Can I Claim the $1,000 Work Deduction Now?
The Government’s latest tax changes have caused a degree of confusion amongst taxpayers, and we have received queries around this.
One of the key items for employees is the legislation of the $1,000 standard work-related expense deduction. But should you claim it this tax time?
No! Don’t jump the gun! The legislation has passed, but the change comes in from 1 July 2026. This means the deduction will be relevant when you prepare your tax return for the year ended 30 June 2027 - that’s in 12 months’ time.
Do not claim the $1,000 standard work-related deduction this tax time.
So, what work-related deductions can you claim this tax time (FY2025-26)?
To claim any work-related expense this tax time:
You must have spent the money yourself;
The expense directly relates to earning your income; and
You have records to prove all your claims if the total exceeds $300.
Here are the key high-level expense categories:
Working From Home: You can use the Fixed Rate Method ($0.70 per hour), which covers your electricity, gas, internet, phone and stationery. You must have a complete and continuous record of your actual hours worked (not an estimate). You must also retain at least one record for each of the additional running expenses you incur. Alternatively, you can calculate your Actual Costs.
Motor Vehicle: If you use your personal car for work tasks (excluding your daily commute), you can use the Cents per Kilometre Method ($0.88 per km) up to a maximum of 5,000 km, or use the Logbook Method to claim a percentage of your total actual running costs based on a 12-week continuous logbook.
Tools & Equipment: Anything costing $300 or less that you use for work can be claimed as an immediate write-off. Items costing more than $300 must be depreciated.
Clothing & Uniforms: Strictly limited to protective gear (eg. steel caps or high-vis), occupation-specific clothing (eg. chef pants), or compulsory company uniforms featuring a distinct logo. Everyday neat clothing or plain activewear cannot be claimed.
Professional Growth & Education: Seminars, course fees, and textbooks are claimable only if they directly maintain or improve your skills in your current job. Cost of study & education to obtain a new job or enter a new industry is excluded.
ATO Guidance Material
Fixed Rate Method:
Actual Cost Method:
Motor Vehicle Cents per KM:
Motor Vehicle Logbook Method:
