Tax Deductions for Agricultural Workers
If you're working as an agricultural workers, there are 32 categories of work-related expenses you may be able to claim. Below you'll find every deduction the ATO lists for your occupation — in plain English.
This guide covers 32 deduction categories with 264+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
32
Specific Items
264
Income Types
0
Work-Related Deductions (32)
Amounts you do and don't include
- salary and wages, including cash or bonus payments
- compensation or insurance payments – for example, payments made under an income protection insurance policy to replace your salary and wages.
- You must include all the income you receive during the income year as an employee in the agricultural industry in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or a payment summary will show your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, tools and equipment
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, handling pesticides
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Allowances not on your income statement or payment summary
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
Allowances and claiming a deduction
- The following table sets out allowances you may receive and when you can claim a deduction.
- Example of allowance type
- Deduction (Yes or No)
- Compensation for an aspect of your work that is unpleasant, special or dangerous or industry peculiarities
- Remote area allowance
- No These allowances don't help you pay for deductible work-related expenses.
- An amount for certain expenses
- Tool and equipment allowance
- Yes If you incur deductible expenses.
- An amount for special skills
- A first aid certificate
- Mario is a farm hand on a produce farm. Mario's role requires him to spray weeds around the produce trees. Mario's employer pays him an allowance of $1.35 per hour for the time he spends using pesticides.
- At the end of the income year, Mario's employer shows the allowance on his income statement.
- Mario must include the allowance as income in his tax return.
- Mario can't claim a deduction because he doesn't incur any expenses. The allowance compensates Mario for an aspect of his work that is dangerous. It's not to help him pay for deductible work-related expenses.
- Bronwyn is a farm manager. Her employer owns a farm on 50 acres of land. During the income year, Bronwyn uses her own car to transport herself and the other farm workers to different areas of the farm. Bronwyn's employer pays her 95 cents per kilometre when she uses her car for work purposes.
- At the end of the year, her income statement shows she receives an allowance of $4,004.25 for using her car for work (4,215 kms × $0.95 = $4,004.25).
- Bronwyn must include the car allowance as income in her tax return.
- Bronwyn can claim a deduction for the cost of using her car for work purposes. She can't claim the amount of the allowance received. Rather she must calculate the amount of the deduction based on the records she keeps whenever she uses her own car for work purposes.
- In the past year Bronwyn has kept a record of the work trips she did using her own car, but she doesn't keep a logbook. Her records show she used her car to travel 4,215 kilometres for work purposes.
- As Bronwyn has not kept a logbook, she uses the cents per kilometre method to claim a deduction. The cents per kilometre method rate for the 2023-24 income year is 85 cents per kilometre.
- Bronwyn claims a deduction of $3,582.75. Bronwyn calculates her deduction as 4,215 kms × $0.85 = $3,582.75.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
- Deductions for work expenses
- Record keeping for work expenses
All-terrain and utility vehicle expenses
- decline in value of the ATV, if you pay for the vehicle yourself
- running costs you incur, such as fuel, oil, repairs and maintenance.
- You can claim a deduction for the work-related use of an all-terrain vehicle (ATV) if you need to cover large distances that you can't get to by car. For example, you use a quad bike to check on livestock in a paddock that you can't get to by car.
- You can claim a deduction for the:
- You can't claim a deduction if your employer or a third party reimburses you for costs you incur.
- If you use the ATV for work and personal purposes, you can only claim a deduction for your work-related use.
- In your tax return, include the deduction at Work-related travel expenses . To work out any decline in value use the Depreciation and capital allowances tool .
Award transport payments (fares allowance)
- You can claim a deduction for expenses covered by award transport payments , if the expenses are for work-related travel and you have actually spent the money.
- You will need to be able to show how you work out your claim if we request this information. You don’t need written evidence if your claim is less than the amount in the award as at 29 October 1986. If you're unsure of this amount, your union or employer can tell you.
- Allowances you receive from your employer for transport or car expenses that are paid under an award must be included in your tax return. These allowances are assessable income.
Car expenses
- live a long way from your usual or regular workplace
- work outside normal business hours (for example, weekend or early morning shifts).
- the tools or equipment are essential to perform your employment duties
- the tools or equipment are bulky, meaning that because of the size and weight, they are awkward to transport
- they can only be transported conveniently using a motor vehicle
- there is no secure storage for such items at the workplace.
- directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling from your first job as a fruit picker directly to your second job to test soil for crop research
- to and from an alternative workplace for the same employer on the same day – for example, travelling between cane fields for your employer
- from home directly an alternative workplace – for example, travelling from home to a workplace which is not your regular work location.
- own the car
- lease the car (directly from the finance company)
- hire the car under a purchase agreement (with the car dealership or a finance company).
- vehicle with a carrying capacity of one tonne or more (such as a ute)
- vehicle that can transport 9 passengers or more (such as a minibus).
Example: no secure storage
- the first farm he travels to each day
- between the farms during the day
- from the last farm he performs works at to his home at the end of each day.
Example: from alternative workplace to home
- Richard works as a dairy farmer for a large company in rural NSW. He has to attend a monthly meeting with distributors in Sydney. Richard uses his own car to travel to the meetings. Richard goes straight home after the meetings because they finish late.
- Richard can claim the cost of travelling from his regular workplace in rural NSW to the meeting in Sydney, and then to his home. Richard keeps a record of his kilometres using the myDeductions tool in the ATO app. He uploads his records into his tax return at tax time.
Child care
- You can't claim a deduction for the cost of child care (including school holidays and before and after school care) when you're working. It's a private expense, and the expenses have no direct connection to earning your income.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing that has protective features or functions that you wear to protect you from specific risks of injury or illness at work. For example, steel-capped boots, fire-resistant clothing, or tear-proof pants. Conventional clothes you wear at work are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, drill shirts, shorts, trousers, socks and closed shoes.
- occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a judge's robes or a chef's chequered pants. Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions.
- a compulsory uniform – clothing that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either you as an employee working for a particular employer
- the products or services your employer provides.
- a non-compulsory uniform – a uniform that is not compulsory to wear and that your employer registers on the Register of Approved Occupational Clothing and.
Example: conventional clothing
- Bob is an employee on a poultry farm. He wears jeans with t-shirts or long sleeve shirts at work as they're comfortable. While the jeans and shirts afford Bob some protection from the sun, they provide only limited protection from injury. The items are commonly worn as conventional clothing and aren't designed to protect the wearer or cope with the rigorous working conditions Bob experiences in his job.
- Bob can't claim a deduction for the cost of buying or cleaning these items because they're private in nature.
- After a couple of weeks on the farm, Bob notices he is getting sunburnt through his shirt. He buys some UPF 50 sun protection work shirts and starts wearing them to work.
- Bob can claim a deduction for this expense as they are specifically designed to protect him from harm that he is exposed to whilst at work.
Example: protective clothing
- protect Len from the harm he is exposed to as a shearer
- are paid for by Len and aren't reimbursed by his employer.
- Len is an employee shearer. He buys items specifically designed for shearers to protect them while working. The items consisted of jeans which repel lanolin, singlets with leather inserts at the point where sheep are held to protect against lanolin and grease; boots with special lacing and flaps to keep out wool clippings and shearers' moccasins which prevent slipping on greasy shearing shed floors.
- Len can claim a deduction for the cost of his jeans, singlets, boots and moccasins because the items:
- If, however, the items were ordinary everyday clothing such as normal jeans, a singlet and boots rather than protective clothing made specifically for shearers, he would not be able to claim a deduction.
Drivers licence
- You can't claim a deduction for the cost to get or renew your drivers licence , even if you must have it as a condition of employment. This is a private expense.
- You can claim a deduction for additional costs you incur to get a special licence or condition on your licence to perform your work duties. For example, the cost you incur to get a heavy vehicle permit.
Example: heavy vehicle permit
- Mick is an employee fruit picker on a rural farm. As part of his job, he requires a drivers licence and a heavy vehicle permit as he drives a truck to transport the fruit. It costs Mick $50 to renew his drivers licence each year and $75 to apply for the heavy vehicle permit.
- Mick can't claim a deduction for the cost to renew his drivers licence ($50) as it is a private expense.
- Mick can claim the cost of the heavy vehicle permit ($75) as it's an additional expense which directly relates to his employment duties.
Fines and penalties
- You can't claim a deduction for any fines or penalties you get when you travel to work or during work. Fines may include parking and speeding fines or penalties. For example, a fine you receive for overloading your truck.
Firearms and guns
- decline in value of firearms and guns
- maintenance of firearms and guns
- cost of ammunition
- costs you incur to renew a gun licence.
Example: gun license for work duties
- Trent grew up in rural Victoria and has always enjoyed shooting, he regularly visits the shooting range.
- Trent is employed by his uncle part-time to help control vermin on his uncle's farm, particularly wild dogs that attack sheep at night. Trent provides his own firearms and equipment and his uncle (employer) pays for the ammunition.
- As Trent needs his gun licence for work purposes, he can claim the licence renewal costs. As Trent also uses his firearms for recreational purposes, he can only claim the work-related portion of the renewal expense.
- Trent can't claim the ammunition as his employer provides this.
- Trent buys a special scope for his gun that he uses to shoot the vermin. His employer does not reimburse him for the scope. The scope costs $600. As it costs more than $300, Trent can claim the decline in value of the scope over its effective life. As with the renewal of his gun licence, Trent can only claim a deduction for his work-related use of the special scope.
- Trent can also claim the decline in value of his guns and related equipment, but he must apportion the amounts between private and work use. The guns and related equipment start to decline in value when he first uses them for private purposes, so if Trent has had the guns and equipment for longer than their effective life, he can't claim a deduction for their decline in value.
First aid courses
- a designated first aid person
- need to complete first aid training to assist in emergency work situations.
- Agriculture industry expenses G–O
- Agriculture industry expenses P–S
- Agriculture industry expenses T–W
Glasses, contact lenses and anti-glare glasses
- You can't claim a deduction for prescription glasses or contact lenses , even if you need to wear them while working. These are private expenses.
- You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working. Protective glasses include anti-glare or photochromatic glasses, sunglasses, safety glasses or goggles.
- You can only claim a deduction for the work-related use of the item.
Example: deduction for sunglasses
- Harold is a fruit picker in far north Queensland. He regularly works at more than one location each day and drives his employer's truck from job to job. He wears sunglasses to protect against the glare of the sun while driving the truck and picking fruit. He also needs to wear prescription glasses while driving, for his short-sightedness.
- He buys a pair of prescription sunglasses which counter the glare during day driving. He also buys a pair of untinted prescription glasses for night driving.
- Harold can claim a deduction for the prescription sunglasses as they protect his eyes from the glare of the sun. He can't claim a deduction for the untinted prescription glasses. These are a private expense as they don't provide protection from illness or injury while he is working or from his working environment.
- If Harold also uses his prescription sunglasses for private purposes, he can only claim a deduction for his work-related use.
Hiring equipment
- You can claim the costs of hiring equipment that you use for carrying out your employment duties. However, if you also use the equipment you hire for private purposes, you can only claim a deduction for the work-related use.
Insurance of tools and equipment
- You can claim a deduction for the cost to insure your tools and equipment to the extent that you use them for work-related purposes.
Laundry and maintenance
- protective (for example, a hi-vis jacket)
- occupation specific and not a conventional, everyday piece of clothing such as jeans or general business attire
- a uniform either non-compulsory and registered by your employer on the Register of Approved Occupational Clothing or compulsory.
- $1 per load if it only contains clothing you wear at work from one of the categories above
- 50c per load if you mix personal items of clothing with work clothing from one of the categories above.
Example: laundry expenses not deductible
- Cassidy is an agronomist who studies sugar crops. Her employer requires her to wear a white business shirt and either a black dress, skirt or pants. She launders the clothing regularly to keep them in good condition.
- As Cassidy's work clothes are plain everyday clothing items, she can't claim the cost of washing, ironing or drying these items even though she only wears them to work.
Example: uniform laundry expenses
- Sali works in dairy production where his employer requires him to wear a uniform they supply and heavy duty waterproof overalls. Sali can claim a deduction for cleaning his mandatory uniform.
- He washes and dries the uniforms separately twice a week. As Sali works 48 weeks during the year his claim of $96 for laundry expenses is worked out as follows:
- Number of claimable laundry loads per week × number of weeks × reasonable cost per load
- 2 × 48 × $1 = $96
- As his total claim for laundry expenses is under $150 ($96), Sali isn't required to keep evidence of his laundry expenses. However, if asked, he will be required to explain how he calculated his claim.
Licences, permits and cards
- You can't claim the cost of getting your initial licence, regulatory permit, cards or certificates to get a job. For example, a heavy vehicle permit, firearm or forklift licence.
- You can claim a deduction for the additional costs you incur to renew these expenses to continue to perform your work duties. For example, if you need to have a forklift licence to get your job, you can’t claim the initial cost to get it. However, you can claim the cost of renewing it during the period you are working.
Example: heavy vehicle permit
- Luke is an employee on a cattle farm. As part of his work duties, Luke transports cattle to the sales each week. Luke needs a drivers licence and a heavy vehicle permit to transport the cattle.
- Luke can't claim a deduction for initially getting his heavy vehicle permit because the expense is incurred to obtain employment. However, he can claim the cost of maintaining his heavy vehicle permit as it is a requirement for his ongoing employment.
- Luke can't claim a deduction to renew his drivers licence because it is a private expense.
Meal and snack expenses
- overtime meal expenses , but only if you buy and eat the meal while you are performing overtime and you receive an overtime meal allowance under an industrial law, award or agreement
- the cost of meals you incur when you are travelling overnight for the purpose of carrying out your employment duties ( travel expenses )
- You can't claim for the cost of food, drink or snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.
Music streaming services, CDs, audio books or podcasts
- You can't claim a deduction for the cost of music streaming services, CDs, audio books, podcasts or devices that you use at work. Even if they're used to keep you motivated or occupied at work, these items aren't essential to earning your income. They are private expenses.
Newspapers and other news services, magazines and professional publications
- a direct connection between your specific work duties and the content
- the content is specific to your employment and is not general in nature.
- The cost of newspapers, other news services and magazines are generally private expenses and not deductible.
- You can claim a deduction for the cost of buying or subscribing to a professional publication, newspaper, news service or magazine if you can show:
- If you use the publication for work and private purposes, you can only claim the portion related to your work-related use.
Example: magazine subscription deductible
- Ian is employed as the manager of a poultry farm. He subscribes to a magazine called Australasian Poultry to keep up to date on what is happening in the industry. Ian pays $39 per year for the magazine.
- Ian can claim a deduction of $39 for the magazine subscription because the content has a direct connection to his work duties.
Overtime meal expenses
- you receive an overtime meal allowance under an industrial law, award or agreement
- the allowance is on your income statement or payment summary as a separate allowance
- you include the allowance in your tax return as income.
- up to the reasonable amount, you don't have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for your expenses.
Example: overtime meal expenses
- Agriculture industry expenses A–F
- Agriculture industry expenses P–S
- Agriculture industry expenses T–W
Phone, data and internet expenses
- provides you with a phone for work and pays for your usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses
Example: calculating phone expenses
- Sebastian uses his mobile phone for work purposes. He is on a set plan of $49 a month.
- He receives an itemised account from his phone provider each month that includes details of his individual phone calls.
- At least once a year, Sebastian prints out his account and highlights the work-related phone calls he made. He makes notes on his account for the first month about who he is phoning for work – for example, his manager and clients.
- Out of the 300 phone calls he has made in a 4-week period, Sebastian works out that 30 (10%) of the individual phone call expenses billed to him are for work. He applies that percentage to his monthly plan amount ($49 a month).
- He works out his phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls:
- 30 ÷ 300 = 0.10 (that is 10%)
- Sebastian can claim 10% of the total bill of $49 for each month for work purposes, that is:
- $49 × 0.10 = $4.90
- Since Sebastian was only at work for 46 weeks of the year (10.6 months), he calculates his work-related mobile phone expense deduction as follows:
- 10.6 months × $4.90 = $51.94
Example: work and private use
- Sylvette is a plant biologist who uses her computer and personal internet account at home to access her work emails and manage her appointments. Sylvette also uses her computer and the internet for private purposes.
- Sylvette keeps a diary for a 4-week period, recording the times she used the internet for work and private purposes. Sylvette's internet use diary showed 10% of the time she spent using the internet was for work-related activities and 90% was for private use. As her internet service provider charge for the year was $1,200 she can claim:
- $1,200 × 10% = $120 as work-related internet use.
- If anyone else in Sylvette's household was accessing the internet connection, Sylvette needs to reduce her claim to account for their use.
Protective items
- supplies the protective items
- reimburses you for the cost you incur to buy protective items.
- You can claim a deduction for the cost of protective items if you wear them to protect yourself from the real and likely risk of injury or illness that you are exposed to in in your work environment, or while performing your work duties. To be considered protective, the item must provide a sufficient degree of protection against the risks of illness or injury you are exposed to in carrying out your work duties. Protective items can include safety glasses, helmets and breathing masks.
- For example, a cattle farmer can claim a deduction for the cost of gloves.
- You can also claim the costs you incur to repair, replace or clean protective items.
- You can't claim a deduction if your employer:
Example: protective items
- Fred is an employee assistant farmhand who works in hay production. He is required to wear safety glasses, a breathing mask and a safety visor on the farm. If he doesn't wear them, he is at risk of being injured. There is a direct connection between the need for these protective items and Fred's employment duties.
- The protective items are provided by Fred's employer and if he was to buy his own equipment his employer would reimburse him for these costs.
- Fred can't claim a deduction for the safety glasses, breathing mask and safety visor as he doesn't incur any costs or his costs are reimbursed.
Removal and relocation expenses
- You can’t claim a deduction for the cost to transfer or relocate to a new work location. This is the case whether the move is a condition of your existing job or you are taking up a new job.
Repairs to tools and equipment
- You can claim a deduction for repairs to tools and equipment you use for work. If you also use them for private purposes, you can only claim an amount for your work-related use.
Example: repair of work-related tool
- regularly uses this piece of equipment in his job as a crop farm worker
- was not reimbursed for the expense he incurred.
- John is an employee crop farm worker and uses a variety of tree pruning tools in his job.
- One of his tools breaks and John pays $50 to repair it. John is not reimbursed for the repair costs and he only uses the tree pruner for work-related purposes.
- John can claim a deduction for $50 to repair the tree pruner, as he:
Self-education expenses
- maintains or improves the skills and knowledge you need for your current duties
- results in or is likely to result in an increase in your income from your current employment.
- doesn't have a connection with your current employment
- only relates in a general way to your current employment
- enables you to get employment or change employment.
- Higher Education Loan Program (HELP) (FEE-HELP and HECS-HELP)
- VET Student Loans (VSL)
- Australian Apprenticeship Support Loans (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: self-education related to income-earning activities
- Doug is studying a degree in biochemistry while working as a machinery operator on a large cotton farm. Doug's duties include operating a variety of machines used to plant, cultivate and harvest cotton as well as cleaning and maintaining the machines.
- Doug's employer is aware that he is studying biochemistry and offers him a trainee biochemist role on an understanding that he will continue his studies and stays on as a biochemist when he completes his degree.
- As a trainee biochemist, Doug's duties involve conducting experiments, analysing samples, researching data and assisting the biochemist with the development of new agricultural techniques.
- Doug can't claim his self-education expenses while employed as a machinery operator because a degree in biochemistry doesn't have a connection with his duties as a machinery operator. He can however, claim his self-education expenses from the point he is employed as a trainee biochemist because his study will improve the knowledge and skills he requires for his duties in that role.
Example: self-education resulting in increased income
- Dan is a currently working as an employee in livestock production. He wants to become a livestock production specialist as the pay rate is higher and his current employer often has job opportunities for livestock production specialists. Dan enrols in a Diploma of Agriculture at his local university.
- Dan can claim a deduction for the costs he incurs in completing his self-education course. This is because the self-education is likely to will lead to an increase in income from his current employment.
Example: study not relevant to current duties
- Kaitlin is a shearer. She decides she would like to increase her knowledge about irrigation management and enrols in an irrigation management course.
- Kaitlin can't claim a deduction for her self-education expenses as the irrigation management course isn't relevant to her current employment as a shearer.
Seminars, conferences and training courses
- You can claim a deduction for the cost of seminars, conferences and training courses that relate to your work as an agricultural worker.
- The costs you can claim include fares to attend the venue where the seminar, conference or training course is held and registration costs. If you need to travel and stay away from home overnight to attend such an event, you can also claim the cost of accommodation and meals.
- You may not be able to claim all of your expenses if attending a seminar, conference or training course is for both work-related and private purposes. If the private purpose is incidental, such as a catered lunch or a reception for delegates, you can still claim all your expenses. However, if the main purpose is not work-related, such as attending a conference while on a holiday, you can only claim the direct costs. Direct costs include the registration costs.
- Where you have a dual purpose for attending the seminar, conference or training course you can only claim the work-related portion. For example, you add a holiday of one week to a training course that runs for one week.
Example: attending a conference
- Zachary is a plant propagation manager for a nursery. As a part of his role, Zachery is required to manage the preparation and planting of tissue cultures and cuttings for propagation. He attends the National Nursery & Garden Conference each year to learn about new propagation techniques, products and equipment that he can use in the nursery operation.
- Zachary can claim a deduction for the cost he incurs attending the conference as he is maintaining or increasing the knowledge and skills he needs to earn his income in his current employment.
Sunglasses, sunhats and sunscreen
- must work outdoors in the sun for prolonged periods
- use these items to protect you from the real and likely risk of illness or injury while at work.
- You can claim a deduction for the work-related use of sunglasses, sunhats and sunscreen if you:
- This includes prescription sunglasses and anti-glare glasses.
- You can only claim a deduction for the work-related use of the products if you also wear them for private purposes.
Example: deduction for hat, sunscreen and sunglasses
- Agriculture industry expenses A–F
- Agriculture industry expenses G–O
- Agriculture industry expenses T–W
Tools and equipment
- you use it mainly to produce non-business assessable income (more than 50% of the time)
- it's not part of a set that together cost more than $300
- it's not identical, or substantially identical to, other items that together cost more than $300.
- cost more than $300
- the item is part of a set that together cost more than $300
- is identical, or substantially identical to, other items that together cost more than $300.
Example: decline in value (no immediate deduction)
- Luke is a fencer and needs a new set of 16 spanners for work. He can't afford the full cost of $352, so he buys them all individually throughout the income year.
- Although they only cost $22 each, Luke can't claim an immediate deduction for the spanners. This is because they are part of a set he bought in the income year that cost more than $300. Luke can claim a deduction for the decline in value of the spanner set, which in the end cost him $352.
- If in the following year, Luke breaks one of the spanners and has to buy a replacement, he can claim an immediate deduction for the replacement. The replacement spanner won’t be part of a set Luke bought in that income year that cost more than $300.
Example: decline in value over effective life
- Tal purchases a ride on mower on 5 September for $1,500 and only uses it for work purposes.
- He visits our website and looks up our determination on the effective life of depreciating assets. The determination says the effective life of ride on mowers is 5 years.
- He works out the deduction for decline in value of his ride on mower using the prime cost method:
- Asset cost × (days held ÷ 365) × (100% ÷ effective life)
- If Tal had used the ride on mower for private purposes as well, he would have to multiply the amount calculated using the formula above by the work-related use percentage.
- Tal works out that he held the ride on mower for 300 days and calculates his deduction for decline in value as:
- $1,500 × (300÷ 365) × (100% ÷ 5 years) = $247
- Tal can claim a deduction of $247 for the decline in value of his ride on mower in the year that he buys it. Using the same method, he will also be able to claim $300 per year in the following 4 years and $53 in the final (sixth) year.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- 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.
- are not required to sleep away from your home overnight in the course of performing your employment duties – for example, if you travel interstate for work and return home the same day
- you choose to sleep near your workplace rather than returning home - for example you rent accommodation near your workplace and stay there because you live a long way from where you work.
- you were away overnight
- you have spent the money
- the travel directly relates to earning your employment income
- how you worked out your claim.
- the travel allowance is not on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
- you spent the whole allowance on deductible accommodation, meal and incidental expenses, if applicable.
- you receive a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Example: remote and isolated areas travel expenses
- Dani is a ringer and works on a goat farm in outback Australia. Twice a year she goes on muster in rugged gorge country to round up the goats for health checks, treatments and branding.
- The muster usually takes between 5 and 7 days. While she is away, Dani sleeps in a tent as there is no accommodation available in these remote areas. Dani buys her tent and sleeping equipment herself and only uses them when she is required to sleep away from home on musters. Dani can claim a deduction for the tent and equipment.
- If the tent or any other items of equipment cost more than $300, Dani can only claim a deduction for the decline in value of the items.
Example: reasonable allowance amount
- it's not shown on his income statement
- it's less than the reasonable allowance amount
- he spends it all to cover his travel expenses.
Union and professional association fees
- You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.
Working animals
- you use the animal in carrying out your work duties – for example, your duties require you to herd cattle or livestock and the animal assists you in doing this
- it is a requirement of your employment that you provide your own animal
- you train the animal for their role from a young age and don't treat them like pets – for example, a cattle dog puppy is trained to herd cattle or livestock.
- Agriculture industry expenses A–F
- Agriculture industry expenses G–O
- Agriculture industry expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Agricultural Workers
Use this checklist at tax time to make sure you don't miss any deductions.
💡 Practical Tips
📱 Use the myDeductions Tool
Download the ATO app and use myDeductions to record expenses throughout the year. Much easier than collecting receipts at tax time.
🧾 The $300 Rule
You can claim up to $300 in work-related expenses without receipts — but you must have actually spent the money and it must be related to earning your income.
🏠 Working From Home
If you work from home, you can claim 67 cents per hour (revised fixed rate) for running expenses like electricity, internet, and phone. Keep a record of hours worked.
🚗 Car Expenses
Choose between the cents per km method (85c/km, max 5,000 km) or logbook method (actual expenses × business use %). A 12-week logbook is valid for 5 years if your circumstances don't change.
⚠️ Common Mistakes & ATO Audit Flags
The ATO actively audits agricultural workers claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Claiming expenses reimbursed by your employer
Fix: If your employer already paid you back, you can't also claim a deduction. Check your pay slips.
Not keeping receipts for claims over $300
Fix: You must have records for all deductions over $300. Bank/credit card statements alone aren't enough — keep the actual receipts.
Claiming private expenses as work-related
Fix: Only expenses directly related to earning your income are deductible. Personal items worn or used at work don't count.
🔍 ATO Audit Flags
Deductions significantly above average for your occupation
The ATO publishes benchmarks. If your claims are well above the norm, expect a 'please explain'.
Claiming the same expense twice (e.g., WFH and office supplies)
The ATO's data matching catches double-dips. Make sure each expense is claimed once.
Data sourced from the Australian Taxation Office — Agricultural Workers Guide. Last updated: 2026-03-14.