Deductions You Can Claim

You can’t claim a deduction for normal trips between your home and regular place of work. However, you can claim transport expenses you incur for trips between workplaces.

Transport expenses can include the cost of:

  • driving your car or other vehicle (such as a motorcycle)
  • ride-share and ride-sourcing (such as Uber, Hi Oscar, Shebah or GoCatch)
  • flights
  • catching a train, taxi, boat, bus or other vehicle.

You may be able to claim a deduction for motor vehicle expenses, if you use the vehicle in performing your work-related duties. How you work out your deduction will depend on if you are using:

  • a car your own, lease or hire (under a hire-purchase arrangement)
  • someone else’s car
  • a motor vehicle, that is not defined as a car.

If your travel is partly private, you can claim only the work-related portion of the motor vehicle expenses you incur

You can’t claim a deduction for removal or relocation costs you incur to transfer or relocate for work purposes. Even if relocating is a condition of your employment when you take up:

  • a transfer in an existing employment
  • new employment with a different employer.

Removal and relocation expenses never have a sufficient connection to earning your employment income. These are expenses you incur to start earning employment income and are private or domestic expenses.

If you receive an allowance from your employer to cover some of the costs of relocating, you must declare the allowance as assessable income in your tax return.

You can claim travel expenses you incur when you travel away from home overnight for work

You can claim accommodation expenses you incur when travelling away from home overnight for work duties. You may also need to declare allowances you receive for accommodation.

Accommodation expenses include the cost:

  • of staying in short-term commercial accommodation such as a hotel or motel
  • of leasing a property
  • buying a property to stay in.

If you stay in the accommodation for both private and work purposes, you can only claim the portion of the costs that relate to use of the accommodation for work purposes

If you receive an award transport payment from your employer, you can claim a deduction for work-related transport expenses these payments cover.

To claim a deduction, your travel must be in the course of performing your employment duties.

Transport expenses may include the cost of driving your car, ride-share (such as Uber) and ride-sourcing, flights or catching a train, taxi or bus.

Expenses for accommodation, food and drink are normally private in nature and not deductible by employees. However, you can claim a deduction for accommodation, food, drink and incidental expenses you incur if you’re ‘travelling on work’ during COVID-19 and must quarantine.

You can claim a deduction for the costs you incur to buy, hire, or repair clothing (and footwear) if it falls within one of these categories:

If you’re an employee who works from home, you may be able to claim a deduction for expenses you incur that relate to your work.

To claim your working from home expenses you must:

  • be working from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls
  • incur additional expenses as a result of working from home.

Expenses you can’t claim

You can’t claim a deduction for the following expenses if you’re an employee working at home:

  • coffee, tea, milk and other general household items your employer may provide at work
  • equipment you buy for your children’s education – for example, iPads and desks
  • items your employer provides – for example, a laptop or a phone
  • any items where your employer pays for or reimburses you for the expense.

As an employee working from home, generally:

  • you can’t claim occupancy expenses, such as rent, mortgage interest, water and rates
  • there will be no capital gains tax (CGT) implications for your home

ou can claim a deduction for self-education and study expenses if the education relates to your current employment activities or if you receive a taxable bonded scholarship.

You generally can’t claim the first $250 of expenses for your self-education

You can claim a deduction for some or all of the cost of tools, equipment and other assets you buy and use to help earn your employment income.

If you use the tools for both work and private purposes you can only claim for your work-related use of the item.

ou may be able to claim a deduction for other work-related expenses you incur that directly relate to earning your income.

If you spend money as part of or to earn your employment income, you can generally claim a deduction for the expense. Depending on the deduction, you can claim an immediate deduction or claim it over several years.

To claim a deduction for a work-related expense:

  • you must have spent the money and your employer did not reimburse you
  • the expense must directly relate to earning your income
  • you must have a record to prove it (usually a receipt).

Expenses that relate to you earning an income can include:

 

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