Tax Deductions for Engineers
If you're working as an engineers, there are 30 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 30 deduction categories with 255+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
30
Specific Items
255
Income Types
0
Work-Related Deductions (30)
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 employee in the engineering industry in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or payment summary will show all your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, vehicle allowance
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, disability allowance
- 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 for industry peculiarities
- These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Mitch is an aeronautical engineer. One of Mitch's duties involves checking aspects of large aircraft while they are being built and to do this, Mitch has to work on scaffolding. Mitch receives a height allowance from his employer when works on scaffolding.
- At the end of the income year, his employer shows the allowance on his income statement. Mitch must declare the allowance as income in his tax return.
- Mitch can't claim a deduction because he doesn't incur any deductible expenses. The allowance compensates Mitch for a dangerous aspect of his work. It isn't to help him pay for work-related expenses that Mitch might incur.
- Irene is a mechanical engineer. Irene's employer pays her a tool allowance of $650 each year. During the income year, Irene buys a digital force gauge for $764.
- At the end of the income year, Irene's employer shows the tool allowance on her income statement.
- Irene must declare the tool allowance of $650 as income in her tax return.
- Irene can claim a deduction for the decline in value of the digital force gauge over its effective life.
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
Award transport payments (fares allowance)
- the expenses are for work-related travel
- you have actually spent the money.
- Allowances you receive from your employer for transport or car expenses that are paid under an award must be included as income in your tax return.
- You can claim a deduction for expenses covered by award transport payments , if:
- 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.
Car expenses
- live a long way from your usual or regular workplace
- have to 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 mechanical engineer to your second job as a university lecturer
- to and from an alternative workplace for the same employer on the same day – for example, travelling from your office to a job site to perform an inspection
- from home directly to an alternative workplace – for example, travelling from home to meet a client at their business premises 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
- Mike is a mechanical engineer responsible for constructing machines. To perform his duties as a mechanical engineer he requires several tools and pieces of machinery, that combined are large and heavy.
- Mike's employer doesn't provide secure storage for him to store his tools and machinery at work. He must transport his tools and machinery between his home and workplace each day to perform his duties.
- He can claim a deduction for the expenses he incurs to transport his tools and machinery as they are considered bulky due to their size and weight and no secure storage is provided. Transporting the tools and machinery is not a personal choice.
Example: from alternative workplace to home
- Hiroto works as a civil engineer for a large company. His regular place of work is in the city where his office is located. However, at least once a month he must attend meetings at his employer's head office in the suburbs. He uses his own car to travel to his employer's head office. Hiroto travels directly home after the meetings because they finish late.
- Hiroto can claim the cost of travelling from his city office to the meeting at head office, and then to his home.
Example: between alternative workplace and work
- Jan makes site visits to view projects she's working on as a structural engineer. Sometimes, she travels from her home to view a site, and then continues to her regular workplace.
- Jan can claim a deduction for her travel expenses that she incurs from her home to the project site and then onto her regular workplace.
Example: working partly from home
- Mohammed's employer has an office in the city but is happy for Mohammed to work from home 3 days each week. On these days, Mohammed sometimes has to travel into the office for a meeting, before returning home to work.
- In this situation, the expense Mohammed incurs to travel between his home and work is a private expense that he can't claim.
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 with protective features or functions you wear to protect you from specific risks of injury or illness at work. For example, steel-capped boots, fire-resistant clothing, or hi-vis jackets. 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, 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, for example, white lab coats.
- 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.
Example: conventional clothing
- Kynon is an electrical engineer and works on a building site. He wears jeans with t-shirts or long sleeve shirts at work as they're comfortable. While the jeans and shirts afford Kynon some protection from skin abrasions, when handling tools and materials, they provide only limited protection from injury.
- The jeans and shirts that Kynon wears to work are commonly worn as conventional clothing and don't have protective features or functions designed to protect the wearer or cope with rigorous working conditions.
- Kynon can't claim a deduction for the cost of buying these items because they're conventional clothing.
Example: protective clothing
- Justin is a structural engineer. He occasionally works on building sites to oversee concrete pours or to sign off on building work. When he goes onto a building site, Justin must wear steel-capped boots and a hi-vis jacket for safety purposes.
- Justin can claim a deduction for the cost of steel-capped boots and a hi-vis jacket that he buys and wears while he is working on a building site. These items protect Justin from the risk of injury while carrying out his duties.
Example: no deduction allowed for business attire
- Gayle is an employee mechanical engineer. Gayle’s employer doesn't provide or require employees to wear a uniform. However, she is expected to wear business attire whilst at work. Gayle buys suitable clothing such as suits, business shirts, skirts and pants. She only wears these items of clothing to work.
- Gayle can't claim a deduction for buying of these items as they are conventional clothes, everyday clothing worn by people regardless of their occupation.
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.
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: entertainment costs
- Rachael attends a social breakfast organised by a professional association. These breakfasts are held every other month to encourage engineers to meet socially with colleagues.
- Rachael can't claim a deduction for the cost of attending the breakfast even though her employer encourages staff to attend.
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 speeding whilst driving to a client's office to attend a business meeting.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- Engineer expenses G–O
- Engineer expenses P–S
- Engineer 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 as 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 as an engineer. 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: protective goggles
- Meena is a chemical engineer. Meena wears protective goggles when she is working to ensure her eyes are not damaged by chemicals. Meena's employer does not provide her with goggles so she buys a pair for $49.
- Meena can claim a deduction of $49 for the goggles she buys. The goggles protect her eyes from damage while she is carrying out her duties.
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 uniform and conventional clothing
- Joselyn is an electrical engineer and is required to wear shirts embroidered with her employer's logo whilst at work. Her employer also requires her to wear black drill pants.
- Joselyn can claim a deduction for the laundering of her work shirts as the logo makes them unique and distinctive. However, she can't claim a deduction for the cost to launder her drill pants even though she only wears them to work. They are conventional in nature and don’t have a logo or other feature that is unique and distinctive.
- Joselyn washes and dries her embroidered shirts and drill pants in a separate load of washing twice a week. She can only claim 50c per load as her embroidered shirts are washed with her drill pants (conventional clothing).
- Jocelyn worked for 40 weeks of the income year and calculates her laundry claim as follows:
- Number of claimable laundry loads per week × number of weeks worked = total number of claimable laundry loads
- 2 × 40 = 80
- Total number of claimable laundry loads × reasonable cost per load = total claim amount
- 80 × $0.50 = $40
- As her total claim for laundry expenses is under $150, Joselyn doesn't have to provide written evidence of her laundry expenses. However, if asked, she will still be required to explain how she calculated her claim.
Licences, permits and cards
- You can't claim the cost of getting your initial licence, regulatory permit, cards or certificates in order to get a job. For example, a forklift licence.
- You can claim a deduction for the additional costs you incur to get or renew these expenses in order 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 of obtaining it, however you can claim the cost of renewing it during the period you are working.
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.
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, 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.
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.
- you spent the money
- how you worked out your claim.
Example: overtime meal expenses
- Engineer expenses A–F
- Engineer expenses P–S
- Engineer expenses T–W
Parking fees and tolls
- You can't claim a deduction for parking at or near a regular place of work. You also can't claim a deduction for tolls you incur for trips between your home and work. This is a private expense.
- You can claim a deduction for parking fees and tolls you incur on work-related trips.
Example: parking fees
- Lucy drives her own car to work each day and parks in the secure parking centre across the road from the civil engineering firm where she works.
- Twice a year Lucy drives her car to her employer's head office to complete mandatory training she requires for her role as a civil engineer. She pays for parking at the head office and isn't reimbursed by her employer.
- Lucy can't claim the cost she incurs for parking near her civil engineering firm, as it is her regular place of work. However, she can claim her parking costs when she travels to head office for mandatory training as she incurs the cost on a work-related trip.
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
- George is a mechanical engineer and he uses his personal mobile phone to make and receive phone calls from clients and his co-workers. He's on a set mobile plan of $59 a month.
- He receives an itemised bill from his phone provider each month, which includes details of the individual phone calls he has made.
- At least once a year, George prints out his phone bill and highlights his work-related phone calls. He also notes on the bill about who he has phoned, for example his manager and clients.
- Of the 200 phone calls made in a 4-week period, George works out that 40 (20%) of his phone calls are for work. He applies that percentage to his monthly plan amount ($59 a month).
- George worked for 46 weeks (10.6 months) of the year, so he calculates his work-related mobile phone expense deduction as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 40 ÷ 200 = 0.20 (that is 20%)
- George can claim 20% of the total bill of $59 for each month for work purposes.
- $59 × 0.20 = $11.80
- George's total expense for work-related phone calls is:
- 10.6 months × $11.80 = $125.08
Example: work and private use
- Samantha starts working as a pharmaceutical engineer in August. Samantha uses her computer and personal internet account at home to respond and action client requests. Samantha also uses her computer and internet for private purposes.
- Samantha keeps a diary for a 4-week period, recording the times she used the internet for work and private purposes. Her internet use diary shows 15% of her internet usage was for work-related activities and 85% was for private use.
- Samantha is on an unlimited internet plan, which costs her $100 per month. As her internet service provider charge for the year was $1,100 ($100 per month × 11 months) she can claim:
- $1,100 × 0.15 = $165 as work-related internet use.
- If anyone was accessing the internet connection, Samantha will need to reduce her claim to account for their use.
Protective items
- supplies the protective items
- reimburses 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 you from the real and likely risk of injury or illness in your work environment or while performing your work duties.
- To be considered protective, the equipment 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 gloves, safety glasses, goggles and breathing masks.
- For example, an electrical engineer can claim a deduction for the cost of safety glasses and leather 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
- Raymond is a civil engineer and must attend the building site to perform his duties. He must wear steel-capped boots and a hard hat when on site. If he doesn't wear these items, he is at risk of being injured.
- There is a connection between the expense he incurs on the steel-capped boots and hard hat and the protection the items provide for him during his employment.
- Raymond can claim a deduction for the cost of the steel-capped boots and hard hat.
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: relocating due to transfer
- Remy is an electrical engineer for a government department. He is currently located in Brisbane. However, his employer relocates him to the Rockhampton office. Remy can't claim a deduction for his relocation costs, rent or other living expenses.
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.
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 an employee administrative clerk for a mining company and is completing a Bachelor of Engineering.
- He is offered a trainee engineering position with the mining company on the understanding that he will continue his studies.
- Doug can't claim his study expenses while employed as an administrative clerk because the study doesn't maintain or improve the knowledge Doug requires to be an administrative clerk. However, he can claim his study expenses while employed as a trainee engineer.
Example: no sufficient connection with current role
- Danica is a qualified draftsperson at an engineering firm. She is currently completing a Bachelor of Mechanical Engineering to further her career.
- Danica can't claim a deduction for the course and associated study expenses as the course doesn't directly relate to her current employment activities as a draftsperson.
Example: maintains or improves specific skill or knowledge
- Ashran holds a Bachelor of Chemical Engineering and works as a chemical engineer in a technology firm. She decides to complete a Master of Engineering (Chemical) to extend her field of specialisation.
- Ashran can claim a deduction for the course and associated study expenses as the course enables her to maintain or improve the skills specific to her current income-producing activities as a chemical engineer.
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 engineer.
- 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: deductible seminar
- Timothy is an environmental engineer. In order to maintain his continued professional development and professional accreditation he attends a Landfill Engineering and Environmental Management seminar. Timothy pays the registration fee to attend and isn't reimbursed by his employer.
- Timothy can claim a deduction for the registration fee, as the seminar is related to his work as an environmental engineer. He takes a photo of the registration form, receipt of payment and records the expense in the myDeductions tool in the ATO app.
Example: conference expenses reimbursed
- Jenny is a robotics engineer with an automotive manufacturer. She attends the annual International Conference on Mechatronics and Robotics Engineering to ensure she is up to date on the latest innovations in her field.
- Jenny’s employer pays for her flights, accommodation and registration to attend the three-day conference. All meals are provided at the conference and are included in the registration fee.
- Jenny can't claim a deduction for these expenses as she didn't incur any of the expenses.
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 these products if you also wear them for private purposes.
Example: claiming sunglasses
- Engineer expenses A–F
- Engineer expenses G–O
- Engineer expenses T–W
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: decline in value (no immediate deduction)
- Amelia is employed as a mechanical engineer and needed a new set of 16 spanners for work. She couldn't afford the $330 cost for the complete set, so she bought them all individually over the 2024–25 income year.
- Although they only cost $22 each, Amelia can't claim an immediate deduction for the spanners. This is because they are part of a set, she bought in the 2024–25 income year that cost more than $300. Amelia can claim a deduction for the decline in value of the set, which in the end cost her $352.
- If in a following year, Amelia breaks one of the spanners and has to buy a replacement, she'll be able to claim an immediate deduction for the replacement because it won’t be part of a set she bought in that year that cost more than $300.
Example: effective life of tools
- Tony buys an electric tool set on 5 September for $1,500 and only uses it for work-related purposes.
- He visits the ATO website and looks up the ruling on the effective life of depreciating assets. The ruling says the effective life of loose electric hand tools is 5 years.
- Tony decides to use the prime cost method to work out his decline in value of the electric tool set. Tony works out that he held the tool set for 300 days during the income year and calculates his deduction for the decline in value of his tool set in this way:
- Asset cost × (days held ÷ 365) × (100% ÷ 5)
- $1,500 × (300÷ 365) × (100% ÷ 5) = $246
- Tony can claim $246 for the decline in value of his tool set in the first year. Using the same method, he will also be able to claim $300 per year in the following 4 years and $54 in the final (sixth) year.
- If Tony used the electric tool set for private purposes as well, he would have to apportion his decline in value to account for this private use.
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 work 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: living away from home allowance
- Joe is a civil engineer. He lives in the city with his family and applied for a job to work on a large construction project near a country town for 12 months. He is paid a living-away-from-home allowance by the construction company to meet his accommodation and meal costs whilst working in the country town.
- The allowance isn't income and shouldn't be shown on Joe's income statement. He can't claim a deduction for his accommodation and meal costs while living away for work.
Example: reasonable allowance amount
- it's not shown on her income statement
- it's less than the reasonable allowance amount
- she spends it all to cover her 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 from home expenses
- use one of the methods set out by us to calculate your deduction
- keep the records required for the method you choose.
- 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 to you by your employer – for example, a laptop or a phone.
- your only place of work because no other work location is provided by your employer
- used exclusively or almost exclusively for work purposes.
Example: working from home
- 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
- Engineer expenses A–F
- Engineer expenses G–O
- Engineer expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Engineers
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 engineers 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 — Engineers Guide. Last updated: 2026-03-14.