ato logo
Search Suggestion:

myTax 2023 Other deductions

How to claim other deductible expenses you have not been able to claim elsewhere when you lodge your return using myTax.

Last updated 31 May 2023

Things to know

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

At this section you may claim:

You can't claim deductions for expenses 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:

  • 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 have not pre-filled.

To personalise your 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

Expenses related to income earned through the sharing economy or other marketplaces

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 are not 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 – car expenses.

Caravan or RV expenses have special rules for calculating apportionment for income-producing and private use. For more information, see Peer-to-peer caravan sharing – apportioning 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 earned as an employee of a digital platform.

Don't show expenses at this section related to:

  • income earned through sharing economy or marketplace activities where you are 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 commission charged by a digital platform 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 forex losses at this section:

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 are realised. This is 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 are not 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 taxation treatment of the underlying asset.

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

Debt deductions

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

A 'debt deduction' is, broadly, an expense 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 charged by lending institutions for drawing on a loan facility.

If you were an Australian resident, you can claim debt deductions 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 are not allowed to claim debt deductions disallowed under the thin capitalisation rules. Thin capitalisation rules may apply if either:

  • you were 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 2022–23
  • you were 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 2022–23.

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

If the total of these expenses you incurred in 2022–23 is more than $100 you have to deduct the expenses over the shorter of the following periods:

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

If the total of these expenses you incurred in 2022–23 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:

  • you incurred the relevant capital expense, and    
    • the expenditure relates to a business that was proposed at the time the expense was incurred
    • the business commenced by 30 June 2023, and
    • you are carrying on the business through a company or trust, or
  • 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 in relation to a business which ceased in a previous income year and you carried on the business as a sole trader or through a partnership, claim the amount at Business income or losses.

Certain start-up expenses

From 1 July 2015, section 40-880 of the ITAA 1997 allows a taxpayer who is not 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 is proposed to be carried on.

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

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

  • is incurred by you and you are a small or medium business entity, or you were not in business during the income year, and
  • relates to a business that is proposed to be carried on, and is either
    • incurred for advice or services relating to the structure or operation of the business, or
    • 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 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 had not commenced the business by 30 June 2023.

The deferred amount may be deducted in the income year in which the activity commences.

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

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

There are special rules for the income tax treatment of certain personal services income. Personal services income (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 Company, partnership or trust.

If you need help with these rules, contact us.

Self-education expenses related to satisfying the 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 here if you were 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.

QC72343