Financial Year 2025-26 | ATO Rates & Legislation
Qualifying: Traveling between workplaces, client visits, delivering items, transporting tools.
Strategy
Use cents per km method (85c/km for 2024-25) for up to 5,000km. No logbook required - just diary entries showing work trips.
Cannot claim: Home to work commute (unless carrying bulky equipment).
Qualifying: Remote employees, freelancers, those who work evenings/weekends at home.
Strategy
Fixed rate 67c/hour covers electricity, gas, phone, internet, stationery. Keep simple diary for 4 weeks showing hours = claim for whole year.
Better than actual cost if you don't have high electricity bills.
Qualifying: Courses that maintain/improve current job skills (not for new career).
Strategy
If course fees are $2,000+ and paid upfront, claim immediately even if course runs 3 years. Claim travel from work to course, materials, laptop depreciation.
Trap
Cannot claim if studying for career change (e.g., retail to nursing).
Qualifying: Tools for tradies, computers for office workers, cameras for photographers.
Strategy
Items under $300 = immediate full deduction. Loophole: Buy that $299 tool separately from the $50 case = immediate $349 deduction vs depreciating both.
Claim partial use - e.g., phone 60% for work = 60% deductible.
Qualifying: Compulsory uniforms with logo, occupation-specific (chef whites, scrubs), protective gear.
Strategy
Outdoor workers can claim sunglasses, hats, sunscreen. Laundry: $1 per load if work clothes only, or 50c if mixed.
Trap
Plain black pants required by employer are NOT deductible unless they have a permanent logo.
Qualifying: Taking work calls, using phone for emails, internet research for work.
Strategy
Keep a diary for 4 weeks recording work vs personal use. Apply that percentage for the whole year. If work use is 40%, claim 40% of bill x 12 months.
Handset depreciation also claimable based on work percentage.
Qualifying: Union membership, professional association fees (mandatory for job), work-related journals.
Strategy
Often forgotten. Union fees fully deductible even if you never use the union. Magazine subscriptions for your industry are claimable.
Qualifying: Cost of having tax return prepared, travel to tax agent, income protection insurance.
Strategy
Pay tax agent fees in June (before June 30) to claim deduction this financial year. Income protection is deductible; life insurance is not.
Qualifying: Donations $2+ to Deductible Gift Recipients (DGRs) - registered charities, political parties (max $1,500).
Strategy
Workplace giving: If employer offers salary sacrifice to charity, get tax benefit immediately in pay. Bucket donations under $10 without receipt.
Trap
Cannot claim if you received something in return (raffle tickets, charity dinners with meals).
Qualifying: Overnight travel for work, overtime meal allowances under industrial award.
Strategy
If paid overtime meal allowance, claim up to $35.65 (2024-25 reasonable amount) without receipts. For travel 6+ nights away, MUST keep travel diary.
Travel allowance usually tax-free in pay but you can still claim actual expenses.
If your TOTAL work expenses are $300 or less, you don't need receipts.
Strategy
If you have $280 of small expenses you can't find receipts for, claim them. Add up coffees while traveling for work, parking meters, stationery - as long as total work claims are under $300, ATO won't ask for proof.
Record Keeping Requirements
| Description | Weekly | Fortnightly | Monthly | Annually |
|---|---|---|---|---|
| Gross Income | $0.00 | $0.00 | $0.00 | $0.00 |
| Less: Deductions | $0.00 | $0.00 | $0.00 | $0.00 |
| Superannuation (12%) | $0.00 | $0.00 | $0.00 | $0.00 |
| Total Tax & Levies | $0.00 | $0.00 | $0.00 | $0.00 |
| └ Medicare Levy | $0.00 | $0.00 | $0.00 | $0.00 |
| Insurances | $0.00 | $0.00 | $0.00 | $0.00 |
| Net Income | $0.00 | $0.00 | $0.00 | $0.00 |
Net Income = Gross - Tax & Levies - Insurances
Superannuation is paid by employer, not deducted from take-home