Deduction guide
Work-Related Tax Deductions in Australia: Rules, Records and Examples
A work expense is not deductible merely because it helped you do your job. The expense must satisfy the deduction rules, any private portion must be excluded, and you need appropriate evidence.
The three basic rules
The ATO summarises three basic rules for work-related deductions: you spent the money and were not reimbursed; the expense directly relates to earning your income; and you have a record to prove it, unless a specific exception applies.
If an expense is partly work and partly private, claim only the work-related portion. Buying an item through a work account does not automatically make it deductible.
- ✓ You paid the expense yourself
- ✓ Your employer did not reimburse it
- ✓ It directly relates to earning your income
- ✓ You can substantiate the claim
- ✓ You remove the private portion
Related guide: Estimate your tax refund →
Common categories—not automatic entitlements
Potential categories include working-from-home costs, tools and equipment, protective clothing, occupation-specific clothing, self-education, union fees and some travel between workplaces. Each category has its own conditions.
Ordinary clothing, normal travel from home to a regular workplace and private meals are generally private, even if work requires a certain appearance, an early start or eating away from home.
- ✓ Home-office running expenses
- ✓ Tools, equipment and decline in value
- ✓ Protective or occupation-specific clothing
- ✓ Professional subscriptions and union fees
- ✓ Eligible self-education
- ✓ Travel between separate workplaces in qualifying circumstances
Related guide: PAYG withholding vs final tax →
Records and apportionment
Keep receipts or other written evidence, and retain calculations showing how you separated work use from private use. A diary, usage log or reasonable work-use pattern may be needed depending on the expense and method.
Do not create a round-number claim simply because you believe it is under a receipt threshold. Exceptions to written evidence do not remove the requirement to have actually incurred the expense and be able to explain the calculation.
Example: A laptop used 60% for employment and 40% privately cannot generally be treated as 100% work-related. The deductible amount may also be spread through decline-in-value rules rather than claimed immediately.
Related guide: Medicare levy explained →
Estimate the tax effect—not the purchase price
Enter only eligible deductible amounts into the calculator. The result shows how taxable income changes; it should not label the whole expense as a refund. Keep the estimate separate from the decision about whether the claim is legally available.
Frequently asked questions
Can I claim an expense without a receipt?+
Some evidence exceptions exist, but you must still have incurred an eligible expense and be able to show how you calculated the claim.
Can I claim ordinary clothes worn at work?+
Generally no. Protective, occupation-specific or eligible compulsory-uniform items follow more specific rules.
Does a $500 deduction give me $500 back?+
No. A deduction reduces taxable income; its tax effect depends on your circumstances and applicable rates.
Official sources and important note
This guide provides general educational information, not personal tax advice. Confirm current rules with the ATO or a registered tax agent before lodging.