Australian Tax Deductions Guide for Employees
Australian employees may claim some work-related expenses, but usefulness at work alone does not make a cost deductible. A claim generally needs a direct connection to earning assessable income, must not be private or reimbursed, and must be supported by records. Check current ATO rules for the income year.
Apply the work-related expense tests
For each cost, establish what you paid, why it helped earn income, whether your employer reimbursed it, and the business-use share. Split mixed-use phone, internet and equipment costs reasonably. Ordinary clothing is generally private even if an employer expects it; specific uniforms and protective clothing have separate rules. Self-education expenses must relate to current income-producing activities and meet ATO conditions.
Home office, car and travel claims
Working-from-home methods have different rates, eligible costs and substantiation. Retain the records required for the method used and avoid double counting. A car claim generally requires a qualifying work journey; ordinary home-to-regular-work commuting is private. Logbook and cents-per-kilometre approaches have different rules. Parking, tolls and travel between work locations depend on the trip’s circumstances.
| Expense | Check |
|---|---|
| Clothing and PPE | Does it meet ATO category rules? |
| Phone or internet | Can the work-use percentage be substantiated? |
| Home office | Which method and evidence apply this year? |
| Car travel | Was the trip work-related rather than ordinary commuting? |
- List expenses and note their income-earning purpose.
- Remove reimbursed costs and private-use portions.
- Keep receipts, diaries, logbooks and work-use calculations.
- Use current-year ATO methods for home office and vehicle costs.
- Compare pre-filled return information with your own records before lodging.
General information, not personal tax advice. Tax rules change. Confirm current ATO guidance or consult a qualified professional.