Deductions you can claim

When completing your tax return, you're entitled to claim deductions for some expenses, most of which are directly related to earning your income.

Work-related expenses

To claim a work-related deduction:

• you must have spent the money yourself and weren't reimbursed
• it must directly relate to earning your income
• you must have a record to prove it.

If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Work expenses reimbursed to you by your employer are not deductible.

We can seek information from your employer if we think you have claimed a deduction for an expense that you have already been reimbursed for.

You may be able to claim a deduction for expenses that directly relate to your work, including:

• Vehicle and travel expenses  
• Clothing, laundry and dry-cleaning expenses
• Home office expenses
• Self-education expenses
• Tools, equipment and other assets
• Other work-related deductions

Employees (including casuals) can claim work-related expenses in the financial year they are incurred. This is the case even if you start employment in June but don’t receive income until the next financial year, you can claim deductions for work-related expenses incurred in June.

If you employ someone to assist you in your employment, generally you can't claim a deduction for employing that person.

Other deductions

You may also be able to claim a deduction for:

• ATO interest – calculating and reporting
• Cost of managing tax affairs
• Gifts and donations
• Interest charged by the ATO
• Interest, dividend and other investment income deductions
• Personal super contributions
• Undeducted purchase price of a foreign pension or annuity

Occupation and industry specific guides

To find out more about income, allowances and deductions you can claim for work-related expenses in your industry or occupation, see Occupation and industry specific guides.

Watch:

This video shows how to get your deductions right.

Managing your deductions

Are you always on the go? Save time and keep your tax organised with the ATO app's myDeductions tool.

myDeductions is a record-keeping tool to make it easier and more convenient for you to keep track of your records all in one place.

You can upload your completed records to the ATO from the myDeductions tool and pre-fill your myTax return. If you use a registered tax agent, you can share your records directly with them via email.

The ATO app's myDeductions record-keeping tool helps you keep records for:

• all work-related expenses (including car trips)
• interest and dividend deductions
• gifts or donations
• costs of managing tax affairs
• sole trader expenses and business income
• other deductions.

Watch:

This video shows how easy it is to keep your records using myDeductions.

See also:

• The sharing economy and tax
• Offsets and rebates
• Records you need to keep
• Employees guide for work expenses