The three golden rules
The ATO describes three rules every work-related expense has to meet:
- You spent the money yourself and weren't reimbursed. If your employer paid you back, you can't claim it.
- It is directly related to earning your income. The expense has to be for your work, not just something everyone needs.
- You have a record to prove it. Usually a receipt or invoice, and for some expenses a diary or logbook.
If an expense was for both work and private purposes, you can only claim the work-related part.
Common work-related deductions
These are the items on the individual tax return, with typical examples. Your occupation matters: the ATO publishes occupation guides for many jobs.
| ATO item | Examples |
|---|---|
| D1 Work-related car expenses | Driving between job sites, to clients or carrying bulky tools (not your normal commute) |
| D2 Work-related travel expenses | Flights, accommodation, meals and parking when travelling overnight for work |
| D3 Clothing, laundry and dry-cleaning | Uniforms with a logo, protective clothing, occupation-specific clothing |
| D4 Self-education | Courses connected to your current job, textbooks, conference fees |
| D5 Other work-related expenses | Tools and equipment, phone and internet for work, home office costs, union fees, subscriptions |
| D6 Low-value pool deduction | Depreciation of lower-cost assets pooled together |
| D7 Interest deductions | Interest on money borrowed to earn interest income |
| D8 Dividend deductions | Costs of earning dividend income |
| D9 Gifts or donations | Donations of $2 or more to deductible gift recipients |
| D10 Cost of managing tax affairs | Tax agent fees, tax software and record-keeping apps |
Items over $300 that you use for work, such as a laptop or power tools, are generally claimed over several years as depreciation rather than all at once.
The $300 rule
If your total work-related expense claims are $300 or less, you still need to be able to show how you worked them out, but you don't need receipts for each item. Once the total goes over $300, you need written evidence — receipts, invoices or similar — for all of your claims, not just the amount above $300.
Work and personal use
A phone, internet plan or laptop used for both work and private purposes can only be claimed for the work share. Keep a record of how you worked out the percentage — for example a four-week diary of work use.
A single receipt can also be mixed: a hardware store docket with a drill bit for work and paint for home. Only the work items count.
What you can't claim
- Travel between home and your regular workplace, in most cases
- Everyday clothing, even if you only wear it to work
- Meals on a normal working day, and most entertainment
- Expenses your employer reimbursed or paid for
- Private expenses such as childcare, gym memberships or personal grooming (with limited exceptions)
Keeping it organised
Intelligent Receipt lets you snap each receipt, mark it as business, personal or mixed, and link categories to the ATO items above — so your deductions add up under D1 to D10 as you go. At tax time you share one report with your tax agent instead of a shoebox.
Related: How long to keep receipts · Car expenses with cents per km