Work-Related Deductions: Are You Claiming Everything You’re Entitled To?

Future Accounting
Jul 1
4 min read

As another tax season arrives, many Australians begin thinking about one question:

“What can I claim on my tax return?”

While claiming legitimate work-related deductions can help reduce your taxable income, it’s equally important to understand what you’re entitled to claim—and just as importantly, what you can’t.

At Future Accounting, we believe tax time isn’t simply about maximising deductions. It’s about helping you Protect. Preserve. Prosper. Our Future Prosperity Model is built around ensuring you remain compliant with the Australian Taxation Office (ATO), while making the most of every legitimate opportunity available to you.

Protect yourself by understanding the rules

The ATO has increased its use of sophisticated data matching and analytics to identify incorrect claims. Before claiming any deduction, remember the three golden rules:

You must have paid for the expense yourself.
The expense must directly relate to earning your employment income.
You must have a record to prove the expense.

If your employer reimbursed you for an expense, or the expense was private in nature, it generally cannot be claimed.

Common work-related deductions

Depending on your occupation, you may be able to claim a range of work-related expenses.

Working from home

If you regularly work from home, you may be entitled to claim expenses such as:

Electricity and gas
Internet costs
Mobile phone usage
Stationery and office supplies
Computer consumables

Depending on your circumstances, you may be eligible to use either the ATO’s fixed rate method or the actual cost method.

Motor vehicle and travel

You may be able to claim work-related travel, including:

Travelling between different workplaces
Visiting clients
Travelling between work sites
Attending temporary work locations

Remember, normal travel between your home and your regular workplace is generally not deductible.

Mobile phone and internet

If you use your personal phone or internet connection for work purposes, you can generally claim the work-related percentage of those costs.

Computers, tools and equipment

Common deductible items include:

Laptops
Computer monitors
Tablets
Printers
Trade tools
Professional equipment
Office furniture

Some lower-cost items may be claimed immediately, while more expensive assets are generally claimed over several years through depreciation.

Self-education

Education expenses may be deductible where they directly maintain or improve the skills required in your current job.

Examples include:

Professional development courses
Industry seminars
Work-related certifications
Textbooks and course materials

Courses undertaken to change careers are generally not deductible.

Uniforms and protective clothing

You may be able to claim:

Employer-branded uniforms
Compulsory uniforms
Safety boots
High-visibility clothing
Protective equipment (PPE)
Laundry and dry-cleaning costs for eligible uniforms

Everyday clothing, business suits and conventional shoes are generally not deductible.

Professional memberships

Expenses such as:

Union fees
Professional association memberships
Annual registration fees
Certain licences

may also be deductible where they relate to your employment.

Income protection insurance

If you personally pay for income protection insurance outside of your superannuation fund, the premiums are generally tax deductible.

Tax agent fees

The cost of preparing your tax return and obtaining tax advice is generally deductible in the following financial year.

Charitable donations

Donations of $2 or more made to registered Deductible Gift Recipients (DGRs) may also be deductible.

Common mistakes to avoid

Each year, the ATO identifies thousands of incorrect claims.

Some of the most common include:

Claiming travel between home and work
Claiming business clothing or suits
Claiming private phone or internet expenses
Claiming gym memberships (unless a very limited occupational exception applies)
Claiming expenses that have been reimbursed by an employer
Claiming deductions without receipts or supporting evidence

Making incorrect claims can result in amended assessments, interest and penalties.

Keep your records – your future self will thank you

One of the simplest ways to make tax time easier is to keep good records throughout the year.

The ATO generally requires you to retain receipts and supporting documentation for at least five years after lodging your tax return.

Good record keeping doesn’t just make preparing your tax return easier—it also provides valuable protection should the ATO ever review your claims.

Consider using:

The ATO app to store receipts digitally
A dedicated folder on your phone
Cloud storage
Accounting software where appropriate

Small habits throughout the year can save significant time, stress and money at tax time.

Help us help you

Providing your accountant with complete and organised information means we can:

Identify every legitimate deduction you’re entitled to claim.
Prepare your tax return more efficiently.
Reduce the likelihood of errors or missed opportunities.
Ensure your return is fully supported should the ATO ever ask questions.

If you’re unsure whether something is deductible, don’t guess—ask us first. A quick conversation can often provide certainty and help you avoid costly mistakes.

Protect. Preserve. Prosper.

At Future Accounting, we believe tax advice should do more than simply complete a tax return.

Our Future Prosperity Model is built around helping you:

Protect your financial position through sound advice and ATO compliance.

Preserve your wealth by claiming every legitimate deduction while maintaining accurate records.

Prosper by using tax planning as part of a broader strategy to build long-term financial success.

Tax time only comes around once a year—but the decisions you make today can have a lasting impact on your financial future.

If you are a small business owner, you don’t just have your business return to complete, you also need to complete your individual tax return. Maximize what you can claim personally, against employment income, rental income and passive income.

Contact Future Accounting today and let our experienced team help you Protect. Preserve. Prosper.

Disclaimer  

This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.  

Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder 

Liability limited by a scheme approved under professional standards legislation.