What can I claim on tax? This is the one question many Australians ask themselves at tax time. Many taxpayers miss legitimate deductions because they remain unsure which expenses they can claim on tax. This uncertainty can reduce a potential tax refund and lead to missed deductions during tax season.
The ATO provides rules explaining which work-related expenses qualify for tax deductions. This guide explains eligible deductions, record keeping, common mistakes, and expenses that generally remain private.
What Can I Claim on Tax?
At tax time, Australians may claim certain expenses that directly relate to earning taxable income. A valid tax deduction can reduce taxable income, potentially lowering the amount of taxation owed. Generally, you need records such as a receipt or invoice to support each claim.
The Australian Taxation Office (ATO) sets rules covering which tax deductions you can claim during tax time. Therefore, keeping accurate records throughout 2026 can make it easier to lodge your tax return.
1. Vehicle & Travel Expenses:
You may be able to claim tax deductions for eligible vehicle and travel expenses when driving for work-related purposes. Generally, commuting between your home and regular workplace remains a private expense under Australian taxation rules. However, travel between workplaces or specific work locations may qualify when properly documented.
For the 2025–26 tax year, you can use the cents-per-kilometre method at 88 cents per work-related kilometre. You can claim up to 5,000 kilometres per car, giving you a maximum deduction of $4,400.
2. Mobile Phone Use:
You may claim part of your mobile phone costs when you use the device for work. However, you should calculate the work-related portion rather than claiming your entire phone expense. Keep bills and usage records that demonstrate how you determined the deductible amount.
Additionally, employees working from home may claim eligible phone costs linked directly to employment duties. Accordingly, accurate records help support your claim if the ATO requests evidence.
3. Gifts & Donations:
Eligible donations to approved organisations may qualify as deductions when you meet Australian tax rules. You generally need a receipt confirming the donation before you claim a deduction. However, gifts usually need to meet specific conditions before they become deductible expenses.
Therefore, check whether the organisation qualifies before including donations in your tax return. A registered tax agent can provide guidance when donation circumstances create uncertainty.
4. Laundry Expenses:
You may claim laundry expenses when cleaning eligible work-related clothing used during employment duties. Generally, ordinary everyday clothing does not qualify simply because you wear it for work.
However, compulsory uniforms or protective clothing may qualify when they meet ATO requirements. For laundry expenses, the ATO allows $1 per load when you wash work-only clothing and 50 cents per load for mixed loads.
For instance, washing a work uniform twice weekly across 40 working weeks means 80 loads, resulting in an $80 deduction. If your total laundry claim is $150 or less, you generally don’t need to provide a receipt, although you should still keep records showing how you calculated the amount.
5. Working From Home Deductions:
Employees may claim eligible home office expenses when they perform employment duties from home. Generally, the claim covers running costs calculated through an approved method for work-related use.
Using the fixed rate method for 2025–26, you can claim 70 cents per hour worked from home. For example, someone logging 800 hours from home across the year could claim $560, covering electricity, internet, phone use, and stationery combined, with office equipment like laptops or monitors claimed separately.
6. Education-Related Expenses:
You may claim self-education expenses when your study directly relates to your current employment. The course should maintain or improve skills required for your existing income-producing activities.
Additionally, eligible course materials, travel, and certain equipment may qualify as deductions. However, you can’t claim costs that relate only to gaining new employment.
7. Investment Income:
Investment income can create deductible expenses when those costs directly relate to earning assessable income. For example, certain interest, management fees, and investment-related expenses may qualify under tax rules.
However, private costs generally cannot reduce taxable income through legitimate deductions. Therefore, keep relevant statements and records when preparing your 2026 tax return.
8. Expenses Related to Tools & Equipment:
You may claim the cost of work-related tools and equipment when they meet eligibility requirements. For items costing $300 or less, an immediate deduction may apply in certain circumstances. More expensive office equipment may require deductions through decline in value calculations. Similarly, claim the business-use portion when equipment serves both private and work purposes.
For example, a $250 power drill bought for tradework can be claimed in full the same year. By contrast, a $2,000 laptop used 100% for work must be depreciated over its effective life, using the ATO’s prime cost formula: cost × (days held ÷ 365) × (100% ÷ effective life); a laptop with a 2-year effective life would generate a $1,000 deduction in the first full year.
9. Tax Preparation Fees:
You may claim eligible tax preparation fees when you pay someone to manage your tax affairs. Generally, fees for preparing and lodging your tax return may qualify as deductible expenses. However, private financial advice does not automatically qualify as a tax-deductible expense. Therefore, retain invoices and payment records to support your claim during tax season.
10. Union Fees, Professional Memberships, and Trade Publications:
Eligible union fees and professional membership costs may qualify when they relate directly to employment. You may also claim certain trade publications that help maintain your work-related knowledge. However, private memberships and unrelated publications generally cannot qualify as tax deductions for work-related expenses. Keep receipts and membership records to support expenses you claim on your tax return.
Can You Claim Deductions Without Receipts?
You may claim certain deductions without receipts when specific ATO record-keeping exceptions apply. However, eligibility depends on the expense type, amount, and evidence available to support your claim. Before lodging your tax return, check our guide on what you can claim on tax without receipts for examples and applicable requirements.
What Can’t I Claim On Tax?
Not every expense qualifies as a tax deduction, even when you incur costs while working. Generally, you can’t claim private expenses or costs unrelated to earning taxable income.
- Private purchases and ordinary living costs generally cannot reduce your taxable income through deductions.
- You can’t claim expenses already reimbursed by your employer or another party.
- Entertainment expenses and personal travel generally remain ineligible for work-related deductions.
- Additionally, you can’t claim the private portion of expenses that have mixed work and personal use.
- Costs without adequate record-keeping may also prevent you from claiming certain deductions.
- Therefore, check the ATO rules carefully before claiming expenses on your 2025–26 tax return.
Conclusion
What can I claim on tax? Knowing which expenses qualify can help you claim deductions correctly and avoid unnecessary issues later. You may be entitled to claim legitimate work-related expenses when they meet ATO requirements. However, private costs remain ineligible, even when they occur alongside employment-related activities.
Additionally, a tax professional can also provide tax advice when your circumstances require additional guidance. Ultimately, knowing about the correct tax deductions helps you prepare a more accurate return. Which deductions have you considered claiming on your next tax return?