Legal professionals are known for their attention to detail, but when it comes to tax time, many still leave money on the table. Whether you’re a barrister, solicitor, or running your own practice, understanding what you can and can’t claim makes a real difference to your bottom line.
Below are some of the most common deductions lawyers overlook and how to make sure you’re not missing out.
- Home Office and Remote Work Costs
If you prepare matters or draft documents from home, part of your home expenses may be deductible.
Eligible claims include:
• Electricity and internet
• Work-related phone calls
• Office furniture and equipment such as ergonomic chairs or desks
• Depreciation on computers and printers
You can choose between the ATO’s fixed rate method, which applies a standard hourly rate for time spent working from home, or the actual cost method, which calculates expenses based on your real usage and receipts. Whatever approach you take, make sure your records are clear and detailed enough to support your claim if the ATO ever asks for evidence.
- Continuing Professional Development (CPD)
Lawyers are required to complete ongoing education, and those costs are deductible when directly related to your work.
This includes:
• CPD seminars, conferences, and online courses
• Law Society or Bar Association fees
• Professional journals and subscriptions such as LexisNexis or Westlaw
These expenses are directly connected to maintaining or improving your professional skills and knowledge, making them generally deductible for practising lawyers.
- Tools, Equipment, and Software
Modern legal work relies on technology.
Deductible purchases include:
• Laptops, tablets, monitors, and peripherals
• Dictation tools, scanners, or printers
Large items are depreciated over time, but smaller purchases or low-value assets under $300 can often be written off immediately.
- Work-Related Travel and Vehicle Use
If you travel to meet clients, attend court, or visit other chambers, you may be able to claim:
• Vehicle expenses using either the logbook or cents per kilometre method
• Parking, tolls, and taxis
• Airfares and accommodation for business trips
Travel between home and your regular workplace isn’t deductible, even if you’re carrying files. Travel between multiple work locations usually is.
- Superannuation Contributions
Making extra contributions to superannuation is one of the simplest and most effective ways to reduce your tax bill. By claiming a deduction for concessional contributions, you can lower your taxable income while building your retirement savings.
To claim a deduction, you’ll need to lodge a notice of intent with your super fund and receive confirmation before lodging your tax return. Make sure your contribution is received and processed by the fund before 30 June so it counts for that financial year.
- Charitable Donations
Donating to causes you believe in can also help at tax time. Contributions to organisations registered as Deductible Gift Recipients (DGRs) are tax deductible, provided you keep the receipts. Many professionals schedule donations before 30 June to maximise deductions while supporting their community.
- Accounting and Tax Agent Fees
The cost of managing your tax affairs is deductible. This includes fees paid to a registered tax agent for preparing and lodging your tax return, handling ATO correspondence, or providing advice about your tax affairs.
- Income Protection Premiums
Premiums for income protection insurance are generally tax deductible when they specifically cover the loss of income due to illness or injury.
Only the portion of your premium that relates directly to income protection is deductible. If your policy also includes life, trauma, or other non-income-related cover, those parts must be excluded from your claim. Your insurer can usually provide an annual breakdown showing exactly how much of your premium is deductible.
Avoiding Common Mistakes
- Don’t claim private or personal expenses such as home cleaning or family phone plans
• Keep digital copies of invoices and receipts as its easier to keep track of them
• Track mixed use assets like laptops or phones carefully and claim only the work portion
• Review your deductions annually with an accountant familiar with professional services
Final Word
Lawyers spend their time helping others interpret the law, but the tax system has plenty of rules of its own. Getting it right means more than saving money; it’s about running a compliant, efficient practice.
For tailored advice, always speak with a qualified accountant who understands the legal profession.
Guest Author: Andrew Beks, Chartered Accountant
Founder – Simplified Business and Accounting
Andrew Beks is a Chartered Accountant and business advisor who works with professionals and small business owners across Australia. He specialises in practical tax strategies and clear financial guidance that help clients keep more of what they earn. Through Simplified Business and Accounting, Andrew shares straightforward insights to make tax and business decisions easier.
