Generally no deduction is allowed for expenditure incurred in deriving employment income. It is therefore necessary that employers assess the correct tax treatment of allowances and expense reimbursements at payroll (PAYE) submission time.
Deductions are available for expenditure incurred in deriving gross income (other than employment income) or in carrying on a business. Subject to certain exemptions, entertainment expenditure for self-employed persons is only 50% deductible.
No deduction is permitted for medical, superannuation, or insurance contributions other than certain premiums for loss of earnings insurance.
Taxpayers are eligible for a tax credit for charitable donations/contributions made during the tax year. See the Other tax credits and incentives section for more information.