Welcome to the ATO's online Community

Hot topics

• Why has my tax return changed from balancing account back to processing?

  How come my tax return has gone from balancing account back to processing again

  

  Question by Carebear1
  12 July 2026

• What is the Medicare Levy Surcharge?

  We’ve been listening to your questions about the Medicare Levy Surcharge and we’re here to break it down for you!

  
  

  Let’s start with what the Medicare Levy Surcharge is.

  The Medicare levy surcharge (MLS) is an extra charge on top of the Medicare levy. It’s designed to encourage high income earners to take out private hospital insurance and reduce the pressure on our public health system.

  
  

  Who needs to pay the MLS?

  You might have to pay the MLS if:

  ·        You earn above the MLS threshold, and

  ·        You, your spouse or your dependant children don’t have an appropriate level of private patient hospital cover for the full income year.

  
  

  The amount of MLS you’ll pay depends on your income and your circumstances. We’ll calculate the rate you need to pay when you lodge your tax return.

  
  

  You can avoid paying the MLS by taking out an appropriate level of private patient hospital cover. But remember it must cover you, your spouse and all your dependants!

  
  

  We understand you may have situation specific questions, but we hope this answers most of them 😊

  
  

  Check out our article to understand the difference between the Medicare Levy and the Medicare Levy Surcharge!

  

  Question by BrookeATO
  24 Oct 2024

• What work-related tax deductions can I claim?

  Unsure what you can claim this tax time? Let’s look at how to claim work-related deductions.It’s the million-dollar question we get every year – what can I claim and how can I claim it? So, let’s break it down! Deductions reduce the amount of tax you pay. Think of it like this: - you start with what you earned (your income), - then subtract what you can claim (your deductions), - what’s left is what you pay tax on. If you’ve paid too much tax, you’ll receive a refund. If you haven’t paid enough tax, you’ll have to pay the difference. ## What can I claim? The most common deductions we see are work-related expenses. Work-related expenses are out-of-pocket costs you incur to earn your income but aren’t reimbursed by your employer. There are 3 golden rules to remember when claiming deductions: - you paid for it yourself (and weren't reimbursed) - it directly relates to earning your income - you have records to prove it (like a receipt). ## How can I claim a deduction? ### Step 1: Check if it's work related. Ask yourself, ‘If I didn’t have this job, would I still have this expense?’ If yes, it’s probably not claimable. ### Step 2: Make sure you paid for it. You can only claim what you paid yourself. If your employer paid or reimbursed you for the expense, you can’t claim it. ### Step 3: Work out the work-related amount. If something is used for both work and personal use, you must split it and only claim the work-related portion. For example, if 10% of your phone use is for work, you can only claim 10% of the phone bill as a work-related expense. On top of your work-related expenses, you may be able to claim a tax deduction for your working from home expenses, if you: - work from home to fulfil your work duties (not just minor tasks) - have extra costs because of it - keep records to support your claim. If you’re eligible to claim working from home running expenses, there are 2 ways to calculate your deduction. __The fixed rate method__ The  [fixed rate method](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses/fixed-rate-method-67-cents)  is a simple way to calculate your work from home deductions. You claim a set rate for each hour you work from home, rather than tracking individual expenses. The rate for the 2025-26 tax return is __70 cents per hour__. The rate accounts for typical running costs associated with working from home, such as: - energy costs (electricity, gas) - phone and internet usage (both home and mobile) - stationery and computer supplies (printer ink, paper, pens). If you use this method, you can't claim these expenses anywhere else in your tax return. However, the fixed rate doesn’t cover larger equipment purchases. You can still claim these separately, just remember: - If the item __costs $300 or less__, you can generally claim the full cost immediately in the year you buy them. This may include items such as keyboards, computer mouses, power boards, desk lamps and chargers. - If the item  __cost more than $300__, you must claim the [decline in value](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/tools-computers-and-items-you-use-for-work/depreciating-assets-you-use-for-work) over time. This may include desks, monitors, chairs and laptops. __The actual cost method__ The actual cost method allows you to claim the exact work-related portion of all your working from home expenses, rather than using a flat rate. This can include: - a percentage of your electricity and gas bills - your phone and internet costs, based on work usage - office supplies and consumables - depreciation of equipment and furniture. While this method can sometimes result in a larger deduction, it’s more complex. It needs: - careful calculations to determine the work-related portion of each expense - detailed records, receipts, and evidence - a clear method showing how you split work vs private use. Because of the extra effort and documentation required, this method generally suits people who have higher running costs or dedicated home office setups. ### Step 4: Keep a record. You need proof for your claim. This is usually: - receipts or invoices - logs, diaries or calculations (for things like travel or working from home). You don’t send these with your tax return, but you must keep them in case you’re asked later. The [myDeductions](https://www.ato.gov.au/online-services/online-services-for-individuals-and-sole-traders/ato-app/using-mydeductions/mydeductions)  tool in the ATO app makes it easy to store your records and keep track of your work-related expenses (and other deductions) in one place. ### Step 5: Add it to your tax return. When you lodge your tax return: - include your expenses in the __correct section__ (for example, work related expenses), - enter a description of the expense, - enter the total amount you’re claiming. ## $1000 standard tax deduction The proposed standard deduction for work-related expenses of up to $1,000  __does not apply to your 2025-26 tax return__ (also known as the $1,000 instant tax deduction). This proposed change is not yet law. If passed, the standard deduction is expected to apply from the 2026-27 tax return.   Visit our website for more info on the [deductions you can claim](https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/occupation-and-industry-specific-guides).

  

  Article by ATO Community
  24 June 2026