Published: 4 March 2026

What Can I Claim on Tax in Australia? A Complete Guide for 2025-26

Tax time doesn't have to be stressful. In fact, with a bit of know-how, it can be the time of year when you get some money back in your pocket. Understanding what you can claim on tax in Australia is one of the easiest ways to reduce your taxable income and potentially boost your refund. Whether you're a full-time employee, a freelancer, or working multiple jobs, this guide will walk you through the most common deductions for the 2025-26 financial year — all written in plain English, with no accounting jargon.

How Tax Deductions Work in Australia

Before we dive into what you can claim, let's quickly cover how deductions actually work. When you claim a tax deduction, you're telling the Australian Taxation Office (ATO) that you spent money to earn your income. These expenses are subtracted from your taxable income, which means you pay less tax overall.

For example, if you earned $70,000 and claimed $2,000 in legitimate work-related deductions, the ATO would calculate your tax on $68,000 instead. This could mean hundreds of extra dollars back in your refund. Just remember: you can only claim expenses you actually paid for, weren't reimbursed for, and that directly relate to earning your income. Good record-keeping is essential — always keep receipts for at least five years.

Work-Related Expenses You Can Claim

The ATO allows deductions for a wide range of work-related expenses. Here are the most common categories Australian workers claim:

Home Office Expenses

With more Australians working from home than ever, home office deductions have become increasingly common. If you work from home, even part-time, you may be able to claim:

• Running expenses: Electricity and gas for heating, cooling, and lighting your workspace
• Office equipment: Computers, printers, desks, chairs, and stationery
• Internet and phone: The work-related portion of your bills
• Depreciation: Decline in value of office furniture and equipment over $300

The ATO offers a fixed rate method of 67 cents per hour for the 2025-26 financial year, which covers running expenses, internet, and phone. Alternatively, you can calculate actual expenses, which may give you a better deduction if you keep detailed records.

Vehicle and Travel Expenses

Generally, you cannot claim the cost of travelling between home and work — that's considered private travel. However, you can claim vehicle expenses when:

• Travelling between different workplaces for the same employer
• Attending work-related conferences, meetings, or training
• Transporting bulky equipment that can't be left at work
• Travelling to see clients or perform work duties at multiple locations

You can use the cents per kilometre method (up to 5,000 work-related kilometres at a set rate) or keep a logbook to claim actual vehicle expenses like fuel, registration, insurance, and maintenance.

Work Clothing and Uniforms

You can claim the cost of buying, repairing, and cleaning work-related clothing, but only if it's:

• Occupation-specific: Clothing that's not everyday wear and identifies your profession (like chef's trousers)
• Protective: Items that protect you from injury or illness (safety boots, hard hats, sunscreen if working outdoors)
• Compulsory uniforms: Clothing your employer requires you to wear with a registered design

Unfortunately, conventional work clothing like black trousers or white shirts cannot be claimed, even if your employer requires you to wear them.

Self-Education and Training

If you're studying to improve skills for your current job, you may be able to claim self-education expenses. This includes:

• Course fees, textbooks, and stationery
• Travel to and from educational activities
• Student union fees and academic journals
• Decline in value of computers and equipment used for study

The course must directly relate to your current employment and maintain or improve your skills. You cannot claim if you're studying to get a new job in a different field.

Other Common Tax Deductions

Beyond work-specific expenses, there are several other deductions many Australians can claim:

Union and Professional Association Fees

Annual membership fees for unions and professional associations are fully deductible. If you receive a tax statement from your union or professional body, keep it safe — it contains the exact amount you can claim.

Income Protection Insurance

Premiums you pay for income protection insurance (outside of superannuation) are tax deductible. This insurance pays you a benefit if you're unable to work due to illness or injury. Note that life insurance and trauma insurance premiums paid through your superannuation are not deductible on your personal tax return.

Tax Agent Fees

The cost of preparing and lodging your tax return is itself a deduction. If you use a registered tax agent, their fees are fully claimable in the following financial year. Even the cost of tax reference books and software can be deducted.

Donations to Registered Charities

Gifts of $2 or more to registered deductible gift recipients (DGRs) are tax deductible. This includes donations to well-known charities, some religious organisations, and certain environmental and cultural organisations. Keep your receipts, as the ATO may ask for proof.

FY 2025-26 Tax Rates: How Deductions Affect Your Refund

To understand the value of your deductions, it helps to know how Australia's progressive tax system works. Every dollar you deduct reduces your taxable income, and the benefit depends on your tax bracket. Here's a quick reference for the 2025-26 financial year:

As you can see, higher-income earners get a bigger tax benefit from each dollar deducted. However, everyone can benefit from claiming legitimate work expenses. Don't forget that your income tax calculation also includes the Medicare levy of 2% and potentially the Medicare Levy Surcharge if you don't have private health insurance.

What You Cannot Claim

Just as important as knowing what you can claim is knowing what you can't. The ATO closely monitors these common mistakes:

• Travel between home and work: Even if you work overtime or have to carry bulky items (unless a car is essential to your job)
• Everyday clothing: Even if required by your employer's dress code
• Private meals: You cannot claim everyday lunches, even if you work from home
• Grooming costs: Haircuts, cosmetics, and personal grooming (even if required for your job)
• Childcare: Even when you need it to work
• Private use of work items: You must apportion expenses between work and private use

Trying to claim these can trigger an ATO audit and potentially result in penalties. When in doubt, check the ATO website or speak with a registered tax agent.

Superannuation and Salary Sacrifice Considerations

Beyond standard deductions, you can also reduce your taxable income through salary sacrifice arrangements. This involves asking your employer to pay part of your pre-tax salary directly into your superannuation fund. These contributions are taxed at 15% within super, which is significantly lower than most people's marginal tax rate.

For the 2025-26 financial year, the concessional contributions cap is $30,000 per year, which includes your employer's compulsory super guarantee (currently 12% of your ordinary time earnings) plus any salary sacrifice amounts. This can be a powerful tax-saving strategy, especially for higher-income earners.

HECS-HELP and Tax Deductions

If you have a HECS-HELP debt, your compulsory repayments are calculated based on your taxable income. While you cannot claim your HECS repayments as a deduction, it's worth noting that some self-education expenses might reduce your taxable income and therefore your repayment rate. However, if your HECS debt is paid off through employer withholding, it doesn't change your ability to claim other work-related expenses.

Tips for Maximising Your Tax Refund

To get the most out of your tax return without crossing any lines:

• Keep records: Use a receipt app or folder system. The ATO accepts digital copies, so photograph paper receipts immediately
• Be honest: The ATO's data-matching technology can spot unusual claims. Only claim what you're entitled to
• Use the ATO app: The myDeductions tool in the ATO app makes tracking expenses throughout the year simple
• Pre-pay expenses: If you're close to a tax bracket threshold, consider pre-paying deductible expenses like income protection insurance or professional memberships before 30 June
• Consider a tax agent: Their fee is deductible, and they often find deductions you might miss

Calculate Your Take-Home Pay

Understanding what you can claim is just one part of managing your finances. To see exactly how much tax you'll pay and what your take-home pay will be after deductions, use our free Australian salary calculator. It breaks down your income tax, Medicare levy, superannuation contributions, and gives you a clear picture of your net pay for the 2025-26 financial year.

Summary: Key Takeaways for Tax Deductions in 2025-26

Claiming legitimate tax deductions is one of the simplest ways to reduce your tax burden and potentially receive a larger refund. Remember these key points:

• You can only claim expenses directly related to earning your income
• You must have spent the money yourself and not been reimbursed
• You need written evidence (receipts) for most claims
• Home office, vehicle, clothing, and self-education expenses are common deductions
• Higher-income earners get greater tax benefits from deductions
• Keep records for at least five years after lodging your return

If you're ever unsure about what you can claim, the ATO website is an excellent resource, or consider speaking with a registered tax agent. A few hundred dollars spent on professional advice can often save you much more in legitimate deductions — and the agent's fee is itself tax deductible next year. Happy tax time, and here's to a healthy refund!