Tax Deductions for Australian Defence Force Members
If you're working as an australian defence force members, there are 34 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 34 deduction categories with 303+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
34
Specific Items
303
Income Types
0
Work-Related Deductions (34)
Amounts you do and don't include
- salary and wages, including cash or bonus payments
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
- You must include all the income you receive during the income year as an Australian Defence Force member 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.
- If you work overseas, your salary and wages may not be taxable, but in some circumstances, you still include them in your tax return.
Eligible duty in a specified area outside Australia
- with a specified organisation
- in a specified area outside Australia.
- Your pay and allowances are exempt from tax if you have a certificate from the Chief of the Defence Force stating that you are on eligible duty:
- Your income statement or payment summary will list Section 23AD as an exemption and the number of days it applies. You don't include this income in your tax return.
Foreign deployment as a member of a disciplined force
- you are an Australian resident for tax purposes
- you are engaged in foreign service for a continuous period of 91 days or more
- your foreign service is directly attributable to your deployment outside Australia as a member of a disciplined force by the Commonwealth, a State or Territory, or an authority of the Commonwealth, a State or Territory.
- a tax treaty applies, or a law of the foreign country applies to give effect to a tax treaty
- the foreign country doesn't impose tax on employment income
- an international agreement applies that deals with diplomatic or consular privileges or immunities, or privileges and immunities of persons connected with international organisations
- the foreign country has a law that corresponds to the International Organisations (Privileges and Immunities) Act 1963 .
Allowances
- you need to include allowances on your income statement or payment summary in your tax return
- allowances that are not taxable will not be on your income statement or payment summary.
- As a member of the ADF or an ADF employee, you may be paid an allowance in recognition of your duties and additional expenses you incur to perform your duties. As a general rule:
Allowances on your income statement or payment summary
- to help pay for a work expense
- for work that is considered special or dangerous
- in recognition of holding special skills
- to compensate for working conditions.
- protective clothing allowance
- language proficiency allowance
- tool allowance
- overtime meal allowance
- motor vehicle allowance.
- arduous conditions instructor allowance
- clearance diver allowance
- district allowance
- diving allowance
- field allowance
- first aid allowance
- flying disability allowance
- paratrooper allowance
- locality allowance
- duty at sea allowance
- separation allowance
- submarine escape disability allowance
- unpredictable explosives allowance.
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.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for the expenses.
- If your employer pays you the exact amount for expenses you incur (either before or after you incur them), the payment is a reimbursement .
- A reimbursement isn't an allowance.
- If your employer reimburses you for expenses you incur:
Example: reimbursement for expenses
- Edwina is a ground crew officer in the Air Force. Edwina's employer provides her with the safety equipment she requires for her job, however she finds the hearing protection uncomfortable for her ears.
- Edwina buys hearing protection which is more comfortable for her with the same specifications as the ones her employer provides. Edwina puts in a reimbursement claim and receives the full cost of the hearing protection from her employer.
- Edwina can't claim a deduction for the cost of the hearing protection because she receives a full reimbursement from her employer for the amount spent.
- Edwina doesn't have to include the amount of the reimbursement in her tax return as income.
Offsets for ADF members
- a zone tax offset , when you live in an isolated or remote part of Australia (excluding an offshore oil or gas rig)
- an overseas forces tax offset, when you serve as a member of the Defence Force at an overseas locality (excluding at an attaché at an Australian embassy or Legation).
- Deductions for work expenses
- Record keeping for work expenses
Car expenses
- live a long way from your usual or normal workplace
- have to work outside normal business hours (for example, weekend or early morning shifts)
- have to carry an item that is illegal to carry on public transport.
- 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 – for example, travelling from the base to the work location of your job with a different employer (provided neither of the workplaces is your home)
- to and from an alternative workplace that's not a regular workplace, while you're still on duty, and back to your normal workplace or directly home
- from home directly to an alternative workplace – for example, travelling from home to a training centre to attend a work-related training course.
- To claim a deduction, you must keep records of your car use. You can choose between the logbook method or the cents per kilometre method to work out your deduction if you 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: travelling between workplaces
- Amelia travels from her normal Army base to another military base that isn't her regular workplace to attend her annual medical check-up and fitness assessment. She then travels directly home. She uses her own car and her employer does not reimburse her for this travel.
- As this travel is from Amelia's regular work location to an alternative work location, and from an alternative work location to Amelia's home, Amelia incurs the car expenses in the course of performing her duties. Amelia can claim a deduction for the cost of each journey.
Example: travel to alternative workplace, between workplace and from normal workplace to home
- Mackenzie is a Petty Officer in the Navy. She's must travel from home to present a verbal report to her commanding officer at RAN fleet base. This isn't her regular workplace, and she will return to her regular base at HMAS Penguin after the presentation.
- Mackenzie can claim a deduction for the cost of travelling from home to the fleet base and from the fleet base to HMAS Penguin. However, she can't claim a deduction for the cost of travelling home from HMAS Penguin at the end of the day as this is home to work travel and is private.
Example: transporting bulky equipment
- because of the size and weight, the equipment pack is awkward to transport, and
- can only be transported conveniently by motor vehicle.
- Aaron is notified of an overseas deployment. He needs to prepare his field equipment pack for the deployment. Because of this, he's required to take home his equipment pack and return with it to the base. His field equipment pack is awkward to transport due to its size and weight. The items are usually stored in a locked cage on base.
- The distance from the base to his home is 15 kilometres. Aaron can claim motor vehicle expenses for his travel from the base to home and from his home back to the base while he is transporting his field equipment pack. In total, 30 kilometres can be claimed as work-related kilometres.
- This is because the equipment is essential for Aaron to perform his employment duties and the equipment is considered bulky:
- Aaron can't claim a deduction for his travel between his home and the base when he isn't required to transport his field equipment pack.
Example: transporting equipment by choice
- Denise is a Private in the Army. Although there is a secure area to store her pack on base, she keeps her knapsack and sleeping bag in her car in preparation for field exercises. While the field exercises aren't regularly scheduled, she chooses to transport her pack to and from work every day.
- Denise can't claim a deduction for her trips between her home and the base because her employer provides secure storage for her equipment at the base.
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)
- You may be able to claim a deduction for the cost you incur when you buy, hire, repair or replace clothing, uniforms and footwear.
Compulsory uniforms
- distinctive to a particular organisation
- set out in a uniform policy which is strictly and consistently enforced.
- military white, blue or khaki shirts with rank or other embellishments
- standard matching trousers
- regulation jumpers and jackets
- official mess uniform
- hats or caps with rank or other embellishments
- service dress shoes
- service handbags and clutch bags
- socks and stockings
- camouflage shirts and trousers.
Protective clothing
- Protective clothing and footwear protects you from specific risks of illness or injury at work. The clothing must have protective features or functions. For example, steel-capped boots, fire-resistant clothing, or boiler suits that protect conventional clothing.
- You can't claim a deduction for the cost of protective clothing your employer provides, but you can claim a deduction for the cost of additional items you purchase, such as a Navy diver's additional wetsuit not issued under a uniform code.
Conventional clothing
- everyday footwear, such as dress, casual or running shoes
- conventional hair accessories and earrings
- clothing you wear for medical reasons, such as support stockings
- conventional clothing that is damaged at work.
Physical training clothing
- Sports clothing such as tracksuits, shorts, and sports shoes are conventional clothing. Therefore, you can't claim a deduction for physical training sport attire. Having a unit logo on your physical training clothing doesn't make it a compulsory uniform and you can't claim a deduction for it.
- If the clothing forms part of a compulsory uniform with an official monogram (such as a regimental crest) and easily identifies you as a member of the ADF, you may be able to claim a deduction. If the physical training clothing only displays your unit's logo or emblem (rather than the official monogram) it will not be part of a compulsory uniform.
- Corey is a seaman in the Navy and must take fitness training for 2 hours per day, 3 times per week, while on duty. He buys sports shorts and t-shirts which display his unit's logo and conventional sports shoes.
- Corey's sports shorts and t-shirts aren't part of the traditional ADF compulsory uniform.
- Corey can't claim a deduction for his sports shorts, t-shirts and sports shoes.
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 employment duties.
- You can't claim a deduction if your employer pays for or reimburses you for the cost to obtain a special license or condition.
Entertainment and social functions
- work breakfasts, lunches or dinners
- attendance at sporting events
- gala or social nights
- concerts or dances
- cocktail parties
- other similar types of functions or events.
Example: annual ball cost not deductible
- Neville is a commander in the Navy. Each year, the Navy holds a ball for its officers. As a high-ranking officer, Neville is expected to attend the ball. Neville purchases tickets for him and his partner at a cost of $200.
- Neville can't claim a deduction of $200 for the ball tickets. Although he is expected to go and the ball is only attended by Navy officers, the expense is private.
Extra regimental duties (ERD)
- Extra regimental duties (ERD) are extra duties ADF members may be required to perform. For example, coaching a sporting team, organising a social function or a position on the Mess Committee. ERD are also known as service duties.
- You can claim a deduction for costs incurred in performing ERD as long as the ERD activity forms part of your income-earning activities and it isn't a private or domestic expense.
Example: ERD costs
- Sharon is the President of the Mess Committee. In this position it is necessary for her to attend more functions that she would normally attend. Sharon is charged for food and drink she consumes at these functions.
- Sharon also buys some stationery to fulfil her role as the President of the Mess Committee.
- Sharon can't claim a deduction for the cost of the food and drink she consumes at functions. It is an entertainment expense and is private in nature. However, Sharon can claim a deduction for the cost of stationery.
Fines and penalties
- ADF member expenses G–O
- ADF member expenses P–S
- ADF member 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 in the ADF. 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: sunglasses deductible
- Rochelle is a leading aircraftman in the Air Force. Rochelle's employment duties include piloting different types of aircraft. When she is piloting an aircraft, Rochelle requires sunglasses to protect her eyes from sun damage.
- During the income year, Rochelle buys a new pair of non-polarised sunglasses with a grey tint for $260. Rochelle keeps these sunglasses in her work bag and only uses them when she is at work.
- Rochelle can claim a deduction for $260 for the sunglasses she uses when she is piloting aircraft. The sunglasses protect Rochelle's eyes from the real and likely risk of sun damage while she is carrying out her employment duties.
Grooming expenses
- you receive an allowance for grooming
- your employer expects you to be well groomed when at work.
- You can't claim a deduction for hairdressing, cosmetics, hair and skin care products, even if:
- All grooming expenses and products are private expenses.
Example: haircuts not deductible
- Pierre is a lance corporal in the Army. It is a condition of his employment to be well-groomed and to keep his hair short. To keep his hair short, Pierre goes to the hairdresser once a month to have his hair cut.
- Even though it is a condition of his employment to be well-groomed and keep his hair short, Pierre can't claim a deduction for the cost of his hair cuts. The expenses are private in nature.
Laundry and maintenance
- protective (for example, a overalls)
- 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: dry cleaning expenses deductible
- Louis is a private in the Army. The annual cost of dry-cleaning items of his compulsory uniform is $195. Louis keeps receipts for his dry-cleaning.
- Louis can claim a deduction of $195 for dry-cleaning his compulsory uniform.
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 in the course of your normal working hours, even if you receive a meal allowance. These are private expenses.
Example: food and drink not deductible
- Elsa is a corporal in the Air Force. When she is not deployed, she works at the base from Monday to Friday. Elsa brings her lunch along with some snacks to work with her each day.
- Elsa can't claim a deduction for the cost of the food and drinks she brings to work with her. She consumes the meals during her normal working day, so they are private in nature.
Mess fees and functions
Compulsory mess subscriptions
- You can claim a deduction for the part of your compulsory mess subscriptions that relates to work activities. You can obtain details of the amount paid for mess subscriptions from mess accounts your mess committee provides.
- You can't claim a deduction for amounts paid for food, drink or entertainment. These expenses are private in nature.
Attendance at mess functions
- many of these functions are compulsory
- behaviour at such functions may be taken into account for promotion
- mess function etiquette is learnt by attending functions.
Music streaming services, CDs, audio books or podcasts
- You can't claim a deduction for the cost of music streaming services, CDs, audio books or podcasts that you listen to while you are working. Even if you use these to relieve fatigue or keep you motivated 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: cost of publication deductible
- Dennis is a flying officer in the Air Force. His duties include flying Air Force aircraft. Dennis subscribes to Flight Safety Australia at a cost of $39 per year. Flight Safety Australia is a technical magazine published by the Civil Aviation Safety Authority.
- Dennis keeps written evidence of his payment for the subscription.
- Dennis can claim a deduction of $39 for the subscription. The magazine is specific to his employment as a flying officer in the Air Force.
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 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.
- you spent the money
- how you worked out your claim.
- ADF member expenses A–F
- ADF member expenses P–S
- ADF member expenses T–W
Parking fees and tolls
- You can claim a deduction for the cost of parking fees or tolls you incur while you are travelling in the course of carrying out your employment duties – for example, travelling between bases.
- If the ADF directly pays for or reimburses you for the expenses, you can't claim a deduction.
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 phones, mobile internet and other devices
- Home phone and internet expenses
Example: calculating phone expenses
- Sebastian is a Major in the Army. He uses his mobile phone for work purposes. He is on a set plan of $49 a month.
- Sebastian receives an itemised account from his phone provider each month by email that includes details of the individual phone calls he has made.
- At least once a year, Sebastian prints out his account and highlights the work-related calls he made. He makes notes on his account for the first month about who he is phoning for work.
- Of the 300 phone calls he has made in a 4week period, Sebastian works out that 45 (15%) of the phone calls are for work. He applies that percentage to his monthly plan amount ($49 a month).
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 45 ÷ 300 = 15%
- Sebastian can claim 15% of the total bill of $49 for each month for work purposes:
- $49 × 0.15 = $7.35
- As Sebastian only worked for 46 weeks of the year (10.6 months), he calculates his work-related mobile phone expense deduction as follows:
- 10.6 months × $7.35 = $77.91
Example: work and private use
- Sylvette is a lieutenant in the Navy. Sylvette uses her work laptop and personal internet account at home to access her work emails. Sylvette also uses the internet for private purposes.
- Sylvette's internet use diary showed 20% of her internet time was for work-related activities and 80% was for private use. As her internet service provider charge for the year was $1,200 she can claim:
- $1,200 × 20% = $240 as work-related internet use.
- If anyone else was accessing the internet connection, Sylvette will need to reduce her claim to account for their use.
Physical training and fitness expenses
- participating as an official ADF representative at inter-service or combined service competition
- must participate in the activity as part of your normal duties.
- It is recognised that ADF members must maintain a high standard of general physical fitness. Expenses you incur in maintaining this standard of fitness – for example, fitness courses and gym memberships are generally private in nature. You can't claim a deduction for these expenses.
- You can claim a deduction for expenses you incur if you're participating in a sporting activity while you're on duty and you are:
- Some ADF members are required to maintain a very high level of fitness, well above the general ADF standard. These members derive their income by performing a range of duties designed to keep them physically and mentally prepared. This may include physical training instructors and those in special combat squads.
- If you can demonstrate that your job requires the maintenance of a very high level of fitness you may be able to claim a deduction for gym fees, fitness courses and the decline in value of gym equipment. The strenuous physical activity must be an essential and regular element of your duties.
- You can’t in any circumstances claim a deduction for expenses you incur to buy conventional clothing you use in the course of keeping fit. This includes tracksuits, running or aerobic shoes, socks, sporting shirts or shorts.
Example: claiming physical training expenses
- Johan is a member of the Special Air Services Regiment (SAS). He must maintain an extremely high level of fitness which is well above general ADF standards. Strenuous physical activity is an essential and regular part of his role.
- Johan undertakes fitness training while he is on duty, and he is a member of his local gym which he attends every day before he reports for duty. Johan has also purchased some gym equipment to use at home on weekends.
- Johan can claim a deduction for the gym fees he incurs and the decline in value of the gym equipment he uses at home.
Example: can't claim a deduction for extra physical training
- Jason, a private in the Army, is required to undertake fitness training for 2 hours per day, 3 times per week while on duty. He also attends his local gym once a week in his own time.
- However, as Jason isn't required to maintain a level of fitness above the general Army standard, he can't claim a deduction for any costs incurred in attending the gym.
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.
Example: removal and relocation expenses not deductible
- Carmella is a flight sergeant in the Air Force. Carmella's partner has a new job in Darwin so Carmella asks to relocate from the base in Townsville to the base in Darwin. The Air Force agrees to Carmella's move.
- Carmella can't claim a deduction for the costs associated with her and her family's move to Darwin. The expenses are private.
Rifles, ammunition, related equipment and cleaning
- The ADF normally supplies and replaces rifles, ammunition and any other equipment you require to carry out your duties.
- If you incur costs to maintain and clean equipment the ADF issues, you can claim a deduction for the costs you incur.
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: education not related to current employment
- John is considering discharging and would like to go into business for himself. He's doing a part-time course in Business Administration.
- As the course isn't related to his current employment, John can't claim a deduction.
Seminars, conferences and training courses
- You can claim a deduction for the cost of seminars, conferences and training courses that relate to your work in the ADF.
- The costs you can claim includes 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, for example you add a holiday of one week to a training course that runs for one week, then you can only claim the work-related portion.
Example: course related to current employment
- Frances is a truck driver in the Army based in Singleton. She travels to Sydney to attend a 3-day heavy vehicle defensive driving course.
- Frances can claim a deduction for costs she incurs in attending the course because the course will improve her skills for current employment. She can't claim for any costs her employer pays or reimburses her for.
Sunglasses, sunhats and sunscreen
- must work in the sun for extended periods
- use these items to protect yourself 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 lotions 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: sunglasses for protection while carrying out duties
- ADF member expenses A–F
- ADF member expenses G–O
- ADF member expenses T–W
Taxi, ride-share, public transport and car hire
- You can claim a deduction for transport costs if you travel in the course of performing your work. For example, taking a taxi from your regular workplace to another work location.
- You can’t claim a deduction for transport expenses you incur to travel between home and your regular place of work, these are private expenses.
- You can't claim a deduction if your employer reimburses you for these expenses.
Example: taxi to training deductible
- Lachlan is a diver in the Navy at Waverton. When Lachlan attends the diving training school at Mosman for his mandatory training, he catches a taxi between Waverton and Mosman.
- Lachlan can claim a deduction for the cost of taxi he incurs when he travels to the training.
- If the Navy pays for the taxi or reimburses him for the cost, Lachlan can't claim a deduction.
Tools and equipment
- you use it mainly to produce non-business assessable income
- 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
- 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: equipment for work-related use
- Brendan is a lawyer in the Air Force. His job requires him to complete case reports and briefs which he sometimes does at home. Brendan carries his work laptop and relevant documents between his office at the base and his home to complete the case reports and briefs.
- He buys a laptop bag with an extra compartment for carrying documents for $275. Brendan only uses the bag to transport work items.
- Brendan can claim a deduction for the cost of the bag as his job requires him to transport the laptop and documents to work and the bag is suitable to carry all the items.
- As Brendan only used the bag for work and it cost less than $300, he can claim a deduction for the whole cost of the bag ($275) in the income year that he bought it.
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.
- 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 received a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Example: travel for work purposes
- Georgina is a logistics and finance officer in the Navy based at Potts Point, Sydney. Georgina must travel to Campbell, Canberra for a 3-day training course.
- Georgina receives an allowance to cover her accommodation, meals and incidental expenses. The allowance is not on Georgina's income statement at the end of the income year and does not exceed the Commissioner's reasonable amounts.
- Georgina fully spent the allowance on accommodation, meals and incidentals.
- Georgina's trip to Canberra is work-related travel because Georgina must stay away from her home overnight in the course of performing her duties.
- As the allowance is not shown on her income statement and Georgina spent her allowance on accommodation, meals and incidental expenses which were less than the reasonable amount, the allowance does not have to be declared as income in Georgina's tax return.
- Georgina also can't claim a deduction for the accommodation, meal and incidental expenses.
Example: travel not for work purposes
- Corey is based at the Air Force in Wagga Wagga, New South Wales. He gets 3 fully funded return flights a year to visit his family, who live in Perth, Western Australia.
- When Corey takes a trip home to see his family, he can't claim any deductions for accommodation, meals or incidentals. The travel does not relate to earning Corey's employment income and is private.
- For more information, see TD 2024/3 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2024–25 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 or payment summary as evidence of the amount you pay if it's shown on there.
Watches and smart watches
- You can't claim a deduction for the cost of buying or maintaining ordinary watches or timepieces, even if you require one as part of your job. This is a private expense.
- However, you can claim a deduction if your watch has special characteristics that you use for a work-related purpose.
- If the watch cost more than $300, you can claim a deduction for its decline in value over the effective life.
- You can claim a deduction for the cost of repairs, batteries and watchbands for special watches. If you also wear your watch when you aren't working, you only claim a deduction for your work-related use of the special watch.
- Similar to ordinary watches, a smart watch (that connects to a phone or other device to provide notifications, apps and GPS) is a private expense and not deductible under ordinary circumstances.
- However, if you require some of the smart watch's functions as an essential part of your employment activities you may be able to apportion the expense between your private and work use. In order to show your work-related use of the watch, you will need to keep a diary or similar record of your use of the watch for a representative period.
Example: Specialty watch apportioned for private use
- Brandon is a clearance diver in the Navy. He buys a diving watch for $350 that he uses every day for work. He also uses the watch when he goes diving recreationally.
- As Brandon's diving watch cost more than $300, he can claim a deduction for the decline in value of the watch. However, Brandon would need to apportion the decline in value deduction between his work and private use and claim only the portion that relates to his work use.
Weight loss expenses
- You can't claim a deduction for weight loss expenses. It's a private expense.
Working from home expenses
- use one of the methods set out by us to calculate your deduction
- keep the records required for the method chosen.
- 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:
Example: deduction for additional running expenses incurred
- coffee, tea, milk and other general household items consumed while working from home which your employer may provide you at work
- costs that relate to your children's education, for example, iPads, desks, subscriptions for online learning
- expenses your employer pays for or reimburses you for, including setting up your home office
- the decline in value of items provided by your employer – for example, a laptop or a phone.
- 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
- ADF member expenses A–F
- ADF member expenses G–O
- ADF member expenses P–S
✅ Deduction Checklist for Australian Defence Force Members
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 australian defence force members 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 — Australian Defence Force Members Guide. Last updated: 2026-03-14.