myTax 2023 Other work-related expenses

Things to know

Complete this section if you incurred any other work-related expenses as an employee and have not already claimed anywhere else on your tax return.

To claim a deduction for a work-related expense:

• you must have spent the money yourself and weren't reimbursed
• it must be directly related to earning your income
• you must have a record to prove it (usually a receipt).

You can only claim a deduction for the work-related portion of an expense. You can't claim a deduction for any part of an expense that is not directly related to earning your income or that is private.

Where items you use for work cost:

• more than $300 or is part of a set that together cost more than $300 – claim a deduction for the cost over the life of the item (decline in value). See Guide to depreciating assets
• $300 or less – claim an immediate deduction for the whole cost.

If your total claim for work-related expenses is more than $300, you must have written evidence to prove your claims.

You can claim

Other work-related expenses include:

• union fees and subscriptions to trade, business or professional associations
• overtime meal expenses, provided that
  • you received a genuine overtime meal allowance from your employer that was paid under an industrial law, award or agreement
    (An amount for overtime meals that has been included as part of your normal salary and wages – for example, under a workplace agreement – is not an overtime meal allowance.)
  • you purchased and consumed a meal during your overtime
  • you have included the amount of the meal allowance as income at Salary, wages, allowances, tips, bonuses, and
  • if your claim was more than $33.25 per meal, you have written evidence such as receipts that shows the cost of the meals.
   
• professional seminars, courses, conferences and workshops
• reference books, technical journals and trade magazines
• the work-related portion of tools and equipment and professional libraries – if items cost more than $300, claim decline in value over the life of the item.
• the work-related portion of items that protect you from the risk of injury or illness posed by your work or your work environment, such as
  • hard hats, safety glasses, sunscreens
  • other protective items, such as face masks, that you buy because of COVID-19 and use at work where your employment duties require you to be at your place of work and bring you into close proximity to customers or clients.
  • but not protective clothing and footwear, which you claim at Work-related clothing, laundry and dry-cleaning expenses 
   
• the work-related portion of the following costs
  • computers, laptops, printers or other office equipment – if items cost more than $300, claim decline in value over the life of the item
  • interest on money borrowed to buy a computer
  • repair costs for the computer
  • the decline in value of the computer
  • internet access charges
  • phone calls
  • phone rental if you can show you were on call or were regularly required to phone your employer or clients while away from your workplace
  • furniture and fittings utilised as a result of working from home – if items cost more than $300, claim decline in value over the life of the item
  • heating, cooling, lighting and cleaning costs incurred as a result of working from home
  • COVID-19 test expenses.
   

Claim at this section any work-related expenses incurred in earning assessable foreign employment income shown on an income statement or PAYG payment summary – foreign employment provided you have not already claimed the expense at another section.

If you no longer own or use an item costing over $300 and you previously claimed a deduction for its decline in value, you may need to make a balancing adjustment.

Working from home expenses

In 2022–23, there are 2 methods you can choose to calculate your deduction for working from home expenses as long as you meet the working criteria and record keeping requirements:

• revised fixed rate method – 67 cents per hour worked from home – this rate covers the additional running expenses that you incurred as a result of working from home for:
  • energy expenses (electricity and/or gas)
  • internet and data expenses
  • mobile and/or home telephone expenses
  • stationery and computer consumables.
   

You do not need a separate home office or dedicated work area to use this method. The revised fixed rate method does not cover the decline in value of depreciating assets used for work.

• actual cost method

To work out your claim, use the home office expenses calculatorThis link opens in a new window.

Revised fixed rate method

Claim a rate of 67 cents per hour for each hour you worked from home. The revised fixed rate method can be used by multiple people working from home in the same house.

You can choose to use this rate if you:

• worked from home to fulfil your employment duties and not just carrying out minimal tasks such as occasionally checking emails or taking calls
• incurred additional running expenses as a result of working from home
• kept all the relevant records.

The revised fixed rate method covers the following additional running expenses you incur from working at home:

• energy expenses (electricity and/or gas) for lighting, heating/cooling and to run electronic items used for work
• internet expenses
• mobile and/or home telephone expenses
• stationery and computer consumables.

You can't claim a separate deduction for any of these expenses if you use this method.

You can separately claim a deduction for the work-related portion of the decline in value of any depreciating assets that you used to work from home including office furniture, computers and laptops. You can also claim any other running expenses not covered by the rate per hour.

You don't need a dedicated work area or separate home office to use this method.

You must have a record of the actual number of hours you worked from home during the entire income year. This could be a timesheet, roster, a diary or any other document provided it is kept contemporaneously and records the hours you worked from home. If you did not keep records of the actual number of hours worked from home during the period from 1 July 2022 to 28 February 2023, you must have a representative record of the hours you worked from home during that period.

You must also have at least one record for each of the expenses you incurred that the rate per hour includes, for example, if you incurred electricity and internet expenses, keep one bill for each expense.

Actual cost method

Claim the actual work-related portion of all your running expenses, which you need to calculate on a reasonable basis.

For more information, see

• Practical Compliance Guideline PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home – ATO compliance approach.
• Taxation Ruling TR 93/30 Income tax: deductions for home office expenses
• Taxation Ruling TR 2003/16 Income tax: deductibility of protective items
• Taxation Ruling TR 2004/6 Income tax: substantiation exception for reasonable travel and overtime meal allowance expenses
• Law Administration Practice Statement PS LA 2001/6 Verification approaches for home office and electronic device expenses
• Law Administration Practice Statement PS LA 2005/7 Substantiating an individual's work-related expenses.

Related page

Claiming deductions
How to claim deductions in your return using myTax.

You can't claim

You can't claim a deduction for:

• the cost of entertainment, fines and penalties
• private expenses, such as childcare expenses and fees paid to social clubs
• coffee, tea, milk and other general household items your employer may otherwise have provided you with at work
• costs related to children and their education including setting them up for online learning, teaching them at home or buying equipment such as iPads and desks
• the decline in value of items primarily for use in your employment if the item was provided to you by your employer, or some or all of the cost of the item was paid or reimbursed by your employer, and the benefit was exempt from fringe benefits tax. Items include laptops, portable printers, personal digital assistants, calculators, mobile phones, computer software, protective clothing, briefcases and tools of trade.

Generally, you can't claim a deduction for occupancy expenses such as rent, rates, mortgage interest and insurance.

Do not show at this section

Do not show the following at this section:

• Expenses you incurred in earning assessable foreign employment income not shown on an income statement or PAYG payment summary – foreign employment, go to Foreign employment.
• Any balancing adjustment profit, go to Other income. Any balancing adjustment profit calculated in the Depreciation and capital allowances tool shows automatically at Other income.
• Expenses you incurred for protective clothing and footwear, go to Work-related uniform, occupation specific or protective clothing.

Completing this section

You may need:

• statements from your bank, building society or credit union
• receipts, invoices or written evidence from your supplier or association
• other written evidence.

We:

• pre-fill your tax return with other work-related expense information you uploaded from myDeductions
• show your union and professional fees from the Income statements and payment summaries section.

Check them and add any other work-related expenses that have not pre-filled.

To claim other work-related expenses, you must first show income from salary and wages or foreign employment income in the Income statements and payment summaries section.

To personalise your return to show other work-related expenses, at Personalise return select:

• You have deductions you want to claim
• Work-related expenses

To show your other work-related expenses, at Prepare return select 'Add/Edit' at the Deductions banner.

At the Other work-related expenses banner:

1. For each other work-related expense not pre-filled in your tax return, select Add, and
   • Enter Your description. To assist in record keeping, add a short description of your expense.
     If you're claiming a deduction for working from home expenses, in your description include the method you used to calculate the deduction (either 'Fixed rate' or 'Actual cost').
     If you're claiming a deduction for COVID-19 tests taken for work purposes, in your description include 'COVID-19 tests'.
   • Enter the Amount.
     If you're using the fixed rate method to claim a deduction for working from home expenses, include the dollar amount (not the number of hours you are claiming for).
     The Depreciation and capital allowances tool can help you to work out any decline in value. It can also work out any deductible balancing adjustment when you stop holding a depreciating asset. Access this tool when you add your other work-related expenses.
     Fields from this tool can't be adjusted in myTax. To make any adjustments, or to add new assets to the tool, select 'Use the depreciation and capital allowances tool' link.
    
2. Select Save.
3. Select Save and continue when you have completed the Deductions section.

Watch: The following video shows you how to use the Depreciation and capital allowances tool.

You need to keep records for 5 years (in most cases) from the date you lodge your tax return.

Our myDeductions tool is free to use and is available through the ATO app. The tool makes it easier and more convenient to keep records of your expenses and income in one place, including photos of your receipts and invoices.

How to complete the other work-related expenses section of your return using myTax.