The Three Golden Rules
The ATO's three-part test for any deduction:
- You must have spent the money yourself — not been reimbursed by your employer
- It must be directly related to earning your income — not a private expense
- You must have a record to prove it — receipts, bank statements, or diary entries
Common Deductions Most People Miss
| Deduction | What You Can Claim |
|---|---|
| Working from home | 67c per hour (fixed rate) or actual costs |
| Car expenses (work travel) | 88c per km (up to 5,000 km) or logbook method |
| Phone and internet | Work-related percentage of your bills |
| Union and professional fees | Full amount |
| Income protection insurance | Full premium |
| Self-education | If directly related to current job (not a new career) |
| Tools and equipment under $300 | Instant deduction, no depreciation |
What You Can't Claim
Normal commuting to and from work. Childcare. Clothing (unless occupation-specific uniforms or protective gear). Gym memberships. Meals (unless travelling overnight for work). Fines and penalties. The personal portion of any shared expense.
The $300 No-Receipt Rule
You can claim up to $300 in total work-related deductions without receipts. But "without receipts" doesn't mean "make it up" — the ATO can still ask you to show how you calculated the amount. And the $300 is a total, not per category.
Frequently Asked Questions
Do I need receipts for everything?
For claims totalling over $300, yes. Keep receipts for 5 years from the date you lodge your return. Digital photos and scans are fine.
Can I claim my commute to work?
No. Travel between home and your regular workplace is not deductible. Travel between two workplaces, or from home to a temporary workplace, generally is.
What's the ATO watching for?
The ATO data-matches your claims against others in your occupation. If you're a nurse claiming $5,000 in car expenses when the average nurse claims $800, expect a letter.