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Tax Deductions For Farmers

When rounding up your animals, you wouldn’t leave half behind in another paddock, and when you harvest you aren’t only going to do half of your farm leaving the other half to be rendered useless. 

The same logic should be taken with your Tax Return when claiming tax deductions – you don’t leave half behind for them to become useless.  

If you’re a farmer or labourer on an agricultural property, don’t leave anything out of your online tax return. If you save every little bit, and deduct everything you’re entitled to, the tax return can be massive.

What qualifies your tax deduction? 

There are only three main requirements that qualify as an expense for tax deductions (it’s that easy), which is calculated against your income: 

  • You must have spent the money and not have been reimbursed 
  • It must be related to your job
  • You must have a record to prove it

Remember, a record isn’t necessarily a receipt. There are tax deductions you can claim without a receipt. Continue on to find out more.

What constitutes an expense as “related” to your job you might ask? 

Here’s a definition of your taxable income, and a list of farmer tax deductions. 

What is your taxable income

Your taxable income is money generated from your employer or your work. Your taxable income also includes:

  • PAYG summaries 
  • Pensions and government allowances 
  • Interest earned (banks etc)
  • Dividends 
  • Rental property income
  • Business income
  • Other income earned (capital gains etc)

Tax deductible expenses for farmers   

Farmer specific 

  1. Buying work clothes/farm uniforms (if required to wear them and they have a logo)
  2. The cost to laundry clothes/uniforms  
  3. Protective clothing items (if required)
  4. Purchase of equipment and tools (if required) up to $300 
  5. Depreciation expense of equipment and tools over $300
  6. The repair and/or upkeep of tools and equipment (if required)
  7. Home office expenses (if needed to work from home)
  8. Interest generated from loans relating to work activities
  9. Self-education and courses if they are related to your farming work 
  10.  Licences and certificates relating to your farming work
  11.  Fees from joining a union/other similar organisations 
  12.  Subscriptions and magazines relating to your work
  13. Travel expenses if work related
  14.  Driving between two places of work in your own vehicle. This is usually best claimed using the cents per km method of claiming a tax deduction.

Protective clothing

As a farmer or labourer, you’ve no doubt had to buy a fair share of protective gear and clothing. From hard hats, to reinforced boots, to sunglasses, to sunscreen, you can claim all of these as a tax deduction. 

If you need a hand, make sure you get the help from someone that knows what they’re doing. 

Purchase of tools and equipment 

The purchase of tools and equipment for your farming work, if they are less than $300, can be claimed as a straight tax deduction. If the purchase was more than $300, then you’ll have to claim the depreciation expense of the item. 

Repair of tools and equipment 

When your tools and equipment break and you need to fix them, you can claim this cost as a tax deduction. This may help you decide whether you need to buy new equipment or have it repaired, so keep it in mind. 

Travel expenses 

Farming properties certainly aren’t small, and it’s no secret that Australian farmers have to travel significant distances for work. If you are travelling because it is necessary for work, you can claim the expense as a tax deduction. This is usually best claimed using the cents per km method of claiming a tax deduction.

Get the help of a professional to calculate your travel expenses. 


  1. Car expenses and general wear if your car use is work related (estimated Km or a logbook with all expense items)
  2. Travel expenses for your work (flights, taxis and trains etc)
  3. Accommodation needed for work reasons (including meals)
  4. Work phone bills 
  5. Work related computing 
  6. Work from home costs 
  7. Self-education 
  8. Tax Return fees dating to the year previous 
  9. Insurances 
  10. Rental expense (if you are renting)
  11. Charity donations and gifts
  12. Sun protection (if you have to work outside)

Maximising your Tax Return with an online tax agent

There will be more tax tips and deductions for Australian farmers that aren’t on this list. Tax deductions are not only industry specific, but also change from individual to individual. 

The best way to claim the most you can (which will maximise your money) is with One Click Life. 

The more you deduct, the less tax you pay and the more money you can spend on yourself. Clearly, you will want to deduct the most you can, and the sure-fire way to do that is with OCL’s easy-to-use platform. 

If you can claim OCL’s fees back on tax as a deduction too, why wouldn’t you use our platform to minimise your tax payable?

One Click Life offers online Tax Returns at your fingertips in an easy-to-use platform run by some of the best heads in the industry. Your Tax Return can be done in just 60 seconds and is overseen by one of our pros!

How easy and stress free is that? 

Taxes, health insurance, and wills can be time-consuming and tedious. Our app allows you to be able to do this fuss-free, giving you a simple way to organise, track and manage all of your life admin in one place.
Let One Click Life take care of your Tax Return, and life’s essential tasks so you can spend more time doing the things you love.