What Can I Claim on My Tax Return in Australia? (2026 Guide)

Many Australians miss legitimate tax deductions each year simply because they are unsure what they can claim. Understanding the rules around deductions can help reduce your taxable income and ensure you are not paying more tax than necessary.

In this guide, we explain the most common tax deductions Australians can claim and the key rules you need to follow when preparing your tax return.

The 3 Golden Rules of Tax Deductions

Before claiming any deduction, it is important to understand the three basic rules used by the Australian Taxation Office (ATO).

1. You must have spent the money yourself

You can only claim a deduction if you personally paid for the expense and were not reimbursed by your employer. If your employer reimburses you for the expense, it cannot be claimed.

2. The expense must relate to earning your income

The expense must directly relate to the work you perform to earn your income. For example, a nurse may claim scrubs or professional registration fees, while a construction worker may claim tools and protective equipment.

3. You must keep records

The ATO requires you to keep records to support your claims. This typically includes receipts, invoices, bank statements or logbooks. In most cases, records must be kept for five years.

Common Work-Related Deductions

Many employees incur work-related expenses that may be deductible. Some of the most common work-related deductions include the following.

Tools and equipment

If you purchase tools or equipment required for your job, you may be able to claim the cost. This can include items such as tools used by tradespeople or specialised equipment required for work.

If the item costs more than $300, the deduction may need to be claimed over several years through depreciation.

Computers and laptops

Employees who purchase laptops, monitors, or other computer equipment for work purposes may be able to claim a deduction based on the work-related portion of use.

For example, if a laptop is used 60 percent for work and 40 percent for personal use, only the work-related portion may be claimed.

Work-related phone and internet usage

If you use your phone or internet for work purposes, you may claim the work-related portion of those expenses. This usually requires calculating a reasonable percentage of work use.

Professional memberships and subscriptions

Memberships to professional associations or industry bodies may be deductible if they relate to your job.

Examples include:

• accounting associations

• engineering bodies

• medical professional organisations

Union fees

Union fees paid by employees are generally tax deductible.

Protective clothing and uniforms

You may be able to claim the cost of compulsory uniforms, occupation-specific clothing, or protective gear.

Examples include:

• high-visibility clothing

• safety boots

• helmets

• protective gloves

However, everyday clothing such as business suits cannot be claimed, even if they are worn at work.

Working From Home Deductions

With more Australians working remotely or from home, many people incur additional home office expenses.

If you work from home, you may be able to claim deductions for expenses such as electricity, internet usage, and office equipment.

Electricity and heating

Running computers, lighting, and heating or cooling while working from home can increase household electricity costs. A portion of these expenses may be deductible.

Internet usage

If you use your home internet connection for work purposes, the work-related portion of the cost may be deductible.

Office furniture and equipment

Items such as desks, chairs, monitors, keyboards, and other office equipment may be claimed if they are used for work.

Large purchases may need to be depreciated over time.

Car and Travel Deductions

Vehicle and travel expenses are commonly misunderstood when it comes to tax deductions.

When you can claim car expenses

You may be able to claim car expenses when travelling for work purposes, including:

• travel between multiple work locations

• travel to meet clients

• transporting heavy tools or equipment

These trips are considered work-related and may be deductible.

When you cannot claim car expenses

Travel between your home and your regular workplace is generally considered private travel and cannot be claimed.

Even if you travel a long distance to work, the commute from home to your workplace is not deductible.

Self-Education Expenses

Education expenses may be deductible if the course directly relates to your current job and helps you maintain or improve the skills required for your work.

Examples include:

• professional training courses

• industry certifications

• postgraduate studies related to your job

However, education expenses designed to help you change careers are generally not deductible.

Investment-Related Deductions

Investors may also be able to claim certain expenses related to generating investment income.

Common examples include:

Investment management fees

Fees paid to financial advisers or investment platforms may be deductible if they relate to managing investments that generate taxable income.

Interest on investment loans

Interest on loans used to purchase income-producing investments may also be deductible.

For example, interest on a loan used to purchase shares or an investment property may be claimable.

Accounting and tax agent fees

The cost of preparing and lodging your tax return is also deductible in the following financial year.

Charitable Donations

Donations made to registered deductible gift recipients (DGRs) may be tax deductible.

Examples include donations made to registered charities and non-profit organisations.

To claim a deduction, the donation must generally be:

• $2 or more

• made to a registered charity

• supported by a receipt

What You Cannot Claim

While many expenses are deductible, there are also common claims that are not allowed.

Examples include:

• everyday clothing worn to work

• commuting from home to work

• personal expenses

• expenses reimbursed by your employer

Understanding these rules can help avoid incorrect claims and potential issues with the ATO.

Record Keeping Tips

Keeping proper records is essential when claiming tax deductions.

Helpful records include:

• receipts and invoices

• bank statements

• vehicle logbooks

• work-related usage calculations

Digital record-keeping apps and cloud storage can make it easier to track expenses throughout the year.

Getting Help With Your Tax Return

Tax rules can be complex, and many people either miss deductions or claim items incorrectly.

A registered tax agent can help ensure your tax return is prepared correctly and that all eligible deductions are claimed.

If you would like help preparing your tax return or understanding what deductions you can claim, professional advice can make the process easier and help you maximise your tax position.