Every year, Australians miss out on deductions simply because they didn't keep the right records — or claim things the ATO won't accept. Here's what you can claim for the 2025–26 financial year (1 July 2025 – 30 June 2026), explained simply.

1. Car & Motor Vehicle Expenses

If you use your own car for work, you may be able to claim — but a logbook or travel diary is now essential. Without one, your claim can't be processed.

What counts as work travel:

• Travel between two or more workplaces
• Travel to different work sites if your place of work keeps shifting
• Carrying bulky tools or equipment your employer can't store securely
• Business trips on the way to or from work

You can claim using one of two methods:

Method 1: Cents per kilometre

• Claim 88 cents per work-related kilometre for 2025–26
• Capped at 5,000 km per car (maximum claim of $4,400)
• No receipts needed — but you must be able to show how you worked out your kilometres (a diary or trip record)

Method 2: Logbook (actual cost)

• Keep a logbook for at least 12 continuous weeks (valid for up to 5 years if your usage stays the same)
• Keep receipts for fuel, registration, insurance, repairs and finance documents
• Claim the work-use percentage of your total running costs — no kilometre cap
• Started a new job or bought a new car? You'll need a fresh logbook

2. Work Travel (Accommodation, Meals & Transport)

• You can claim accommodation, meals, incidentals and transport for genuine work trips
• Keep receipts and note the place, purpose and dates of each trip
• The claimable portion is based on how many days were work-related out of your total travel days
• If you don't receive a travel allowance from your employer, expect closer ATO scrutiny — good records matter

3. Uniforms & Laundry

• Applies to protective, compulsory or occupation-specific uniforms only — not everyday clothes
• Laundry: claim 50 cents per wash if washed with other clothing, or $1 per wash if washed separately
• Bought new uniforms or protective clothing this year? Keep your purchase receipts

4. Self-Education

Study costs are only deductible if there's a direct connection to your current job — for example, the course maintains or improves skills you use now, or is likely to increase your income from your current role.

• Out-of-pocket tuition fees (keep your invoices)
• Textbooks and stationery
• Related costs such as parking, travel, seminar and CPD fees

5. Mobile Phone

• You can claim up to $50 without substantiation
• Claiming more? You'll need a monthly bill showing your work-related usage percentage if the ATO reviews your return
• Don't double up — phone use while working from home is treated separately (see below)

6. Working from Home

Two methods — choose one, not both.

Method 1: Fixed rate — 70 cents per hour

• Claim 70 cents for every hour you work from home in 2025–26
• Covers electricity and gas, phone, internet, stationery and computer consumables — you can't claim these again separately
• You must keep a record of your actual hours for the whole year (timesheets, roster or diary) — estimates are no longer accepted by the ATO

Method 2: Actual cost

• Claim the work-related portion of your real bills — phone, internet, power
• Keep copies of bills plus receipts for home office equipment and stationery
• If you choose this method, you can't also claim the hourly rate

7. Other Deductions Worth Checking

• Union or membership fees — provide the amount paid
• Overtime meals — keep receipts and details
• Tools and equipment — keep purchase receipts
• Donations to registered charities — receipts required
• Tax agent fees for last year's return
• Interest on loans used to buy shares or investments — supply loan statements for 1 July 2025 – 30 June 2026
• Income protection insurance — provide your annual statement
• Personal super contributions (not salary sacrifice) — you'll need the notice of intent acknowledgement from your fund

8. The Golden Rule: Keep Your Records

A deduction is only as good as the paperwork behind it. Your written evidence should show:

• The supplier's name and the amount
• What the goods or services were
• The date the expense was incurred

• A bank or credit card statement alone usually isn't enough — it must describe what was purchased
• Small expenses of $10 or less (up to $200 total) can be recorded in a diary instead
• Keep records for five years after you lodge