Things you need to know
To claim a deduction for other work-related expenses, you must have:
- incurred the expense as an employee
- a record to prove it
- not claimed 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 received an overtime meal allowance from your employer that is paid under an industrial law, award or agreement, and you
- purchased and consumed the meal during your overtime
- included the amount of the meal allowance as income at question 2
- kept written evidence, such as receipts, if your claim is more than $38.65 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 2026
- the work-related portion of items that protected 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 borrowed to buy tools and equipment
- repair costs for tools or items of equipment
- phone or internet expenses (if you aren’t already claiming working from home expenses using the fixed rate method)
- additional running expenses you incurred because you worked from home.
For more information about Overtime meal expenses, see Overtime meal 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 2025–26
- This rate covers the additional running expenses that you incurred 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 used for work.
- You must have a record of the total number of hours you worked 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 incurred that the rate per hour includes – for example, if you incurred 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 calculator.
To work out the method that gives you the best deduction for your situation, see Working from home expenses.
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
- the cost of coffee, tea, milk and other general household items you used when working from home even if your employer provided such items when you worked at your employer's office or premises
- costs that related 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 provided 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, go to question D6 Low-value pool deduction 2026.
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
- Overtime meal expenses
- Taxation Ruling TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses
- Taxation Ruling TR 2020/1 Income tax: employees: deductions for work expenses under section 8-1 of the Income Tax Assessment Act 1997
- 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.
- Employees guide for work expenses
- Guide to substantiation of car and work-related expenses
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 calculated 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 received an overtime meal allowance, you may need your income statement or PAYG payment summary – individual non-business.
If you received assessable income from your work as an employee outside Australia shown on an income statement or a PAYG payment summary – foreign employment, you must claim any work-related expenses you incurred in earning that income at this question. If you haven't already claimed the expense at another question.
If you received 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 2026.
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 2026.
- Return to main menu Individual tax return instructions 2026.
- Go back to question D4 Work-related self-education expenses 2026.