Work-Related Expenses Australia: ATO Claim Guide 2025–26

The Three Rules for Claiming Work-Related Expenses

The ATO (ATO guidelines) requires that all work-related expense claims meet three criteria:

If the expense is partly personal and partly work-related, you can only claim the work-related portion.

What You Can Claim

Tools and Equipment

You can claim tools and equipment you use for work. The threshold matters:

• $300 or less: Claim the full amount immediately
• Over $300: Claim over the item's effective life (depreciation)

Examples by occupation:

• Electricians: power tools, multimeters, safety equipment
• Teachers: whiteboards, markers, teaching resources
• IT workers: keyboards, monitors, hard drives
• Healthcare workers: stethoscopes, scrubs (if compulsory uniform)

Work Uniforms and Clothing

You can claim:

• Compulsory uniforms (employer requires you to wear a specific uniform with a company logo)
• Occupation-specific clothing (e.g., chefs' white jackets, protective clothing)
• Protective clothing (safety boots, high-vis vests, hard hats)

You cannot claim:

• Conventional clothing (plain black trousers, white shirts) even if worn only at work
• Clothing purchased for a job interview

Laundry: If you have a claimable uniform, you can also claim laundry costs:

• Machine wash or dryer: $1.00 per load
• Hand wash: $0.50 per load
• No receipts needed for claims up to $150/year

Vehicle and Travel

Work-related car trips (not commuting to and from work):

• Travelling between two work locations
• Driving to visit clients or suppliers
• Attending work-related training or conferences

Cents-per-kilometre method: 88 cents/km for FY2025–26, up to 5,000 km. No logbook needed — just a reasonable estimate with records.

Logbook method: Claim actual costs × your business-use percentage. Requires a 12-week logbook.

Self-Education Expenses

You can claim self-education costs if the course directly relates to your current job (not for getting a new job):

• Course fees and tuition
• Textbooks and study materials
• Internet and phone costs for studying
• Travel to and from classes

Home Office Expenses

See our WFH Tax Deductions guide for full details on claiming home office costs.

Phone and Internet

If you use your personal phone or internet for work:

• Calculate the work-related percentage
• Keep four weeks of representative records
• Claim that percentage of your annual bill

Example: $1,200/year phone bill, 30% work use = $360 deduction.

Professional Development

• Seminars, conferences, and workshops
• Subscriptions to professional publications
• Professional association memberships (e.g., CPA Australia, ACS, AMA)

What You Cannot Claim

• Commuting (home to work, work to home) — even if it's a long distance
• Everyday clothing — even if you only wear it to work
• Meals — unless overnight travel is required for work
• Entertainment — client lunches, company functions
• Fines — even if received while driving for work

Record-Keeping Tips

The ATO can audit claims up to five years after lodgement. Keep:

• Receipts and invoices (digital copies are fine)
• Bank and credit card statements
• Diary entries for vehicle trips and home office hours
• Logbook for vehicle claims

AusTax AI stores your receipts securely and automatically identifies work-related expenses when you upload them.

Occupation-Specific Guides

Different occupations have different deduction rules. Common occupations and their key deductions:

*AusTax AI analyses your occupation and flags the deductions most relevant to you.*

Need Help With Your Tax Return?

Complex situation? a registered tax agent (see the directory) Our partner agents review every detail for accuracy and compliance.

*Disclaimer: This is general information only and does not constitute personal tax advice. Consult a registered tax agent for advice tailored to your specific situation. Always verify against the latest ATO guidelines at ato.gov.au.*