What Should or Could I Claim at Tax Time?

The contents provided on this page are for informational purposes only and do not constitute financial advice. Consider your personal circumstances and objectives before making any financial decisions.

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TL;DR

• You may be able to claim deductions for expenses that directly relate to earning your income, but you’ll generally need records to support them.
• Common tax deductions include some work-related expenses, working from home costs, car expenses, tools, uniforms, self-education, donations, and tax agent fees.
• You usually can’t claim private expenses, reimbursed costs, or costs that only have a loose connection to your job.
• The Australian Taxation Office (ATO) has occupation-specific guides that can help you understand what may apply to your role.
• This article is general information only. For advice based on your situation, consider speaking with a registered tax agent.

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Tax time doesn’t need to be a guessing game

Tax time brings up the same question every year: what should or could I claim at tax time? 

It’s a fair question. Many people want to increase their tax return but don’t want to claim the wrong things. Between work expenses, working from home, car use, tools, donations, and side income, it’s not always obvious what belongs in your tax return and what doesn’t.

The simple starting point is this: a tax deduction is generally an expense you can subtract from your taxable income because it relates to earning your income. But there are rules. You usually need to have paid for the expense yourself, not been reimbursed, and kept a record to prove it. Keep those receipts! 

So, instead of trying to remember everything at the last minute, let’s walk through some of the common things Australians may be able to claim at tax time, what to watch for, and how to stay organised.

What can you generally claim at tax time?

A good place to start is with the ATO’s 3 basic deduction rules.

To claim a work-related deduction, the expense generally needs to:

• Be directly related to earning your income.
• Be paid by you, without being reimbursed by your employer.
• Be supported by a record, such as a receipt, invoice, diary entry, logbook, or digital record.

If an expense is partly work-related and partly personal, you’ll generally only be able to claim the work-related portion. For example, if you use your mobile phone for both work and personal calls, you’d need to work out a reasonable work-related percentage.

The same is true for electricity and internet, office furniture, fuel, car expenses etc etc. 

That’s where a lot of tax-time confusion starts. It’s not just about the fact that you bought something for work, but proving what percentage is involved in helping you generate income. 

Common work-related expenses you may be able to claim

Work-related expenses are one of the biggest areas people think about at tax time and it’s probably why you’re reading this right now. 

Depending on your job, you may be able to claim expenses such as:

• Tools and equipment you use for work.
• Protective clothing or occupation-specific uniforms.
• Union fees or professional association fees.
• Work-related phone and internet use.
• Work-related travel between job sites.
• Relevant self-education linked to your current work.
• Home office running costs, if you work from home.

The expense needs to connect to your current income-earning work. A course that helps you do your current job may be different from a course that helps you move into a new career. A shirt you happen to wear to work may still be considered conventional clothing unless it meets the ATO’s rules for occupation-specific or protective clothing. 

If you’re unsure, the ATO’s occupation and industry guides can be a useful place to check what’s commonly claimable for your type of work. 

Can you claim working from home expenses?

If you work from home, you may be able to claim some of the extra running costs you incur.

The ATO outlines two main ways employees can calculate working from home deductions: the fixed rate method and the actual cost method.

Fixed rate method

This method lets you claim a set rate for each hour you work from home, as long as you meet the eligibility and record-keeping rules.

The fixed rate covers certain running expenses, such as electricity, internet, mobile phone usage, stationery, and computer consumables. You’ll generally need a record of the actual hours you worked from home across the year, not just an estimate. 

You may also be able to separately claim the work-related decline in value of depreciating assets you use while working from home, such as a laptop, monitor, desk, or office chair, depending on your situation and records.

Actual cost method

This method involves working out the actual work-related portion of your home running expenses. It can be more detailed, because you need exact records showing the expenses you incurred and how you calculated your work-related use.

The actual cost method might suit some people, but it requires more record keeping. If you’re not sure which method makes sense for you, it can help to use the ATO’s home office expenses calculator or speak with a registered tax agent. 

Can you claim car expenses?

You may be able to claim car expenses if you use your own car for work-related travel. But regular trips between home and your usual workplace generally aren’t claimable, because they’re often considered private travel.

Work-related car travel may include trips such as:

• Travelling between 2 separate jobs on the same day.
• Travelling from your usual workplace to another work site.
• Visiting clients or customers for work.
• Carrying bulky tools or equipment in limited circumstances. 

The ATO generally allows two methods for claiming work-related car expenses: the cents per kilometre method and the logbook method.

Cents per kilometre method

This method lets you claim a set rate per work-related kilometre, up to 5,000 work-related kilometres per car per income year.

For the 2025–26 income year, the rate is 88 cents per kilometre. You don’t need written evidence for every car expense under this method, but you do need records showing how you worked out your work-related travel.

Logbook method

This method uses your work-related use percentage based on a valid logbook. It can involve more record keeping, but may be useful if your work-related car use is higher or more varied.

The key is not to guess. Keep notes, diary entries, calendar records, or a logbook if car travel is part of your work.

Can you claim tools, equipment, and tech?

If you buy tools, equipment, or technology for work, you may be able to claim some or all of the cost.

This could include things like:

• Tools for a trade.
• A laptop used for work.
• A work headset.
• A monitor or keyboard.
• Software or subscriptions used for work.
• Protective gear required for your role.

If the item is used for both work and personal reasons, you generally need to split the claim between work use and private use. This can involve more record keeping and math. 

For more expensive items, you may not be able to claim the full cost in one year. Instead, you may need to claim the decline in value over time. That simply means spreading the deduction across the item’s useful life, rather than claiming the whole amount upfront.

Can you claim uniforms and laundry?

You may be able to claim the cost of buying, repairing, or cleaning work clothing if it meets certain rules.

Generally, claimable work clothing may include:

• Compulsory uniforms.
• Occupation-specific clothing, like scrubs, aprons etc.
• Protective clothing, such as steel-capped boots, high-vis gear, or safety glasses.
• Certain registered non-compulsory uniforms.

You generally can’t claim everyday clothing, even if your employer expects you to wear a certain style or colour. For example, plain black pants or business shirts are usually considered private clothing unless they meet specific rules.

Laundry claims also need to relate to eligible work clothing, not regular clothes you happen to wear to work.

Can you claim self-education expenses?

Self-education can be claimable when it has a clear connection to your current job.

You may be able to claim costs such as:

• Course fees.
• Textbooks.
• Stationery.
• Work-related seminars.
• Professional development.
• Travel to training, depending on the situation.

The course generally needs to maintain or improve the skills you use in your current employment, or be likely to increase your income in your current role.

A course that helps you get a new job in a different field is less likely to be claimable. This is one area where it can be worth getting professional guidance if you’re unsure.

Can you claim donations?

You may be able to claim donations or gifts of $2 or more if they were made to an organisation with deductible gift recipient status.

A few things to keep in mind:

• You need a receipt or record of the donation.
• It generally needs to be a true gift or donation, meaning you didn’t receive or expect to receive a material benefit in return.
• Raffle tickets, fundraising chocolates, event tickets, and charity auctions may not count as deductible gifts because you received something in return.
• Not every charity or fundraising campaign is automatically deductible.

Before claiming, it can help to check whether the organisation is registered as a deductible gift recipient.

Can you claim tax agent fees?

If you paid a registered tax agent or recognised tax adviser, you may be able to claim eligible costs of managing your tax affairs in the year you incurred them.

This may include costs linked to preparing and lodging your tax return, getting tax advice from a recognised tax adviser, or using tax software. If a cost was partly for tax and partly for another purpose, you may need to claim only the tax-related portion.

Keep the invoice or receipt so you have the details ready when you lodge.

What about side hustles, gig work, or freelance income?

If you earned income from a side hustle, freelance work, rideshare driving, delivery work, selling products, or another business-like activity, you may need to declare that income.

You may also be able to claim expenses connected to earning that income.

Depending on what you do, this could include:

• Platform fees.
• Work-related kilometres.
• Equipment.
• Phone and internet use.
• Advertising costs.
• Payment processing fees.
• Some home office expenses.

The line between a hobby and income-producing activity can be important. If you’re unsure whether your side hustle is a hobby, employment income, contractor income, or a business activity, it’s worth checking the ATO guidance or speaking with a registered tax agent before you lodge.

What usually can’t be claimed?

Some expenses might feel work-related, but still may not be claimable.

Common examples include:

• Regular travel between home and your usual workplace.
• Everyday clothing, even if you wear it to work.
• Childcare costs.
• Meals during a normal workday.
• Expenses your employer reimbursed.
• Private phone, internet, or car use.
• Entertainment or social expenses.
• Fitness costs, unless your role meets specific requirements. 

This is where it helps to be careful. Claiming something because ‘everyone does it’ isn’t a great strategy. Make sure the expense is directly connected to earning your income and have the records to back it up. 

Tax-time checklist: what to organise before you lodge

Before lodging your return, it can help to gather:

• Income statements from your employer or employers
• Bank interest details
• Private health insurance statement, if relevant
• Receipts for work-related expenses
• Records of working from home hours
• Phone and internet bills, if claiming work use
• Car logbook or work-related kilometre records
• Donation receipts
• Tax agent invoices
• Side hustle income and expense records. 

You generally don’t need to rush this. Once tax time hits in July, you’ll have a few months before the deadline to get all your records together. Just don’t leave it until the last minute. 

A simple way to stay organised for next tax time

Future-You will be grateful for a simple system.

Consider setting up a tax folder in your email or cloud storage with categories like:

• Work expenses
• Donations
• Car and travel
• Working from home expenses
• Education and training
• Side income
• Tax agent fees

Then, whenever a receipt lands in your inbox, move it straight into the right folder. You could also take photos of paper receipts before they fade or go missing.

The ATO’s myDeductions tool can also help you keep consolidated records throughout the year.

Claim what’s reasonable

You don’t need to know every tax rule by heart. But it can help to understand the common categories, check the ATO guidance for your occupation, and get professional support if your situation is more complex.

Wondering what to do with your tax refund after all those deductions? 

Read through our blog on whether to spend it or save it. 

Need extra cash?

If you find yourself a little stretched while you wait for your return, Beforepay’s got you covered. Borrow up to $2,000 with Pay Advance—perfect for unexpected or more-than-expected costs— with no credit checks, fast approvals, and no hidden fees. 

FAQs

What can I claim on tax without receipts?

You generally need records to support your deductions. In some cases, the ATO may accept other evidence, but it’s recommended to keep receipts, invoices, diary entries, logbooks, or digital records wherever possible.

Can I claim my phone bill on tax?

You may be able to claim the work-related portion of your phone bill if you use your phone for work and aren’t reimbursed. You’ll usually need to work out a reasonable work-related percentage and keep records.

Can I claim working from home expenses if I only work from home sometimes?

You may be able to claim working from home expenses if you meet the ATO’s rules and have records of the actual hours worked from home. Occasional work from home can still count, but estimates generally aren’t enough.

Can I claim fuel for driving to work?

Regular travel between home and your usual workplace is usually considered private travel. You may be able to claim some car expenses if you travel for work-related duties, such as between job sites or to visit clients.

Can I claim clothes I bought for work?

Only some work clothing is claimable. This can include compulsory uniforms, occupation-specific clothing, protective clothing, and certain registered non-compulsory uniforms. Everyday clothing usually isn’t claimable, even if you only wear it to work.

Should I use a tax agent?

You might consider using a registered tax agent if your financial situation is more complex, you have multiple jobs, side income, investment income, work-related car use, or you’re unsure what applies to you.

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