Before claiming anything, your expense must pass these three ATO tests:

1. You spent the money yourself (not reimbursed by your employer)
2. It directly relates to earning your income
3. You have a record to prove it (receipt, bank statement, log)

If an expense ticks all three boxes, you can almost certainly claim it.

The ATO offers two methods for WFH claims in 2025–26:

Revised Fixed Rate Method - 67 cents per hour for every hour worked from home. This covers electricity and gas, internet, phone, stationery, and computer consumables. You must keep a record of hours worked (diary, timesheets, or employer confirmation).

Actual Cost Method - Calculate the actual work-related portion of each expense. More complex, but can yield a higher deduction if your home office costs are significant.

What you can additionally claim under both methods: Decline in value (depreciation) of office furniture and equipment, cleaning of a dedicated home office space, and home office repairs.

Common mistake: Many people simply forget to claim WFH hours at all, or under-estimate them. Track every day.

You can claim the work-related percentage of your phone and internet bills. If you use your phone 40% for work, claim 40% of the bill. The ATO accepts a four-week representative period to establish your usage percentage - you don't need to log every call all year.

Keep at least one month of bills and a note explaining your methodology.

Logbook method - Keep a logbook for at least 12 continuous weeks to establish your work-related vehicle use percentage. Apply that percentage to all vehicle running costs for the year. Best for high-work-use vehicles.

Cents per kilometre - Claim up to 5,000 work-related kilometres at a set rate (88 cents per km for 2025–26). You need written evidence of your claim. This method suits low-work-use situations.

Note: Travel between home and a regular workplace is not deductible. Travel between two workplaces, or to a client site, generally is.

Courses, textbooks, workshops, and conferences that directly relate to your current job are deductible. This includes:

• TAFE courses and university units related to your profession
• Industry seminars and conferences
• Online course subscriptions (LinkedIn Learning, Udemy, etc.) in your field
• Professional journals and trade publications
• Union fees and professional association memberships

The course must relate to your current job, not a new career you're hoping to move into.

Work-related equipment and tools are deductible. Items costing $300 or less are immediately deductible. Items over $300 are depreciated over their effective life.

Common claims: laptops, tablets, headsets, cameras, tools of trade, external monitors, ergonomic equipment.

If you use an item for both work and personal purposes, you can only claim the work-related percentage.

This is one of the most frequently missed categories. Work-related subscription and membership fees are deductible. Examples include:

• Professional body memberships (law, accounting, engineering associations)
• Trade union fees
• Industry-specific software subscriptions
• Work-related online platform memberships

Some rewards club memberships may also be partially or fully deductible if you primarily use the club's partner discounts for business-related purchasing. Always check with a registered tax agent or accountant, as eligibility depends entirely on your individual circumstances. For example, a Roopon membership used to access discounts on business-related software, internet, and services could have a work-related component - but professional advice is essential before making this claim.

Donations of $2 or more to a registered DGR (Deductible Gift Recipient) charity are fully tax-deductible. Keep your receipts. If you donated to charity at checkout during the year, compile those receipts - they add up.

If you have investments outside super - shares, property, managed funds - many associated costs are deductible:

• Interest on investment loans (negative gearing)
• Account keeping fees for investment accounts
• Financial adviser fees related to managing existing investments
• Subscriptions to investment research tools and newsletters
• Depreciation of investment property assets

The ATO can audit up to five years back. Keep the following:

• Receipts and invoices - physical or digital
• Bank and credit card statements showing payments
• Logbooks for vehicle use
• Diary entries for WFH hours
• Contracts or employment letters confirming work-related requirements

Apps like ATO myDeductions (free, from the ATO) make ongoing record-keeping simple.

1. Log in at my.gov.au and access the ATO portal
2. Select "Prepare" under Tax Returns
3. Most income (salary, bank interest, dividends) will be pre-filled - check it carefully
4. Work through each deduction category systematically using this checklist
5. Review your summary before submitting

The ATO recommends waiting until late July to ensure all your employer and bank data has been loaded.