To claim a work-related deduction the ATO requires three things: you spent the money yourself and were not reimbursed, the expense directly relates to earning your income, and you have a record to prove it. A deduction reduces taxable income, so a $1,000 claim saves you $1,000 times your marginal rate, not $1,000.
The three rules, in the ATO's own words
Every work-related claim has to satisfy all three of these. The ATO states them as:
- you must spend the money yourself and not get a reimbursement
- the expense must directly relate to earning your income
- you must have a record to prove it, usually a receipt
Two consequences follow that catch people out. If your employer pays for something or reimburses you, it is not your deduction, and the ATO says it may check with your employer. And the expense must not be private, domestic or capital in nature: the ATO gives normal travel between home and work, and buying lunch, as examples of private expenses that are never deductible no matter how necessary they feel.
Where something is used for both work and private purposes, you must apportion and claim only the work-related share. "My employer asked me to buy it" is not on its own a qualifying test.
Source: ATO, claiming deductions. Checked 21 August 2026.
What a deduction is actually worth
This is the single most useful thing to understand before you spend an evening hunting receipts. A deduction comes off your income, so its value is your marginal rate, not the full amount.
| Taxable income | Marginal rate with Medicare levy | $500 claim saves | $1,000 claim saves | $3,000 claim saves |
|---|---|---|---|---|
| $45,000 | 34% | $168 | $335 | $1,005 |
| $60,000 | 34% | $168 | $335 | $1,005 |
| $80,000 | 32% | $160 | $320 | $960 |
| $100,000 | 32% | $160 | $320 | $960 |
| $140,000 | 39% | $195 | $390 | $1,170 |
| $200,000 | 47% | $235 | $470 | $1,410 |
Two readings of that table. First, chasing an extra $100 of small claims is worth about $32 to a typical earner, so proportion your effort accordingly. Second, the same claim is worth roughly 50% more to someone in the top bracket, which is why deductions matter more the more you earn.
The records rule, and the two thresholds
The default is written evidence from the supplier: a receipt or invoice showing the supplier, the amount, what you bought, the date you paid, and the date of the document. There is a trap worth knowing here. A bank or credit card statement on its own is not written evidence, because it does not come from the supplier and generally does not show what was bought.
Two exceptions relax this:
- If your total claim for work-related expenses is $300 or less, you can claim without full written evidence, though you still have to show how you worked the amount out and the expenses must still be genuine.
- If your total laundry claim is $150 or less, you can claim without written evidence for that component.
These are not free allowances. The $300 rule is a substantiation concession, not permission to claim $300 you did not spend, and it is the first thing checked when a return is reviewed. Records generally have to be kept for five years.
Two traps worth knowing before you rely on either number. The $150 laundry limit sits inside the $300, so it does not lift the no-receipt total to $450. And if your claim comes to more than $300, you need full written evidence for all of it, not just the part above the threshold. The full no-receipt rules, including the $200 small-expense exception.
Source: ATO, records you need to keep. Checked 21 August 2026.
The claims most employees are entitled to
| Expense | How it works |
|---|---|
| Working from home | 70c per hour worked from home for FY2025-26 under the fixed rate method, covering power, gas, phone, internet and stationery. Requires a record of actual hours. Full detail. |
| Car use for work | 88c per kilometre for FY2025-26, capped at 5,000 work-related kilometres per car per year, or the logbook method for higher use. Home to work travel does not count. |
| Tools and equipment | Items costing $300 or less can generally be claimed outright; more expensive items are depreciated over their effective life. |
| Work-specific clothing | Compulsory branded uniforms, occupation-specific clothing and protective gear qualify. Conventional clothing does not, even if your employer requires it. |
| Self-education | Deductible where the course has a sufficient connection to your current employment. Study to get a different job is not deductible. |
| Union fees and professional memberships | Deductible, along with subscriptions to professional bodies and journals related to your work. |
| Income protection insurance | Premiums are deductible where the policy is held outside super and covers loss of income. Life and trauma cover is not. |
| Donations | Gifts of $2 or more to a deductible gift recipient. A raffle ticket or anything where you receive something in return is not a gift. |
| Cost of managing tax affairs | What you paid a registered agent to prepare last year's return is deductible in this year's return. |
What people claim that they should not
These come up every year and are the fastest way to have a return adjusted:
- Travel between home and work. Private, even if you work unusual hours, even if there is no public transport, and even if you carry tools, unless the tools are bulky and there is no secure storage at work.
- Everyday clothing. A plain black shirt required by your employer is still conventional clothing.
- Your daily coffee or lunch, including while working from home.
- The whole phone or internet bill when only part of the use is work-related, and, separately, claiming phone and internet again on top of the fixed rate working from home method, which already includes them.
- Expenses your employer reimbursed.
Frequently Asked Questions
Can I claim $300 of deductions without receipts?
Not quite. If your total work-related expenses claim is $300 or less you can claim without full written evidence, but the expenses must be real, work-related, paid by you, and you must be able to explain how you worked the amount out. It is a substantiation concession, not a standard allowance.
What is the most I can claim without receipts?
$300 of work-related expenses in total, which includes up to $150 of laundry rather than adding to it. Separately, individual expenses of $10 or less can be claimed from a diary note up to $200 a year, and car expenses sit outside the $300 rule entirely under the cents per kilometre method.
How much is a tax deduction worth in Australia?
It is worth the amount claimed multiplied by your marginal tax rate, including the 2% Medicare levy. On a $100,000 income that is about 32 cents in the dollar, so a $1,000 deduction reduces your tax by about $320, not $1,000.
Can I claim travel from home to work?
Generally no. The ATO treats travel between home and your regular workplace as a private expense. Limited exceptions exist, such as carrying bulky tools where there is no secure storage at the workplace, or travelling between two separate workplaces on the same day.
Do I need receipts for work-related expenses?
Yes, as a default. You need written evidence from the supplier showing what was bought, the cost, the supplier and the date. A bank or credit card statement alone is not enough. The exceptions are a total work expense claim of $300 or less, and a laundry claim of $150 or less.
Can I claim my phone bill?
You can claim the work-related portion, worked out on a reasonable basis such as a representative four week period. You cannot claim the whole bill unless the use is entirely for work, and you cannot claim it separately if you are already using the fixed rate working from home method, which includes phone and internet.
A note on what this is
This guide is general information built from the ATO's published material. It is not tax or financial advice, and it cannot take your circumstances into account. Clearway Apps is not a registered tax agent. Where a decision matters, check it against the ATO page linked in each section or talk to a registered tax agent.