Deductions you can claim
When completing your tax return, you’re entitled to claim deductions for some expenses, most of which are directly related to earning your income.
Work-related expenses
To claim a work-related deduction:
- you must have spent the money yourself and weren’t reimbursed
- it must directly relate to earning your income
- you must have a record to prove it.
If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Work expenses reimbursed to you by your employer are not deductible.
ATO can seek information from your employer if they think you have claimed a deduction for an expense that you have already been reimbursed for.
You may be able to claim a deduction for expenses you incur that relate to your work, including:
Cars, transport and travel
Deductions for car, transport and travel expenses you incur in the course of your work.
Tools, computers and items you use for work
Deductions for tools, computers, internet, stationery, books and other items you use for work.
Clothes and items you wear at work
Deductions for clothes, glasses, protective gear and other items you wear at work.
Working from home expenses
Deductions for expenses you incur to work from home such as stationery, energy and office equipment.
Education, training and seminars
Deductions for self-education, conferences and training. You can’t claim children’s school fees or care.
Memberships, accreditations, fees and commissions
Deductions for union fees, professional memberships, working with children check, agency fees and commissions.
Meals, entertainment and functions
Deductions for meals, snacks, overtime meals, entertainment and functions.
Personal grooming, health and fitness
Deductions for medical assessments, vaccinations, COVID-19 tests, gym fees, cosmetics and personal grooming.
Gifts and donations
Deductions for gifts or donations you make to deductible gift recipients, and the records you need.
Investments, insurance and super
Deductions for investment expenses, income protection insurance, personal super contributions and foreign pensions.
Cost of managing tax affairs
Deduction for expenses to manage your tax affairs, such as lodging with a registered agent.
Employees (including casuals) can claim work-related expenses in the income year you incur them. This means if you start employment in June you can claim deductions for work-related expenses you incur in June. Even if you don’t receive your employment income until the next income year.
If you employ someone to assist you in your employment, you cannot claim a deduction for employing that person.
Deductions for specific occupations
To find out what deductions you can claim for work-related expenses in your industry or occupation, see table below:
Record keeping
You must be able to substantiate your claims for deductions with written evidence if the total amount of deductions you are claiming is greater than $300. The records you keep must prove the total amount, not just the amount over $300.
If the total amount you are claiming is $300 or less, you need to be able to show how you worked out your claims, but you do not need written evidence.
ATO requires you to keep receipts, logbooks and records for at least 5 years.