Who This Guide Is For
If you work as a software developer, IT engineer, systems administrator, cybersecurity analyst, data scientist, UX designer, DevOps engineer, or IT project manager, this guide covers every deduction available to you in FY2025–26.
IT professionals have some of the highest deduction opportunities in Australia — home office, equipment, subscriptions, certifications, and education costs add up fast.
What IT Professionals Can Claim
1. Home Office (Working From Home)
Most IT workers do at least some work from home. The ATO (ATO guidelines)'s two methods:
Fixed Rate Method — 70¢ per hour
- Covers electricity, internet, phone, stationery
- Requires a diary or timesheet showing WFH hours
- Example: 38 hrs/week × 48 weeks = 1,824 hrs × $0.70 = $1,276 deduction
Actual Cost Method
- Claim actual costs: electricity, internet, office furniture depreciation
- Better if you have a dedicated home office and high actual costs
- Requires 4 weeks of representative usage records
You can claim depreciation of your work computer separately under EITHER method.
2. Computer, Monitor, and Equipment
If you buy your own equipment for work:
- Laptop or desktop computer: If >$300, depreciate over 3 years (33.3%/year)
- Monitor(s): Same — depreciate over 3–5 years
- Keyboard, mouse, webcam, headset, microphone: If <$300, claim in full year of purchase
- External hard drives, USB hubs, docking stations
- Home server or NAS (if used for work)
Work-use percentage: If the computer is also used personally, only claim the work-related portion. Keep a log for at least 4 weeks to justify your percentage.
Example: A $2,400 laptop, 80% work use = $1,920 × 33.3% = $639 deduction in year 1.
3. Software and SaaS Subscriptions
Fully deductible if used for work — even if subscribed personally:
- JetBrains (IntelliJ, WebStorm, etc.)
- GitHub Copilot, Codeium, or other AI coding assistants
- Adobe Creative Cloud (if design work is part of your role)
- Figma, Sketch, Zeplin
- AWS, Azure, GCP personal lab/learning accounts
- Notion, Obsidian, or other productivity tools used for work
- Antivirus and security software
Claim the work-related proportion. If exclusively for work, claim 100%.
4. Professional Development and Certifications
A major deduction for IT workers:
- Cloud certifications: AWS Solutions Architect, Azure Administrator, GCP Associate — exam fees plus study materials
- Cybersecurity certs: CISSP, CEH, CompTIA Security+
- Agile/Scrum: PMP, PRINCE2, SAFe certifications
- Online learning: Udemy, Pluralsight, LinkedIn Learning, A Cloud Guru, O'Reilly — fully deductible if work-related
- Technical books and ebooks (O'Reilly, Pragmatic Bookshelf, etc.)
- Conference tickets: PyCon, NDC, AWS re:Invent, YOW — registration + travel + accommodation
Education must maintain or improve your skills in your current role, not for an initial qualification.
5. Professional Memberships
- ACS (Australian Computer Society) membership — fully deductible
- ISACA, (ISC)², or other professional body memberships
- IEEE membership
6. Phone and Internet
- Phone: If you use your personal phone for work calls, Slack, emails, etc., claim the work-related percentage
- Internet: For remote workers, the work-related portion of your home internet bill (the Fixed Rate Method covers this, but the Actual Cost Method lets you claim it separately)
Tip: The work-related phone percentage is often 40–80% for IT workers who use Slack, Teams, or emails constantly.
7. Work-Related Travel
- Travel between two workplaces on the same day
- Travel to client sites
- Travel to conferences or training
- 88¢/km using cents-per-km method (FY2025–26)
Contractor / Freelancer IT Workers
If you're an IT contractor operating through an ABN (not a company structure), most of the above still applies via your individual tax return. Some differences:
- You may also claim a home office as a genuine place of business (occupancy costs like rent/mortgage interest become deductible)
- Business expenses like accounting fees, platform fees (Upwork, etc.) are also deductible
Common Mistakes IT Professionals Make
| Mistake | What to Do Instead |
|---|---|
| Forgetting software subscription receipts | Set up a folder in your email for all work-related subscription invoices |
| Not tracking WFH hours | Use a simple spreadsheet or the AusTax AI app daily |
| Missing out on certification study materials | Exam prep books, practice tests, and study guides are deductible |
| Claiming 100% of phone/laptop without evidence | Keep a 4-week diary to justify your work-use percentage |
| Forgetting ACS or ISACA membership | Always deductible — check your bank statements |
Records to Keep
- Receipts for all equipment, software, and subscription purchases
- WFH diary or timesheet (for fixed rate method)
- 4-week usage log for phone/internet percentage
- Certification exam confirmation and payment receipts
- Conference registration confirmations and travel bookings
Complex situation with side gigs, RSUs, or overseas income? a registered tax agent (see the directory) Still unsure whether you need an agent? See our full decision guide.
Quick Checklist for IT Professionals
- WFH hours diary
- Computer/laptop/monitor (work-use portion)
- Software and SaaS subscriptions
- Cloud certification exam fees and study materials
- Online course subscriptions (Udemy, Pluralsight, etc.)
- Technical books and ebooks
- ACS or other professional memberships
- Phone and internet (work-related portion)
- Conference fees and travel
- Work-related travel (between workplaces or to clients)
*This guide provides general information only — not personal tax advice. For complex situations, consult a registered tax agent.*