Claiming what you're entitled to is one of the simplest ways to get your tax right — but only if the claim is genuine and you can back it up. Here's a plain-English look at the deductions individuals most commonly claim in Australia, the rules that decide whether a claim will stand, and what changes from the 2026–27 income year.
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The three rules every work-related claim must meet
Before claiming any work-related expense, check it against these three tests. All three must be true:
- You spent the money yourself and weren't reimbursed by your employer.
- The expense directly relates to earning your income (not a private cost).
- You have a record to prove it — usually a receipt or invoice from the supplier.
If something is used for both work and private purposes — a mobile phone, say — you can generally claim only the work-related portion.
Common work-related expenses
- Car and travel — trips between work sites, to clients, or to meetings (but not your normal commute from home to work). Cars are usually claimed using either the cents-per-kilometre method or a logbook.
- Uniforms and protective clothing — compulsory or occupation-specific uniforms, protective gear and safety equipment, plus their laundry. Everyday clothes aren't deductible, even if you only wear them for work.
- Tools and equipment — items you need for your job; larger items may be claimed over time through depreciation.
- Self-education and training — courses that directly relate to your current job.
- Phone and internet — the work-related share of your bills (not claimable separately if you use the fixed-rate working-from-home method).
- Union fees and professional memberships — subscriptions relevant to earning your income.
Working from home
If you work from home and pay additional running costs (electricity, internet, phone, stationery), you may be able to claim them. The ATO provides two methods:
- a fixed-rate method — a set amount per hour worked from home (70 cents per hour for 2024–25 and 2025–26), which covers energy, phone, internet and stationery together. You need a record of the hours you actually worked from home across the year; and
- an actual-cost method — you claim the real work-related portion of each expense.
Each method has its own record-keeping rules, and the better option depends on your situation. Where your records support both, we compare them and use the larger allowable claim.
New from 2026–27: the $1,000 standard deduction
From your 2026–27 tax return (the income year that started on 1 July 2026), the ATO automatically applies a standard deduction of up to $1,000 for work-related expenses if you're an Australian resident earning salary, wages or similar labour income. You don't need receipts for it.
- It is reduced dollar-for-dollar by the work-related expenses you claim — so if your work expenses are under $1,000, it's usually simpler to take the standard deduction.
- If your work-related expenses are more than $1,000, you can claim the actual amount instead, but you need written evidence for all of it.
- Union fees and professional memberships, donations, tax-agent fees, income protection premiums, personal super contributions and investment or rental deductions are claimed separately and don't reduce it.
- From 1 July 2026 the old no-receipt exceptions — the $300 work-expense limit and the $150 laundry limit — no longer apply.
Other deductions people often miss
- Donations to organisations with deductible gift recipient (DGR) status. The old $2 minimum no longer applies to gifts made on or after 1 July 2024 (it still applies to political donations). The gift must be genuine — nothing received in return — and you need a receipt.
- Cost of managing your tax affairs — including fees paid to a registered tax agent, deductible in the income year you pay them.
- Income protection insurance premiums (where the policy is held outside super).
- Personal super contributions you make and claim as a deduction (conditions apply).
- Investment and rental property costs — interest, agent fees, repairs and other expenses linked to earning investment income. Note that from 1 July 2027, negative gearing for residential property is limited to new builds; properties already held at 7:30 pm AEST on 12 May 2026 are exempt from that change.
What you generally can't claim
- Private or domestic costs — everyday clothing, childcare, or your normal home-to-work commute.
- Expenses your employer already reimbursed.
- Anything you can't substantiate with a record (apart from the standard deduction from 2026–27).
Records to keep
Keep written evidence from the supplier — receipts or invoices — plus logbooks and diaries where relevant. A bank or card statement on its own isn't enough, though it can support a claim alongside other evidence. Keep your records for five years from the date you lodge (longer in some cases, such as assets you depreciate or later sell).
Frequently asked
What are the rules for claiming a work-related deduction?
Three things must be true: you spent the money yourself and weren't reimbursed; the expense directly relates to earning your income; and you have a record to prove it. Mixed-use items are claimed at the work-related portion only.
What is the $1,000 standard deduction?
From the 2026–27 income year, eligible Australian residents with salary, wages or similar labour income automatically receive a standard deduction of up to $1,000 for work-related expenses, with no receipts needed. It is reduced dollar-for-dollar by the work-related expenses you claim, and it does not apply to 2025–26 returns.
Can I claim working-from-home expenses?
Yes, if you work from home and incur additional running costs. There's a fixed-rate method (a set amount per hour, which needs a record of the hours you actually worked from home) and an actual-cost method — each with its own records. Where your records support both, we compare them and use the larger allowable claim.
Can I claim the cost of a tax agent?
Yes — fees for managing your tax affairs, including a registered tax agent's fee, are generally deductible in the income year you pay them.
Do I need receipts?
Generally yes — written evidence from the supplier, such as a receipt or invoice, kept for five years from the date you lodge. A bank or card statement on its own is not enough. Some methods, like cents-per-kilometre for cars, don't need receipts but do require a reasonable record of how you worked out the amount.