obligation to pay or receive foreign currency.

Some forex losses aren't deductible, for example:

  • losses of a private or domestic nature
  • losses relating to exempt income.

In some cases, forex losses are also not deductible on the:

  • acquisition of capital or depreciating assets
  • disposal of capital assets.

In these cases, the losses are integrated into or matched with the tax treatment of the underlying asset.

In some circumstances, you may make an election that affects the realisation or treatment of a forex loss. For more information on the forex measures and how to calculate your forex losses, see Foreign exchange gains and losses.

Debt deductions

At this section, you may claim 'debt deductions' you incurred in earning assessable income (for example, foreign source income that you included at Other foreign income on your tax return), if you haven't claimed them elsewhere on your tax return.

A 'debt deduction' is, broadly, an expense you incurred in obtaining or maintaining a loan or other form of debt finance. Examples include:

  • interest
  • establishment fees
  • legal costs for preparing loan documents
  • fees lending institutions charged for drawing on a loan facility.

If you're an Australian resident, you can claim debt deductions you incurred in earning certain types of foreign non-assessable non-exempt income that were:

  • payments out of attributed controlled foreign company income
  • attributed foreign investment fund income.

You aren't allowed to claim debt deductions disallowed under the thin capitalisation rules. Thin capitalisation rules may apply if you're either:

  • an Australian resident and you (or any associate entities) had certain overseas interests and your debt deductions combined with those of your associate entities were more than $2 million for 2024–25
  • a foreign resident with operations or investments in Australia and your debt deductions against Australian assessable income combined with those of your associate entities were more than $2 million for 2024–25.

Special rules apply to deductions for expenses that you incurred in borrowing money that you used for producing assessable income. Examples of such expenses include loan establishment fees and legal costs for preparing loan documents. Interest expenses aren't subject to these rules and are deductible in the income year in which you incur them.

If the total borrowing expenses (except interest expenses) you incurred in 2024–25 were more than $100, you have to deduct the expenses over the shorter of either:

  • the life of the loan
  • 5 years from the date you first borrowed the money.

If the total of these expenses you incurred in 2024–25 is $100 or less, you can deduct them immediately.

Section 40-880 deductions

This section allows you to claim a deduction for certain business-related capital expenditure over 5 income years or immediately in case of some start-up expenses.

Expenditure deductible over 5 income years

Claim a section 40-880 deduction at this section if either:

  • you incurred the relevant capital expense, and the following apply
    • the expenditure relates to a business that was proposed at the time you incurred the expense
    • the business commenced by 30 June 2025
    • you're carrying on the business through a company or trust
  • you incurred the relevant capital expense and the expenditure relates to a business which ceased in a previous income year and you carried on the business through a company or trust.

If you incurred relevant section 40-880 expenses, claim the amount at Business income or losses if the expenses are in relation to both:

  • a business which ceased in a previous income year
  • you carried on the business as a sole trader or through a partnership.
Certain start-up expenses

Section 40-880 of the ITAA 1997 allows a taxpayer who isn't in business, or who is a small business entity, to immediately deduct certain start-up expenses relating to the structure or operation of a business that you proposed to carry on.

This was extended to medium businesses for expenses incurred from 1 July 2020.

Expenditure is fully deductible in the income year in which you incurred it, if :

  • you're a small or medium business entity, or you weren't in business during the income year, and
  • it relates to a business that you proposed to be carried on, and
  • either
    • you incurred the expense for advice or services relating to the structure or operation of the business
    • paid to an Australian government agency in relation to setting up the business or establishing its operating structure.

Your deduction for this amount will be deferred until the income year in which the business activity commences if both the following apply:

  • if you incurred relevant section 40-880 expenses that don't qualify for immediate deduction
  • you hadn't commenced the business by 30 June 2025.

The Guide to depreciating assets includes more information on section 40-880 deductions.

Net PSI loss of a personal services entity that related to your PSI

There are special rules for the income tax treatment of certain PSI . PSI is income that is mainly a reward for your personal efforts or skills and is generally paid to you or to a personal services entity (being a company, partnership or trust).

You can claim a deduction for the PSI loss where:

  • the payment was made to a personal services entity
  • that entity incurred a PSI loss relating to your PSI.

For more information about PSI deductions, see Claiming deductions when receiving PSI.

If you need help with these rules, contact us.

Self-education expenses for study requirements of a taxable scholarship

You may claim at this section expenses you incurred in meeting the study requirements of a taxable scholarship. However don't claim these expenses at this section if you're an employee of the provider; claim them at Work-related self-education expenses.

Examples of expenses you can claim are:

  • textbooks
  • stationery
  • student union fees
  • student services and amenities fees
  • decline in value of your computer
  • certain course fees.

You can't claim a deduction for travel from your home to your normal place of education and back.

QC104217