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Resources · Deductions
The Complete Tax Deductions Guide for Australia (2026)
Work-related expenses, the ATO's new $1,000 instant deduction, and everything else you're allowed to claim on your 2025–26 tax return — explained in plain English and checked by a certified tax agent.
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No confusing jargon
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ATO rules explained
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Agent-reviewed return
Free to start · Certified tax agent review included · From $88
We automatically check your return against every deduction category below before it's lodged
Hero Visual: “Your Deduction Checklist” (illustrative mock-up)
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Uniforms & laundry — Looks eligible
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Phone & internet (60%) — Looks eligible
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Car travel (480km) — $326
Estimated deductions: $1,860
Button (decorative, non-clickable): Check My Eligible Deductions
Illustrative example only — your actual eligible deductions depend on your circumstances.
Quick Answer (direct-answer callout)
Most Australians can claim work-related expenses for car and travel between job sites, tools and equipment, uniforms and laundry, phone and internet use, working-from-home costs, and job-related self-education — as long as you spent the money yourself, weren't reimbursed, and can show a connection to earning your income. From the 2025–26 income year, you can also claim a flat $1,000 with no receipts instead of itemising every expense.
New for 2025–26
The $1,000 Instant Deduction, Explained
From the 2025–26 income year, the ATO lets most employees claim a flat $1,000 deduction for work-related expenses without needing a single receipt. Here's how it actually works.
No receipts required
You don't need to keep or produce any evidence for the $1,000 — it's a fixed "fast claim" the ATO built for people with small, hard-to-track work expenses.
It's all-or-nothing
You can't claim the $1,000 fast claim and itemise other work-related expenses on top. It's one or the other for your work-related deduction category.
Tip: If your itemised work expenses realistically add up to more than $1,000, itemising with proper records will almost always get you a bigger refund. Tax Falcon checks both paths and applies whichever is better for you.
Category by Category
Common Work-Related Deductions
These are the deduction categories that apply to almost every employee, whatever industry you work in.
Car & Travel
Travel between job sites or to see clients (not your normal commute) using the cents-per-km or logbook method.
Working From Home
A fixed rate or actual running costs for the hours you genuinely work from home, including power and internet.
Phone & Internet
The work-related percentage of your phone and internet bills, based on a reasonable usage estimate.
Tools & Equipment
Items you buy for work. Under $300, claim it outright; over $300, it's depreciated over its effective life.
Clothing & Laundry
Occupation-specific or protective clothing and compulsory branded uniforms, plus the cost of washing them.
Self-Education
Courses, conferences and study directly connected to your current job (not a future career change).
Know the Limits
What You Can't Claim
Everyday commuting
Travel from home to your normal workplace and back is private, even if you start work as soon as you get in the car.
Conventional clothing
A plain suit, business shirt or generic black pants — even if your employer requires you to wear them.
Expenses your employer paid back
If you were reimbursed for something, you can't claim it again on your tax return.
HECS-HELP repayments
Compulsory or voluntary study loan repayments are never tax deductible, no matter how much you've paid.
Fines and penalties
Parking fines, speeding tickets and similar penalties aren't deductible, even if incurred while working.
Private portion of a mixed expense
Only the work-related percentage of a phone, internet or car expense can be claimed — not the personal share.
Easy to Forget
Donations, Insurance & Agent Fees
Donations & Gifts
Gifts of $2 or more to a registered Deductible Gift Recipient (DGR) charity are deductible — keep the receipt or confirmation email.
Income Protection Insurance
Premiums for income protection cover you hold outside of superannuation are generally deductible in the year you pay them.
Tax Agent Fees
The cost of managing your tax affairs — including your Tax Falcon fee — is generally deductible in next year's return.
Interest on Income-Producing Investments
Interest charged on money borrowed to earn assessable income, such as a margin loan, can also be deductible.
Stay ATO-Ready
How to Keep Records the ATO Accepts
Good records are what turn an eligible deduction into an approved one.
Keep everything for five years
The ATO can ask to see evidence for a claim up to five years after you lodge, even for deductions accepted at the time.
Digital copies are fine
A clear photo or scan of a receipt, kept in the ATO's free myDeductions app or your own files, is accepted evidence.
Log car trips over 5,000km
Under 5,000 business km, use the cents-per-km method with no logbook. Over that, you need a 12-week logbook.
Track your work-from-home hours
Keep a diary, timesheet or roster showing the hours you worked from home across the year.
Decide Fast
$1,000 Fast Claim vs Itemising
Match your rough expense total to the option that usually works out best.
Light expenses — Under $1,000
Occasional uniform wash, minimal work travel, not much else to claim. Suggested: $1,000 Fast Claim.
Moderate expenses — $1,000–$2,500
Regular working-from-home hours, phone & internet use, some travel. Suggested: Compare Both.
Higher expenses — Over $2,500
Regular travel, tools, self-education and working from home combined. Suggested: Itemise With Receipts.
Not sure which bucket you're in? Tax Falcon checks both paths automatically and applies whichever gets you the bigger refund.
Why Tax Falcon
We Check Every Deduction Before You Lodge
Deduction checks included
Every plan — Standard ($88), Student ($69) or Sole Trader ($229) — includes a full deduction check at no extra cost.
âš This list names Standard, Student and Sole Trader but doesn't mention the Property or Investor Tax Return pages (also $229, also confirmed elsewhere in this session), even though a general deductions guide would naturally be relevant to property and investment deductions too. Not necessarily an error, but a content gap worth considering — readers who arrived here as landlords or investors get no link to their relevant product page.
Certified tax agent review
A certified tax agent reviews your return before it's lodged, so you claim everything you're entitled to without overclaiming.
Keep Reading
Related Resources
Tax Return Checklist Australia 2026 (linked card)
Every document and detail you need before you start your return.
Tax Return Dates & Deadlines 2026–27 (linked card)
The 31 October deadline, extensions and every date that matters.
Standard Tax Return — $88 (linked card)
See exactly what's included when you lodge with Tax Falcon.
✓ The first two related-resource links (/tax-return-checklist and /tax-return-dates-deadlines) are new URLs not seen on any other page reviewed in this session — they point to companion guide pages (a pre-lodgement checklist and a key-dates page) that weren't part of this review batch.
Questions
Deductions FAQs
What's the easiest deduction to claim without receipts?
The $1,000 fast claim, available from the 2025–26 income year, lets most employees claim a flat $1,000 for work-related expenses with no receipts at all.
Can I claim the $1,000 deduction and other work expenses too?
No. The $1,000 fast claim replaces your other work-related expense claims for the year — it's one option or the other, not both.
Do I need a logbook to claim car expenses?
Only if your work-related travel is over 5,000km a year. Under that, the cents-per-km method doesn't require a logbook, just a reasonable estimate of your trips.
Can I claim my phone bill if I use it for work and personal use?
Yes, but only the work-related percentage. You'll need a reasonable basis for the split, such as a representative four-week diary of your usage.
What happens if I claim a deduction I'm not entitled to?
The ATO can review or audit your return, ask you to repay the difference, and apply penalties and interest. Tax Falcon's certified agent review is designed to catch this before you lodge.
How long should I keep my tax receipts?
Generally five years from the date you lodge the return the claim relates to, since the ATO can request evidence within that window.
Ready to Claim Every Deduction You're Owed?
Tax Falcon checks your return against every deduction category above, including the new $1,000 fast claim — then a certified tax agent reviews it before it's lodged.
From $88 for a standard return · No hidden fees