Every tax time, thousands of Australians wonder, “What can I claim on tax?” without a clear answer. Consequently, many either overclaim and risk an audit, or underclaim and lose their rightful tax refund. Research from the Australian Taxation Office (ATO) shows work-related deductions remain one of the most reviewed areas on individual returns.
Overclaiming, missing receipts, and confusing private expenses with work expenses are common, costly mistakes. Fortunately, understanding the eligibility criteria makes claiming deductions for work-related expenses far simpler. This complete guide walks you through exactly what expenses you can claim, from car expenses to home office costs, so you can maximise your return with confidence.
What Can I Claim on Tax? A Quick Guide on Tax Deductions
What can I claim on tax? Basically, a tax deduction is an expense you incur while earning your income. The ATO allows you to claim these deductions against your tax return. Accordingly, claiming a deduction helps lower your taxable income and reduces the tax you owe. Deductions differ from tax offsets, since offsets directly reduce your tax payable amount.
Common deduction types include:
- Work-related expenses
- Home office costs
- Gifts and donations
- Superannuation contributions
Understanding the deductions you may be able to claim helps you avoid overpaying at tax time.
Common Deduction Categories at a Glance:
The common deductions you can claim are listed in the section above. Some of the other deductible expenses not explained comprehensively in this article are listed below.
| Category | What It Covers |
|---|---|
| Self-education | Courses directly linked to your current job |
| Investment expenses | Interest and fees on income-producing assets |
| Tools and equipment | Items used mainly for work purposes |
| Union fees | Membership costs for a registered union |
These categories sit alongside work-related expenses, though each follows its own separate ATO rules. Read the ATO guidelines for a deeper understanding of all types of deductions and their claiming procedures.
Who Is Eligible to Claim:
Eligibility depends largely on your occupation, employment type, and whether you incurred the expense yourself.
You may be able to claim tax deductions if:
- You paid for the expense and weren’t reimbursed
- The expense directly relates to earning your income
- You have a receipt, invoice, or other suitable record
- You’re an employee, sole trader, or contractor
Even if you claim all eligible deductions, your refund isn’t guaranteed. The outcome depends on several factors, including how much tax your employer withheld during the financial year. Learn more about how PAYG withholding works to understand how your final tax position is calculated.
Deductions for Work-Related Expenses
Working people across most occupations and industries could claim deductions for costs tied directly to their job. Basically, if you incur an expense while performing your duties, and your employer hasn’t reimbursed you, the ATO likely allows a deduction.
This applies whether you’re an employee or a sole trader lodging your tax return. However, the tax deductions for work-related expenses vary depending on the category. Below, we explain three of the most commonly claimed work-related expenses.
Vehicle and Travel Expenses:
For 2025–26, the ATO’s cents-per-kilometre rate sits at 88 cents per work-related kilometre. You can claim up to 5,000 kilometres per car annually, so the maximum deduction reaches $4,400. For instance, someone who drives 3,000 work-related kilometres could claim $2,640. Notably, ordinary home-to-work travel doesn’t qualify under this method.
Home Office Expenses:
Under the ATO’s fixed rate method, you could claim 70 cents for every hour worked from home in 2025–26. This rate covers electricity, internet, phone use, and stationery combined. For example, someone working 800 hours from home could claim $560 this tax time. Furthermore, separate depreciation claims apply to office furniture and equipment.
Laundry and Dry-Cleaning for Work Uniforms:
You can claim laundry costs for compulsory or protective uniforms at $1 per work-only load. Mixed loads with personal clothing are claimed at 50 cents per load instead. Therefore, someone washing uniforms twice weekly across 40 weeks could claim $40 for the year. Claims of $150 or less don’t require a receipt.
Claiming Depreciation and Decline in Value
Depreciation refers to how a work asset loses value over time through regular use. The ATO allows you to claim this decline in value as a tax deduction. Basically, this spreads the cost of an asset across its effective life instead of one lump sum. Generally, this includes home office equipment, tools, and machinery used for work.
For instance, a $2,000 laptop used mainly for work purposes qualifies as a depreciating asset. Notably, items used for both work and personal use require an adjusted, apportioned claim. However, assets costing $300 or less generally qualify for an immediate deduction instead.
Depreciation applies to:
- Laptops and computers
- Office furniture
- Tools and machinery
Therefore, understanding depreciation helps you claim the correct amount each year.
How to Calculate Decline in Value:
The ATO’s prime cost formula is:
Asset’s cost × (days held ÷ 365) × (100% ÷ effective life)
For example, a $1,500 asset with a 5-year effective life, held for the full year, calculates as:
$1,500 × (365 ÷ 365) × (100% ÷ 5)
This equals a $300 deduction for that income year. Alternatively, the diminishing value method front-loads larger deductions in earlier years.
Superannuation Contributions, Gifts or Donations
Beyond work-related expenses, you may also be able to claim gifts, donations, and superannuation contributions. These deductions reduce your taxable income, provided you meet specific eligibility criteria. Certainly, not every donation or contribution automatically qualifies for a deduction. Instead, the ATO sets clear rules around what counts as deductible. Below, we explain how each of these categories works, along with a practical example.
Claiming Gifts and Donations:
You can only claim donations made to organisations holding ‘deductible gift recipient’ status. For example, a $100 donation to a registered charity is fully deductible on your return. However, receiving something in return, like a raffle ticket, generally disqualifies the claim. Always confirm DGR status through the ATO website before donating.
Superannuation Contributions as a Deduction:
Personal super contributions may also be deductible if you lodge a valid notice of intent. For instance, someone contributing $5,000 personally could claim this amount as a deduction. Nonetheless, this reduces your super balance’s tax concessions, so weigh both outcomes carefully. Contribution caps still apply regardless of how the contribution gets claimed.
Can You Claim Deductions Without Receipts?
Generally, the ATO requires written evidence, such as a receipt or invoice, for most claims. However, certain limited exceptions allow deductions without a receipt under specific circumstances. This mainly applies when the total claim amount stays below a set threshold. Even so, you must still show a reasonable basis for the amount claimed.
How Much Can You Claim Without Receipts?
According to the ATO, total work-related expense claims of AUD 300 or less need no formal receipts. Instead, you need a record, such as a diary entry, showing your calculation. For example, laundry expenses of $150 or less also skip the receipt requirement separately. Beyond these thresholds, however, written evidence becomes mandatory for every claim.
Record-Keeping Requirements for Your Tax Returns
Proper record-keeping protects your claims and supports your tax affairs. Regardless of your occupation, the ATO expects clear documentation for expenses you incurred. This applies equally to employees, contractors, and every sole trader lodging a return. Following these requirements closely reduces audit risk and strengthens your eventual tax refund.
Receipts and Invoices You Need to Keep:
Keep these records for every claim you make:
- Receipts and invoices showing the expense amount
- Bank or credit card statements confirming payment
- A logbook for vehicle and travel expenses
- Diary entries for expenses under $300
Together, these documents substantiate your claims should the ATO review your return.
How Long to Keep Records as a Sole Trader or Employee:
The ATO requires you to keep most tax records for five years generally. This period starts from the date you lodge your relevant tax return. Sole traders must retain business records for this same five-year timeframe as well.
Conclusion
So, what can I claim on tax? Ultimately, it depends on your occupation, expenses incurred, and available evidence. Work-related deductions, home office expenses, and car expenses remain the most commonly claimed categories. Meanwhile, gifts, donations, and personal super contributions are also deductible additions worth reviewing each year.
Regardless of your employment type, keeping payment summaries, invoices, and receipts protects every claim you make. If your tax affairs feel complicated, a registered tax agent or tax professional can guide you further. Come tax time, being organised makes the difference between a rushed return and a confident one. So, which deductions will you review before you claim them this year? Let us know in the comments.
FAQs
1. Can I claim gym clothes or everyday work clothing?
No, conventional clothing isn’t deductible, even if required for work. Only protective clothing or registered uniforms qualify.
2. What is the standard deduction for work-related expenses in Australia?
Australia doesn’t offer a flat standard deduction like some countries. Each deduction must relate directly to your income-earning activities.
3. Can I claim tax agent fees on my return?
Yes, fees paid to a registered tax agent are fully deductible. Claim them in the same year you paid them.
4. What deductions can be claimed for self-education?
You can claim courses directly connected to your current employment. This includes tuition, textbooks, and related travel costs.
5. Do I need written evidence for all work expenses?
Generally, yes, once your total work-related claims exceed $300. Below that threshold, a clear record remains necessary.