If you’re asking “what deductions can I claim on my Australian tax return?”, you’re already ahead of most people who lodge and simply accept whatever refund comes back. The ATO has specific categories of claimable expenses, and knowing which ones apply to your occupation, lifestyle, and financial situation is what separates a decent refund from the best possible one. This guide is structured by situation so you can zero in on what’s relevant to you, rather than wading through a generic list that may not apply at all. Clients who come to Tax NextGen often discover deductions their previous returns never included, because a checklist alone can only tell you what’s possible. A Chartered Accountant tells you what actually applies to you.

Before jumping into specific claims, it helps to understand the framework the ATO uses to assess every deduction. Get the foundation right and you’ll be far better placed to identify what you’re genuinely entitled to claim on your 2025, 26 return.

The ATO’s three rules every deduction must pass

There are three non-negotiable conditions that apply to every deduction on your Australian tax return. Understanding these upfront saves you from claiming expenses that will simply be disallowed, regardless of how work-related they feel.

What makes an expense genuinely deductible

Every deduction must satisfy all three ATO conditions at the same time:

• You spent the money yourself and were not reimbursed by your employer.
• The expense directly relates to earning your employment or business income.
• You have records to prove it.

If your employer reimbursed you, or the expense is private or domestic in nature, it doesn’t qualify. A business dinner that’s partly social, a laptop used equally for Netflix and work, or a uniform that doubles as everyday wear, each of these involves an apportionment problem that needs careful handling.

The $300 substantiation threshold: what it actually means

The $300 rule is one of the most widely misunderstood provisions in Australian tax. It is not a free $300 deduction. It is a substantiation rule. If your total work-related deductions are $300 or less, you still need records showing how you calculated the claim, but formal written evidence such as receipts is not mandatory. Once your total exceeds $300, written evidence, receipts, invoices, or equivalent, is required for every dollar claimed.

It’s also worth noting that the proposed $1,000 standard deduction does not apply to the 2025, 26 return. That measure starts in 2026, 27, so this year’s return follows the existing rules.

What deductions can I claim on my Australian tax return? Deductions by occupation and lifestyle

This is where most people either claim too little or claim the wrong things entirely. Use these categories to find your situation and the deductions most likely to apply.

Remote workers and office-based employees

Salaried employees can claim home office running costs, work-related phone and internet expenses, self-education costs directly tied to their current role, union and professional association fees, and the cost of work-specific clothing. That last point matters: the ATO allows uniforms, protective gear, and occupation-specific attire, but not general business wear, even if your employer expects you to dress professionally. Tools and equipment used for work are also claimable, either in full if they cost $300 or less, or depreciated over time for higher-cost items.

Tradespeople, construction workers, and healthcare professionals

These occupations typically carry higher-than-average deductible expenses. For tradespeople, this includes tools, work boots, safety equipment, and the cost of laundering occupation-specific clothing. Vehicle expenses for travelling between worksites, not the commute from home to the first worksite, are also deductible. Healthcare professionals can often claim registration fees, professional indemnity insurance, and continuing professional development costs required to maintain their licence to practise. The ATO publishes industry-specific guidance for many occupations, so it’s worth checking whether your profession is covered.

Investors, landlords, and those with share portfolios

Investment property owners can claim loan interest, property management fees, council rates, insurance, repairs and maintenance, and depreciation on the building and fixtures. The distinction between repairs (immediately deductible) and capital improvements (depreciated over time) is one the ATO scrutinises closely, so correct categorisation matters. Share investors can claim the cost of managing their investments, including subscriptions to financial publications and certain advice fees directly linked to producing assessable income. If you sold assets during the year, capital gains tax implications apply, and the 50% CGT discount may reduce what you owe if you held those assets for more than 12 months.

Gig workers, rideshare drivers, and sole traders

Self-employed individuals and gig economy workers have a broader deductible expense base than salaried employees. On top of vehicle costs, platform fees, and mobile phone usage, sole traders can claim home office expenses, accounting and tax agent fees, and business-related subscriptions. Rideshare drivers have GST obligations to consider, but can also claim fuel, car maintenance, and the work-related portion of phone costs used for the platform. Keeping clear records of kilometres driven for work versus personal use is essential for this group.

Working from home claims in 2026

If you regularly work from home, the ATO gives you two calculation methods. The two options are the fixed-rate method and the actual cost method, and choosing the right one for your situation can produce a meaningful difference in your refund.

The 70 cents per hour fixed-rate method

For the 2025, 26 income year, the ATO’s fixed rate is 70 cents per hour for every hour worked from home. This flat rate covers electricity and gas, phone usage, internet, stationery, and computer consumables. You cannot claim any of those costs separately if you use this method. You can still claim separate depreciation on assets such as a laptop, monitor, or desk chair used for work. The critical record you need is an accurate log of your actual hours worked from home across the full year, a rough estimate won’t hold up if the ATO asks.

When the actual cost method pays more

Under the actual cost method, you calculate the genuine work-related share of each expense and claim only that proportion. This approach can return a larger deduction if your home office running costs are high relative to your working hours. It requires more detailed records: bills, receipts, and a method for calculating the business-use percentage of shared expenses like electricity. If you have a dedicated home office space and substantial running costs, it’s worth comparing both methods before you commit to the fixed rate. The difference can be significant.

Vehicle and travel expenses

Work-related car and travel costs are consistently among the most claimed deductions in Australia, and also among the most scrutinised by the ATO. There are two approved methods for calculating car expenses, here’s how each one works and when to use it.

Cents per kilometre vs the logbook method

The ATO offers two approaches for work-related car use. The cents per kilometre method covers up to 5,000 km per year at the ATO’s set rate and requires a written record explaining how you determined the kilometres claimed. The logbook method requires a 12-week logbook that records each work-related trip, date, destination, purpose, and kilometres driven. That documented business-use percentage then applies to all vehicle running costs for the year. The logbook must cover a period representative of your travel throughout the year, and once established it remains valid for five years unless your travel patterns change significantly. The logbook method generally produces a larger deduction if your vehicle is used heavily for work.

What travel expenses qualify beyond your car

Travel costs beyond your vehicle can also be deductible when they’re directly work-related. This includes public transport for travel between two workplaces, accommodation and meals on overnight work trips, and flights for work conferences or site visits. Commuting from home to your regular workplace is not deductible. The ATO draws a clear line between travel in the course of work and simply getting to work. For overnight travel of six or more nights, a travel diary is required in addition to receipts and boarding passes.

Records to keep and for how long

Substantiation is where many legitimate claims fall over. Having the right records from the outset means your deductions hold up if the ATO ever asks.

What counts as written evidence by deduction type

For most expenses, the ATO expects a receipt or tax invoice showing the supplier’s name, the cost, the nature of the expense, and the date. Bank statements can supplement your records but generally don’t replace receipts on their own. For vehicle claims using the logbook method, you’ll need logbook records, odometer readings, and receipts for all car expenses. For working-from-home claims, a diary, spreadsheet, or timekeeping record showing actual hours worked is essential. Travel claims may also require boarding passes, itineraries, and a travel diary for longer trips.

How long you need to keep your records

The general rule is five years from the date you lodge your tax return for the relevant income year. For depreciating assets, records must be kept for five years from the date of your last decline-in-value claim. For CGT assets such as shares or property, records must be kept for five years after it is certain no CGT event can occur for that asset. The simplest approach is a single digital folder organised by income year, receipts, logbooks, bills, and statements all in one place.

What deductions can I claim on my Australian tax return that myTax won’t ask about?

A deductions checklist tells you what’s possible. A registered tax agent tells you what applies specifically to your situation, and that distinction is where the real value lies.

Why generic tools leave money on the table

myTax works through a fixed sequence of questions. It won’t prompt you about deductible self-education costs if you didn’t tick the right box early in the process, and it has no way of knowing that you drove between worksites on certain days or incurred professional membership fees relevant to your occupation. It also won’t cross-check your occupation against the ATO’s published industry-specific guidance to identify what you might be missing. The result is a return that reflects only what you already knew to include.

How Tax NextGen approaches your return differently

At Tax NextGen, every return is handled by a Chartered Accountant or CPA who reviews your full income picture, not just what you volunteer. That means asking about professional memberships, vehicle use patterns, investment activity, home office arrangements, and working conditions that a generic tool simply won’t surface. The result is a return that reflects your actual situation, with every legitimate deduction identified and correctly substantiated. With a maximum refund guarantee, transparent pricing, and a 24-hour lodgement turnaround, there’s no reason to leave that work to a dropdown menu.

Next steps before you lodge

When people ask “what deductions can I claim on my Australian tax return?”, the honest answer is: more than most people realise. Use the categories above to build your initial picture, then gather your records before lodgement, receipts, logbooks, bills, and any documentation that supports how you calculated your claims.

If your situation involves a mix of employment, investment, or gig income, or if you’ve worked from home and driven for work, it’s worth having an expert review your return rather than relying on a checklist alone. Book a free consultation with Tax NextGen and find out exactly what you’re entitled to claim for 2025, 26. The difference between a good refund and the right refund often comes down to one conversation.