What Can You Claim on Tax? (2026 Update)

Wondering what you can claim on your tax return?

As an Australian taxpayer, you can generally claim tax deductions for expenses that are directly connected to earning your income, provided you paid for them, your employer hasn’t reimbursed them, and you have valid records.

To help you get started, the most common claim categories include work-related expenses, home office costs, car expenses, self-education, donations, tax agent fees, and eligible personal super contributions.

Navigating these categories correctly is the key to maximising your legitimate deductions while staying on the right side of the tax office.

Contents

• What work-related expenses can you claim?
• Can you claim work-from-home expenses on your 2026 tax return?
• Can you claim car expenses on tax?
• Can you claim personal super contributions as a tax deduction?
• What is the proposed $1,000 instant tax deduction?
• What are the common tax deductions in Australia in 2026?
• What expenses can’t you claim on tax?
• What if an expense is partly work-related and partly personal?
• Can you claim donations as a tax deduction?
• Are tax agent fees a valid tax claim?
• What records do you need to claim tax deductions?
• Getting tax deductions right

What work-related expenses can you claim?

You can usually deduct work-related expenses that directly help you earn income. These are particularly useful for sole traders, who pay for many smaller business expenses out of pocket.

• Tools and equipment: Claim the work-related portion of items you use for your job, such as tools, devices, or equipment, and apportion mixed-use items as needed.
• Protective clothing and uniforms: Claim only if the clothing is protective, occupation-specific, or a compulsory uniform; ordinary clothes are not deductible.
• Work-related travel: Claim travel between workplaces or to perform work duties, not ordinary home-to-work commuting.
• Self-education connected to your current work: Claim only where the study relates to your existing job or business activities, not a new career direction.
• Union and professional association fees: These are commonly deductible as costs of earning income or managing work.
• Overtime meals in limited circumstances: These may be deductible where the expense genuinely relates to overtime work, and you have evidence.
• Work-related phone and internet use: Claim only the work portion and avoid double-claiming amounts already covered by the fixed-rate method.

Let’s take a closer look at some of these categories and how they apply below.

Can you claim work-from-home expenses on your 2026 tax return?

If you worked from home to perform employment or business duties and kept the required records, you may be able to claim a deduction. This is particularly useful for roles like consulting and virtual assistants, who may perform most of their work from home.

You have two ways to calculate the claim.

• Fixed rate method: This method uses a per-hour rate for each hour you worked from home. You must keep a record of your hours worked from home, along with records of the expenses covered by the rate. You’ll usually claim things like internet, phone, electricity, gas, stationery, and consumables.
• Actual cost method: This method lets you claim the actual work-related portion of your home office expenses, but you need records for each expense and evidence of work use. Here, you might claim items such as desks, chairs, computers, repairs, and, in some limited cases, occupancy expenses.

Keep in mind that you need a record of the actual hours worked from home; estimates are not enough under ATO guidance. Also, be careful not to double-claim — if an expense is covered by the fixed rate, do not claim it again separately. Finally, make sure to apportion any expenses that you use for both personal and work reasons.

Can you claim car expenses on tax?

You may be able to claim car expenses when the travel is directly related to work or business. This is a particularly useful tax deduction for tradies who need to travel to various work sites.

Here is how to determine if an expense is eligible and claim it.

• Cents per kilometre method: You can claim up to 5,000 work-related kilometres under this method, and the 2025–26 rate is 88 cents per kilometre.
• Logbook method: This method requires a logbook and allows you to claim the work-related portion of car expenses based on business use.
• Reasonable basis: Keep a reasonable basis for your work-related kilometres, such as diary notes, rosters, or trip records.
• Work trips vs commuting: Work-related travel can include travelling between work sites, visiting clients, attending meetings away from your usual workplace, or other trips that meet ATO conditions.
• Bulky tools: Some trips involving bulky tools or equipment may be deductible if they meet ATO conditions.

Keep in mind that ordinary commuting from home to your regular workplace is generally not deductible.

Can you claim personal super contributions as a tax deduction?

Some personal super contributions may be deductible if you meet the ATO rules and lodge a valid notice of intent to claim with your super fund.

Keep in mind that personal deductible contributions count as concessional contributions and are subject to the concessional cap that also includes employers’ contributions to superannuation.

• 2025–26 concessional cap: $30,000.
• 2025–26 non-concessional cap: $120,000.

From 1 July 2026, the general concessional cap is scheduled to increase to $32,500 and the non-concessional cap to $130,000, subject to the applicable rules in force at that time.

Employer super guarantee contributions and salary sacrifice amounts also count towards the concessional cap. It’s important to check your total contributions before making EOFY super contributions, so you don’t go over the cap.

What is the proposed $1,000 instant tax deduction?

There is a new plan to simplify taxes for many Australians: a proposed standard deduction of up to $1,000 for work-related expenses. If this becomes law, it is intended to start on 1 July 2026 for the 2026–27 tax year. However, it won’t be available for your 2025–26 tax return.

Under this proposal, eligible workers could claim up to $1,000 for work costs without needing to save every receipt. If your work expenses are higher than $1,000, you would simply continue to follow the current rules and keep your records as usual to claim the full amount.

Keep in mind that this change is still subject to final legislation being passed.

What are the common tax deductions in Australia in 2026?

The following table provides a quick reference to common tax deductions, including key conditions and the required documentation for each claim.

Expense	Can you claim it?	Key condition	Record needed
Work-from-home electricity and internet	Sometimes	Must relate to working from home and be apportioned if mixed-use; fixed rate covers some costs	Hours worked, bills, and any separate expense records
Laptop or computer	Sometimes	Must be used for work and claimed only for work-related use	Receipt and work-use evidence
Mobile phone	Sometimes	Claim only work-related use; fixed rate covers some mobile usage	Bills and work-use notes
Car expenses	Sometimes	Must be for work-related trips, not ordinary commuting	Logbook or kilometre records
Ordinary commute	No	Travel between home and the regular workplace is generally private	Not deductible
Self-education	Sometimes	Must relate to your current income-earning activities	Receipts, course details, and proof of relevance
Course for a new career	No	Usually not connected to current income-earning duties	Not deductible
Protective clothing	Sometimes	Must be protective or occupation-specific, not everyday wear	Receipt and work requirement evidence
Everyday work clothes	No	Ordinary clothing is generally private	Not deductible
Tools and equipment	Sometimes	Must be used for work; apportion if mixed-use	Receipt and usage records
Overtime meals	Sometimes	Usually, only in limited work-related situations	Receipt and work-time evidence
Ordinary lunch	No	Normal meals are private	Not deductible
Donations	Sometimes	Must be a genuine gift to a DGR and not linked to a material benefit	Receipt or donation record
Tax agent fees	Yes, often	Must be the costs of managing tax affairs	Invoice or receipt
Personal super contributions	Sometimes	Must meet ATO rules, and a valid notice of intent is needed	Super fund acknowledgement and contribution records
Reimbursed expenses	No	You must have paid the expense yourself and not been reimbursed	Not deductible

What expenses can’t you claim on tax?

Understanding what you cannot claim is just as important as knowing your eligible deductions. Below are the most common expenses that are generally not deductible:

• Private or domestic expenses
• Expenses reimbursed by an employer or client
• Ordinary commuting costs
• Everyday clothing
• Ordinary meals
• Entertainment expenses
• Childcare or school expenses
• Expenses without records
• The private portion of mixed-use expenses

Being aware of these exclusions helps maintain compliance with ATO rules.

What if an expense is partly work-related and partly personal?

You can only claim the work-related portion, as private costs are not deductible. You must also keep evidence showing how you calculated this split.

Common examples of mixed-use expenses include:

• Mobile phone: Used for both work and personal calls.
• Home internet: Used by the household for both work and personal activities.
• Laptop: Used for both professional tasks and personal use.
• Car: Used for both business-related travel and private journeys.

By clearly separating these costs, you ensure your claims remain accurate and compliant with ATO requirements.

Can you claim donations as a tax deduction?

To claim a deduction for a donation, you need to meet the following requirements.

• Deductible Gift Recipient (DGR): The organisation you donate to must have DGR status.
• Genuine gift: The payment must be a voluntary gift.
• No material benefit: You can’t receive a material benefit (such as a prize or item of value) in return for your donation.
• Keep receipts: Always obtain and keep a receipt for your donation.

Please note that purchases such as raffle tickets, fundraising items, event tickets, and gala dinners are not generally deductible, as you often receive something in return.

Always check if your contribution meets the ATO definition of a deductible gift.

Are tax agent fees a valid tax claim?

You can generally claim deductions for costs incurred in managing your tax affairs. This includes:

• Fees paid to a registered tax agent
• Advice from a tax professional
• Expenses for tax-related software or other resources.

If you incur travel expenses to see a tax adviser, you should check the current ATO guidance, as these costs are only deductible in specific circumstances.

Lawpath provides comprehensive tax and accounting support to help you manage your financial and tax obligations with confidence.

What records do you need to claim tax deductions?

Substantiating your claims is essential. To ensure you remain compliant with ATO requirements, you must maintain accurate, up-to-date records for every deduction you claim.

You should keep the following:

• Receipts and invoices
• Bank statements (where relevant)
• Diary entries
• Home office hour records
• Car kilometre calculations or logbooks
• Evidence of work-related use
• Donation receipts
• Super fund acknowledgement for personal deductible contributions
• Tax agent invoices

Keeping these documents organised throughout the year makes tax time significantly smoother and helps protect your claims in the event of an ATO audit.

Getting tax deductions right

Navigating the complexities of Australian tax deductions requires diligence and accurate record-keeping. By understanding what you can legitimately claim and keeping your evidence organised, you can maximise your refund while staying compliant with ATO requirements.

Lawpath offers comprehensive tax and compliance services to help you manage your financial obligations with confidence. Contact Lawpath today for expert assistance.