What work-related expenses can I claim on my 2026 tax return?

If you need a quick, practical guide to work-related tax deductions without needing an accounting degree, this covers what employees need to know about claiming phone, internet, laptop, car and work-from-home expenses in 2026.

Tax time has a special way of sending otherwise sensible adults into a spiral of tabs, tax calculators and ATO rabbit holes. If you just want the quick, practical version of what work-related expenses you may be able to claim, this guide will help you cut through the confusion, avoid common mistakes and understand what’s actually worth your time.

PSA: MyBudget does not prepare or lodge tax returns.

We just like making confusing money topics easier to understand.

If you’re standing at the start of tax time wondering what’s actually worth claiming and what’s likely to get side-eyed by the ATO, start here. This quick cheat sheet gives you the practical version before we unpack the finer details below.

A work-related deduction is something you paid for yourself that directly relates to your income. But before you assume it’s claimable, the ATO expects three things:

1. You must have spent the money yourself and weren’t reimbursed
2. The expense must be directly related to earning your assessable income
3. You must have a record to prove it (yes, receipts are still a thing).

These golden rules for work-related tax deductions come straight from the ATO. Miss one, and your claim could be reduced, rejected or flagged for review.

If your broader money admin feels just as messy as your receipts drawer, our free Personal Budget Template can help you get organised.

Yes. You may be able to claim working from home tax deductions if you genuinely work from home and meet the ATO requirements.

In Australia, there are two main ways to calculate working from home expenses: the fixed rate method and the actual cost method.

What is the fixed rate method and how do you calculate it?

The fixed rate method is the simplest option. For 2025–26, it allows eligible employees to claim 70 cents per hour worked from home.

This rate generally covers:

• Electricity and gas
• Internet
• Mobile or home phone
• Stationery
• Computer consumables.

You may still be able to separately claim eligible office equipment like laptops or monitors if not already claimed elsewhere / subject to eligibility.

What is the actual cost method and how do you calculate it?

The actual cost method lets you claim the actual additional costs you incurred working from home, but it requires stronger records and more detailed calculations.

That may include a work-related percentage of:

• Electricity
• Internet
• Phone
• Stationery
• Depreciation of eligible equipment.

Yes. You can claim your mobile phone on tax if you use your personal phone for work, but you can only claim the work-related portion of your calls, data and phone plan costs.

Useful evidence may include:

• Itemised bills
• A usage diary
• Reasonable work-use calculations.

If your employer reimburses your phone bill, you generally can’t claim it.

Yes. Claiming internet expenses may be possible if you use your personal internet connection for work, but you can generally only claim the work-related portion of your internet costs. If you’re using the fixed rate work-from-home method, internet is already included, so you can’t claim it separately.

Yes. If you bought a laptop, tablet or other work-related tech yourself, use it for work, and weren’t reimbursed, you can generally claim the work-related portion of the expense. Items costing $300 or less can usually be claimed immediately, while items over $300 are generally claimed over time through depreciation.

$300 or less
You may be able to claim an immediate deduction for the work-related portion.

Over $300
You’ll usually need to claim the work-related portion over time through depreciation.

This may apply to laptops, tablets, monitors, printers and eligible software.

Yes. You can claim car expenses if you use your car for eligible work-related travel.

Generally claimable:

• Travel between worksites
• Visiting clients
• Work-related trips outside your usual commute.

Generally not claimable:

• Driving from home to your regular workplace.

What is the cents per kilometre method and how do you calculate it?

The cents per kilometre method is the simpler option, allowing you to claim a set rate for each eligible work kilometre travelled, up to the ATO limit.

For 2025–26, the rate is 88 cents per kilometre.

What is the logbook method and how do you calculate it?

Unlike the cents per kilometre method, which uses a simple set rate, the logbook method requires more admin but may result in a larger claim if your actual work-related car costs are higher.

You track actual car costs like:

• Fuel
• Registration
• Insurance
• Servicing
• Repairs
• Depreciation.

Then apply your work-use percentage.

Yes, but only for specific types of work clothing. You can generally claim protective clothing, occupation-specific clothing, compulsory uniforms and eligible laundry costs. Everyday clothing, even if your employer requires it, is usually not claimable.

Potentially claimable:

• Compulsory uniforms
• Occupation-specific clothing
• Protective gear
• Eligible laundry costs.

Usually not claimable:

• Everyday office wear
• Standard clothing you choose to wear to work
• Black pants / generic business attire.

Yes, if you paid for the expense yourself, it directly relates to earning income in your current role, and you weren’t reimbursed.

Common examples may include:

• Tools and equipment
• Union fees
• Professional memberships
• Work-related subscriptions
• Training tied to your current role.

Usually not claimable:

• Courses for a completely new career.

The ATO keeps a close eye on work-related deduction claims that don’t match the rules, especially where claims seem inflated, duplicated or poorly documented.

Common red flags include:

• Inflated car kilometre claims
• Incorrect work-from-home calculations
• Claiming internet separately when it’s already included in the fixed rate method
• Claiming 100% personal phone use as work-related
• Poor record keeping
• Copy-pasting last year’s deductions without checking what’s changed.

Other common work-related tax deduction misconceptions

Just because something feels work-related, gets talked about at tax time, or your mate reckons they claimed it once doesn’t automatically make it claimable.

Some of the most common tax deduction misconceptions include:

• Your daily commute between home and your regular workplace
• Everyday clothing or standard office wear
• Coffee, lunch or personal meals
• Expenses your employer reimbursed you for.

Sometimes, yes, but ‘no receipt’ doesn’t mean ‘no proof.’ If you don’t have a receipt, you may still be able to claim a work-related expense if you have other evidence that shows what you spent, when you spent it, and how it relates to your work.

Supporting evidence may include:

• Bank statements
• Diary records
• Logbooks
• Invoices
• Reasonable written calculations.

Keep in mind, record-keeping rules can vary depending on the type and value of the claim. If your total work-related expense claim is relatively small, the ATO may not require written receipts in every case, but you still need to be able to explain and support how you worked out your claim.

Reminder: MyBudget doesn’t do tax returns. But if tax time has made you realise your overall money admin is a bit chaotic, that’s exactly where we can help. Budgeting, bill management and getting organised? Much more our lane.