Deductions

Under the fixed rate method, you claim 70 cents for each hour you work from home in 2024-25 and 2025-26. The actual cost method is the alternative. Compare the eligible working-from-home methods for the income year using the required evidence for each.

1. Record actual hours worked at home and the costs or rate that the chosen method covers.
2. Keep separately claimed costs out of any category already included in the chosen method.

Eligibility, rates and record requirements must be checked for the year; this site does not select the method for you.

Deductions you can claim · Working from home fixed rate method · Business use apportionment calculator

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The bold answer was checked on 27 September 2026.

For the fixed rate method, keep a record of the actual hours you work from home for the whole year, such as a timesheet, roster or diary, because estimates are not accepted. Also keep at least one record, such as a bill, for each running expense the rate covers. Keep evidence of hours and costs that supports the particular working-from-home method you use.

1. Record dates and hours throughout the required period and retain bills or receipts.
2. Keep a note of the method, year, work use basis and costs excluded to prevent double claims.

A reconstructed estimate may not meet the ATO’s requirements for your method.

Deductions you can claim · Working from home fixed rate method

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The bold answer was checked on 27 September 2026.

The cents per kilometre rate is 91 cents for 2026-27 (88 cents for 2024-25 and 2025-26), capped at 5,000 business kilometres per car. The logbook method has no kilometre cap but needs a valid logbook. Compare the methods you are eligible to use, using the same car and income year.

1. For cents per kilometre, document eligible kilometres and check the year’s rate and cap.
2. For the logbook method, gather a valid logbook, odometer readings and actual running costs.

Vehicle type, ownership and entity structure can change which methods are available.

Deductions you can claim · Cents per kilometre rates on this site · Logbook method · Cents-per-kilometre rate table and method

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The bold answer was checked on 27 September 2026.

A logbook must cover at least 12 continuous weeks and be broadly representative of your travel. It stays valid for 5 years, but you need a new 12-week logbook if your circumstances change. A useful logbook records each business trip and lets another person check the business use percentage.

1. Record the required trip dates, odometer readings, distance and business purpose.
2. Keep opening and closing odometer readings and review whether changed use requires a new logbook.

Check the ATO’s required recording period and validity conditions before relying on the logbook.

Deductions you can claim · Logbook method · Cents-per-kilometre rate table and method

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The bold answer was checked on 27 September 2026.

Work out your work use percentage on a reasonable basis over a continuous 4-week period, using an itemised bill or your own record of work and private calls and internet use, then apply it to the whole income year. Apply a supported work use percentage to eligible phone and internet costs.

1. Gather bills and a representative usage record that distinguishes private from work use.
2. Use the business use calculator and retain the usage calculation with the result.

Do not separately claim costs already covered by your chosen working-from-home method.

Deductions you can claim · Mobile phone, mobile internet and other devices · Business use apportionment calculator

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The bold answer was checked on 27 September 2026.

An employee can deduct the work-related share of an item costing $300 or less straight away, unless it is part of a set costing more than $300; a dearer item is depreciated over its effective life. A small business with aggregated turnover under $10 million can write off each eligible asset costing less than $20,000. Separate employee deductions from business asset rules, then identify whether immediate deduction or decline in value applies.

1. Record cost, acquisition date, first use, work use share and whether the item forms part of a set.
2. Check the applicable year’s asset rules and retain the calculation in an asset register.

The depreciation worksheet covers a bounded ordinary first-year method; it does not decide immediate-deduction eligibility.

Deductions you can claim · Assets costing $300 or less · Instant asset write-off · Experimental tax worksheets and supported years

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The bold answer was checked on 27 September 2026.

You can claim clothing that is protective, a compulsory uniform, a registered non-compulsory uniform, or occupation-specific and not conventional. Laundry can be worked out at $1 a load of work clothing only, or 50 cents a load if mixed, and a laundry claim of $150 or less needs no written evidence. Work clothing claims depend on the type of clothing and its connection to your work. Wearing ordinary clothes at work does not establish a claim.

1. Separate protective clothing, qualifying uniforms, occupation-specific clothing and ordinary items.
2. Retain purchases and a supportable laundry calculation, with any reimbursement recorded.

Check the ATO category and evidence requirements before adding an amount to the return.

Deductions you can claim · Clothing, laundry and dry-cleaning expenses

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The bold answer was checked on 27 September 2026.

Self-education is deductible when it maintains or improves the specific skills or knowledge you need for your current employment, or is likely to increase your income from it. Check how the course or membership relates to your current income-earning activities.

1. Keep invoices, course details, the work connection and any employer reimbursement.
2. Split private components and costs of gaining a new occupation from costs relevant to current work for review.

A professional label or employer recommendation alone does not settle the tax treatment.

Deductions you can claim · Self-education expenses

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The bold answer was checked on 27 September 2026.

If your total work-related expense claim is $300 or less, you can claim it without written evidence, but you must be able to show how you worked it out. Keep any written evidence for 5 years from the date you lodge your return. Try to replace missing evidence before deciding whether a claim can be supported.

1. Request duplicate invoices or download supplier records and match them to payment evidence.
2. Write down the expense, work purpose, missing record and the ATO evidence rule you relied on.

A bank statement or a general receipt exception does not automatically support every claim.

ATO income, deductions and records · Records you need to keep

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The bold answer was checked on 27 September 2026.

Yes, if your aggregated turnover is under $10 million and you use the simplified depreciation rules. You can deduct the full cost of each eligible asset costing less than $20,000 that is first used or installed ready for use in the year. The $20,000 limit applied in 2025-26 and is permanent from 1 July 2026. Test eligibility against the rules enacted for the asset’s relevant year and circumstances.

1. Record aggregated turnover, asset cost, acquisition and first use dates, and business use share.
2. Check the current ATO small business depreciation rules, including exclusions and any applicable election.

The ordinary depreciation worksheet does not determine instant asset write-off eligibility.

Starting, registering or closing a business · Instant asset write-off · $20,000 instant asset write-off, new legislation · Experimental tax worksheets and supported years

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The bold answer was checked on 27 September 2026.