Building and construction employee expenses T–W

Tools and equipment

You can claim a deduction for tools and equipment you use to perform your duties as a building and construction employee. For example, a chisel set or power tools such as angle grinders, circular saws.

You can only claim a deduction for your work-related use of the item.

If a tool or equipment cost you $300 or less, you can claim a deduction for it in the year you buy it, if:

• you use it for mainly to produce non-business assessable income
• it's not part of a set that together cost more than $300.
• it’s not identical, or substantially identical to, other items that together cost more than $300.

You can claim a deduction for the cost over the life of the item (that is, decline in value), if the tool or equipment:

• cost more than $300
• is part of a set that together cost more than $300.
• is identical, or substantially identical to, other items that together cost more than $300.

If you bought the tool or item of equipment part way through the year, you can only claim a deduction for the decline in value for the period of the income year that you own it. You also need to apportion your deduction if you use the item for private purposes. To work out your deduction use the Depreciation and capital allowances tool.

You can also claim a deduction for the cost of repairs to tools and equipment that you use for work purposes.

You can't claim a deduction for tools and equipment that are supplied by your employer or a third party.

 

 

Travel expenses

You can claim a deduction for overnight travel expenses you incur when your work requires you to both:

• travel for work
• sleep away from your home overnight in the course of performing your employment duties.

Expenses you can claim include your accommodation, meals and expenses which are incidental to the travel. For example, if you're required to travel interstate for 3 nights to attend a work-related conference, seminar or training course.

You can't claim a deduction for travel expenses where you don’t incur any expenses, because:

• you sleep in accommodation your employer provides
• you eat meals your employer provides
• your employer or a third party reimburses you for any costs you incur.

You also can't claim a deduction if you:

• are not required to sleep away from your home overnight in the course of performing your employment duties, for example, if you fly interstate for work and return home the same day
• choose to sleep near your workplace rather than returning home.

Receiving an allowance from your employer doesn't automatically mean you can claim a deduction. In all cases, you must be able to show you:

• you were away overnight
• you spent the money
• the travel directly relates to earning your employment income
• how you work out your claim.

If you receive a travel allowance you must include it as assessable income in your tax return unless all of the following apply:

• the allowance is not on your income statement or payment summary
• the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
• you spent the whole amount on deductible accommodation, meal and incidental expenses, if applicable.

You must keep written evidence (such as receipts) for all your overseas accommodation expenses regardless of whether you receive an allowance. You don't need to keep written evidence for other travel expenses if both of the following apply:

• you received a travel allowance from your employer for the expenses
• your deduction is less than the Commissioner's reasonable amount.

If your deduction is for more than the Commissioner's reasonable amount you need to keep written evidence for all your travel expenses, not just the amount over the reasonable amount.

Even if you're not required to keep written evidence such as receipts, you must be able to explain your claim and show you spent the amounts. For example, show your work diary, that you received and correctly declared your travel allowance and bank statements.

A living-away-from-home allowance (LAFHA) is different from a travel allowance. An allowance is a LAHFA if both of the following apply:

• your employment duties require you to live away from your normal residence
• some or all of the allowance is to compensate you for the additional non-deductible expenses and other additional disadvantages you incur because you have to live away from your normal residence.

A LAFHA is non-assessable non-exempt income, so it doesn't need to be included as income in your tax return.

 

 

 

For more information, see TD 2025/4 Income tax: reasonable travel and overtime meal allowance expense amounts for the 2025–26 income year.

TR 2021/4Income tax and fringe benefits tax: employees: accommodation and food and drink expenses, travel allowances, and living-away-from-home allowances

Union and professional association fees

You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.

Working from home expenses

You can claim a deduction for the additional running expenses you incur as a direct result of working from home. Running expenses may include electricity, phone and internet expenses, and the decline in value of equipment or furniture. You must:

• use one of the methods set out by us to calculate your deduction
• keep the records required for the method you choose.

There are some expenses you can't claim a deduction for as an employee, including:

• coffee, tea, milk and other general household items consumed while working from home which your employer may provide you at work
• expenses your employer pays for or reimburses you for, including setting up your home office
• the decline in value of items provided to you by your employer – for example, a laptop or a phone.

Generally as an employee, you can’t claim occupancy expenses (rent, rates, mortgage interest and house insurance premiums) unless part of your home is a 'place of business'.

The Home office expenses calculator helps you work out the amount you can claim as a deduction for home office expenses.

For more information, see:

• PS LA 2001/6 Verification approaches for electronic device usage expenses
• TR 93/30 Income tax: deductions for home office expenses
• PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home

For more building and construction employee expenses, see:

• Building and construction employee expenses A–F
• Building and construction employee expenses G–O
• Building and construction employee expenses P–S

Find out more about building and construction employees:

• Income and allowances
• Record keeping for work expenses