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 that directly relate to your work, including:
- Vehicle and travel expenses – including travel between work and home
- Clothing, laundry and dry-cleaning expenses
- Home office expenses
- Mobile phone, internet and home phone expense
- Overtime meals
- Self-education expenses
- Tools, equipment and other equipment
- Other work-related deductions.
Employees (including casuals) can claim work-related expenses in the financial year they are incurred. This is the case even if you start employment in June but don’t receive income until the next financial year, you can claim deductions for work-related expenses incurred in June.
If you employ someone to assist you in your employment, you cannot claim a deduction for employing that person.
Other deductions
You may also be able to claim a deduction for:
- Cost of managing tax affairs
- Gifts and donations
- Interest, dividend and other investment income deductions
- Personal super contributions.
Deductions for specific occupations
To find out what deductions you can claim for work-related expenses in your industry or occupation, see Deductions for specific industries and occupations.
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.
