Here's a straightforward guide to claiming tax deductions in Australia for 2026. It explains what you can claim, what records to keep, how to lodge claims through myGov or a tax agent, plus key rates, deadlines, and mistakes to watch out for. Give it a read and save it for tax time.

Quick-reference summary

• Tax year: 1 July to 30 June. Lodge by 31 October if you do your own return via myTax. If you use a registered tax agent, you generally must register with the agent by 31 October to access their extended lodgement date.

• Keep records for five years for most claims — receipts, bank and credit-card statements, invoices, work diaries and odometer logs are essential.

• Work-from-home fixed-rate (2026): 67 cents per hour — this fixed rate covers running costs such as power, phone and internet for home-based work when using the fixed-rate method. Multiply 0.67 by total work hours for the claim period.

• No fee to lodge your own return via myTax. Registered tax agent fees vary — many people pay between $200 and $800 depending on complexity and whether small business schedules are involved.

• Main rules: an expense must be directly related to earning assessable income, you can only claim the work-related portion, and you need written or contemporaneous evidence to substantiate claims.

Prerequisites

Before you start, get these sorted—it'll make things quicker and help avoid mistakes.

  1. Create and link a myGov account to the ATO at https://www.my.gov.au/ — you can also get help via Services Australia at https://www.servicesaustralia.gov.au/.

  2. Collect income records: payment summaries, income statements and PAYG summaries. Most employer PAYG information is pre-filled into myTax by the ATO, but check it carefully against your own payslips.

  3. Gather proof for deductions: original receipts or digital copies, bank statements, invoices and any logbooks or diaries (car logbooks, work-from-home diaries, self-education records).

  4. Decide methods early — for home office expenses you must choose either the ATO fixed-rate method (67c/hr for 2026) or the actual-cost method for the whole claim period. For car expenses, pick either the cents-per-kilometre method or actual costs with a logbook.

  5. Know who lodges: if you lodge with a registered tax agent, ask what documents they need and whether you must register with them by 31 October to use their later deadline.

Step-by-step: How to claim tax deductions in Australia

  1. Identify deductible expenses.

    Common categories: work-related expenses (uniforms, protective clothing, tools, union and professional membership fees), vehicle and travel costs, self-education expenses directly related to your current job, home office expenses, subscriptions and professional journals, and gifts or donations to deductible charities. You can only claim the portion that relates to earning your income — for example, if you use a laptop 60% for work and 40% privately, you can claim 60% of the depreciation or running costs.

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  2. Choose the right method for home office and car claims.

    Home office: fixed-rate method at 67c per hour (2026) or actual-cost method. With fixed rate, keep a record of hours worked; you don't need to calculate power or internet bills item-by-item for those running costs. With actual-cost, keep bills and a reasonable method of apportionment — for example, total electricity bill times the home-office percentage of energy use, plus depreciation for furniture and equipment.

    Car: the ATO offers the cents-per-kilometre method (a set rate up to a maximum number of kilometres per year) and the logbook or actual-cost method. Keep a logbook covering a representative 12-week period if you plan to use the logbook method; it must include odometer readings and reason for each trip.

  3. Calculate totals and apportionment.

    Work out totals for each category and apportion private use. Examples: home office — 67c × 200 hours = $134; laptop bought for $1,200 used 70% for work and depreciated over its effective life; claim the work portion of the decline in value. Keep workings in a spreadsheet or ledger file so it’s clear how you got to each figure.

  4. Log in to myGov and start myTax.

    Steps: log in at https://www.my.gov.au/, choose 'Australian Taxation Office', then 'Tax'. Open myTax and select the correct income year (2026). Use pre-fill to import employer and bank information. Go to the 'Deductions' section — it’s organised into categories: work-related, investment-related, gifts and donations, and other deductions.

    Add each deduction under the right heading. For example, under 'Work-related car expenses' choose the method you used and enter kilometres or amounts. For 'Home office expenses' select either the fixed-rate or actual-cost option and enter hours or itemised costs. MyTax will prompt you for totals and ask whether you have records — enter amounts and keep the records ready in case of an audit.

  5. Lodge with a registered tax agent if preferred.

    If you're using an agent, make sure to give them all your income statements, receipts, logbooks, and a list of deductions with your calculations. Register with your agent by 31 October if you want to use their extended lodgement schedule. Confirm their fees — many agents charge a fee plus GST, often between $200 and $800 for standard returns; more complex business returns will cost more.

  6. Review and keep evidence.

    Before lodging, double-check totals, calculate your tax payable or refund estimate, and ensure records are stored for five years from the date you lodge the return. If you claim small amounts frequently, keep a clear diary — it helps if the ATO asks for proof.

  7. Respond quickly to ATO notices.

    If the ATO requests documents or further information after you lodge, respond within the timeframe given. Keep scanned copies of everything — ATO reviews are common and prompt responses reduce stress and penalties.

Tips

• Keep digital receipts in a single folder and back them up to the cloud. The ATO accepts electronic records if they’re legible.

• Use a simple spreadsheet to track work hours for home office and kilometres for car travel — include dates, purpose and start/end odometer readings.

• For self-education, claim only costs directly connected to your current income — course fees, textbooks, and travel to attend classes can be claimed if the study maintains or improves the skills you need for your current job.

• If an item is used mainly for work but occasionally private — like a phone — apportion calls and data by work percentage. Keep itemised phone bills to support the split.

• When in doubt, get a second opinion from a registered tax agent — many offer a fixed-price review of your record pack before lodging.

Common mistakes to avoid

• Claiming private expenses as work-related — everyday clothing, commuting from home to your regular workplace, and private phone use aren't deductible.

• Rounding up hours or kilometres — estimate conservatively and keep records. Inflated claims trigger reviews and penalties.

• Failing to apportion correctly — if an expense is partly private, only claim the work-related portion and keep calculations showing how you apportioned it.

• Throwing away receipts — the ATO requires proof for many claims. For most claims, keep evidence for five years from when the return is lodged.

• Missing the registration deadline for a tax agent — if you want their extended lodgement date, you usually need to be registered with them by 31 October.

Related Articles

Claiming deductions in Australia is straightforward if expenses are directly related to earning assessable income, properly apportioned and supported by records. Lodge via myTax at my.gov.au for free, or use a registered tax agent (register by 31 October to access later deadlines); keep all receipts, diaries and logbooks for five years from your lodgement date.

This article was created with AI assistance.