Work-Related Expenses: What You Can Claim in Australia (2025–26)

The Three Rules for Claiming Work-Related Expenses

The ATO 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](/guides/wfh-tax-deductions-australia-2026) 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.*

*This guide provides general information based on ATO guidelines for FY2025–26. For advice specific to your situation, consult a registered Tax Agent.*