Deductions Checklist for Employees

​

To reduce their taxable income, Employees in Australia may be able to claim various work-related tax deductions if they were incurred in the process of making said income. Here is a list of common work-related tax deductions:

​

• Work-Related Car Expenses

  • When used for carrying tools or equipment for work purposes or travel between workplaces or to client meetings.

  • Expenses can include things such as petrol, oil, repairs, servicing, new tyres, lease charges, interest on car loan and car washes

  • Car parking expenses may be claimed under limited circumstances

  • Methods to claim - logbook, cents per kilometre, or actual expenses method.

• Home Office Expenses

  • Expenses incurred from working from home, such as:

    • Phone and internet costs.

    • Electricity and heating.

    • Stationery and computer consumables.

    • Office equipment, like desks, chairs, and computers. (also see depreciation of assets)

  • Methods to claim - fixed rate (cents per hour) or actual expense method.

• Work-Related Clothing

  • Protective clothing (e.g., safety boots, uniforms).

  • Occupation-specific clothing (e.g., a chefs’ jacket, or a nurses’ scrubs).

  • Dry cleaning and laundry costs for eligible work clothes.

•  Tools and Equipment

  • The cost of tools, equipment, and technology necessary for work (e.g., laptops, phones, printers).

  • Repairs, maintenance, and depreciation costs for these tools.

• Depreciation of Assets

  • Claiming depreciation on work-related assets, such as computers, machinery, or equipment, used over time.

•  Self-Education Expenses

  • Courses, training, and workshops related to your current job or career development.

  • Textbooks, study materials, and online courses.

  • Travel costs to attend educational events.

• Union Fees and Professional Memberships

  • Fees paid for membership to a union or professional association related to your job.

• Work-Related Phone and Internet Expenses

  • The portion of your phone and internet bills used for work purposes.

• Travel Expenses

  • Travel costs related to work duties, including:

    • Airfares, taxis, and car rentals.

    • Accommodation and meals (for overnight business trips).

  • Note: These must be business-related, not personal.

• Tax Agent Fees

  • Fees paid to a registered tax agent for preparing and lodging your tax return.

• Work-Related Subscriptions

  • Subscriptions to publications, journals, or online services that are directly related to your job.

• Insurance Premiums

  • Certain work-related insurance premiums, like income protection or professional indemnity insurance.

• Interest on Loans & Credit Cards for Work-Related Equipment

  • If you have taken out a loan for work-related equipment, the interest on that loan may be deductible.

  • Credit card expenses if taken out for work purposes

 

• Self-Employed Deductions (for Contractors/Freelancers)

  • If you are a contractor or freelancer, you can also claim expenses related to:

    • Office space and supplies.

    • Software and tools.

    • Business insurance.

    • Marketing and advertising expenses.

• Entertainment Expenses (Limited)

  • Some work-related entertainment expenses, such as business meals or events, may be deductible if they are directly related to your job.

 

It's important to keep records (like receipts and logs) for any claims you make. Also, make sure that the expense is directly related to earning your income.

For a detailed and personalised list, it’s always recommended to consult with a tax professional, like Western Business Advisory, or the Australian Taxation Office (ATO).

​

Here is a helpful link to the ATO tax deductions guidelines:

https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/occupation-and-industry-specific-guides