Medical professional expenses T-W

Tools and equipment

You can claim a deduction for tools and equipment you use to perform your duties as a doctor, specialist or other medical professional.

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

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

• you use it 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 (incidentals). 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 slept 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 a conference and return home the same day
• choose to sleep near your workplace rather than returning home, for example, if you live a capital city but work in a regional area and rather than travel home at the end of each shift, you choose to sleep near your regional workplace.

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 were away overnight
• you have spent the money
• the travel directly relates to earning your employment income
• how you worked 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 travel allowance is not shown 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 allowance 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 you claim a deduction for more than the Commissioner’s reasonable amount you need to keep receipts for all your expenses, not just for the amount over the Commissioner’s reasonable amount.

Even if you are 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 in your work diary, that you received and correctly declared your travel allowance and bank statements.

 

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

Watches and smart watches

You can't claim a deduction for the cost of buying or maintaining an ordinary watch or timepiece, even if they are required as part of your job. This is a private expense.

However, you can claim a deduction if your watch has special characteristics that you use for a work-related purpose. For example, a nurse's fob watch.

If the watch cost more than $300, you can claim a deduction for its decline in value over the effective life.

You can also claim a deduction for the cost of repairs, batteries and watchbands for special watches. You only claim a deduction for the amount you use the item at work if you also wear it for private purposes.

Similar to ordinary watches, a smart watch (that connects to a phone or other device to provide notifications, apps and GPS) is a private expense and not deductible under ordinary circumstances.

However, you may be able to claim a deduction for the work-related use of a smart watch. You can claim a deduction where you require some of the smart watch's functions as an essential part of your employment activities. To show the work-related use of the watch, you will need to keep a diary or similar record of your use of the watch for a representative period.

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 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 (such as 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 - ATO compliance approach

For more doctor, specialist or other medical professionals' expenses, see:

• Medical professional expenses A–F
• Medical professional expenses G–O
• Medical professional expenses P–S

 Find out about doctor, specialist or other medical professionals:

• Income and allowances
• Record keeping for work expenses