Common deductions
A deduction reduces your taxable income — not your tax directly. A $1,000 deduction saves you your marginal rate on that $1,000: $300 if your marginal rate is 30%. You can only claim an expense if you spent the money yourself, it relates to earning your income, and you have a record to prove it. Those three rules decide almost every deduction question.
Common work-related deductions
| Expense | What you can claim |
|---|---|
| Car expenses | Work trips (not home-to-work travel) — logbook method or cents-per-kilometre method |
| Travel | Work travel, including overnight trips; keep fares, accommodation, and meal records |
| Clothing and laundry | Occupation-specific uniforms, protective clothing, and laundry for them — not ordinary clothes |
| Tools and equipment | Tools, devices, and equipment used for work; items over $300 are generally depreciated |
| Home office | Fixed-rate method (70c per hour for work from home) or the actual-cost method |
| Self-education | Courses and study that relate to your current work |
| Phone and internet | The work-related share of your bills, with records showing how you worked it out |
| Union and professional fees | Union dues and professional association fees |
The new $1,000 standard deduction
From 1 July 2026, eligible workers can claim a standard deduction of up to $1,000 for work-related expenses — without having to spend that amount or keep records for that part. If you claim the standard deduction, you cannot also claim the same work-related expenses separately. It is designed for people whose work expenses are small and who do not want to keep a shoebox of receipts. Check the ATO's standard deduction guidance for who is eligible before you rely on it.
Other deductions
Beyond work expenses, you can generally deduct donations of $2 or more to deductible gift recipients, interest and fees on loans for investments, the cost of managing your tax affairs (including registered tax agent fees), and income protection insurance premiums. Personal super contributions can also be deductible if you give your fund a notice of intent to claim.
What you cannot claim
Private and domestic expenses are never deductible: ordinary clothes, most childcare, fines, travel between home and work (generally), and the private share of anything you use partly for work. If an expense is partly private, only the work-related share is deductible — and you need a reasonable basis for the split.
Sources: Australian Taxation Office (ato.gov.au) — Deductions you can claim; Standard deduction; Work from home expenses.