Track mileage automatically
Get started
11 August 2022 - 2 min read

Work-Related Expenses

Work-related expenses are expenses you incur directly related to your employment. In case your employer doesn’t reimburse you for these expenses, you can claim tax deductions from the ATO.

In order to claim work-related expenses on your tax return, you must make sure of the following:

  • The expenses directly relate to your job and earning your income
  • You have spent money from your own pocket
  • Your employer didn’t reimburse you for your expenses
  • You have receipts to prove the work-related expenses
Driversnote

Kilometre tracking made easy

Trusted by millions of drivers

Automate your logbook Automate your logbook

Automatic mileage tracking and ATO-compliant reporting.

Get started for free Get started for free

What work expenses you can claim

Car and travel expenses

You can claim work-related expenses when driving your car for business purposes. These can include driving from your place of work to a client meeting or running errands. Note that you cannot claim car expenses for commuting to and from work, as this is considered personal driving. You can claim car expenses by two methods - the cents per km method and the logbook method. Learn more about claiming your car expenses from the ATO.

If you travel by other means of transportation for work purposes, you can claim these expenses too. Travel expenses can include air, train, bus and taxi fares. If your stay away from home for work duties is overnight, you can claim meals, accommodation and some other expenses too.

Clothing, dry-cleaning and laundry expenses

You can claim clothing and footwear expenses so long as these items are considered to be protective, occupation-specific or uniforms (compulsory and non-compulsory).

Examples of protective clothing include safety shoes, fire-resistant clothing, and aprons to protect ordinary clothes.

Compulsory uniforms are clothes you are obliged to wear to work. They must be distinctive enough from ordinary clothing and clearly show you are working for a particular employer.

You can only claim work-related expenses for a non-compulsory uniform if your employer has registered its design with AusIndustry.

Finally, you can also claim your expenses for laundry and dry-cleaning for the allowable clothing described above.

Self-education expenses

You can claim expenses for study and self-education if these activities have sufficient relevancy to your current work activities and:

  • Improve or maintain your skills or knowledge needed for your job
  • Will or will likely result in an increase in your income from your current job.

Expenses you can claim include tuition fees, and objects directly related to the education, such as books, textbooks, stationery, student services etc. You can also claim the cost of travelling between home/work and the place of education. Finally, you might be able to claim a deduction for depreciation of assets, such as computers or printers that you use for your education.

FAQ

Work-related expenses are any expenses you pay related to your employment, such as uniforms, vehicle expenses and others. If your employer doesn’t reimburse you for your work-related expenses, you are able to claim a tax deduction on them from the ATO.
You can claim all of your eligible work-related expenses. To be eligible, an expense must be directly related to your job, you received no reimbursement for it and you have the receipt to prove the expense.

Tired of logging mileage by hand?

Effortless. ATO-compliant. Liberating.

Auto-track trips
Classify trips
ATO compliant reports
Automate your mileage logbook
Effortless and compliant mileage tracking
Get started for free Get started for free

Related posts

ATO Mileage Guide
ATO Mileage Guide

25 June 2024 - 5 min read

Learn about the rules of reimbursing employees for their car expenses or deducting expenses as an employee or self-employed individual.

Hiring Employees as a Sole Trader
Hiring Employees as a Sole Trader

17 July 2024 - 5 min read

How to hire employees as a sole trader in Australia and the main obligations and considerations in doing so.

Sole Trader Tax Deductions: An Essential Guide
Sole Trader Tax Deductions: An Essential Guide

11 July 2024 - 5 min read

Maximise your income with our guide to sole trader tax deductions. Learn about deductible business expenses and how to claim them.