ATO rules and rates Checked 12 October 2026
Work-Related Deductions
The deductions most people actually claim, with the rate and the rule that decides each one. Every figure comes from the ATO's own page for that deduction - and where they have not published a figure yet, we say so instead of guessing.
The rule that decides almost everything: $300
$300 or less, used mainly for work → claim the whole cost this year
Over $300, or part of a set worth more than $300 → claim its decline in value over its effective life. Items with an adjustable value under $1,000 can also be pooled, which most people never bother with and often should.
Watch the set rule. The $300 test is applied to a set of items together, not item by item. It is the most common honest mistake in this area - and the ATO calls it out specifically.
Frequently asked questions
What is the $300 rule?
If a work-related item cost $300 or less and you use it mainly to produce non-business income, you can claim the whole cost in the year you buy it - a keyboard, a mouse, a desk lamp. Above $300 you claim its decline in value over its effective life instead.
What if the items are part of a set?
The $300 test applies to the set, not each item. Two monitors bought together for $400 are a $400 set, so you cannot claim one of them outright just because it was individually under $300.
Do I need receipts?
You need records that show what you bought, when, what it cost and how you worked out the work-related portion. For a car claim under cents per kilometre the records are about the kilometres, not the fuel.
What is the biggest mistake people make?
Claiming the home-to-work trip. That is private travel. Travel between two workplaces, or from work to a client, is deductible - the ordinary commute is not.
Can I claim a deduction if my employer reimburses me?
No. If you were reimbursed for the expense, you cannot also claim it as a deduction. You can only claim the part you actually paid for out of your own pocket.
Related
- Low income tax offset
- Income tax calculator - what a deduction is worth at your marginal rate
- Take-home pay calculator
- HECS repayment calculator
Rules from the Australian Taxation Office, checked 12 October 2026. General information only - not tax advice.