How to legally reduce tax if your an individual earning over $100k Income?

Earn Over $100k? Three Tax Mistakes That Could Be Costing You Thousands

If your income is over $100,000, tax becomes one of your biggest annual expenses. The good news is that Australia’s tax system allows many legitimate deductions and planning opportunities. The bad news? Many high-income earners miss them or make simple mistakes that quietly inflate their tax bill.

Below are three common tax mistakes and five deductions people earning over $100k often overlook, followed by a simple way to sense check your position.

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3 Common Tax Mistakes High-Income Earners Make

1. Assuming “PAYG means it’s already optimised”

Many employees believe that because tax is withheld from their salary, there’s nothing more to do. In reality, PAYG withholding is only an estimate. It doesn’t account for deductions, investment decisions, or year-end planning. High earners who rely solely on PAYG often pay more tax than necessary.

2. Poor record-keeping throughout the year

Receipts, mileage, and work-related expenses are often left until tax time. By then, many are lost or forgotten. Without records, deductions can’t be claimed, even if they were legitimate. Over a full year, this can easily mean thousands of dollars missed.

3. No proactive tax planning

Most people focus only on lodging a return. However, the biggest savings usually come before 30 June, not after. Super contributions, timing of expenses, and investment decisions all work best when planned ahead, not rushed at the deadline.

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5 Deductions People Earning Over $100k Often Miss

1. Work-related home office expenses

If you work from home — even part-time — you may be entitled to claim running costs such as electricity, internet, phone, and depreciation on equipment. Many people either don’t claim at all or use the wrong method.

2. Self-education and professional development

Courses, certifications, conferences, and subscriptions that relate directly to your current role can be deductible. This includes online training, industry memberships, and professional journals — provided they maintain or improve your existing skills.

3. Income protection insurance (outside super)

Premiums for income protection policies held outside superannuation are generally tax-deductible. This is commonly overlooked, especially when policies are arranged through advisers and forgotten at tax time.

4. Investment property expenses that don’t involve cash

Depreciation on buildings and fixtures can provide significant deductions without affecting cash flow. Many investors miss out because depreciation schedules were never prepared or updated after renovations.

5. Salary sacrifice and personal super contributions

Additional concessional super contributions can reduce taxable income while boosting retirement savings. High-income earners often underuse their contribution caps or don’t claim personal contributions correctly.

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Why This Matters More Above $100k

Once your income passes $100,000, every extra dollar is taxed at higher marginal rates. That means small oversights have a bigger impact. A missed $5,000 deduction could cost over $2,000 in extra tax money that could have stayed with you.

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A Simple Next Step

If you’re earning over $100,000 and haven’t reviewed your tax position recently, it may be worth a second look.

I offer a free tax consultation to help identify:

• Missed deductions
• Planning opportunities for the current or next financial year
• Whether your current approach is working as efficiently as it could

There’s no obligation — just clarity.

If you’d like to book your free tax check, get in touch and we’ll take a practical look at your situation. Looking for more tax tips? Check out these 3 tax tips to help minimise your tax liability.