Why Legal Tax Minimisation Is Not an Act of Guilt — It’s Common-Sense
As the late media magnate Kerry Packer once told a Senate enquiry: “I am not evading tax in any way, shape or form. Now of course I am minimising my tax — and if anybody in this country doesn’t minimise their tax, they want their heads read because as a government I can tell you you’re not spending it that well that we should be donating extra.”
That blunt honesty cuts to the heart of a principle many responsible people — families, small-business owners, self-employed professionals — already understand. If you earn money, it is entirely legitimate and sensible to structure your finances so that you pay no more than what the law requires. After all;
- The tax you pay ultimately funds government services. A well-run tax system expects taxpayers to pay what they owe and no more.
- Failing to do so can leave you with less cash to invest, save, or spend on legitimate personal or business needs.
In short, legally minimising tax is not morally suspect — it is financially prudent in a system where the burden and benefit of taxation flow to all.
Recent Examples of Taxpayer Funds Being Spent — Sometimes Poorly
To illustrate the value in minimising what you owe, it helps to consider recent examples where taxpayer money was spent — sometimes questionably — by public officials themselves.
Anika Wells and Parliamentary Expense Mis-Use
In December 2025, it was revealed that Anika Wells, Minister for Communications and Sport, charged nearly A$100,000 to taxpayers for three flights (herself and two staff) to New York for a UN event.
Over a span of a year, she made three trips to Paris — reportedly costing more than A$115,000 — in the lead-up to major sporting events. One of those trips included a dinner billed to taxpayers at around A$1,000.
On top of that, she claimed thousands of dollars under “family-travel” entitlements to fly her husband to the AFL Grand Final and other sporting events, even while receiving free suite tickets. For example, over three years (2022–2024), she claimed more than A$8,500 for family travel to Melbourne for AFL Grand Finals.
She also incurred Comcar (government car) costs on days she attended major sporting events — expenses reaching over A$1,000 in a single day.
Whether or not every expense fell strictly within the rules, many Australians regard this kind of expenditure as failing the “pub test” — especially at a time when many households are feeling pressure from cost-of-living increases.
The broader point: public funds are not infinite. If high-earning individuals or officials squander taxpayer entitlements like open slather, that increases the burden on ordinary working Australians.
But Many Australians “Under-Claim” — and That’s a Different Kind of Loss
Interestingly, while some politicians over-claim (or abuse entitlements), many ordinary Australians under-claim legitimate deductions — often out of caution, lack of awareness, or poor record-keeping.
As of 2025, over 9 million Australians claimed about A$28 billion in work-related expenses. The average deduction per taxpayer was around A$3,000.
Yet tax professionals warn that many people miss valid deductions every year, simply due to poor documentation or not knowing what qualifies.
Among commonly unclaimed but legitimate deductions are home-office expenses (software, computer accessories), work-related tools and uniforms, union fees or professional subscriptions, charitable donations over the threshold, and investment-related costs (for landlords and investors).
In effect, many hard-working Australians are over-taxing themselves by failing to claim what the law already allows.
Why Tax Minimisation — and Claiming Rightful Deductions — Should Be Viewed as Responsible, Not Shameful
Putting together the above, there is a compelling case to be made:
- Taxpayers carry the burden of public services. If public funds are sometimes used wastefully (as recent controversies show), there is no moral or civic virtue in giving more than strictly necessary.
- The law is there to allow legitimate planning. As Kerry Packer said, paying “not a penny more, not a penny less” is not only legal but rational if taxpayers want to retain and invest their own resources.
- Failing to claim deductions is self-harm. Many Australians leave money on the table each year simply because they don’t claim what they’re entitled to. That is a lack of financial prudence, not modesty.
- Tax minimisation drives fairness. When everyone gets penalised at high marginal rates, ordinary taxpayers end up subsidising inefficiency. Claiming deductions is a legitimate way to level the playing field.
Some Common and Often-Forgotten Legitimate Deductions
As chartered accountants, we often advise clients to consider these, and many people overlook them:
- Work-related home-office expenses (software, office equipment, internet usage if properly apportioned)
- Work uniforms, laundry or protective clothing
- Professional subscriptions or union fees
- Investment-related expenses (e.g. depreciation, interest for investment loans, landlord insurances)
- Charitable donations to deductible-gift-recipients (over the required minimum)
- Costs of managing tax affairs (for eligible individuals, within reasonable limits)
These are some simple examples of missing deductions. Other examples surround the structuring for your investments such as investment companies, family trust and more commonly how your superannuation is structured and what your superannuation fund invest in, to maximise your after-tax investment return.
These are entirely lawful, with the key requirement being that they are related directly to earning assessable income, and that proper documentation (receipts, diaries, logs) is retained. Also, before purchasing an investment asset, consider the optimal tax structure for your circumstances.
Concluding Thought
In a world where taxpayer money is sometimes squandered — whether through political entitlement misuse or corporate-level tax avoidance — it is neither immoral nor un-Australian to ensure you pay only what the law requires.
Legal tax minimisation and diligent claiming of legitimate deductions represent personal responsibility, financial prudence, and a safeguard against systemic waste.
As Kerry Packer bluntly reminded us, if you don’t minimise your tax, you’re effectively donating extra.
Should you require further information in relation to minimising your tax, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166 to book an obligation-free appointment.
The information in this document does not take into account your personal objectives, financial situation, or needs, so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.