Real estate employee expenses T–W

Tools and equipment

You can claim a deduction for tools and equipment if you use them to perform your duties as a real estate employee.

You can only claim a deduction for the work-related use of the item.

If the tool or equipment cost you $300 or less, you can claim a deduction for it in the year you buy it, if:

• you use it mainly for work purposes
• it's not part of a set that together cost more than $300.

You can claim a deduction for the cost over the life of the item (that is, decline in value), if the tool or equipment:

• cost more than $300
• is part of a set that together cost more than $300.

If you bought the tool or item of equipment part way through the year, you can only claim a deduction for the decline in value for the period of the income year that you own it. To work out your deduction use the Depreciation and capital allowances tool.

You can also claim a deduction for the cost of repairs to tools and equipment that you use for work purposes.

You can’t claim a deduction for tools and equipment that your employer or a third party supplies for use.

Travel expenses

You can claim a deduction for travel expenses you incur when your work requires you to:

• travel for work
• sleep away from your home overnight in the course of performing your employment duties.

Expenses you can claim include your accommodation, meals and expenses which are incidental to the travel (incidentals). For example, when you travel interstate to attend a work-related conference, seminar or training course.

You can't claim a deduction for travel expenses where you haven’t incurred any expenses, because:

• you slept in accommodation your employer provides
• you eat meals your employer provides
• your employer or a third party reimburses you for any costs you incur.

You also can't claim a deduction if you are not required to sleep away from your home overnight in the course of performing your employment duties. For example, if you fly interstate for work and return home the same day, or you choose to sleep near your workplace rather than returning home.

Receiving an allowance from your employer doesn’t automatically mean you can claim a deduction. In all cases, you must be able to show you were away overnight

• you have spent the money
• the travel directly relates to earning your employment income
• how you work out your claim.

If you receive a travel allowance you must include it as assessable income in your tax return unless all of the following apply:

• the travel allowance is not shown on your income statement or payment summary
• the travel allowance doesn't exceed the Commissioner's reasonable amount
• you spent the whole allowance on deductible accommodation, meal and incidental expenses, if applicable.

The Commissioner's reasonable amount is set each year. The amount is used to determine whether an exception from keeping written evidence applies for the following expenses which are covered by a travel allowance:

• accommodation
• meals
• incidentals.

You don’t have to keep written evidence such as receipts if both of the following apply:

• you received a travel allowance from your employer for the expenses
• your deduction is less than the Commissioner’s reasonable amount.

However, you must keep written records for all your overseas accommodation expenses.

If you claim a deduction for more than the Commissioner’s reasonable amount you need to keep receipts for all expenses, not just for the amount over the Commissioner’s reasonable amount.

Even if you are not required to keep written evidence such as receipts, you must be able to explain your claim and show you spent the amounts. For example, show your work diary, that you received and correctly declared your travel allowance and bank statements.

For more information, see TD 2023/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2023–24 income year?

Union and professional association fees

You can claim a deduction for union and professional association fees you pay. You can use your income statement as evidence of the amount you pay if it's shown on there.

Wages

You can claim a deduction for wages you pay someone to provide you with services and assistance directly relating to your employment activities if you only earn commission income.

You will need to demonstrate that the arrangement is not a private arrangement and that hiring the person allows you to earn additional income from your employment activities.

 

If you are paying wages to a relative, a deduction is only available to the extent it is no more than a reasonable payment for the service performed. A reasonable payment is the amount the employee would be expected to pay to an unrelated person who had similar skills and experience in the same role.

Working from home expenses

You may be able to claim a deduction for working from home expenses you incur as an employee. These can be additional running expenses such as electricity, the decline in value of equipment or furniture, phone and internet expenses. You must:

• use one of the methods set out by us to calculate your deduction
• keep records required for the method chosen.

There are some expenses you can't claim a deduction for as an employee. Employees who work at home can't claim costs:

• for coffee, tea, milk and other general household items your employer may provide you at work
• for your children and their education including
  • setting them up for online learning
  • teaching them at home
  • buying equipment such as iPads and desks
• if your employer pays for or reimburses you for the expense
• for the decline in value of items provided by your employer – for example, a laptop or a phone.

Generally as an employee, you can’t claim occupancy expenses (rent, rates, mortgage interest and house insurance premiums), unless your home is your 'place of business'.

You can’t claim a deduction if your employer paid for your home office to be set up or they reimbursed you for the expense.

Use the Home office expenses calculator to help you work out the amount you can claim as a deduction for work from home expenses.

For more information, see:

• PS LA 2001/6 Verification approaches for electronic device usage expenses
• TR 93/30 Income tax: deductions for home office expenses
• PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach

For more real estate employee expenses, see:

• Real estate employee expenses A–F
• Real estate employee expenses G–O
• Real estate employee expenses P–S

Find out about real estate employees':

• Income and allowances
• Record keeping for work expenses