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  • Work out your eligible deductions

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

    To claim a work-related deduction:

    • you must have spent the money yourself and weren't reimbursed
    • the expenses must directly relate to earning your income (and not be private in nature)
    • you must have a record to prove it.

    You can use the myDeductions tool in the ATO app to keep records of your

    • work-related car expenses (such as using your private vehicle for work-related trips)
    • general expenses (such as the cost of managing your tax affairs or gifts and donations you make).

    If you lodge online, you can upload these records at tax time to make lodging your tax return easier. If you use a registered tax agent, you also have the option to email the completed records directly to your tax agent or yourself.

    In this section

    Working from home

    If you're an employee who works from home, you may be able to claim a deduction.

    For the 2020-21 income year, there are three methods you can choose from to calculate your working from home deduction, depending on your circumstances. The methods are the:

    Once you have calculated your deduction, enter the amount at 'Other work-related expenses' in your tax return.

    See also:

    Cost of travelling from home to work

    Generally, most people can't claim a deduction for the cost of travel between home and work. If you are working from home due to COVID-19 and need to travel into your workplace, the travel is still a private expense you can't claim.

    Protective equipment

    If you have been working in an occupation that requires physical contact or close proximity with customers or clients during the COVID-19 period, you may be able to claim a deduction for personal protective equipment (PPE). PPE includes items such as gloves, face masks, sanitiser or anti-bacterial spray if you pay for the items and haven't been reimbursed. Certain industries like healthcare, retail and hospitality can claim these items as a deduction due to the nature of their work environment.

    Once you have calculated your deduction, enter the amount at 'Other work-related expenses' in your tax return.

    Get your work-related expense claims right

    We have a range of Occupation and industry specific guides to help you work out the work-related expenses you can claim at tax time.

    Some of our occupation guides and tax time resources are available in languages other than English. Select your language, then Individuals from the left-hand menu. If a guide for your occupation is available it will be listed on this page.

    Gifts and donations

    For a gift to be deductible, it must be given to an endorsed deductible gift recipient (DGR). A DGR is an organisation or fund that can receive tax deductible gifts and is registered with the Australian Charities and Not-for-profits Commission (ACNC). Not all charities or causes, such as crowdfunding campaigns to help needy individuals, are registered DGRs.

    You can check the DGR status of an organisation on business.gov.auExternal Link

    It is also important to keep receipts. The total value of charitable deductions you can claim without some form of written record is $10.

    You can't claim a tax deduction for donations made to social media, crowdfunding platforms or memberships (such as sporting club memberships) unless they are a registered DGR.

    For more information, go to Gifts and donations.

    Tax offsets

    Tax offsets directly reduce the amount of tax payable on your taxable income.

    Low and middle income earners tax offset (LMITO)

    You don't need to complete anything in your tax return to get the Low and middle income tax offset (LMITO). We work out your tax offset for you once you lodge your tax return.

    The LMITO amount is between $255 and $1,080 and will be used to offset (or reduce) the tax you need to pay on your taxable income. The amount of offset received depends on your circumstances, such as your taxable income and how much tax you have paid.

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      Last modified: 14 Jul 2021QC 62802