Things you need to know
To claim a deduction for other work-related expenses, you must:
- incur the expense as an employee
- not claim the expenses elsewhere in your tax return.
These expenses include:
- union fees and subscriptions to trade, business or professional associations
- overtime meal expenses if you receive an overtime meal allowance from your employer that is paid under an industrial law, award or agreement, and you
- buy and consume the meal during your overtime
- include the amount of the meal allowance as income at question 2
- keep written evidence, such as receipts, if your claim is more than $37.65 per meal
- reference books, technical journals and trade magazines
- the work-related portion of tools and equipment, such as a computer or office furniture, and professional libraries; you may be able to claim
- an immediate deduction for the cost of depreciating assets costing $300 or less
- a deduction for the decline in value of an item that cost more than $300 over its effective life (however, if you no longer own or use an item and you previously claimed a deduction for its decline in value, you may need to make a balancing adjustment), see Guide to depreciating assets 2025
- the work-related portion of items that protect you from the risk of injury or illness posed by your work or your work environment, such as hard hats, safety glasses and sunscreens (but not protective clothing and footwear, that you claim at question D3)
- the work-related portion of the following costs
- interest on money you borrow to buy tools and equipment
- repair costs for tools or items of equipment
- phone or internet usage (if you aren’t already claiming working from home expenses using the fixed rate method)
- phone rental, if you can show you're on call or need to regularly phone your employer or clients while away from your workplace
- additional running expenses you incur because you work from home
- COVID-19 test expenses.
Working from home expenses
There are 2 methods you can choose from to calculate your deduction for working from home expenses. You must meet the eligibility criteria and record-keeping requirements for the method you choose, for the:
- Fixed rate method – a rate of 70c per hour you work from home for 2024–25
- This rate covers the additional running expenses that you incur as a result of working from home for energy expenses (electricity and gas), internet and data expenses, mobile and home phone expenses, stationery and computer consumables.
- You don't need a separate home office or dedicated work area to use this method.
- The fixed rate doesn't cover the decline in value of depreciating assets you use for work.
- You must have a record of the total number of hours you work from home during the entire income year –for example, a timesheet, roster, a diary or other similar document (an estimate of your hours isn't acceptable).
- You must have at least one record for each of the expenses you incur that the rate per hour includes – for example, if you incur electricity and internet expenses, keep one bill for each expense.
- Actual cost method – to claim the actual work-related portion of all your running expenses, which you need to calculate on a reasonable basis.
To work out your deduction, you can use the Home office expenses calculatorThis link opens in a new window.
To work out the method that gives you the best deduction for your situation, see Working from home expenses.
For more information, see:
- Taxation Ruling TR 93/30 Income tax: deductions for home office expenses
- Taxation Ruling TR 2003/16 Income tax: deductibility of protective items
- Taxation Ruling TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses
- Law administration practice statement PS LA 2001/6 Verification approaches for electronic device usage expenses
- Law administration practice statement PS LA 2005/7 Substantiating an individual's work-related expenses
- Practical compliance guideline PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home – ATO compliance approach.
What you can't claim as other work-related expenses
You can't claim a deduction for:
- the cost of entertainment, fines and penalties
- private expenses, such as childcare expenses and fees paid to social clubs
- coffee, tea, milk and other general household items your employer may otherwise provide you with at work
- costs that relate to children and their education including buying equipment such as iPads and desks
- the decline in value of items primarily for use in your employment if your employer provides the items, or some or all of the cost of the items are paid or reimbursed by your employer, and the benefit is exempt from fringe benefits tax – items include laptops, portable printers, personal digital assistants, calculators, mobile phones, computer software, protective clothing, briefcases and tools of trade.
Generally, you can't claim a deduction for occupancy expenses such as rent, rates, mortgage interest and insurance.
If you don't have any other work-related expenses from the list, go to question D6 Low-value pool deduction 2025.
What you need to answer this question
If your total claim for all work-related expenses is $300 or less, you need records (such as a document or spreadsheet) to show how you calculate your claim. If you exceed the $300 limit, you must have written evidence of all your expenses (such as receipts or invoices), unless an exception applies.
If you receive an overtime meal allowance, you may need your income statement or PAYG payment summary – individual non-business.
If you receive assessable income from your work as an employee outside Australia that shows on an income statement or a PAYG payment summary – foreign employment, you must claim any work-related expenses you incur in earning that income at this question. If you haven't already claimed the expense at another question.
If you receive assessable foreign employment income that isn't on an income statement or a PAYG payment summary – foreign employment, you must claim your deductions against that income at question 20 Foreign source income and foreign assets or property 2025.
You need to keep records for 5 years (in most cases) from the date you lodge your tax return.
Completing your tax return
To complete this question, follow the steps.
Step 1
Add up all the expenses that you can claim at this question.
To work out the amount you can claim for depreciating assets, use either:
Step 2
Write the total amount at question D5 – label E.
Where to go next
- Go to question D6 Low-value pool deduction 2025.
- Return to main menu Individual tax return instructions 2025.
- Go back to question D4 Work-related self-education expenses 2025.