Work-related deductions you can and can't claim
Every employee wants to pay less tax, and claiming everything you’re entitled to is the legitimate way to do it. But work-related expenses are an area the ATO watches closely, and claims that don’t meet the rules are regularly adjusted, with penalties and interest on top.
The three golden rules
To claim a work-related expense:
- You must have spent the money yourself and not been reimbursed by your employer.
- It must directly relate to earning your income.
- You must have a record to prove it.
If something is used for both work and private purposes, you can only claim the work share.
New for 2026–27: the government has introduced an optional $1,000 instant deduction for work-related expenses, which you can take instead of itemising if your actual expenses are lower [check: confirm it is legislated and applies from 2026–27]. If your real expenses are higher, itemising with records will still be better.
Common claims
Working from home. You can use the ATO’s fixed-rate method, which covers energy, internet, phone, stationery and computer consumables at a set rate per hour, as long as you keep a record of every hour you actually work from home. Alternatively, you can claim actual costs with detailed records. Equipment such as a desk, chair or laptop can be claimed or depreciated separately.
Car expenses. Only for work travel, not home to your usual workplace. Travel between two jobs on the same day, to a different workplace, or carrying bulky tools you can’t leave at work can count. Use the cents-per-kilometre method (up to 5,000 work kilometres) or a logbook.
Clothing. Compulsory or registered uniforms, protective gear, and occupation-specific clothing only, plus the cost of washing them.
Self-education. Courses that relate directly to your current job, such as maintaining or improving the skills you use now. Not a course to get a different job.
Tools and equipment. Items under $300 can be claimed straight away; more expensive ones are depreciated over their life.
Union fees, professional memberships, registrations and licences that you need for your job.
By occupation
Nurses, midwives and carers
- Registration and practising certificate fees, union fees
- Compulsory uniforms and non-slip nursing shoes, plus laundry
- Courses directly related to your current role
- Work use of your phone if your employer needs you to use it
- Not claimable: travel from home to your regular hospital or facility, plain clothing, gym or fitness costs
Teachers
- Teaching resources and classroom supplies you buy yourself
- Professional development and conferences related to your teaching
- Travel between campuses or to excursions and camps on the same day
- Working from home costs for marking and preparation
- Not claimable: your normal trip to school, general clothing, childcare
Tradies and construction workers
- Tools and equipment, and their repair
- Protective clothing and boots, high-vis, sun protection
- Licences, tickets and white card renewals
- Car costs where you carry bulky tools with nowhere secure to leave them at the site
- Not claimable: travel from home to a regular site without bulky tools, fines, everyday clothing
Truck and delivery drivers
- Meals and accommodation on overnight trips where you’re paid a travel allowance and actually spend the money (written evidence may be needed above the ATO’s reasonable amounts)
- Licence renewals and medicals required for your licence class
- Logbooks, phone use for work
- Not claimable: meals on a normal day’s work, travel to your regular depot
Office workers
- Working from home costs, a share of a home office desk, chair and computer
- Professional memberships and work-related courses
- Not claimable: your daily commute, coffee, business clothing, gym memberships
The records you need
Receipts or invoices for each expense, a diary of work-from-home hours, a logbook or reasonable estimate of work kilometres, and anything showing the work share of something used privately. Digital copies are fine.
Get it right the first time
A return prepared by a chartered accountant claims what you’re entitled to, with the records to back it up if the ATO asks. Ours start at $285 + GST, with our fee itself deductible next year. See personal tax returns.